The advantages of this new process over the present methods are: Great saving in time, power, labor, chemicals, and a very much higher percentage of yield.

In order that we may further investigate the possible application of this plan and study out other plans which we have under consideration in connection with the subject of making distinctive paper, we find that it will be advisable to have a representative of the Bureau of Standards and a representative of this commission, both members of the joint committee on the subject of paper, visit the mills at Dalton, Mass., where this money paper is manufactured, in order that they may become acquainted with the processes which are now employed. With this in view we would thank you to authorize the Secretary of the Treasury to grant two members of this committee permission to study the processes employed at present in the manufacture of this paper.

Respectfully submitted.

F. A. CLEVELAND,
W. W. WARWICK,
M. O. CHANCE,

Commissioners.

CANCELED PAPER MONEY.

Mr. M. O. CHANCE,

DEPARTMENT OF COMMERCE AND LABOR,
BUREAU OF STANDARDS,

Secretary the President's Commission on Economy and Efficiency,

WASHINGTON.

White House, Washington, D. C. SIR: Relative to my recent trip from Newmarket, N. H., to Perkinsville, Vt., and return, I have the honor to report to you through Dr. S. W. Stratton, Director of the Bureau of Standards.

As the railroad connections across New Hampshire are very poor, it was necessary to leave Newmarket, N. H., Monday, August 12, at 7.10 a. m., over the Boston & Maine in order to make the best connections, arriving at Charlestown, N. H., at 12.50 p. m., by way of Manchester, Concord, and Claremont Junction. The ride to Springfield, Vt., was by trolley from Charlestown, N. H., arriving there at 1.30 p. m.

At Springfield I met Mr. G. W. Craigie, who was there to examine the Winestock process in the interests of the S. D. Warren Co., of Cumberland Mills, Me.

Tuesday we were called for by Mr. Winestock, who took us to his experimenta plant at Perkinsville. Later in the morning several New York men arrived. They were Mr. Armstrong, Mr. Auchincloss, and a Mr. Hartman, who represented the firm of George F. Hardy, the well-known consulting engineer and paper-mill architect.

The first test was made on a 10-pound mixture of Saturday Evening Posts, Literary Digests, and the Watchman. The time required to defiber the paper and prepare ít for the washing engine was three minutes.

The second test was on macerated United States currency stock, and about 10 minutes were required to completely defiber the small particles of paper contained therein. For the third run some high-grade machine-finished writing paper, containing 90 per cent of rag, was used. The time required to completely defiber was four minutes. The last run was made on old printed newspapers and required three and one-half minutes to reduce the paper to pulp.

It was impossible in the short space of time available to thoroughly wash any of these four lots of pulp, so only enough was washed by hand to provide the necessary size samples for those interested. As my previous report covers the work done on all these papers, except the macerated United States currency, this report will deal with the observations made while handling that particular stock.

All of these tests were very much handicapped by water conditions. River water was used, and owing to there being some pink coloring matter in the water from the cotton mills above, also a large amount of decayed vegetable matter due to low water, we were not able to get as good a white color on the pulp as we otherwise would have done.

On Wednesday a second run was made on the United States currency stock. The chemicals used in the run were slightly different from those used in the first run on this kind of stock, and results were more nearly what was required. The color was of a brighter and clearer white than in the previous run. The following table gives the time required to defiber the United States money:

The difference between the two runs was due to running a little longer than was thought necessary on the first run in order that the pulp would be thoroughly defibered. All of Wednesday afternoon and Thursday was spent in washing the pulp and preparing samples for shipment to the Bureau of Standards.

I left Springfield at 5.50 Friday morning, arriving in Newmarket, N. H., at 3 p. m., over the same route as used in going to Springfield.

The results of these runs show very conclusively that the Winestock process will defiber United States currency stock, and also that it will loosen up the ink so that it may be readily removed in the ordinary washing engine. In order to get the best results this process should be substituted for the present method of macerating United States currency in use at the Bureau of Engraving and Printing. The method of the bureau consists in cooking the paper money in a very strong solution of soda ash at about the boiling temperature of water. The vat or kettle in which this is done is provided with a series of revolving knives, which has a more or less grinding action on the pulp. The effect of the grinding action is to shorten the fibers and also to rub the ink or coloring matter into the pores of the fibers, making it more difficult to remove the ink without bleaching. The Winestock process would entirely overcome this defect as well as being a much cheaper method, and the pulp obtained would have a very much higher market value.

It will always be necessary to use some caustic alkali in treating old money paper, as by so doing the silk fiber is destroyed; but were the paper money first put through the Winestock process, then washed, and treated to a weak solution of caustic alkali, the silk would be dissolved and yet the alkali would not be strong enough to weaken the rag fibers. Any weakening of the rag fibers means not only a loss due to deterioration, but an actual loss in weight.

At the present time the Government buys about 500 tons of money paper per year, at a cost of almost $800 per ton. The sale price of macerated money paper is about $31.50 per dry ton, which, together with the loss due to present methods of macerating and cooking, cost of handling, etc., makes the net return practically a negligible quantity. The advantages to be gained by the use of the Winestock process would be as follows:

The recovered pulp would be of a good white color obtained without the use of bleach and could be put upon the market in such shape that an estimated price of about $200 per air-dry ton could be obtained.

This estimated price per ton is based upon the fact that new rags used in making this grade of paper cost about $200 per ton, not adding the cost of reducing the rags to a pulp, which amounts to about $50 per ton.

The pulp produced by the Winestock process is practically ready for use on paper machine. Mills purchasing this pulp would be saving the factory costs in producing pulp from the rags plus the loss in destruction of fibers while so doing.

The stock produced by the Winestock process would be available for making into the highest grade of paper. The cost of handling by this new method would be less than that of the method in use at the present time; also, time required, cost of chemicals and fiber loss would be materially decreased.

The net returns to the Government by the use of the new method would be very large as compared with the returns from the present method. The proposed method would have the following advantages over the present method:

First. Speed in production (saving cost of power and reduction in number of employees).

Second. Decreased loss of fibers, thereby increasing the yield of pulp.

Third. Better grade of fiber, thoroughly removing all ink and dirt, increasing the sale value of pulp over 600 per cent.

The estimated saving over the present method amounts to about $100,000. The first and second items shown under advantages would offset the amount at present received for the pulp.

Respectfully,