The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-02-08
THE MONEY STARTS
TO YOU


ties that "you can't get blood out of
a turnip." I believe the person who
used that expression must have OBJ
served thecontrol that is exercised as
a protection for the governments
stock Of money in the bureau of en-
craving and printing. At least, that
is the impression it made upon me.
Let us recount the steps by which
currency leaves the bureau Of en-.
craving and printing:
First, 1t is necessary that some
Federal Reserve bank or some ma
tiOnal bank must have had need for
additional currency and that it has
applied to the treasury for 1t. In
the case OF the Federal Reserve
bank, it applies to the official in its
own organization who is known as
the Federal Reserve agent who, I'M
der the law, is the federal govern
ment's representative in an other
wise private institution. He sends
the order through for currency, il
he has insufficient stocks that were
stored with him by the treasury in
advance. In the case Of the ma
tional bank, the application goes to
the treasury, for national banks OPP
crate under different laws, and it
can get the new currency only If it
puts up certain type Of govern
ment bond as security and to pro-
tect the treasury for the money it
is releasing to that bank.
Second, the proper officials of the
treasury approve the applications.
They notify the director of the bu-
reau of engraving and printing, or
some official designated by him, Of
the amount of currency to be fur
nished, the denominations and ship
ping details. He gets that order in
writing and in duplicate, one copy
of which is delivered to the men
who actually start the money in
your direction If the application
came from a bank in your town.
Third, after the order for delivery
and shipping Of the currency has
been fully executed, 1t then takes
the joint action of three men to get
that currency out Of the giant stor-
age vaults where it has been "aged."
1t has stayed there, perhaps, three
months, possibly longer, so that 1t
is "cured' and ready to stand the
tests to which 1t is subjected when
you carelessly crumple it up in your
pocketbook or fail to fold it properly,
or to meet some of the other condi-
tons of modern life.
But to get back to the three mem
who let the money get out OF its
hiding place: one Of them repre-.
sents the secretary of the treasury,
second the treasurer of the
United States, and the third repre-
sents the director Of the bureau.
Each has key. None can do any.
thing about releasing that money
alone. Each has to turn the key
in the great lock.
At last the bundles of bills, de-
scribed In the order, are counted out.
The truck, armored with steel and
with armed guards aboard, stands
| waiting with doors opening into the
cavernous interior standing ajar.
Each bundle, tied and sealed, is
transferred to the truck, whose doors
click as do the vault doors. The
truck moves toward the great
building that is the union terminal
of all railroads entering Washing
ton. Adjoining it, is the central
post office of the city. To one Of
these places is the destination Of the
truck.
In the meantime, something else
has been happening in respect to
this shipment OF currency. The prop
| er officials of the bureau and the
three-man team have made out their
reports, and they have gone to the
treasury and the Federal Reserve
board. or the treasurer of the United
States.
| II the shipment was destined for
q Federal Reserve bank, a message
goes by telegraph to that Federal
Reserve bank. It would do you no
good to see 1t, however, for it would
be wholly unintelligible. 1t is in
code of the most secret type. It
might say something about three
thousand hogs, cows and chickens
coming home with some word or
words that would tell on what rail-
read the shipment travelled and the
time of its departure from Wash.
ington.
The shipment that goes to the ma.
tional bank-Rnd let me explain
here that the national bank Is used
because there are more Of them
than state banks who have complied
with the laws respecting circulation
Of their own noteS-may carry
money that win get into your hands
In normal processes Of business
much sooner than through the Fed
eral Reserve hanks. You may cash
n check the next day after those
new bills get there, and one or more
Of them may be handed out, and
the Journey TO you has been com.
pleteSl
Shipmentsto Federal Reservebanks
may lie IN their vaults for weeks
and months before some bank in
your town has occasion to obtain
currency, from the Federal Re
serve bank OF its district. But that