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Published: July 27th 2014
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On July 23, 2014, I walked out of the Federal Reserve Bank in Chicago with a bag of money. The Federal Reserve doesn't make loans or take deposits from individuals, but they gave me money anyhow. I smiled at the guard as I walked out; stay with me and I’ll tell you how you can do the same thing.
The Federal Reserve is responsible for the monetary system of the United States. They design and print our money, they set interest rates, they regulate financial institutions, and they function as a bank for the nation’s banks. The integrity of the country’s financial system depends on the Federal Reserve System.
There are twelve branches of the Federal Reserve around the US. One of those branches is in Chicago, and just off the lobby is the Money Museum. As you might imagine, getting into a Federal Reserve Bank isn’t easy. There are layers of security, and even to get into the Money Museum you go through a security screening similar to what you would go through at an airport, except you don’t have to take off your shoes.
There is a short film at the beginning of the exhibit that
explains the role of the Federal Reserve, then you are off to explore some interesting and fun interactive exhibits. Think inflation rates are boring? (Well, yes, it’s not the most interesting topic of conversation.) Go into the exhibit that lets you set the inflation rate and time frame, and watch the purchasing power of $100,000 disappear over the years.
Think you could do better at setting interest rates than the Federal Reserve? Check out the exhibit where you watch hypothetical news clips and then try to guess what the Federal Reserve will do with the federal funds rate.
Ever wonder where the slang term “grand” meaning one thousand came from? During the late 1800’s the United States $100 bill had 100 printed in large green numerals on the reverse. The design of the zeroes looked like big green watermelons. This banknote was nicknamed “The Watermelon.” In 1890, the US Treasury printed a $1,000 bill that had the same design for the zeroes on the reverse. The denomination was bigger, so this note came to be known as “The Grand Watermelon.” Cool, eh?
There are only two genuine 1890 $1,000 bills still in existence. One was sold at
The Grand Watermelon
Up close, the stripes in the green of the zeroes really do look like watermelons. auction to a private collector in 2006 for $2,225,000, making it the most expensive bit of US currency ever sold at auction. The other genuine banknote is on display here at the Federal Reserve Bank in Chicago.
There are displays of US currency from the 1700s onward, and two displays of real money that show how much $1,000,000 looks like - one in $100 bills, and again in $1 bills. Just in case you are ever on “Jeopardy,” a million dollars in $100 dollar bills weighs a little over 22 pounds. The same amount in singles would be 2,204 pounds – over a ton.
Oh, and about that bag of money. The Federal Reserve banks are responsible for shredding damaged and worn out currency as well as for printing new bills. They bag up these shredded bills and give them away as souvenirs. Shredded money that isn’t given away as souvenirs is compressed into pellets and taken to a landfill. My bag of money has about $364 in it, but I doubt anyone could piece it back together.
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carole Bloom
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Great Story!
Karen, I loved this one!