The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1932-12-09

1t Operates
By William BrzekArt
OUR CURRENCY

THERE is ample reason. in my opin-
L ion, why people generally fail TO
understand money. First, treasury fig
ures show on the basis of income
taxes that most of us have very little
of it, so little, indeed, that 1t fails to
register, and second. because the
processes of government in connection
with money are, or appear to be, some
what complicated.
Money for circulation purposes, OF
course, has its base in the Constitu-
ton. That instrument reposed certain
obligations on the treasury in this
connection, and the production and
distribution Of money constitutes one
Of the two major jobs of the treasury.
In the management of the money,
however, the treasury has the assist
ance of the Federal Reserve board and
the Federal Reserve banks. Creation
of this auxiliary agency did not come
about until recent years-some Is years
ago-and its part in money matters
may be described as incidental TO its
main purpose of aiding business. The
need for money and the case Of
handling ii, however, always have
seemed TO me to be the paramount
reasons for its existence, notwithstand-
ing what the law says about it
In the big underground vaults Of
the treasury in Washington, in equally
great vaults of several of the Federal
Reserve banks In cities like New York
and elsewhere and in the vaults OF
the assay Offices, which operate with
the United States minis, there is
vast store of gold bullion. 1t amounts
to well over S4,0O0,O000O0 in value.
That gold is the basis of our cur
rency; that is why we are said TO be
on the gold standard. Theoretically,
every dollar in paper currency that is
outstanding or sin circulation" may be
converted into gold at the demand Of
the holder of that currency. Theoret-
ically, also, the gold standard keeps
the dollar at the same value year in
and year out, but there is one school
Of thought In the country who prefer
the basis Of prices Of wheat and corn
and cotton and other commodities.
All Of the paper currency in circula-
ton is Enthusiastically printed-in
one great establishment in Washing
ton, a plant known as the bureau Of
engraving and printing. 1t prints
your postage stamps too. but money
making is its main job.
The coins that you have were pro-
dueed under the direction Of the treas
ury, also, but in the United States
minis. They strike off, the coins
from gold or silver or nickel or cop
per which is acquired and tested for
them by the assay offices, tested close
ly that each bit of metal will be OF
exactly the same purity, or fneness,
as IL is called. Whether in the minis
or in the printing bureau, almost in
conceivable scrutiny is exercised, the
most rigid management observed, and
that Is obviously necessary for II
money could be made by everybody, IL
would not be worth anything TO any
body.
The bureau of engraving and print
ton constantly, using a distinctive
paper, a paper that is hardly possible
of being counterfeited. Piles upon
piles of bills, ones, twos. f1ves, tens,
twenties and up TO 100000 are the
result. They are stored in vaults,
every bill numbered and every one &C
counted for. They are kept there for
"ageing." One might say for curing,
so they will last longer when they are
put into circulation.
To the uninitiated, this process may
seem unnecessary. To the govern
ment, however, ii means saving money
for the taxpayers. The cost Of circu-
lation, that is, the expense of printing
the money and keeping ii in circula-
ton, runs into millions each year as
you may realize when you know that
bin costs about two-thirds OF a cent
to manufacture, and there are hun
dreds of millions of them put out every
year.
An idea Of this cost is provided also
from knowledge that the average one
dollar and the five-dollar bill is fit for
circulation only about ten months.
So it behooves the treasury TO have
very good" money, as well as sound
money, and its experts are constantly
studying scientific subjects to find
ways to prolong the life of the bill.
Numerous kinds of paper have been
tried. and countless treatments have
been given the bills in the experiment
tation by the experts TO find means Of
making the life of bin last longer.
The maximum, however, seems to be
about ten months for the bills that
are in constant use ike the ones and
fives. The two-dollar bill stiIl has
superstition attaching to it, so It does
not wear out so soon
Attention might be invited in this
connection to the effect of modern
business developments on currency.
Take the gasoline filing station. for
example. The attendants have grease
on their hands, not from choice OF
course, but that grease is not con-
ducive to longer life for the bin you
hand him TO pay for your gas.
The currency distribution begins
after the bills are aged. Each bin
bears its individual number. Each
bill has TO be signed by the secretary
of the treasury and the treasurer OF
the United States. Each one is reg
istered by the register of the treasury.
Then an armored car. a regular steel
safe in itself. backs up to a guarded
door for a load of money.