BANKS THROW AWAY TORN, WORN, DEFACED CURRENCY

Cape Girardeau banks throw away money every day.

The currency dirty, limp, torn, worn, or defaced is banished to the Federal Reserve Bank as unfit federal reserve notes.

Boatmen's Bank branches in Cape Girardeau and Jackson return an average of $8,000 to $12,000 a week in unfit bills, said Debbie Gibson, assistant vice president and cashier at Boatmen's main bank at 2001 William. Via armored car, the bills go to Boatmen's Bank in St. Louis, she said, but eventually wind up at the Federal Reserve there.

At Capital Bank's main branch in Cape Girardeau, Cheryl Mabuce, bank vice president and cashier, estimated $4,000 to $5,000 in various bills are returned to the Reserve each month by the bank's three Cape Girardeau branches.

Tellers at the banks spot the unfit bills while handling the money, said Mabuce and Gibson. To be sent back as unfit, Gibson said, the notes either need to be limp or moist, excessively crumpled, stapled or taped, have holes or parts missing, or defaced.

A veteran of the banking business for about 14 years, Gibson said Boatmen's has seen several bills uniquely defaced.

"A lot of them come in and those (portraits) that maybe didn't have a full beard get one. Glasses that was always popular.

"Some are decorated very highly. Little letters are written on them from one person to another a couple of sentences." The remarks have included wishes for a happy birthday or merry Christmas, she said.

"We've had individuals where their pets have chewed up the bills. Usually we get all the pieces, but it looks pretty bad when we get them put back together."

Mabuce, who has 27 years of experience in the banking business, told the story of a man who brought in some fire-damaged bills. The man had placed the bills under his waterbed mattress, but apparently hadn't realized the bills were so close to the bed's heater, and they burned, she said.

She recalled The Department of the Treasury, under which the Federal Reserve operates, determined the man should receive back something like $300. When bills are totally mutilated, she said, the Treasury Department determines their value.

A bill is considered mutilated if it is burned, only one half or less of it is remaining, or its value is questionable. If clearly more than one half of the bill is remaining, it is considered unfit and is redeemed at full face value.

Mabuce said people have also brought in money they had buried and wished to exchange, although such instances are less common today. One older couple did this, apparently burying the money in a metal box because they didn't trust banks.

Money that is buried carries a very musty, dirty smell, she said.

"We've sent that in just because of the smell, not because it was mutilated. We didn't want to be giving that out to customers."

Generally the guideline is that bills should not be put back in circulation if the tellers themselves feel they wouldn't want to carry the money, said Mabuce.

"When you're counting money you get a feel for what's a good bill. If it's not sturdy enough to give you a good count," she said, "then it's most likely it's going to be pulled."

Automatic teller machines also need a good, firm bill. Mabuce said money that is not firm enough will jam the machine.

Tellers, she said, will pull anywhere from $1 to $200 in unfit bills a day, depending on how busy they are, if they are working with commercial transactions, or if they are working with large denominations.

The Federal Reserve Bank in St. Louis released information Wednesday showing the average life of federal reserve notes. They are: $1, 1 years; $5, 1 years; $10, 1 years; $20, two years; $50, five years; and $100, 8 years.

Mabuce said Capital does not send back unfit coin money because the cost to ship it back, due to its weight, is too high. Instead the bank refunds the customer and just takes the loss, except in the case of mutilated coins. Gibson said Boatmen's will send large amounts of unfit coins to the Federal Reserve only as a courtesy and only if they are still in their original shape. And the customer is not paid up front, she said.

Susan McCollum, public information officer for the St. Louis Federal Reserve Bank, said Wednesday that the bank shreds and then disposes of the unfit bills.