Re: e$: More fun with cash: Senate Bill 307

[Black Unicorn <unicorn@access.digex.net>]

On Mon, 4 Sep 1995, Sandy Sandfort wrote:

> Date: Mon, 4 Sep 1995 11:35:20 -0700 (PDT)
> From: Sandy Sandfort <sandfort@crl.com>
> To: Robert Hettinga <rah@shipwright.com>
> Cc: cypherpunks@toad.com
> Subject: Re: e$: More fun with cash: Senate Bill 307
> 
> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>                           SANDY SANDFORT
>  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
> 
> C'punks,
> 
> On Mon, 4 Sep 1995, Robert Hettinga wrote:
> 
> > Has anyone heard about this bill?  Comments?
> 
> > >(c)  Currency Exchange--
> > >     (1)  Plan--Not later than 12 months after the date of enactment of this
> > >section, the Secretary shall devedlop and begin implementation of a plan to
> > >require the exchange of all existing $100 denomination United States currency
> > >held within and outside of the United States for $100 denomination domestic
> > >use and nondomestic use United States currency issued in accordance with this
> > >sectin.
> 
> . . .
> 
> > >     (1)  domestic use currency, issued in accordance with this section shall
> > >be recognized as constituting a negotiable claim against the United States
> > >Treasury only when presented within the United States, and shall constitute
> > >legal tender for any debts, public or private, only when presented in the
> > >United States, . . .
> 
> > >     (2)  nondomestic use currency shall be recognized as constituting a
> > >negotiable claim against the United States Treasure, and legal tender
> > >for any debts, public or private, only when presented outside of the 
> > >United States, . . .
> 
> It's obvious that this bill has very little to do with large-scale
> money laundering, narcotrafficking nor terrorism.  All those folks 
> will simply use "domestic use currency" inside or outside of the 
> United States.  At worst, it will cause them a one-time problem.
> 
> Then at whom is the bill really aimed?  Average, middle-class
> Americans, is my guess.  Fortunately, it doesn't look too tough
> to get around.  If you have a matress full of C-notes, I suggest
> you start using them to buy travelers checks--including a few
> denominated in strong foreign currencies.


Actually it was aimed at the rumors that Iran had been printing U.S. 
currency on a large scale and using it abroad.  When I say Iran, I mean 
a government backed program.  New York Times had an article on the matter 
last year.  With enough interest I will try to Lexis/Nexus it.

While there was some evidence that Iran had indeed been forging notes, 
the extent was unclear/minimal.  Of course, with this kind of rumor there 
is the issue of confidence in the currency as well as actual threat.

The first response was the inset of the polyester and foil thread in the 
bills (and NO they can't detect quantity as you go through airport 
sensors, and don't ask me again).  The foreign traveller will notice the 
serious scrutiny all U.S. bills abroad will receive, particular attention 
paid to the presence of the strip.  Many foreign shops will not take U.S. 
bills which are older and have no strip as a result.

This new plan, which is total lunacy of course, and which I expect to fail, 
but the real zap is on anyone with a spare million in counterfeit or undeclared 
currency.

I might add, try being a tourist in Estonia and presenting U.S. bills that 
are no good in the U.S.  You'll be about as popular as someone in the 
Midwest with Canadian bills.

>
>  S a n d y
> 

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