Big Bills Get New Security Features
Journal article; ABA Banking Journal, Vol. 83, 1991
Journal Article Excerpt
Big bills get new security features Fifty and hundred dollar bills are starting to look a little different - new security features have been added to the the printing process because of Treasury Department concerns about counterfeiting. Only one other change has been made to the design of U.S. currency since 1929-the addition of "In God We Trust" in 1955. Counterfeiting is not considered a big problem now - seized counterfeit bills amounted to $66 million in 1990, which is a small number compared to the $70 billion in U.S. notes produced that year, or the $268 billion estimated to be in circulation worldwide. But Treasury considers the increase in color printers and copiers to be a threat to currency security. By 1994, the department estimates, there will be 1.8 million color copiers and 1.7 million color printers in U.S. offices, copy centers, and print facilities, a temptation for the casual counterfeiter. As it is, the number of counterfeits created with these machines doubled between 1988 and 1990. The new security features are already being incorporated in $100 bills and will soon be printed on $50 bills. These are the most commonly counterfeited bills. The features consist of a security thread and microprinting. The security thread is an embedded polyester strip that reads "USA 100" or "USA 50" over and over. The thread cannot be seen unless held up to a light and it cannot be reproduced by copiers. The microprinting consists of very tiny print around the bill's portrait. It reads "The United States of America" over and over and cannot be accurately duplicated by a photocopier. Other denominations will get the features over the next five years. The one dollar bill, rarely counterfeited, will probably be provided with microprinting protection. The Treasury Department looked at several other security features, including holograms, watermarks, and background color tints, but they were all found to be too fragile to withstand wear and tear, too expensive, or too difficult to incorporate in currency design. The two features adopted should not be too expensive; the increased cost per note is expected to be two-tenths of a cent (it currently costs three cents to produce a note). No money is being recalled, and it will take some time for these security features to be phased in. The average lifespan of a $50 bill is five years and the average $100 bill lives for eight-and-ahalf years. An informational package about the changes has been sent to all commercial banks. The package includes transparency masters that can be used to train tellers about the new features, traditional currency features, and specific things they should look for. It also includes a poster and brochure that explain the features; more can be ordered from the Federal Reserve at a minimal price. Also included in the package is an order form for a twelve-and-a-half minute videotape available from Vidicopy Corp., Sunnyvale, Calif., for $9.95. The tape goes over the reasons for the added security and explains all of the distinguishing features tellers should look for. Some Federal Reserve districts will soon start training sessions for member banks. Check with your local Fed. Kansas City Fed gets new president A new president took office at the Federal Reserve Bank of Kansas City on October 1. Thomas M. Hoenig, the new president, has been with the tenth district Fed for eighteen years. He replaces Roger Guffey, president since 1976. Hoenig, 44, was senior vice-president in charge of the Bank Supervision and Structure division just before his promotion. Hoenig now directs Fed activities in Colorado, Kansas, Nebraska, Oklahoma, Wyoming, western Thissouri, and northern New Thexico. These include services such as check collection and electronic funds transfer, and oversight of about 1,250 bank holding companies and 130 state-chartered banks. Hoenig also now serves on the Federal Open Market Committee, the Federal Reserve System's main policymaking body -1- |
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