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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~ ney for Sale: Uncut Version Treasurer and Bureau of Engraving and Printing Sell Uncut U.S. Currency by Tom Diaz ro visit th e Federal Reserve Banks ar a rate of three per yea r. Their last visit prior to Boston was a successful rumour at the Atlanta Fed in March 1997. For the currency connoisseur, most of the uncut bills were Federal Reserve Bank of Boston issues. Boston Fed issues carry the capital letter A (for Boston, the First Discricr) and the number 1. (Each ofche 12 Federal Reserve Districts i identified by its ow n In late Nm·ember, a long line of people waited letter and number -A through Land 1 through 12.) in the audito rium of the Federa l Reserve Bank of Bue don ' t expect to pay face va lue fo r the Bo ton. Hanging on the wall was a banner emb la- uncut sheers. A sheet of four uncut dollar bills wi ll zoned with the statement, "We make money the old cost you $ 11.50. The markup helps cover the Bureau fashioned way, we print ir." The m·e might have of Engraving and Printing's overh ead and produc- referred either to a bunch of co unterfeite rs or to the tion costs. U.S. Bureau of Engraving and Printing. With the For some of the buyers, the uncut sheers wi ll be appearance of .S. Treasurer ~lary Ellen Withrow, it used as gifts for Christmas, birthdays, graduations, was safe to assume it was the Bureau. weddings, and other occas ions, especiall y for that The Bureau of Engraving and Printing (BEP) hard-to-buy-for person. Others will use them as cus- set up shop at the Federal Reserve Bank of Boston for tomer incenti ves and, of course, many simply wa nt to a rwo-daY sale of sheers of uncut genuine currency. add them to their collection . Bur those who rea lly ccording to the Bureau's Mary I lalsall, the BEP tries wa nt to show off will wrap their gifts in uncut cu r- Treasurer Wrthrow autographs a sheet of uncut currency. photo by Brenda Salyer, FRB Boston rency or maybe even use the sheers to wallpaper a favo rite room. A typ ical buyer at the ovember sale in Boston was Coleen Benson, an employee at the Boston Fed. " I bought two secs of $ ! sheets and one $5 sheet. The $5 s heer was a Ch ristmas gift for my grandfather. Watching him open his gift and reading the personal note from Treasurer Withrow wishing him a Merry C hristm as was priceless. Ir was the perfect gift fo r my hard-to-buy-for grandfather. I le has ir hanging above the fireplace. " Will th e un cut sheers inc rease in va lue? Perhaps. The $ 1 bil l may actually be worth mo re to collectors if the Treasury even rually discontinues th e paper dollar in favo r of a dollar coin. The reasoning behind rep lacing the dollar bills with coins is cost. The dollar bill is the most widely produced and qu ickly replaced bill, with a life of abou t 17 months, The Ledger • Spring I 998 I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Students from Peirce Elementary School, Arlington, MA, make a presentation to Treasurer Withrow. photo by Brenda Salyer, FRB Boston whereas coins can last about thirty yea rs. Almost half How to Buy Uncut Currency of all the currency printed in fi scal 1996- over four If you were not able to attend the sale, you can order uncut currency by writing to: ready printed on every bill, people waited in long lines billion notes - was in $1 bill denominations. Eve n though the Treas ure r's signat ure is al- to get her signature again, but this time, in person. On the first day, Treasurer Mary Elle n Withrow U.S. Bureau of Engraving and Printing Mail Order Sales, Room 515 M 14th and C Streets, SW Washington, D.C., 20028 or by calling 1202) 874-3316 (7:30 a.m. to 4:00 p.m., Monday-Friday). autograp hed as many uncut sheets as time allowed. T he bestselle r over the rwo days was the sheer of four $2 notes, mainly for the uniqueness and the scarci ty of the Jefferson bil l. " Ie's a bill you don ' t see every day. I didn't even know they still made them," Sheet of: 4 $1 16 $1 32 $1 4 $2 16 $2 32 $2 =$ =$ =$ notes notes notes notes= notes= notes= 11.50 25.00 44.00 $ 16.00 $ 42.00 $ 79.00 responded a buyer. Others bought the $2 sheets because "it's the most attract ive of the bills," referring to the portrait of the sign ing of the Declaration of Independence on the back. Other top se llers we re the sheers of four and sixteen $1 notes. President C linton appo inted Ms. Withrow as the 40th Treasurer of United Stares in 1994. As Treasurer, she is responsible for the operat ions of 4 16 32 $5 notes = $ 33.00 $5 notes = $101.00 $5 notes = $190.00 both the U.S. Mint and the BEP. Treasurer Withrow holds the distinction of being the first person to have he ld the post of Treasurer at all three levels of governmen t - local, stare, and national. "Are We Going to Study Money Today?" Fifth Graders at Davis Thayer School Always Hope the Answer is "Yes!" Walk into the customer waiting area of any bro- multiple intelligence is not intended as a substitute kerage house and ask the circle of