Financial Update (Second Quarter 2004)



FEATURES

 Deterring Money
 Laundering

 Gramm-Leach-Bliley’s
 Surprising Effects

 Conference Eyes
 Wall Street's Future

 Guynn Discusses
 Growth, Policy

 Fed Guidance
 on Fair Banking

 Check Processing
 Consolidates

 Mortgage Market
 Hits Record

 New Call Report
 Web Site

 Do Markets Reveal
 Their Future Activity?

 New $50 Unveiled

 Davis Joins
 Atlanta Fed Board

 Atlanta Fed Hosts
 ACH Conference

 Atlanta Fed Issues
 2003 Annual Report

 EconSouth
 Redesigned

 New Atlanta Fed
 Subscriber Service

DEPARTMENTS

 Data Bank

 Circular Letters

STAFF

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New $50 Bill Unveiled

He remains buried in Grant’s Tomb, but more than a century after his death, Ulysses S. Grant is getting a new look . . . on the $50 bill, that is.

The Treasury Department, the Federal Reserve, and the U.S. Secret Service unveiled the new design on April 26 at the Bureau of Engraving and Printing’s (BEP) Fort Worth, Texas, facility, which prints 55 percent of all U.S. paper currency. The new $50, which will enter circulation this fall, is the second note, after last year’s new $20, to undergo a security-enhancing redesign. The redesigned $100 note will be released in 2005.

More color, more security
Some of the new design changes are obvious. Each new note in the 2004 series will have subtle background colors; on the $50 note these colors are red and blue. The 2004 series notes also depict traditional American symbols that will differ for each denomination. On the $50 bill, blue stars and red stripes symbolize the U.S. flag.

Related
Bureau of Engraving and Printing Web site
Press release about unveiling
Interactive $50 bill

Another noticeable change involves Grant’s portrait; it has been moved higher on the note, and the border has been removed.

Several other features first introduced in the 1990s enhance the note’s security. Two of these—a watermark similar to Grant’s portrait and a security thread spelling out “USA 50” and depicting an American flag—are visible from both sides when the note is held up to light. The number “50” in the lower right corner of the face of the bill is printed with color-shifting ink that looks copper when viewed straight on but green when the note is tilted.

Keeping it real
These security enhancements are designed to thwart counterfeiters, who have become adept at using digital technology to counterfeit currency. The U.S. Secret Service says that security efforts have suppressed counterfeiting levels, estimating that forgeries constitute only 0.01 to 0.02 percent of genuine notes in worldwide circulation.

The BEP will print 76.8 million new $50s this year. Work is under way to ensure that cash-handling machines accept the new currency by the time it enters circulation.

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