How do the banks/US Gov't move money from the mainland to Hawaii?

Question

Do they use an armored boat or something? Does the USAF donate a cargo plane? Or does Hawaii print it's own cash supply?

Answer 1

The Federal Reserve Branch in Hawaii keeps a supply of paper currency on hand. Banks have accounts at the fed, so they deposit excess cash there, and withdraw cash when they need more. We live in a paperless and electronic society so there is probably only 20% of the money supply is actual paper money. Because banks have accounts at the Fed, transactions are are cleared there. So when a person writes a check drawn on a hawaii bank to pay a person who deposits it in a BY bank, the Fed simply debits the Hawaii bank account and credits the NY bank account. No need to actually move the paper money. When the New York banks needs the cash to cover withdrawals, they just pick it up from the NY Fed. The Fed Branches have huge reserves of paper currency on hand. They don't have to actually move it from one to the other. Only time that paper money would move to hawaii would be when old damaged currency is pulled out of circulation and also when new designed bills are released. Those events are not often, but when they occur, the fed just ships it by plane, possibly through the mail. It its lost, what do they care, they can just print more to replace it. That never happens because they are very discrete when they ship currency, and nobody even knows about it. Very few people, we maybe a few more than a few, are dumb enough to steal it if they had the chance. All the bills are usually marked, sequenced, and recorded. As soon as they appear in circulation, they know about it, and doesn't take long for them to track it down. Thus, money moves electronically through the fed. you have an account at your bank, which in turn has its account at the fed. Think about moving money from a savings account to a checking account at the same bank. No paper money moves anywhere, just account balances are adjusted. Same thing with the Banks account at Federal Reserve. They just adjust the involved banks account balances. The fed acts like a western union.

Answer 2

They do not have to. The tourists move the money for them. Tonnes of it. Their main problem is moving it back to the main land. Otherwise all the cash would wind up in Hawaii. Probably ship it back using Federal Express.

Answer 3

They put helium in UPS truck tires and drive across the ocean.
No really, there are several "mints" in the USA. The one in San Francisco probably flies it over. But thats highly secure and the general public will never know wnen this takes place.

Answer 4

money is a wierd commodity, you dont necessarily have to have it physically to accumulate it

so, for example, lets say tourists pay their hotel bills with credit card, then funds are treansferred to a hotel's account (although the funds do not physically go to the hotel), the hotel pays their employees and suppliers, again the funds are transferred, without actually being handled, the employees and suppliers pay bills, again a transfer of funds. the money never really left the mainland bank at all, it just kept getting transferred around on computer files

Answer 5

The put all the cash in a briefcase and use bi-cycle to transport.