savvy tickertape for traditional methods of teaching. Rather, it offers watchers if they understand how the Federal Reserve teachers a wider range of options fo r conveying mate- works. Some do, and some don't. rial, assessing competence, and e nsuring that no stu- Bur walk into Ms. Rena Heleniak's fifth-grade dent gets left behind. class at the Davis Thayer Elementary School in Being inclusive and using every resou rce to the Franklin, Massachusetts and every one of her fullest are traits that Ms. Heleniak applies to every students can tell you who Alan Greenspan is and what aspect of her work. She recognizes how important it the Federal Reserve does. Thar's just for starters. The is to involve as many people as possible in the educa- kids also know about the FDIC, savings accounts, tional process and to acknowledge the efforts of checking accounts, cred it cards, and "smart" cards. everyone who shares in a successful outcome. They even learn how to prepare a budget. "Buildi ng bridges between community and school" Are they budding financial geniuses in an exclusive academy? is a theme she often repeats. ot at all. The kids are everyday She and her school have forged a particularly fifth graders, who attend an excellent public school successful relationship with a local financ ial institu- staffed by talented teachers like Rena Heleniak. tion - Dean Cooperative Bank. T he bank and the Ms. Heleniak has a gift for making even the most challenging subjects come alive for her students, but she has a special flair for economics. "If you pre- A Good Teacher Can Make All the Difference sent it the righ t way, yo u can teach economics to anyone and everyone," says the 12-year teacher who Alice Rivlin is Vice Chairman of the Board of still has all the enthusiasm of someone who just Governors of the Federal Reserve System. Donald started reaching last September. Kohn is the Director of the Board's Division of One of the keys to her success is that she knows Monetary Policy. Al Broaddus is President of the "you have to keep learning yourself." She expands Federal Reserve Bank of Richmond. Last year they her knowledge by attending teacher workshops at the all served as judges for Fed Challenge, a national Center for Economic Education at Bridgewater Stare competition for high school students. College (see listing under Educators' Update), and she recen rly completed a summer enrichment course at Anna Maria College on multiple intelligence, an educational theory based on the premise that kids learn in different ways- linguistic, mathematical , musical, kinesthetic, visual/spatial, interpersonal, and intrapersonal. Ms. Heleniak notes that alt hough classroom teaching traditionally has focused on the linguistic and mathematical channels for conveying subject material and assessing competence, some people learn better A more distinguished panel of judges would have been hard to find. Financial markets hang on their every word.Yet perhaps nothing was more impressive or more moving than what they said during their introductory remarks to student contestants at the 1997 Fed Challenge finals. Each of them, in one form or another, expressed the same sentiment: I hadn't started out as an economics major, but one special teacher captured my imagination and helped me to see that economics offers a fascinating vehicle for looking at how the world works. with the aid of music, physical movement, pictures, or rhyming language. (Think about it. Without "Thirty That's what good teachers can do. Their voices stay days hath September," how would anyone remember the with you for life. number of days in each month?) She emphasizes that https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Ledger • Spring I 998 3 is one of t hose e nlightened and supportive administrators who foster excellence in a school. "Our goal is to provide leaders, to make our students the best and the brightest," declares Ms. Wi les. "Expectations are high and standards are high, but the students rise to the occasion. " O ne way to accomplish that goal, according to Ms. Wi les, is to seize every opportunity to make a connection between school subject matter and real life applications. To make t he point, she cells the story of how school secretary Sheryl Brown once conducted a checkwriting mini-lesson on the school's playground. Ms. Brown was waiting for one of the teac he rs to write a check fo r t he school Christmas party, and as the teacher wrote, students gathered round to watch. When they started asking questions, Ms. Brown took the opportuni ty to explai n the basics of checkwriring. Making the connection between schoolwork and real li fe ap plications is also one of Rena Heleniak's strengths. Every night she programs her VCR to record C N Newsroom for Kids, which comes on at 4:30 a.m. (That's why they all know who Alan Ms. Heleniak (center) is surrounded by young economists. photo by Bob Jabaily, FRB of Boston school are partne rs in a variety of activities including an in-school savings program. Parent volunteers