New Money

From the Bureau of Engraving & Printing to the great Federal Reserve Banks throughout the land, from the Federal Reserve Banks down to the tiniest of local banks have lately been moving hundreds of thousands of what looked like shoeboxes, neatly wrapped. But no shoes were ever so well guarded with firearms, were ever so eagerly received by bank tellers. All the boxes contained money--crisp new paper currency which the U. S. had, over a two-year period, manufactured to substitute for the bills now in circulation. For the first time in 66 years the U. S. was changing the size of its currency, simultaneously simplifying and standardizing the design. The new money became legal tender July 10.

The banks passed out the new bills in exchange for old, which, as turned in, will be shipped to Washington, checked off the books, destroyed. The old currency will continue good indefinitely. There is no compulsion beyond curiosity and convenience for citizens to hurry to their banks and make an immediate exchange.

The five types of currency (U. S. notes, gold certificates, silver certificates, Federal Reserve notes, national bank notes) are maintained. But the new bills (6 5/16 X 2 11/16 in.) are about two-thirds the size of the old (7 7/16 X 3 1/8 in.). With between four and five billion dollars of currency in circulation, the Treasury had prepared $3,640,000,000--about $30 per U. S. capita-- in new bills.

Design: All the new bills are black & green (no more "yellow-backs"). All $1 bills portray Washington, all $2s Jefferson, $5s Lincoln, $10s Hamilton, $20s Jackson, $50s Grant, $100s Franklin, $500s McKinley, $1,000s Cleveland, $5,000s Madison, $10,000s Chase.

Purpose: Economy, easier handling, prevention of counterfeiting. The Treasury's annual savings: $552,520 on paper, $120,000 on ink, $1,000,000 on labor. Average span of life of old-sized bill: eight months. The Treasury's expectation for the new bill: twelve months or more. Cost of producing each bill 7/10-c-. Time of production: 30 days. The first set of new bills went to Secretary Mellon. To the Clerk of the House of Representatives were sent 435 new $1 bills, one for each Congressman (in exchange for an old).

Many an old-sized bill will be saved as a souvenir. Many an old-sized bill has been lost or inadvertently destroyed. From past experience, Treasury officials informally estimate that the U. S. will "profit" by some $100,000,000 on the exchange.

U. S. paper money has been issued in eight different sizes. Before the Civil War these issues were only temporary, to bridge the Government over an emergency. The first non-interest-bearing notes for popular circulation came in 1861. Special issues occurred during the Civil War and in 1879 when specie payments were resumed. The sizes :

Years Inches

1775-1779 2 3/4x3 3/4

1812-1815 4 x 7 3/4

1815 3 x 6 3/4

1837-1844 4 1/8x8

1861-1929 3 1/8x7 3/8

1861-1864 3 3/8x7 5/8

1879 3 5/8x6 1/2

1929 2 11/16 x 6 5/16