The Washington herald., 1906-12-03
Mr.. VanderIip Tells How
Bills Are Kept Fresh.
a DOLLAR LASTS Is MONTHS
Nearly the Entire Force of the Bu-
FeRu of Engraving and Printing
Engaged in Renewing the supply
Of Paper MOney-Five Kinds of
Bills Are Now in Circulation.

HlAIAEA Gl W WdSilltiE ttiA al eANN Sc VI
more than Ss.009,Oo0 OF new paper money.
Every day there is destroyed practically
the same amount. The presses In the
mints at Philadelphia, New Orleans, and
San Francisco daily stamp into form
about SS0o,O00 of shining coin. We have
then a total of almost S4.O0000 new
money created every day at the money
workshops of the government
But good money cannot be had even
by great governments merely for the
making. The sources of this great stream
Of fresh bills and bright coins are care
fully guarded. They are governed by
fixed financial principles that are above
legislation. writes F. 4. Vanderlip, for
merly Assistant Secretary of the Treas
ury, in the Youths Companion, and by
laws which Congress has tried to frame
as nearly as possible In conformity with
those higher financial laws which must
ultimately govern the currency of all na-
tions.
An active printer. with the aid ot a
young girl assistant, and working on
simple handpress Of type that has hard
ly varied since the government began 70
print money or, indeed, since one OF two
centuries before, can turn out 500 sheets
of finished bills III a day, each sheet con
tanning four bills. There are $50 printers
at work in the government Bureau of
Printing and Engraving, some upon
bonds. stamps, or other forms Of govern
ment securities, but most Of them print
ing money.
Among all the interesting sights at
Washington there is perhaps none more
interesting than the intensely active Bu-
reau of Engraving and Printing. There
are 29SS employees there, whose expert
ence in handling and counting the sheets
of bank note paper and turning out the
finished bills has given them a dexterity
that is fascinating to see.
Why SO Much Printing Is Done.
OF quite as deep interest as the bureau
itself would be a study Of those princi-
pies that are back of this rushing manu-
factory principles, laws, and regulations
which govern with absolute certainty the
printing Of each piece of paper.
At first glance one piece of paper money
looks very much like another. Each is
an example Of the finest steel engraving,
more skillfully made and more difficult to
counterfeit than the notes of any other
government
There are five kinds of paper money
printed. The sort that people are most
familiar with is the silver certificate, for
almost all the one, two, and five dollar
bills are in that form. They are printed
chiefly as a matter of convenience 10 the
public for the public prefers paper money
10 the silver coin. The amount of paper
currency outstanding is between eighteen
and nineteen hundred million dollars, and
of thar amount there are about fotlT hun-
dred and sereRty million dollars in silver
certificates. and four hundred and seven
ty-seven million dollars in gold certifi-
Gates.
Although the government prints gold
and silver certificates so freely, there are
only two ways by which they may be Is
sued and become a part Of the money
stock of the country. If any person de
posits with the government gold or silver
coin, or gold bullion, the government
may issue silver certificates for the silver
coin, and gold certificates for the gold
coin or bullion: or if any one returns
worn certificates. like certificates may be
issued to replace them, the old ones in
turn being destroyed.
A dollar bin has an average life of
about fifteen months. Two dollar bills,
not being quite so actively used, last on
the average more than sixteen months.
A I'VE dollar bill lives on an average two
years before il is worn out and the gov
ernment is called upon to replace IL Ten
dollar bills last about three years, and
twenty dollar bills more than four years
Immense RedemDtiOns.
The amount of money that goes to the
government for redemption, either for the
purpose of securing fresh. clean bills or
for conversion into some other form of
money, reaches total almost too great
to comprehend. In 1904 the government
received Sgl2, 100000 of paper money % be
exchanged for new bills or bills Of some
other form or denomination
Next to the gold and silver certificates
in point Of volume are the national bank
notes. They constitute between one-fOurth
and one-third of the total amount OF the
paper money outstanding, and although
they are printed under the governments 5
supervision. their volume depends, subject
TO the provisions of the national banking
law. upon the judgment of the officers OF
the national banks of the country.
There are 1888 national banks in exist
ence and their capital forms an aggregate
Of SS0S. .32S,65S. The law provides that any
national bank may issue its notes in the
form of money TO an amount equal TO its
capital There could be, therefore, under
the provisions of the law a great many
more than the present $500 100000 of
national bank notes if the officers Of
national banks found it sufficiently profit
able 20 issue their notes in this form.
In order that this kind of money shall
be perfectly secure it has been provided
that each national bank wishing to issue
v.o4a- ,,,rrr+ EoraoSff with he Trea c144rr
amount of United States government
bonds equal to the notes which the bank
proposes to issue.
WOrn-out Bills Replaced.
Whenever the bills are worn out new
ones must be issued in their place. There
fore, whenever a new United States note
is printed ii means only that some other
note of the same kind has been worn out
and has been sent into the Treasury to
be exchanged for a new note. The Treas /
ury has no power TO issue a single dollar
Of additional United States notes It can
only exchange new ones for old ones.
There remains one more kind of money.
and that a comparatively Insignificant
amomt-the Treasury notes Of 1850. There
are less than 100000 of them now.
although ut one time there were Si55. .000 Geo.
They were issued by the government 20
Rav for silver bullion bought during the
time when the law was in force which
provided that the government should Dur
chase 4.5oo000 ounces of bullion each
month. Silver certificates have taken the
place Of the Treasury notes retired as
rapidly as the bullion was coined.
With all the activity Of the Bureau Of
Engraving and Printing it viii be seen
Aa-. Z