STORY:
Y2K Cash Stockpiled

ATM machines and banks will be ready for run on money at year's end

There’s been talk all year long that when December rolls around people will be cashing out bank accounts and heading home with large amounts of currency. Reports came out that many American’s would take their money out of banks, out of the stock market, out of ATM machines and bury the money in their yards for safekeeping fearing Y2K computer problems.

While the talk hasn’t panned out, most people are confident that their money will be just fine where it is at this time. However, as a precaution U.S. banks are stockpiling cash, as are many banks around the world. Banks are ready to load more money into cash machines come the end of the year.

Fleets of armored trucks will be placed on call and will be able to deliver sacks of money to bank branches if coffers are depleted. In a few cases, banks say they will stay open late if the lines are long enough.

A recent government-sponsored survey shows that the proportion of bank customers who expect to withdraw extra money has fallen from 62 percent in March to 39 percent. Even so, the Federal Reserve has approved a plan to make special loans to banks, credit unions and savings and loans if they need the additional funds.

Last year an extra $50 billion of new currency was put into circulation just in case Americans made a run on banks and ATM’s at the end of the year. There’s also extra money being stored in government vaults. Right now there’s $200 Billion in currency placed on hold when usually there’s just $150 billion dollars of reserve funds held in vaults. On top of all that money sitting around behind locked doors, there’s an additional $460 billion in notes circulating in the United States and abroad.

Hopefully the total of $660 billion dollars in U.S. bills will be enough money to get us into the New Year.

DATE: 11/22/99

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