col- effective activity is Barter Day. Everyone brings lect student deposits twice a week in the classroom. something from home, and the kids trade. Not sur- Dean Cooperative also sponsors a yea rly essay contest: " [fl Were a Millionaire fora Day." First-place Spring 1998 • The Ledger Like every gifted teacher, Ms. Heleniak is always on the lookout for new teaching materials, and chauffeured to the bank, where they go on tour and she de lights in showing visitors her stash of props, have lunch with the president. In addition, they get which includes a Bureau of Engraving and Printing to keep the interest earned in one day on one million T-shirt t hat she dons when talking about money. dollars, and they receive a framed passbook that "You can' t just read something boring to them," she shows they once had a million dollars in the bank. says. "They can't see the picture in their heads unless you make things come alive." partnership with Dean Cooperative, Ms. Heleniak T he carryover into dai ly life is one of the things nominated the bank for the 1997 Chamber of char kind led her interest in economics. She believes Commerce Award, which it won. She also makes a strongly t hat, "Economics is a life skill. Ir's what you point of mentioning how much she apprecia tes the need your whole li fe." support of parent volunteers who help with the school 4 prisingly, cookies are always in great demand. win ners are picked up at school by a limousine and As a meas ure of how much she values the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Greenspan is.) Another less cerebral, but equally Ms. Heleniak acknowledges that teachers, savings program, and she is quick to credit the particu larly at the e lementary school level, might be principal and staff of Davis Thayer School with a little appre hensive about tackling economics. creating a climate char enables students to reach their There are always concerns over where to start and full potential. where to find materials. But she is quick to offer Thar's not just idle praise. The parents of Davis encouragement: "You can be creative. You just need Thayer's tudents take a keen inte rest in the educa- to chink about it. And if you' re innovative, the kids tion of their children, and Principal Mary Jane Wi les will respond enthusias tically." Let's Learn Economics! There Are Many Ways to Teach Economics by &na Heleniak, Davis Thayer Elementary School, Franklin, Afassachusftts With economics now appearing as one of the visual/spatial, interpersonal, and intrapersonal. It's strands in the Massachusetts Social Studies Frame- just a matter of finding what works best for a partic- works, it i important for all teachers to be aware of ular student. interesting and exciting ways to integrate economics By tapping into the references and programs into their curriculum. Educators are in agreement that are now readily available, teachers can success- that economic literacy is necessary for students fully offer lessons in economics to students at any age to fulfill lifelong roles as consumers, producers, and level, and the students will respond enthusiastically. citizens. As my students enter the classroom in the morning Pupils in all grades clearly display one economic theory of money- how to spend it. With that in mind, they ask, "Are we going to study money today?" And, of course, the answer is yes! I accepted the challenge of creating a curriculum within my fifth grade classroom that would connect economics to language arts, math, science, social studies, readjng, music, and art. Utilizing programs such as Savings Makes "Cents" (Office of the Massachusetts State Treasurer), Save for America (U.S. Department of Education), and Tire Money Story (U.S. Mint), all of which offer sample lessons, I enthusiastically set out to create my economics unit. I also discovered that the Federal Reserve had a wealth of free resources available, as did the Center for Economic Education at Bridgewater State College, which offered free workshops and complimentary materials. (Editor's ote: See Educators' Update for a listing of the Economic Education Councils in ew England.) In my planning I was able to incorporate economics into all of the disciplines taught in my classroom. I could teach reading through the Tale of King Midas, science through shining an old penny, probability through tossing a coin and recording the results, and social studies through a study of the U.S. Mint. Because our school is a partner in a wonderful banking program with Dean Cooperative Bank in Franklin, Massachusetts, our students enjoy an opportunity to bank within theirown school each week. RESOURCES The Money Story United States Mint Phone: (202) 283-2646 ask for Product #C 19 Save for America 4095 173rd Place, SE Bellevue, WA 98008 Phone: (425) 746-0331 Web address: www.schoolsavings.com Savings Makes "Cents" attn: Lori Ford Office of the State Treasurer State House - Room 227 Boston, MA 02133 Phone: (617) 367-6900 Ir you "ou Id Ii kc to rccci, c a free copy of ~b . 