• The first country to use paper money was China.Robert Kirk/Photodisc/Getty Images
  
  Although paper money in the United States has existed since 1861, it wasn't until 1913 that it all became printed in the same place. Since then, the Bureau of Engraving and Printing in Washington, D.C., has mass-produced paper money.
  
  

Creating Die

• The first step in making paper money involves making a steel master die that is carved by skilled engravers. Using a special pen, the engraver transfers a design onto a soft transfer roll. This roll, which eventually hardens, becomes the steel master die and will be used to transfer the same image repeatedly.
  
  

Master Printing Plate

• After the engraver completes the transfer and the die is made, the plate-making process begins. A plastic sheet is placed over the die and heated to get a raised quality from the die. This process is repeated 32 times. The materials are attached together to make an alto, or a 4-by-8 sheet. Afterward, the alto is dipped in copper, and an electrical current is used to capture an image of the plastic's raised impression. The copper is then sent for inspection, and if it has no flaws, it is hardened and used as the master plate.
  
  

Substrate

• After the master printing plate is created, the substrate, or blank currency paper, is made. This special type of paper is made of 75 percent cotton and 25 percent linen and is cut to match the size of the printing plate, which allows a total of 32 bills on each sheet.
  
  

Printing Process

• An intaglio printing process is used for paper money. This process consists of the substrates being fed into multiple rotary presses while the master printing plate, which is covered with ink, is attached to a printing cylinder. Each sheet of the substrates is pressed between the printing cylinder and then pressurized with high heat. This causes the ink to appear slightly raised, a quality that cannot be replicated by any other printer.
  
  

Numbering

• After the printed bills have dried, they are sent to the letterhead press. The letterhead press prints serial numbers on each stack of substrates as well as the colored seal of the treasury.
  
  

Cutting

• When the bills are numbered and printed, they are separated and stacked into batches of 100. Blades are used to cut through each stack, which becomes wrapped with paper.