The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-02-07
Our Covernrnen
How Il Operates
OUR CURRENCY

/
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 Con-
stitution. That instrument reposed
certain obligations on the treasury
In this connection, and the produc-
tion and distribution Of money con-
stitutes one of the two major Jobs
of the treasury.
In the management Of the money,
however, the treasury has the as
sistance of the Federal Reserve
board and the Federal Reserve
banks. Creation of this auxiliary
agency did not come about until re-
cent years-some Is years ago-and
its part in money matters may be
described as incidental to its main
purpose of aiding business.
| 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 a vast store of gold
bullion. 1t amounts to well over
| $4,0O0,O00,0OO in value.
That gold is the basis of our cur
rency; that is why we are said to
be on the gold standard. Theo-
retically, every dollar in paper cur
rency that is outstanding or in cir
culation" may be converted into gold
at the demand of the holder of that
currency. Theoretically, also, the
gold standard keeps the dollar at
same value year in and year out,
but there is one school of thought
in the country who prefer to meas
ure the value of the dollar on the
basis Of prices of wheat 'and corn
and cotton and other commodities.
All of the paper currency in cir
culation is produced-actually print
ed-in one great establishment In
Washington, a plant known as the
bureau of engraving and printing.
| 1t prints your postage stamps, too,
but money-making is it's main job.
The coins that you have were pro-
duced under the direction of the
treasury, also, but in the United
States minis. They "strike off" the
coins from gold or silver or nickel
or copper which is acquired and
tested for them by the assay offices.
tested closely that each bit of metal
will be of exactly the same purity.
or fineness, as it is called. Whether
in the minis or In the printing bu-
reau, almost inconceivable scrutiny
is exercised, the most rigid manage
ment observed, and that is obvious.
ly necessary for If money could be
raade by everybody, 1t would not be
worth anything to anybody.
The bureau of engraving and
printing keeps its great presses In
operation constantly, using q dis
tinctive paper that is hardly pos
sible Of being counterfeited. Piles
upon piles Of bills. ones, twos, fives,
tens, twenties and up to 100000
are the result. They are stored in
vaults, every bill numbered and every
one accounted for. They are kept
there for "ageing."
To the uninitiated, this process
may seem unnecessary. To the gov
eminent, however. it means saving
money for the taxpayers. The cost
Of circulation, that Is, the expense
of printing the money and keeping
it in circulation runs into millions
each year as you may realize when
you know that a bill costs about
two-thirds Of cent to manufacture,
and there are hundreds of millions
Of them put out every year.
An idea Of this cost is provided
also from knowledge that the aver
age one-dollar and the hYe-dollar
bin 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 sub
jects TO fihd ways TO prolong the
life of the bin. Numerous kinds of
paper have been tried, and countless
treatments" have been given the
bills in the experimentation by the
experts to find means OF making the
life OF blu last longer. The max
imum, however. seems 10 be about
ten months for the bills that are in
constant use like the ones and fiyes.
The two-dollar bill still has super
stition attached to II, so II does not
wear out so soon.
Attention might be invited IN this
connection to the effect Of modern
business development on currency.
Take the gasoline filing station, for
example. The attendants have
grease on their hands, not from
choice, Of course, but that grease "a
not conducive to longer life for the
bin you hand him to pay for gas.
The currency distribution begins
after the bills are aged Each bin
bears It's individual number. Each
bill has 10 be signed by the see.
fetary Of the treasury ana the treas
urer % the United States. Each one
fs registered by the register OF the
treasury. Then an armored ear.
regular steel safe In Itself. backs I'd