1kkniak\ lesson plans on understanding check\\ ricing and sa\'ings al-cou11ts . "rite to: Bob Jabaily, Editor The Ledger Public and Community Affairs Department Federal Reserve Bank of Boston P.O. Box 2076 Boston, MA 02106-2076 It provides a hands-on learning experience to reinforce our classroom work in economics. I have successfully integrated multipleintelligence approaches to learning in to checking and savings units. Students learn in a variety of different ways - linguistic, mathematical, musical, kinesthetic, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The I.edger • Spnng I 998 5 Spring I 998 • The Ledger https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Teacher Training in Economics Gets Strong Support in Rhode Island A white, hip roof colonial house at the west end Rhode Island's 36 school di stri cts - 80 percent of of the campus of Rhode Island College serves as the state's public school enrollment-as well as with headquarters for the College's Center for Economic many of the parochial and independent schools. Education and the Rhode Island Counci l on They have no formal support staff. They answer Economic Education. From thi s base, Counci l their own phones, do their own photocopying, pour President Jeffrey Blais and Center Director Peter their own coffee. Moore work with classroom teachers and school Dr. Jeffrey Blais, who is also an associate pro- administrators throughout the Ocean State in a fessor of economics at Rhode Island College, has been collaborative effort to foster economic education. presi de nt of the Rhode Island Council since 1986. T he Rhode Island Coun ci l on Econom ic His involvement in economic education is broad and Education and the Rhode Island College Center for deep. Before coming to Rhode Island , he was director of the Center for Econom ic Economic Education are affil- Jeffrey Blais and Peter iates of EconomicsAmeri ca, a Pittsburgh. Unde r his guid- nationwide network of state economic education councils Moore team up to work and more than 260 universitybased economic ed ucation is the with 23 of Rhode Island's 36 school districts - 80 America network. Dr. Peter Moore has been involved, "off and on," with the profit partnership ofleaders in and Council s in the Economics- percent of the state's Economic Edu cation, a non- business, tinued to thrive and remains one of the most effective ational Cou ncil on education, ance, the Rhode Council on Economic Education has con- centers. The umbrella organization for EconomicsAmerica Ed ucation at the Un iversity of public school enrollment for Economic Ed ucation since labor, devoted to helping students at all grade levels as well as with many of day one. He was co-founder and director of the Center learn to think and function in a changing global economy. Rh ode Island College Center the parochial and when it opened its doors in independent schools. econom ic education are widely 1968, and his contributions to No Fancy Trappings Econ om icsAmerica recogn ized in national circles. pursues its mission by focusing its efforts on teacher At its 1997 ann ual meeting in Indianapolis, the training. Each year, the network of state counci ls and ational Counci l on Economic Education presented economic edu cation centers conducts workshops, him with the Bessie B. Moore National ServiceAward grad uate- level courses, and in-service training fo r for providing service to the economic education ne t- more than 120,000 teachers across the United States. work around the country. (Peter never mentions the The teache rs, in turn, deliver more e ffective award first, but if someone else brings it up, he is quick economic education to over 7 million students. This to note with a smile that Bessie Moore is NOT a network is the largest nongovernmental teacher relative.) training organ ization in the world. The state councils and cente rs manage to do Serving Grades K-12 all this without lavish spending, large staffs, or fancy Alt hough most people might think of eco- trappings. Rhode Island is a prime example. Jeffrey nomics as a pre-college course for high school juniors Blais and Peter Moore team up to work with 23 of or seniors, Jeff and Peter believe that economic education is most effective wit h an integrated pro- Economics will stimulate teacher demand for eco- gram for grades K through 12, combined with a cap- nom ic education across the board. The Standards in- stone economics cou rse for high school students. clude benchmarks for grades 4, 8, and 12. Peter notes that elementary school teachers are an extremely receptive audience: "They come to us Using Technology and say 'I don't know economics. Teach me every- The Rhode Island Council and the Center have thing you can. "' In recent yea rs, more than 150 been quick to recognize that technology has the elementary school teachers have enrolled in t he potential to draw more teachers to economic educa- Rhode Island Center's Satu rday program on tion courses. Peter Moore, who has been a member YESS!