weemba@brahms.BERKELEY.EDU (Matthew P. Wiener) (03/23/86)
The following article is reprinted in its entirety from the 21 March 1986
issue of the San Francisco Chronicle (without permission):
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KOCH SEEKS RECALL OF ALL $100 BILLS
New York
Mayor Edward Koch wants President Reagan to pull $100 bills out of circulation
because the notes are "the backbone currency of drug traffickers."
In a letter to Reagan dated Wednesday, Koch recommended that all $100 bills
be eliminated and that a redemption program for the currency be set up.
"It has been our experince in New York, and your own Comminsion on Organized
Crime will confirm that it is so around the country, that $100 bills are the
backbone currency of drug traffickers," Koch wrote.
The redemption program proposed by Koch would require that those who turn in
more than $10,000 in $100 bills be required to explain how they acquired the
currency.
The figure was chosen because banks, under federal law, are required to report
any cash transaction over $10,000, said Larry Silverburg, a spokesman for Koch.
"A program of this kind would not only have a dramatic impact on the way the
drug business is currently conducted, but might also have a deterrent effect
on the underground cash economy," Koch wrote.
United Press
ucbvax!brahms!weemba Matthew P Wiener/UCB Math Dept/Berkeley CA 94720tedrick@ernie.berkeley.edu (Tom Tedrick) (03/23/86)
>"It has been our experince in New York, and your own Comminsion on Organized >Crime will confirm that it is so around the country, that $100 bills are the >backbone currency of drug traffickers," Koch wrote. > > [ ... the "Koch Plan" to eliminate 100 dollar bills followed ... ] >"A program of this kind would not only have a dramatic impact on the way the >drug business is currently conducted, but might also have a deterrent effect >on the underground cash economy," Koch wrote. Oh, the poor drug dealers. They are going to have to carry around 5 suitcases full of 20 dollar bills instead of one suitcase full of 100 dollar bills. But suppose they manage to adjust to that. Here is the "Tedrick Plan". Eliminate all currency and coins worth more than a penny. THAT will slow the drug dealers down ... :-) Driving around with a garbage truck full of pennies will be considered sufficient evidence for conviction on drug charges. :-) But wait a minute. What are the DEA people going to do? Since standard operating procedure is to flash a briefcase full of 100 dollar bills to prospective "bustees", are they going to be put out of a job? :-( So sad for them ... :-) The real solution is to force everyone to use Visa and Mastercharge for all transactions. That way, the bankers will get to soak up 20 percent interest on all unpaid balances, while at the same time the FBI will be able to keep track of ALL financial activities of EVERYONE, and the IRS will be able to have an exact record of your financial dealings so everyone will pay their "fair share" of taxes. What a wonderful world that would be :-( :-) Besides, us hackers will be running the computers that make the system go, heh heh heh ... We all know that it is impossible to pull off financial swindles using computers :-)
desj@brahms.BERKELEY.EDU (David desJardins) (03/24/86)
This reminds me of a (slightly) related fact; when the government estimates the amount of money in circulation in the U.S. (from actual surveys and the like) they get a number which is only about 10% of what they get by estimating ($$ printed) - ($$ destroyed). As I recall the numbers are about $2E10 and $2E11. I believe that most of the difference is believed to have found its way to foreign countries, where American currency is valued as a store of wealth. -- David desJardins
bzs@bu-cs.UUCP (Barry Shein) (03/26/86)
hmmm, when I was growing up in NYC the currency of the drug trade was $20 bills, I guess inflation has taken its toll...or maybe it had to do with the fact that they all bought the $20 bills for $10 (there was also a sizeable counterfeit bill trade), and round and round they went :-) -Barry Shein, Boston University
clement@ucbiris.berkeley.edu (03/27/86)
In article <12590@ucbvax.BERKELEY.EDU> weemba@brahms.BERKELEY.EDU (Matthew P. Wiener) writes: > >In a letter to Reagan dated Wednesday, Koch recommended that all $100 bills >be eliminated and that a redemption program for the currency be set up. Gosh, I guess we'll have to outlaw inflations too. (-: Tom Clement