The notes must be presented to the Treasurer in sums of $1,000 or any multiple thereof. Upon receipt they are sent to the National Bank Redemption Agency of the Treasurer's office, and are there sorted and redeemed. A bank sending notes should first have them assorted by denominations and enclosed in paper straps. No straps should contain more than 100 notes, and each package should be marked with the amount of its contents. A memorandum giving the amount of each denomination of notes, the total amount in the package, the address of the sending bank, and the disposition to be made of the proceeds, should be enclosed with each package and a letter of advice sent by mail. All packages are sent to the "Treasurer of the United States, Washington, D. C," " collect," under special government express rates.
The Treasurer on redeeming the notes charges them to the various issuing banks and notifies such banks on the first day of each month, or oftener, of the amount of their notes so redeemed and the corresponding reduction of their 5 per cent funds. When a bank receives such notification it must immediately deposit with the Treasurer lawful money equal to the amount of its notes redeemed, and keep the 5 per cent fund intact. If the amount redeemed does not exceed the 5 per cent fund of the bank, the notes fit for circulation are promptly forwarded to the issuing bank by express, and any notes unfit for circulation are delivered on the same day to the Comptroller of the Currency. If the bank's 5 per cent fund is overdrawn by such redemption, an amount of notes equal to the deficit is held by the Treasurer until the bank makes good the fund by the deposit of lawful money. As soon as this is done, all the fit notes are returned to the issuing bank and the remainder delivered to the Comptroller for destruction and for the issuance of new notes. Every bank is required by law to have in Washington a legal representative to witness the destruction of the mutilated currency, which is now done by maceration.