/Mini-Society, a 10-week classroom simulation of the National Association of Economic Educators' in which students in grades 4 to 6 design and develop Technology Committee since 1994, notes: "Many of their own society and, in the process, experience eco- the teachers have computers at home. They know nomic concepts ranging from supply and demand to how to use them. T hey're looking for ideas on using the importance of e ntrepreneurship. Conducting technology to teach." In fact, they are so interested classes on a Saturday might not appeal to most that the Rhode Island Center had to turn teachers people, but Jeff and Peter are excited over the away from three technology workshops held in prospect of helping fourth- , fifth-, and sixth-grade October and teachers bolste r their knowledge of prices, costs, mar- lighted Net Newsline, which offers online economics kets, and how the market system works. ovember 1997. The workshops high- lessons for grades K to 12, and CyberTeach Guide, a Indeed, enthusiasm fo r economic education is guide to using existing online lessons and creating strong at all grade levels, and it shows no signs of original lessons. Teachers seemed to be most abating. Jeff and Peter predict that the recent intro- impressed, says Peter, by the broad range of online ational Content Standards in resources and by the Web conferencing aspects of the duction ofVoluntary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The I.edger • Spring 1998 7 Maine Council on Economic Education University of Southern Maine P.O. Box 9715-159 Portland, ME 04104 Phone: (2071 780-5926 Economic Education Council of Massachusetts Bridgewater State College Bridgewater, MA 02325 Phone: (508) 279-6125 For a description of the full array of workshops, courses, resources, and services available through the Rhode Island Council on Economic Education and the Rhode Island College Center for Economic Education, visit their Web site at http:/ /www.ric.edu/eced. The Council and Center can also be reached by mail, phone, or fax at: To find out more about the full range of economic education resources available through NCEE and its EconomicsAmerica affiliate, contact the Economic Education Council in your state . In the New England region, Connecticut, Maine, Massachusetts, and Rhode Island have active and thriving Economic Education Councils and Centers. Rhode Island Council on Economic Education Rhode Island College Providence, RI 02908 Phone: (4011 456-8037 Fax: (4011 456-8851 e-mail jblais@grog.ric.edu e-mail pmoore@grog.ric.edu Spring I998 • The Ledger Digitized for 8FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Connecticut Council on Economic Education c/o Economic Education Center University of Connecticut at Avery Point 1084 Shennecosset Road Groton, CT 06340 Phone: (860) 405-9215 Rhode Island Council on Economic Education Rhode Island College Providence, RI 02908 Phone: (401) 456-8037 The Economic Education Council in your state will be able to put you in touch with the nearest Economic Education Center. If you live outside New England and would like to find out the address of the Economic Education Council in your state, please contact: EconomicsAmerica National Council on Economic Education 1140 Avenue of the Americas New York, NY 10036 Phone: 1-800-338-1192 Internet. And he emphasizes that the Internet is accomplishments. This year they undertook a major most effective as a resource when teachers use an effort to recruit more school superintendents and activity-based approach that "gives students a reason classroom teachers for the Rhode Island Council's to do something and gives them something to find." Board of Trustees. These and other workshops offered through the They have also decided to put their program Center are made possible through the strong support and their convictions to the "market test." Each received from many quarters, including Rhode Island school district served by the Rhode Island Counci l companies and individuals, national foundations, and Center is being asked to pay a modest annual af- and Rhode Island College. College President John filiation fee based on the number of buildings and the Nazarian has been a staunch supporter, as has the size of the district. Jeff and Peter believe the fee "will College's Department of Economics and Finance, make for an even stronger commitment on the part which houses the Center. of most districts and will serve as a means for allocating Council and Center resources to those who are True Economists Anothe r reason that the Council and Center have continued to flourish is that neither Jeff nor Peter has been content to stand pat or bask in past willing to pay for them." Spoken like true economists. EDUCATORS' Ever wonder why so many teachers regard economics with varying degrees of fear and trepidation ? Here's part of the reason: P =f(l,C,F) - ,.