10:30 A.M. EDT
Real Audio of Briefing
MR. BALLARD: Good morning. Welcome to the Washington Foreign Press Center. Welcome to our journalists at the New York Foreign Press Center, who are also following today's press briefing on a subject of great interest to most of you, I'm guessing, which is money.
Today's briefing is called, "The Color of Money," and it is about the new $50 bill. And we've assembled a team this morning of the absolute experts on this subject. First of all, we have Deputy Secretary of Treasury, Mr. Sam Bodman; to his left, we have Larry Felix, who is the Associate Director in Charge of Technology at the Bureau of Engraving and Printing; after him, we have Mr. Bruce Townsend, who is the Deputy Associate Director of the United States Secret Service; after him, we have Mr. Brian Roseboro, who is the Under Secretary of Treasury for Domestic Finance; and finally, Ms. Genie Foster, who is the Cash Product Leader of the Board of Governors of the Federal Reserve System.
I will not spend any more time introducing them, but I would encourage you all to look at their bios, which are available for you because you will find them to be very interesting and especially qualified people.
With that, I'll turn over the mike to Secretary Bodman; and then he will give some short remarks, followed by the unveiling of the bill; and then we'll be happy to take your questions.
SECRETARY BODMAN: Thank you for the introduction. Thank you all for being here. We're very pleased to be here for the unveiling of the new $50 note, with its enhanced security features and a very new look, I think you'll agree, when we unveil it shortly.
Whenever there are changes in the U.S. currency, it is very important to get the word out to the international community. That's really the reason for gathering here today, and we very much appreciate the opportunity of meeting with members of the foreign press. I'm pleased to be joined here today by my colleagues, who've already been introduced. They really do represent the very best of government service, and I'm proud to be standing here in their company.
At the end of this briefing, we will be happy to take questions from you. These new $50 notes that you're about to see will be safer, smarter and more secure than ever before. The design of the note is part of the United States Government's ongoing effort to stay ahead of counterfeiters and to protect the integrity of United States currency.
As I mentioned, there is a genuine international interest when changes are made to the U.S. dollar. And the reason for that is clear. There are more U.S. dollars in circulation around the globe than any other currency. In fact, we estimate that as much as two-thirds of the 700 billion U.S. dollar -- the $700 billion of U.S. currency in circulation is held outside the United States.
To give you an indication of the global interest in the U.S. dollar, let me share a few facts from last year's campaign when we issued the new $20 bill. More than 39 million educational documents and materials were requested from more than 100 countries. The campaign website, www.newmoney.com, had more than six million visitors worldwide.
And through media reports, the campaign was covered in more than 50 countries, with hundreds of millions of people being exposed to the news about the new colorful $20 note and its security features. We know that people around the world rely on a strong and stable U.S. currency, and we in the government take that responsibility very seriously.
These new designs allow us to make security enhancements to the currency so that we can maintain the trust and integrity expected and needed across the globe. As with the new $20 notes that were introduced in October of 2003, the new $50 notes will co-circulate with older series bills, and both will maintain their full face value.
The United States has not, and will not recall or devalue its currency. The money is good for good. Protecting the U.S. dollar from the activities of counterfeiters requires consistent and sustained focus.
Thanks to changes we made to the U.S. currency in the late '90s, thanks to the new $20 note, and thanks to the aggressive law enforcement effort led by the United States Secret Service, in conjunction with law enforcement agencies overseas, we've been able to stay ahead of the counterfeiters.
Statistically, counterfeiting doesn't have a major economic impact on the U.S. or the world economy. Through aggressive law enforcement, authorities seize the majority of known counterfeit U.S. dollars before they are passed into circulation. In 2003, authorities worldwide seized nearly $63 million in counterfeit notes. This is a record to be proud of.
To keep it that way, we're going to be introducing new currency designs every seven to ten years. It will take that kind of ongoing commitment to protect everyone's hard-earned money. We are working closely with central banks, commercial financial institutions and law enforcement agencies to ensure that they are familiar with the redesigned $50 notes and will be able to effectively recognize them as genuine currency when they go into circulation later this year.
As you will see in just a minute, even with a new design, the world will still recognize the new notes as distinctly U.S. dollars. Every one who sees the new $50 note will know instantly what it is and what it stands for. I am sure you will like it as much as we do.
