How is Made Money : Secrets Behind $20 Bills

The government prints millions of notes a day. Here’s a quick look at what goes into creating a $20 bill and what determines when a bill’s lifespan ends [1].

Paper

A $20 bill starts out life as part of a large sheet of paper. While most paper is made primarily from wood pulp, the paper used by the U.S. Bureau of Engraving and Printing doesn’t contain any wood at all. Currency paper is composed of a special blend of 75% cotton and 25% linen. It’s made with special watermarks and has blue and red fibers embedded in it along with a special security thread [2].

Each blank sheet is tracked from the time it leaves the mill until it is printed, and the entire shipment is continuously reconciled to make certain all are accounted for.

Printing

The blank sheets of cotton and linen paper undergo four rounds of printing. First, background images and colors are printed on both sides at once using offset presses that are over 50 feet long and weigh more than 70 tons.

After 72 hours of drying, the BEP prints portraits, vignettes, scrollwork, numerals, and letters on the back side using Intaglio presses, which are 40 feet long and weigh 50 tons.

The sheets dry for another 72 hours in secure, guarded cages. Then, the BEP prints portraits, vignettes, scrollwork, numerals, and letters on the front side with Intaglio presses.

Finally, the serial numbers, Federal Reserve seal, Treasury seal, and Federal Reserve identification numbers are added using a letterpress[3].

Cutting and Wrapping

Once dry, these printed sheets are gathered in stacks of 100 to be cut by a specially designed guillotine cutter. Each new stack of 100 $20 bills is wrapped with a special paper band. Ten of these 100-note stacks are gathered, machine-counted, and shrink-wrapped into a bundle. Then, four of these shrink-wrapped bundles are collated together, given a special barcode label, and shrink-wrapped again to create a brick of 4,000 bills, worth $80,000 [3].

Distribution and Circulation

The Treasury Department ships these newly printed $20 bills to the Federal Reserve Banks, who in turn pay them out to banks and savings and loans – primarily in exchange for old, worn-out bills. The new bills are handed out to customers of these institutions as they withdraw cash, either through tellers or through automated teller machines [3].

An average $20 bill will change hands often, but even the U.S. Bureau of Engraving and Printing isn’t sure how many times a bill will move from one pocket to the next. Contrary to popular belief, the government doesn’t have any way to track individual bills.

There is a polyester security thread embedded in the paper that runs vertically up one side of each bill. If you look closely, the initials USA TWENTY, along with the bill’s denomination, and a small flag, are visible along the thread from both sides of the bill. This thread makes currency more difficult to counterfeit, but cannot be tracked electronically [2].

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Withdrawal

Banks gather worn-out and damaged currency, sending it to the Federal Reserve in exchange for new bills. The Federal Reserve then sorts through these bills to determine which are still usable. Those bills deemed usable are stored until they can go out again through the commercial banking system. Those deemed no longer usable are cut into confetti-like shreds [4].

FAQs:

1. What is a $20 bill made of?

A $20 bill is made from a special blend of 75% cotton and 25% linen, not wood pulp. It also includes red and blue fibers, watermarks, and a polyester security thread for authenticity.

2. How are $20 bills cut and packaged?

Printed sheets are cut into stacks of 100 bills, wrapped, and grouped. Ten stacks are shrink-wrapped, and four bundles of these are combined into a “brick” containing 4,000 bills, worth $80,000.

3. What happens to old or damaged?

Old bills are collected by banks and sent to the Federal Reserve. Bills that are still in good condition are reused, while damaged bills are shredded into small pieces.