- • 93 F) . = A(/ -e'° L)(l -e'°sc)(l 5 Or maybe the answer lies in titles such as this one from a journal of economic research: The Identification of Structural Vector Autoregressio11s. The specialized language of economics may make it easier for economises to communicate with one another, but like all ocher professional patois, it can intimidate nonprofessionals. An enigmatic equation or a jargon-packed sentence is sometimes all it takes co dissuade an already overburdened teacher from introducing economics to the classroom. And mastering chat's the unfortunate basics need because not be intimidating. The greatest challenges a teacher will face are identifying the major UPDATE Fundamental Economic Concepts 1. Scarcity 2. Opportunity Cost and Trade-offs 3. Productivity 4. Economic Systems 5. Economic Institutions 6. Exchange, Money, and Interdependence Microeconomic Concepts 7. Markets and Prices 8. Supply and Demand 9. Competition and Market Structure 10. Income Distribution 11. Market Failures 12. The Role of Government Macroeconomic Concepts 13. Gross National Product/Gross Domestic Product 14. Aggregate Supply 15. Aggregate Demand 16. Unemployment 17. Inflation and Deflation 18. Monetary Policy 19. Fiscal Policy International Economic Concepts 20. Absolute and Comparative Advantage and Barriers to Trade 21. Exchange Rates and the Balance of Payments 22. International Aspects of Growth and Stability concepts and finding enough time in the how central it is to the canon of economic thought. Leonard Silk, author of Economics in Plain English, gees to the heart of the matter with an admirable economy of words." [T] he economist sees scarcity around him everywhere, everyday, in little things as well as big - in the strain on family budgets, in people's conflicting wants for more income and less work," writes Silk. "Scarcity is really what economics is all about. Scarcity and choice." Here is the basic problem: We live in a world of limited resources. There's a gap between what people wane and the level of resources available to satisfy those wants. That's all there is to it. Yet such a simple concept is at the heart of many complex economic questions. What is the best way to allocate a scarce resource? By price? By seniority? By lottery? By need? Is there only one method of allocation suited to every possible scarce resource? For Mose people who grow up in a market example, tickets to a hit show are scarce. The The National Council for Economic economy seem to have an intuitive sense of accepted way of allocating them is by price. Education had these concerns in mind when what the concepts mean. Any kid who has If you are willing to pay $70 or $100 or even it developed A Framework/or Teaching Basic ever thought of opening a lemonade stand more, you can gee your hands on one of the Economic Concepts. Although it might not probably has a gut-level understanding of the scarce tickets. The choice is yours. You can buy the tickets or not. day to cover chem. solve teachers' chronic time shortage, the concept behind "opportunity cost and trade- Framework goes a long way cowards helping offs," but even many adults may not be But what if we are cal king about medi- teachers focus on the economic fundamen- familiar with the actual terms. In an effort to cine? Suppose there's a new medicine on the tals their students need in order to better help remedy the situation, each upcoming market chat will arrest the progress of a killer understand the business of everyday life. issue of The Ledger will carry a short piece on disease, but a six-month supply costs more The team of educators and teachers one of the concepts from A Framework for than most people earn in a year. Is it "right" that wrote the Framework developed the Teaching Basic Economic Concepts. This issue to allocate the medicine by price, so chat only following sec of fundamental economic con- looks at Concept 1, Scarcity. the wealthy will have access to ic?Where's the choice in that? I e's not the same as choosing cepts for use at the high school level. The concepts were lacer incorporated into the Voluntary National Content Standards in Economics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Scarcity "Scarcity" is a simple concept. In fact it's so simple chat there's a tendency to forget to do without expensive theater tickets. These questions, and so many others, stem from the concept of scarcity. The Ledcer • Spring I 998 9 I PAGE HOME A Treasury Chest on the Web by Tom Diaz When it comes co economic educa- menc. Also available are background infor- http ://www.ustreas.gov/creasury/bureaus/. mation on the U.S. Secret Service, the U.S. Currency copycats: This section, Mine, and everyone's favorite topic, taxes entitled "Know Your Money," contains in- and why we pay chem. formation from the Secret Service, the same Treasury's virtual tour: Take a cour federal agency in charge of protecting t he of the majestic Treasury Building, the same President. You can building on the back of the $ 10 bi ll , right play the role of an from the comfort of your own computer. aspiring Secret tion, there are many resources on the World You can view restored rooms filled with Service Agent Wide Web for educators, students, and par- history