Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-06
REGULATIONS Prescribed for b.
reaus for Disposing of Re-
tired Government Money.
SECRETARY CHASE'S PLAN
is RADICALLY CHANGED
Instructions Issued by Treasury
Head for the Maceration Of
Millions in Currency.

tary Chase issued the first regulations
providing for the destruction Of re-
tired obligations Of the United States
until now, when Secretary McAdoo at
| tempts the task, have those regulations
been altered. II 10 stated. although. in
the meanwhile. the entire process of
| destruction has undergone a complete
| revolution.
Seventy million pieces Of redeemed
paper currency Of face value Of
$144.21s.s2o. including q largo amount
Of fractional currency, were estroyed
by burning in the year 1856, the first
period following the issuance Of the
| Chase regulations. During the fscal
year 1915. just ended, there were ST.
S64.1ss redeemed notes Of a face val
ue Of 1854, 1S1,111 and Weighing 500
tons, destroyed by the process Of mac
GRAFTON.
Secretary McAdoo announces today
| lations for the destruction Of paper
money and securities Of the United
States that have been cancelled and
| retired. The regulations will control
age Of two tons Of worn-out currency,
numbering about 100000 pieces, and
OF face value Of 100000.
First Government Paper Money.
The government first issued paper
money in connection with the civil war
finances, and Secretary Chase's regula-
tions were based upon the act Of Con-
gress of March II. 1862, authorising the
Secretary to prescribe the method of
destroying notes unfit for circulation.
Although changes in the Treasury De-
partment's business have resulted in
cedure established by the original
regulations, Secretary Chase's order
had never been abrogated or formally
revised, but there have been many
changes in practice during the inter-
matters Of record.
By Secretary McAdoo's order today
these change are compiled and brought
up to date. with additional modifica-
IONS as safeguards to meet the condi-
tons Of the present day.
When Secretary Chase issued his
original order the governments money
and securities were printed under con-
tract. Since that day the bureAu Of en-
fraving and printing has been estab-
lished. and printing by contract aban-
doned: the national bank law enacted,
introducing q new form OF currency;
the duty Of the treasurer and register
modified. and the federal reserve sys-
form OF currency.
Methods Of Destroying Currency.
In Secretary Chase's time paper
money and securities were destroyed
by burning. Experience showed that
this was not the safest plan in connec-
ton with the destruction Of distinctive
paper, because it is difficult to burn
bundles OF money, and undestroyed
pieces may escape through the CHM
ney. For this reason the act Of juno
%, 1874, authorized the destruction by
maceration.
The destruction Of these once vaiua-
BILE bits Of paper has always been wit.
Messed by joint committees. This policy
IL continued in Secretary McAdoola
order. The destruction committee was
composed OF representatives Of the
Secretary OF the Treasury, the treas
urer Of the United States. the register
half Of the public The last named was
abolished at the last session Of Con-
gress
Under the order issued today the de-
be witnessed BY a committee composed
Of representatives of the Secretary Of
the Treasury and the treasurer OF the
United States: national bank and fed
efal reserve DAnk currency Dy ReQre.
sentatives Of the Secretary Of the
Treasury. the controller of the cur
rency, the treasurer of the United
States and the national bank or the
federal reserve bank concerned: federal
reserve notes by representatives Of the
Secretary of the Treasury and the con-
troller Of the currency; internal rev
enue stamps by representatives of the
Secretary Of the Treasury and the COM
missioner Of internal revenue; imper-
fectly printed work in the bureau Of
engraving and printing by representa-
tives Of the Secretary Of the Treasury
and the director Of tho bureau; and
interest.bearing obligations OF the
United States by representatives Of the
Secretary Of the Treasury, the register
OF the Treasury and the treasurer Of
the United States.
Checked by Each Member.
The representative Of the Secretary
on each Of these committees win act
as chairman. and each member Of the
committee will check tho money and
securities delivered. a. well ~ witness
their destruction. In tho past ono mefn-
ber Of the committee has usually veri-
ned the amount and the whole COM
mittee witnessed the destruction.
The now regulations are designed to
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