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January 199'1


News and Views
on Cash Services
for the
Eighth Federal Reserve District

Fort Worth BEP Running At Top Speed

Exceeding all expectations, the
Fort Worth Bureau of Engraving
and Printing (BEP) is now ex~
pected to print 40 percent of the
nation's currency bythe
When it opened just last spring,
the western currency facility be,
came the only currency-printing
- facility outside Washington, D.C.
Treasury officials consider the
multi-million dollar printing lo~ cation the most advanced print~~ ingfacilityofitskind. Atl9,000
square feet, the vault is the largest
in the country and second-largest
in the world.
Production of the first notes began last spring, with shipments to
Reserve Banks starting in late


$SO Note In
Federal Reserve Bank of St. Louis



bout six months ago,
bankers and the public
alike began inspecting $100
bills with curiosity-looking
for the first of new security-enhanced currency introduced
last summer. Soon, they'll be
able to watch for enhanced $50
notes as well.
Production of the series 1990
security-enhanced $50 note has
begun, with the first notes ex-

pected to be delivered to Reserve Banks next month.
The new $50 notes contain
the same security features as
the recently enhanced $1 00sa polyester security thread visible only when held to light,
and microprinting around the
portrait on the bill.
The first series of enhanced
$50 notes will bear the Federal
Reserve Bank of ew York's

Bills printed at the Fort Worth
location bear the small initials
"rW' 1 on the lower right comer
of the bill, to the right of the
Treasury seal.
The need for "more fit" notes
for use in automated teller machines was cited as one of the reasons for the second printing facility. Another was the need for a
contingency center should a
natural disaster affect the primary location.
Currently, the facility prints
only $1 notes; other denominations are expected to follow over
the next several years. Originally,
The Fort Worth BEP was projected to produce only about 25
percent of the nation's currency
by the mid-l990s.

seal. Notes for the remaining
11 Federal Reserve districts will
be produced during 1992. As
with the $100 note, the $50s
will serve as replacement notes
for unfit bills in circulation; no
recall is planned.
The remaining denominations containing the new security features, except for the $1
note, will be produced over the
next three to five years.
Federal Reserve Bank of St. Louis


Knowing The "Rules" Can Secure
Your Deliveries
safety and integrity of financial
institutions' cash transactions
with Reserve Banks. Other rule;
in the letters e;tablish conformity
to enhance processing efficiency.
Correctly preparing and securing your deposits is the key to ensuring their integrity. You'll also
help prevent delayed credits or
losses from negla;t or theft.
Listed below is a checklist for preparing secured deposits:
• Check your bag before
each shipment Make sure
there are no hole; in the bag; you
use to ship currency or food coupons. If you use plastic bag;,
make sure they can withstand the
abuse incurred during shipping.
Saving money initially by using
old, worn-out cloth bags or by
not buying the more expensive,
but more durable plastic bag;,
may cost you more in the long
run should a loss occur.
• Make sure seals are 1ight
Many bag; we receive have seals
that can be slipped off the bag.
:-::- In this case, someone could remove the seal, slip some currency
In the same way, the Fed's cash out, and put the seal back on the
offices have e;tablished some de- bag without our receiving teller
positing and receiving rule; that
noticing that someone had tamwere written for your protection.
pered with it. Take the time to
These rule; are found in the Fed's ensure your peace of mind.
• Prepare your shipment
Operating Letters No. 10 and
COtTeCtly. All currency and food
Operating Letter No. 10 concoupons should be shipped in full
tains the regulations for the repackage; of the same denominaceipt, exchange, and delivery of
tion. Make sure the straps idencoin and currency. Operating
tify your institution and the teller
Letter No. 13 contains rule; appreparing the shipment. Secure
plying to the redemption of food
10 straps of the same denominacoupons.
tion with two large rubber bands.
The Federal Reserve e;tablished Each strap should contain 100
these rule; primarily to assure the note;. -Proper packaging reduces
uckle up. Drive
55. Payyour
taxe;. We're expected to follow
. rule; every day.
Though we
might que;tion their value, we
find some rule; easier to follow
when we understand the reasons
behind them.

the time it take; us to verify your
• Make sure your deposit
slips are legible. Aro, plare
them in an envelope on the outside
of the de{n;it This, too, he!µ; simplify the verification of your dq)a;its.
In addition to securing your
shipments to the Fed, you also
play an important role in making
sure that you receive your Fed
shipments intact. Here's h2w:
• Know the "mies." Make
sure the appropriate employees at
your institution have copie; of
Operatingl.ettersNo. lOandNo.13
and are familiar with their mntents.
• Check the bag and seaJ.
Before you accept a bag of currency from an annored car company, check to see if the bag or
seal has been tampered with in
• Verify, verify, verify! Fed
shipments should be opened and
verified by two people within each
other's presence. While verifying,
check the integrity of the shrinkwrap on each bundle, and then
strap and bundle-count the
money before removing the
shrink-wrap. Each package
should be piece-verified before
you distribute the money to other
• Call us. If you find any
problems with your Fed shipment, please call your local Fed
cash office immediately.
By following these simple rule;,
you will help ensure the safety
and integrity of your cash transactions with the Fed. Remember,
the operating letters are intended
to make jobs-both yours and

Save Time, MoneyConsolidate Food
Coupon Deposits
With all the recent changes in
the Fed's food coupon program,
we recogniz.e that some lingering
confusion may exist on the recommended frequency of deposits.
It is not necessary to deposit
coupons daily. In fact, we encourage all of our customers,
particularly those with low food
coupon dollar volume, to consider depositing either weekly or
when sufficient volume warrants.
Fewer deposits translates into saving.5 from reduced preparation
time and from a decrease in
transportation costs.