Let me now proceed to unveiling the currency. If I could be joined by Larry, we will do that, henceforth.
With that, if I could ask my colleagues to come forward, and we'll be happy to take questions.
MR. BALLARD: I'd like to ask, for the questions, as usual, please state your name and your media affiliation, and wait for the microphone.
Go ahead.
QUESTION: Pavel Vanichkin, Russian News Agency, TASS.
I've got two questions: First of all, if someone could please explain the -- what's new in this money beside the color, which is definitely the difference?
And the second question is: Is there any particular reason behind the order of your changing money, for example, first of all, you've changed $20 bills, now 50, or it's a random process?
Thank you.
DEPUTY SECRETARY BODMAN: Larry, why don't I ask you to talk about what's new in the money?
MR. FELIX: As the Deputy Secretary had stated, it is still uniquely American. We've retained the watermark and we've retained the color-shifting ink features, and certainly it retained the security thread.
What we have added is the color, which adds a degree of complexity, and the complexity of the color, and, whereas, color is, in and of itself, not a security feature, it does enhance the overall architecture, security architecture, of the currency.
With respect to the -- your other question, we are looking at evolving trends in the marketplace -- in the circulating marketplace, and we respond to those evolving trends. And so when you look at attacks on the currency, we perceive the 20 is one that would be most beneficial if we made the change first.
MR. BALLARD: Another question?
Yes, ma'am.
QUESTION: Nneoma Ukeje-Eloagu, This Day newspapers.
I have two questions: What is it costing to change this denomination? And what time frame do you have in mind for what the two notes would be in circulation together before the final result of the older notes?
DEPUTY SECRETARY BODMAN: Do you want to speak to that?
MS. FOSTER: The changes that have been made to the $50 note are expected to raise the cost about a penny. So the former design of the note, which you saw originally here, costs about 7 cents a note. The new note costs about 8 cents a note.
We're expecting to release the new note either in late September or October of this year. A $50 note -- they will co-circulate, so you will see in circulation both the old designs and the new designs. Fifty dollar notes have a lifespan of approximately four and a half years, so you will see the two of them in circulation for some time to come. But eventually, all of the older designs will come back to the Federal Reserve where they will be withdrawn from circulation and destroyed.
MR. BALLARD: Any other questions?
Yes, sir.
QUESTION: Cristiano Del Riccio, Italian News Agency.
Just as I look at the new notes, it's a kind of pink colors that you have chosen. Why? Can you explain the reason?
MR. FELIX: The theme is certainly the American flag and it's a red, white -- it's a red and blue motif, is essentially the theme. Although it may appear pink here, it's really a red color.
MS. FOSTER: So in many ways, it reflects the colors and the themes of the United States flag. You see there are -- there are, in a waving pattern, there are stripes of red and white, as we have stripes in the flag, and there are stars. There are both stars in the complex line background patterns, which are one of the things that increase the complexity of the printing process.
The other thing that you will see is a lovely silver star that we've added here, so when you look at that, that's actually, although it appears to be gray or blue on this image, it's actually going to be silver when you see the note in real life.
MR. BALLARD: Yes, sir, in the back row.
QUESTION: Alister Bull from Reuters. Would you say this note is going to be impossible to counterfeit? And, if not, how long do you think before they get around to cracking it?
SECRETARY BODMAN: Let me say that when the U.S. Government first undertook the redesign of the first series back in 1996, there was never an intent to produce a counterfeit-proof bank note. A counterfeit-proof bank note doesn't exist anywhere in the world. A lot of different security features, a lot of different printing techniques are used very effectively by the countries that you all represent here today.
But unfortunately, as you may know, they've all been counterfeited to some degree or the other. So while we believe that this new redesign will give money handlers around the world, and citizens around the world good security features with which to authenticate the notes, at the same time, it will pose an additional technological challenge to counterfeiters. We expect that counterfeiting will remain with us, at some level, for the foreseeable future.
MR. BALLARD: Okay. If there are no further questions, then, thank you very much for coming, and join me in thanking our experts, and especially Deputy Secretary Bodman for coming here today to explain this important subject to you.
Thanks very much.
(Applause.)
