Replacements

         When certificates are spoiled during the printing process, they may simply by discarded if the serial numbering has not been completed. However, if the numbers have been applied, the situation is entirely different. In this case the numbered scarp must be replaced with other numbered pieces.

          It is necessary to replace spoiled notes rather than just discard them in other to maintain the numbering sequence, which facilitates accounting. However, it is extremely expensive process to recreate the exact serial numbers that are spoiled; therefore the replacement system. This system was first introduced at the Bureau of Engraving and Printing in 1910 and has been used in all United States paper money since then.

          In the replacement system, a short run of replacement certificates is numbered prior to the numbering of the major production run in anticipation of spoilage. These replacements are then available during the major production for replacing spoiled notes. Since the replacements are numbered independently from the production run and inserted only as needed, serial numbers of these pieces will not be sequential with the adjacent pieces. The difference between the bottom and the top note of bundle will remain the same as the number of pieces in the bundle. In order to avoid confusion surrounding the serial numbers that are out of order, the replacement certificates include a characteristic that identifies them as replacement certificates and the characteristic is made known to clerks and others who handle large quantities of notes. Each wrapper for bundles of 100 certificates is printed with instructions concerning the identification of replacements.

          MPC serial numbers consist of prefix and suffix letters as well as an eight-digit numeral: E00320691E  Replacements do not have the suffix letter; they are in the format: E00320691  This subtle change of the serial number format is what has fostered a very enthusiastic group of collectors.