Hi, Wiki (http://en.wikipedia.org/wiki/Federal_Reserve_Note) says:-
"Federal Reserve Notes are printed by the Bureau of Engraving and Printing (BEP), a bureau of the Department of the Treasury.[3] The Federal Reserve Banks pay the BEP not only the cost of printing the notes (about 4ยข a note), but to circulate the note as new currency rather than merely replacing worn notes, they must pledge collateral for the face value, primarily in Federal securities." Could someone explain to me how the Federal Reserve Banks get "Federal securities" to "pledge", in the first place, and also what happens (financially) when old worn notes are taken out of circulation, and who does that. Regards, Robin van Spaandonk <[EMAIL PROTECTED]>
