The Art of Making Money

Beginning September 30, 2002, Mexico began replacing its 20 peso (MXN20) bills from paper to a form of plastic, also referred to as a polymer. The shiny blue bill that looks similar to the paper version comes with a clear window that makes it difficult to counterfeit. Plus, the plastic bills last up to four times longer than those of paper - although they cost 50% more to produce.

With about 130 million MXN20 bills currently in circulation, the Mexican government estimates it will take about a year to replace most of the old bills with their high-tech cousins. If successful, they plan on doing the same with other denominations.

But Mexico isn't the first country to adopt plastic currency. Beginning in 1992, Australia began replacing its paper bills with plastic money. Since then, some 20 countries - including New Zealand, Brazil, China, Romania, Thailand and Northern Ireland - have followed its lead.

Although the United States Treasury hasn't embraced plastic to replace paper currency, it does use other types of modern security features. During this week's lesson, you'll find out what those features are and learn how the government guards against fake currency.

Counterfeiters, Beware!

To maintain a stable economy, part of the government's job is to discourage counterfeit money from entering into public circulation. Over the years, some people became highly skilled at printing fake bills that have passed for the real thing. In 1996, the U.S. government created and introduced a few high-tech security features in its $5, $10, $20, $50 and $100 dollar bills to make it tougher to illegally duplicate them.

You'll start this week's lesson by examining these security features. If your computer has a Flash Player installed and your Internet connection is pretty fast, you'll explore the Bureau of Engraving and Printing's interactive Money Factory site. If you don't have Flash, you can find the same kind of information at NOVA's site, the Secrets of Making Money.

To enter the Money Factory, click on the Ticket booth then on Go. Choose the ages 9-13 section by clicking on the spaceship that will lead you to the Treasure Dome. From there you want to first Explore the Park. Click on any of the stations to begin - $100, $50, $20, $10 or $5. When you enter each station, place your cursor over each title - Security Thread, Color-Shifting Ink, Microprinting, Portrait, Watermark, and Fine Line Printing Pattern. This will reveal a description of each feature. When you click on each heading, the page will show exactly where that feature is located on that particular bill. Hit the Return button to go back to the map and choose a different denomination station, and you'll see how each bill is slightly different from another.

To test your new knowledge of these features, go to the Games section and play Bang for Your Buck and Treasure Planet.

If you visit the Secrets of Making Money site, explore the Anatomy of a Bill page. You can either click on any of the individual features on the $100 bill image or jump directly to The Printed Elements and The Currency Paper pages, which describe each feature from Intaglio Printing to the Watermark.

To test your knowledge at this site, go to the Bogus Bill page - write down your guesses, then check your answers.

How well did you do in identifying the real security features? How difficult would be for someone to duplicate each of them? Which features might be tougher to copy than others? What exactly makes each feature special and why did government officials choose it? How have advances in technology contributed to these efforts? What other kinds of security measures can you think of that could be used to foil potential counterfeiters?

The Secret Service: Counterfeit Division

The Secret Service is often best known for protecting the President, however, the agency was originally founded in 1865 to suppress counterfeit money as part of its mission to safeguard the nation's financial security.

Visit the Counterfeit Division's home page and read about the History of Counterfeiting. Then jump to the Know Your Money section. From here, explore pages 1 to 11 under the Table of Contents, which includes the History of United States Currency, Characteristics of United States Paper Currency, Positions of Important Features, Advanced Technologies in Counterfeiting, and How to Detect Counterfeit Money.

What are some of the ways that people try to create fake bills? How has our currency history helped the government refine its printing process to deter counterfeiters, especially as technology has evolved? How easy was counterfeiting before the most recent security measures were used? What kinds of fake bills would most easily fool the average citizen? Which attempts seem like obvious forgeries? Why do you think this mission of the Secret Service is important to our nation's economic stability?

Also make sure to check out the If You Receive A Counterfeit page, so you know what to do if you or someone you know discovers a counterfeit bill. How could a counterfeit bill change hands? How often do you or others actually look at every bill you exchange in a business transaction or between friends?

Newspaper Activities

In a current issue of The Denver Post or Rocky Mountain News try to find an article about counterfeit money or other stories that describe people trying to pass off forgeries - like works of art or writing - for real or original ones. How did the fakes get discovered and what happened next? What government agencies were in charge of the investigation and why? Also look for articles that describe business transactions or that feature a business. How would these businesses be affected if they were passed a counterfeit bill? What if they unknowingly received several hundred dollars in counterfeit money? How might individual consumers be affected? How can people guard against these crimes? Do businesses have any procedures for dealing with these types of incidents?