such as the Secretary Salmon by ents. A good source of information on U.S. Chase Suite, the Andrew Johnson Suire, about currency and other money-related is- and the Cash Room. The learning the cypes of coun- .S. Department of the Treasury historical archives has Treasury (http://www.uscreas.gov). photos and information on the con- co look for, the char- The Treasury Kid 's Page struction of the Treasury building, acteristics ofgenuine currency, sues is the (http://www.ustreas.gov/trea- Treasury and Justice Department sury/kids/) may be a useful cool paintings, and other interesting his- for students co learn about management of our country's and how to guard against counterfeiting. Working like a dog: A refreshing little item included on the Kid's Page is the torical artifacts. •- terfeit currency Under the Treasury umbrella: li nk co the .S. Customs Service "Dog of money resources if it is incorporated into a The web page carries information on the bu- the Month. " The web site showcases these curriculum on economic education or his- reaus and offices that fall under the canine cops who receive recognition for their tory education. Students can use the Treasury Department's control - the hard work in discovering and seizing illegal Treasury Page co research ass ignments or Internal Revenue Service, the Bureau of drugs. The Dog of the Month is displayed projects, co find answers co trivia questions, Engraving and Printing, the .S. Mint, the in baseball card format with a portrait ofche co compete in an Internee scavenger hunt, Bureau of Public Debt, and dog on one side of the card and or just co enjoy the money march game. The the Financial Management on the other side, a listing of the Treasury web site entertains as it informs Services, co name a few. dog's viral statistics, his scats for visitors about the department itself and about U.S. currency and coins. The Kid's Page has a fuzzy tour guide Did you know chat a drug buses, seizures leading co number of the law enforce- arrests, and the value of the drugs ment bureaus are also part of the seized. Doc, a mixed Brittany in Trez, the unofficial cat of the U.S. Treasury Treasury who helps visitors navigate the Bureau of Alcohol, Tobacco, and page. Although the Kid's Page has some of Firearms, the Federal Law the same links as the main web site, it has a Enforcement Training Center, few special features: the U.S. Customs Service, and I I the U.S. Secret Service are all part for the kids. le is a drag and drop Treasury history: The history section has an online brochure on the Treasury, Department? The of the Treasury Department. with general information about the origin, The Treasury provides links co all its organization, and functions of the Depart- bureaus from the Treasury's main web site: • The ledger IO Spring I 998 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 Spaniel, has seized narcotics worth more than $18 million in his career. Give chat dog a raise! Come on down! The Treasury has an interactive game arrangement challenging students co match historical figures co the corresponding continued on page 12 To make matters wo rse, the little old lady sitting in the seat next to you paid $450 fo r her ti cket. She's fl ying to the same city, sitting in the same size seat, and eating th e same foo d you are, bu t she was ab le to plan her trip around a Saturday night scayove r in Indianapolis. Anyo ne who has bought an ai rl ine ticke t in recent years kn ows chat planning a Satu rday night scayover an d purchas ing the ti cke t in adva nce can lower the airfa re con- / Economics 0 siderably. Bue why? Airfa re p ri cing stru ctures may seem illogical in many ways, but it's really a qu estion of bas ic supply and demand. An airline ticke t is similar to any oth er commodi ty. Le t 's compare pu mpkins and plane This is the first in what we hope will be a continuing series of questi ons and answers about economics in everyday life. Anyone can submit a question - stude nts, teache rs, anyone. And the question doesn' t need to be complicated. Send your questions about everyday economics to: Robert Jabaily, Editor The Ledger Public and Community Affairs Federal Reserve Bank of Boston P.O. Box 2076 Boston, MA 02106-2076 E-mail: robert.jabaily@bos.frb.org Fax: (6171 973-3511 Why are airfares so much cheaper when there's a Saturday stayover? