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Characteristics of Paper Money

Paper money consists of certificates of stated value. These are legal tender in the places they are issued. Sometimes, paper money is directly convertible into gold or silver. In most modern nations, its value is simply notional. Many of the world's paper denominations are traded daily on international currency markets. A variety of features guarantee the genuineness of different kinds of paper money.
  1. Portraits and Scenes

    • A portrait or scene appears prominently on virtually all paper money. In most cases, the portrait is of a statesman or other notable historical figure. American dollars feature images of U.S. presidents. British pounds, together with the currencies of most British Commonwealth nations, feature a figure of the current reigning monarch. The other side of the note can offer a scene of a famous building or the reproduction of a painting.

    Denomination Name and Number

    • Bank notes or bills always state their denomination. Values of paper money are represented as words or numbers. Often, the denomination is illustrated in a great variety of ways as a means of foiling counterfeiters. On the U.S. $1 bill, the denomination appears at the corners as a number with the word "one" written across it. The phrase "one dollar" is also spelled out across the bottom of the bill. On the back of the bill, the huge word "one" dominates the center of the bill.

    The Meaning of Serial Numbers

    • Denominations are not the only numbers that appear on paper money. Many of the digits belong to complex serial numbers that identify the individual piece of money. Serial numbers on American bills are eight digits long. The digits are preceded by two letters that indicate the specific printing series, and also the place at which the bill was printed. The digits themselves identify the specific bill. The letter at the end is an additional sequence counter that begins again when the full series is complete.

    Background Patterns and Colors

    • Intricate background designs make paper money extremely difficult to copy. Skilled counterfeiters have sometimes drawn these elaborate patterns by hand, but even they can't duplicate the hidden seals and micro-printing of modern bills and notes. Seals that appear under only certain lighting conditions complement visible seals and watermarks. Additional listings of denomination names, mottoes and other devices may be discernible only under a microscope. Frequently, different denominations also make use of entirely different color schemes, the exact shades further enhancing security.

    Other Security Features

    • Each nation's paper money is normally printed on a special kind of paper. Not all nations use different paper, but all employ something other than ordinary grades of paper. American bills contain minute metallic threads that are woven into the paper at certain points. The paper itself contains tiny red and blue flecks throughout. Some areas of text use color shifting ink that changes with the light. Very fine lines make up the engraved portraits. Portraits are also made to stand out from the background. Many of these features are lost during photocopying.


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