The Washington times., 1915-08-06
OPENS NEW SYSTEM
TO DESTROY MONEY
Secretary Of Treasury Promu|'
gates Regulation to Dispose
Of Retired Securities.

New regulations for the destruction
Of paper money and ur'ties OF the
United States that have been Cancelled
and retired were promulgated by Secre-
tary of the Treasury McAdoo today.
This is the first formal revision Of these
instructions since the days Of Secretary
Chase, who, on March 1. 1864, issued the
first regulations for the destruction OF
retired obligations Of the United States.
During the fiscal year Of 1915, Secre-
tary McAdoo announced today, ST.364.-
1SS redeemed notes (paper money! of
nominal value Of s15n, Lii, we're de-
stroyed by ma aceration. Treasury ex-
perts estimate that these notes weighed
$50 tons. An average of 1.25o.ooo pieces
Of paper money Of a nominal valueeof
s, 100000. and Weighing almost two tons.
was destroyed daily during the year
Just closed. All Of this was worn-out
currency.
An evidence Of the great growth of
this work since the days Of the civil
war Is given by a comparison with the
figures for the fiscal year 1865. when
7,000.O00 pieces Of redeemed currency.
Of face value Of 3l44. .2l992o was de-
stroyed.
Issue For Civil War.
The first paper money was issued by
the Government in connection with the
civil war, and Secretary Chase's regula-
tions were based upon the act of
March II. 1862. authorizing the secre-
tAry to prescribe. the methods Of de-
stroying notes UNIT for circulation.
In Secretary Chase's time the paper
money and securities were destroyed by
burning: Experiences showed that this
NJ hn 70 ,v0 In oVIV Inn
with the destruction of distinctive paper.
because 1t was found difficult to burn
big bundles Of money. and undestroyed
Hc pieces were tso ,t,,,naa in danger Of escaping
the act of June q. 1874. authorized the
destruction by maceration.
Although changes In the Treasury
Departments business have resulted in
cedure established by the original regu-
lations, Secretary Chase's order has
never been abrogated or formally re-
vised. though there have been many
changes in practice
Additional notifications as safeguards
to meet the conditions OF the present
day are made in Secretary McAdoos
order today. When Secretary Chase is-
ment's money and securities were
printed under contract. Since that day
the Bureau Of Engraving and Printing
has been established, and printing by
law enacted, introducing new form
OF currency: the duty Of the Treasurer
and Register have been modified; and
the Federal reserve system inauRu-
rency.
Watched BY Committee.
The destruction Of these once valuable
bits Of paper has always been witnessed
by joint committee. The destruction
committee was composed of representa-
tives of the Secretary Of the Treasury,
the Treasurer of the United States. the
Register OF the Treasury. and witness
on behalf of the public. This last
named position was abolished at the last
session Of Congress.
Under today's order the destruction Of
United States currency will be Witnessed
by a committee composed of representa-
tives of the Secretary of the Treasury
and the Treasurer; national bank and
Federal reserve bank currency BY repre-
sentatives of the Secretary of the Treas
ury and the national bank or Federal
reserve bank concerned; Federal reserve
notes by representatives of the Secre-
tary and the Comptroller of the Cur
rency; internal revenue stamps by rep
resentatives Of the Secretary and the
,nts. commissioner Of Int. internal IA revenue i'm m:
representatives of the Secretary and
director OF the bureau; and interest
bearing obligations by representatives
Of the Secretary. the Register. and the
Treasurer.
Each member OF the committee will
check the money and securities de-
livered as we'll as witness their destruc-
ton. In the past one member of the
committee has usually verified the
amount and the whole committee wit
, messed the destruction. Greater safe
guards will be thrown around the de,
struction Of money under the new regu-
lations. .....