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mand cop pri ce du ring the weeks leadi ng up co H alloween. Bue if th e re are still lots of pumpkins sitting around the produce stan d on Octobe r 29, the vendors will scare co cue th eir prices in an effo rt co move th e unso ld jack-o- lante rns-co-be. Afte r H alloween, the Sitt ing in the airport departure lounge, unsold pum pkins will turn mushy, and the you' re congra tulating yourself fo r fin all y opportuni ty co sell them will be lost. They findin g the ne rve to chuck it all , qui t your will be "spoiled goods." job, and fl y around the wo rld . T he round - The "spoiled goods" concept also the-worl d ticke t cost less th an you thought applies to ai rplane sears. If a je tline r takes - $2500 - and the re was none of that silli- off half full , the unsold seats are, fo r all in- ness about a Saturday ni ght srayove r. Ah! tents and purposes, "spoiled goods." Afte r Think of the adventure, the rom ance, th e th e plane is in th e air, the opportuni ty co sell surprises. empty seats is go ne. Bali , Darjeeling, Mauritius, Nairobi , Dakar, Rio - just saying th e wo rds In return for your questions, we'll send you a bag of genuine shredded money! (Try to contain your excitement.) ri cke ts. A nice looking pumpkin will com- brings a smile of anticipati on to yo ur lips. And unlike pu mp kin ve ndors, airl ines would have a m uch coughe r t ime cutting Snap out of it! You're not going around ticke t prices one or two days before a sched- th e world. You're waiting to board a fli ght uled departure. Some of them offer a type for Indianapolis, whe re you'll try to smooth of las t min ute discounting whe n th ey sell th e ruffled feathers of a very important and stand-by ti cke ts, but very few business trav- very de manding clie nt. You just found out elers can wait around an airport hoping to get about the trip yes te rday, so yo u couldn ' t such a seat. Nor do business trave le rs ofte n take adva ntage of a discounted airfa re. T he have the lu xury of plann ing their tri ps far in full-price, round t ri p ti cke t in your hand cost advance. T here are always urgent meetings $ 1200- almost half t he price of that rou nd- "on the Coast" or one-day sales meetings in the-worl d ticke t you we re fantas izing about. C hicago or meet ings th at have co be And that's coach, not first class. reschedul ed fo r one reason or anoth er, and continued on page 12 The Ledger • Spring I 998 II Treasury Chest on the Web continued from page 10 A Question of Economics continued from page 11 these things almost always happen at the elers are subsidizing leisure traveler . But last minute. airlines counter by saying that without the Yes, I have a Chia Pet: Looking for In short, business travelers requi re a le isure traveler, the business travele r wou ld an unusual gift fo r someone who has every- high degree of fl exibi lity, and they e nd up be paying even more. They maintain that thing or is just plain difficu lt to buy f6(? The paying for it. Airlines try to accommodate there just isn't enough high-end business Treasury showcases some unique gift ideas the business traveler's need for flexibil ity b demand to support a full schedule that chat include commemorative coins, money scheduling th ree or four flights a day to a allows the business traveler such a high de- clips, t ie tacks, cuff links, watches, orna- given destination. They also leave seats gree of flexibility. open for those who need to change their Saturdays and Sundays, when the For example, on plans or travel at a moment's notice. From business people are at home re- the airli nes' point of view, this rep resents a covering fro m a kille r week of significant cost. business travel, the airl ines Leisure travelers, of course, have a far higher degree of flexibility. omeone who currency denomination. ......... ments, earrings and the like. Ir's espe- I ~ ~ ~ ~ cially great for coin collectors. Jlt'""""1!'!:::ii::!ff~..:.... Wait, There's More: T he Treas ury Page has everything you've are turning aircraft around -flying them back to their home -~---,; wanted to know about sav- lill llllllll ....._ 1 ~ ~ ever ings bonds (but were afraid wan ts to visit a cousin in St. Louis doesn't bases. Without leisure travelers, necessarily need to fly on a particular day. most of those planes wou ld be fl ying He or she can take advantage of those home empty. That's a lot of"spoi led goods." "The Reading Room" (with topics arranged srayover, and the airlines can sell those seats Bonus Question: If you're flying to Questions." My favorites are "Will there be that would otherwise have ended up as this U.S. city, a Saturday srayover will prob- a new dollar coin?" and "Wi ll pennies be "spoi led goods." ably not reduce the price of your plane discontinued?". ,_ _, - - _ ,., from cheaper fares that require a Saturday night Of course on any given day a business - to ask). There is an extensive colleccion of information found in A-Z) and "Frequently ticket. Hint: Think "h igh roller." trave le r might pay top do ll ar for an airline ticket and end up sitting next to a le isure Thar's righc! Las Vegas. T he re's so traveler who is flying to the same destina- much demand for weekend travel to Las tion at a fraccion of the cost. This often leads to the suggestion that business trav- The Ledger Public and Community Affairs Federal Reserve Bank of Boston 600 Atlantic Avenue P.O. Box 2076 Boston, MA 02106-2076 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis egas that airlines can fill the seats without offering an incentive. First Class U. S . Postage Paid Bosto11, MA Permit No . S9702 Asked
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