The Bottom line On
Fed cash offices are now
monitoring currency flows
more closely to better track
cases of cross-shipping-when
a depository institution orders
currency from the Fed closely
followed or preceded by a shipment of the same denomination to the Fed.
Cross-shipping is tracked because it misuses the non-priced
services of the Fed's cash offices. While the Federal Reserve acts as an agent for the
Treasury in supplying currency
as growth or currency deterioration demands and in remov-

Can You Spot A Counterfeit?
ast year, the Treasury .
introduced securityenhanced currency consisting
of a polyester security thread
and microprinting around the
portrait on the bill.
But the recent enhancements
are just two additional features
that augment nine existing
counterfeit-deterrents. Can you
name them all?
0 Federal Reserve seal - The
issuing Reserve Bank's code





letter matches the letter in the
seal and first letter in the two
serial numbers: The St. Louis
Fed is in the Eighth Federal Reserve District, earning the code
H (the eighth letter of the alphabet) . Reserve otes authorized for Fed St. Louis will have
an Hin the seal and at the beginning of the serial numbec;.
@ Serial numbers - These
numbers are distinctively styled
and evenly spaced. Ink color is

. -


,uaue AND !'RIVA.TI

H 10988809 D
Federal Reserve Bank of St. Louis




ing unfit currency from circulation, Reserve Banks are not
intended to be substitutes for
bank vaults or for processing
unsorted money.
The bottom line is that crossshipping results in unneccesary
processing at the Fed and ulti:mately affects the efficiencies of
other cash services.
As always, exchanges of fit
currency between depository institutions are encouraged.
If you have any questions
about cross-shipping, call your
local cash office.

Debit Cards To
Replace Food
In three cities across the country,
food coupons are being replaced
by the electronic-benefits transfer
(EBT) system-plastic cards that
electronically credit and debit
customers' benefits accounts.
The cards offer clients security
and convenience, reduce laborintensive sorting operations at
banks, and are a better safeguard
against food coupon fraud.
While no Eighth District city
has yet been targeted as a pilot
site, the EBT system promises to
be a technology of the future in
our area.

the same as in the Treasury
seal. o two notes of the same
series and denomination have
the same serial number.
@} Border - The note's border
has fine lines and a lacy, weblike design which is distinct
and unbroken.
0 Fibers - The notes have tiny
red and blue fibers embedded
in the paper. Though not
readily apparent, they can be
seen with the naked eye.
0 Portrait - The portrait on
the face of notes is life-like and

has a screen-like background.
0 Treasury seal - The seal has
sawtooth points that are sharp,
distinct and unbroken. The
color of the seal is the same as
the serial numbers.
@ Denomination - The note's
denomination, or value, is
printed on the corners as well
as over the Treasury seal.
f3 Paper - The paper is a cotton and linen rag paper which
has a strong, pliable feel.
There are no watermarks.
0 Printing - Engraved printing gives the notes an embossed feel.
When considering the authenticity of a bill, compare a
suspect note with a genuine
note of the same denomination
and series, paying attention to
the quality of printing and to
the paper's characteristics.
Look for differences, not similarities-you may be surprised
at how "real" counterfeits can

H 10988809 D


WA.•rn1s~iTO~,l)- \


Standard Units Make Currency
Verification Easier


Post Office Box 442
St. Louis, Missouri 63166

The Cash Manager is published
semiannually by the cash departments of the Federal Reserve Bank
of St. Louis. Views expressed are
not necessarily official opinions of
the Federal Reserve System or the
Federal Reserve Bank of St. Louis.
Federal Reserve Bank of St. Louis

e were surprised. When
we decided to devote a
regular column in The Cash
Manager to our operating letters, we assumed everyone was
familiar with the Fed's operations document. But you set us
straight shortly after our first
issue was mailed-we received
a flood of inquiries asking:
"What is it?"
Operating Letter o. 10 sets
forth the terms and conditions
under which this Bank provides
coin and currency services to
depository institutions in the
Eighth Federal Reserve District.
Any institution depositing or
ordering coin or currency with
us agrees to these terms and
A copy of Operating Letter No.
10 on file in your cash department is an invaluable reference
tool. If you or your institution


would like additional copies of
the letter, please contact Anne
Guthrie at the St. Louis Fed,

the same denomination in 10
equal packages of 100 notes
Each full package must be secured by a single strap and
each strap color-coded by deClose-up: Standard
nomination according to
Fact: The St. Louis office reAmerican Bankers Association
ceives more than 1,000 bundles (ABA) standards. Each full
in currency deposits each day
bundle must be securely
and processes more than one
bound; two large rubber bands
million notes daily.
work best. (The most common
Because of the enormous vol- pr~blem in deposits is too
ume of deposits received daily at many straps and rubber bands,
the Fed, Operating Letter o. 10 i.e., 100-note packages asrequires all deposits to be in
sembled from multiple smaller
standard unit form. Standard
units are as follows:
Afinal thought to remember:
• Full Packages - 100 notes of
Apackage is 100 notes, one dethe same denomination, and
nomination, one color-coded
• Full Bundles - 1,000 notes of strap. It's that easy!