Full text of Statements and Speeches of Alan Greenspan : Remarks at the Announcement of New Currency Design : Bureau of Engraving and Printing, Washington, D.C.

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Remarks by
Alan Greenspan
Chairman
Board of Governors of the Federal Reserve System
Washington, D C.
Announcement of
New Currency Design
Bureau of Engraving and Printing
Washington, D.C
June 12, 1997

Thank you, very much, Mr. Secretary.

I needn't tell

you that the Federal Reserve is quite pleased to be part of this
event
As many of you know, the Federal Reserve has the
responsibility of putting currency into circulation through the
banking system.
We are most gratified with the successful introduction
of the new $100 Note.

To date, more than one third of all $100

bills in circulation are Series 1996 notes
These newly designed $50 Notes will be handled in the
same way as the old $50 Notes
Banks obtain the currency they need for their customers
from their district Federal Reserve Banks, and they dispose of
surplus currency by returning it to their Reserve Banks
In this process the Reserve Banks also determine
whether each Note is in good enough condition to be recirculatred
and to verify each Note for genuineness
Approximately two thirds of all Notes received by the
Reserve Banks in incoming deposits are fit enough to be
recirculated.
The remaining third -- which are worn out or soiled -are destroyed and replaced by new Notes obtained from the Bureau
of Engraving and Printing.
On average only nine Notes in every million are found
to be counterfeit
(more)

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The introduction of the new $50 currency will work the
same way as the introduction of the new $100 Notes
The new $50s —

the second in the series -- will be

ready for circulation this fall
As banks deposit Notes in the regular course of
business, the Reserve Banks will replace any older design Notes
with Notes of the new design
The Reserve Banks and their branches around the country
provide currency to banks and other depositories in their
territories as these institutions need it.
Consequently, not all bank customers will be seeing the
new $50 Notes immediately.
I want to assure you that old Notes will not be
recalled or devalued.

All existing notes will continue to be

legal tender
The United States has always honored its currency at
its full face value, no matter how old
Our currency is trusted and accepted by people
throughout the world.

Because of this special status, the

protection of our currency from counterfeiting has long been a
priority
So, rest assured that the Department of the
Treasury and the Federal Reserve System remain firmly committed
to that goal.
(more)

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And now, Mr

Secretary, I believe we are ready to

introduce the redesigned currency

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