What is done with Old Money?
Most of us would express views: “If they are ignorant how to deal with it, let them send it to me!” Besides this, government itself does know what should be done with it. As a matter of fact, if old moneys were not put out of circulation at a regular interval, it would have proved as a great headache and big nuisance for the planners. The economy may shatter if the torn and wrinkled paper money is not shunted out periodically.
On an average the life of a paper bill is almost one year, and in the case of dollar it is even less! The Treasury receives from banks and other sources worn and dirty bills for replacement every day. How much? The quantum of such paper money is estimated ranging between four to five tons per day!
The old money is taken out of circulation by way of cancelling it. Thereafter, the bills are completely destroyed with the help of a machine called macerator which has the capacity to destroy one million dollars per minute.
The paper money does not become worthless even if you have damaged it. If 3/5 of the note is preserved and remains intact, it can be sent to Treasury for redemption of its face value. If more than 2/5 but less than 3/5 is sent for replacement, you will get half of its face value.
The paper on which the notes are printed, is exclusively meant for the use of government. It has a mixture of linen and cotton in it. In the paper are embedded coloured fibers of silk, nylon or other synthetic material. While holding a bill up to the light, some of these fibres are visible.
United States money used to be of various sizes. From 1861 to 1928 it was 7 and 7/16 inches by 3 and 1/8 inches. But in 1928 it was made smaller and the new size is what we have today – 6 and 5/16 inches by 2 and 11/16 inches.
In United States, the Treasury Department is entrusted with the job to, get the money coined or printed. Paper money is got printed by the Bureau of Engraving and printing at Washington.