If you’ve ever jokingly considered lighting a pile of cash on fire, you might want to think twice. While the phrase “burning money” often refers to wasteful spending, physically setting fire to currency is a different story. The act of burning money is indeed illegal in the United States, carrying surprisingly serious potential consequences under federal law. But why is this the case, and what exactly does the law say about defacing or destroying money?
The Letter of the Law: Federal Statutes on Currency Mutilation
The U.S. government takes the integrity of its currency seriously, and several laws are in place to prevent its defacement and destruction. These laws are codified in Title 18 of the United States Code. Specifically, two sections are most relevant when discussing the legality of burning money and similar actions: Section 333 and Section 331.
18 U.S. Code § 333: Defacing Paper Money
This section directly addresses the mutilation of paper currency, outlining what actions are prohibited and the penalties for violation. The law states:
“Whoever mutilates, cuts, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, or Federal Reserve bank, or the Federal Reserve System, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued, shall be fined under this title or imprisoned not more than six months, or both.”
This law clearly prohibits actions like burning, tearing, or otherwise altering paper money with the intention of making it unusable. The penalty can include fines and imprisonment for up to six months.
18 U.S. Code § 331: Mutilating Coins
While Section 333 focuses on paper money, Section 331 addresses the mutilation of coins. This law is broader, reflecting the historical significance of coins and the precious metals they once contained. It reads:
“Whoever fraudulently alters, defaces, mutilates, impairs, diminishes, falsifies, scales, or lightens any of the coins coined at the mints of the United States, or any foreign coins which are by law made current or are in actual use or circulation as money within the United States; or whoever fraudulently possesses, passes, utters, publishes, or sells, or attempts to pass, utter, publish, or sell, or brings into the United States, any such coin, knowing the same to be altered, defaced, mutilated, impaired, diminished, falsified, scaled, or lightened shall be fined under this title or imprisoned not more than five years, or both.”
This law prohibits a wide range of actions, including altering coins to reduce their value for fraudulent purposes. A separate section within Title 18 even makes “debasement” of coins illegal, which refers to shaving off metal to reduce a coin’s intrinsic value and carries a potential prison sentence of up to 10 years.
Historical Context: Why Are These Laws in Place?
The origins of these laws can be traced back to a time when coins were made of precious metals like gold and silver. Historically, “coin clipping” was a common form of fraud. Individuals would shave off small amounts of precious metal from coins before spending them, accumulating the valuable slivers for themselves while still using the slightly diminished coins at face value. This debasement of currency undermined the monetary system, prompting governments to enact laws against defacing coins.
While modern coins contain very little precious metal, and paper money’s value is fiat-based, these laws remain on the books. They now serve to protect the symbolic and functional integrity of U.S. currency, ensuring uniformity and preventing actions that could disrupt its circulation.
Is Burning Money Really Illegal? Prosecution and Reality
Despite the clear legal prohibitions, prosecutions for simply burning or defacing small amounts of currency are quite rare. Law enforcement and federal prosecutors generally prioritize cases involving larger-scale counterfeiting, fraud, or attempts to disrupt the financial system.
In practice, the act of burning money, especially in a symbolic or protest context, sometimes falls into a gray area. Similar to flag burning, some argue that defacing currency as a form of expression could be considered protected speech under the First Amendment of the U.S. Constitution. However, this is a complex legal argument, and the government’s right to protect its currency remains a valid concern.
One notable case highlighting the legal implications of currency mutilation involved Ronald Lee Foster in 1963. As an 18-year-old Marine, Foster was convicted for whittling down pennies and using them as dimes in vending machines. While the financial impact was minimal, Foster faced a year of probation and a criminal record. This conviction later impacted his ability to obtain a gun license, illustrating the long-term consequences, even for seemingly minor currency-related offenses. He was eventually pardoned by President Barack Obama in 2010.
The Economic Impact: Why Governments Care About Currency Destruction
The rationale behind these laws extends beyond preventing fraud. The Federal Reserve bears the cost of replacing currency that is taken out of circulation, regardless of the reason. Producing new banknotes and coins is an ongoing expense. While the cost to produce a single bill might seem small (ranging from approximately 5.5 cents for a $1 bill to 14 cents for a $100 bill), these costs accumulate significantly when large amounts of currency are destroyed.
If the widespread destruction of currency became commonplace, the economic implications would be more substantial. Increased demand for new currency production would strain resources and potentially impact the efficiency of the monetary system. Therefore, the laws against currency defacement serve, in part, to discourage practices that could lead to unnecessary costs and disruptions to the nation’s money supply.
Conclusion
In conclusion, while the odds of facing prosecution for burning a few dollars are slim, it’s definitively illegal to burn money in the United States. Federal laws prohibit the defacement, mutilation, and destruction of currency, both paper money and coins. These laws, rooted in historical concerns about currency debasement and modern economic considerations, underscore the government’s interest in protecting the integrity and functionality of U.S. currency. So, while the dramatic image of “burning money” might be a common metaphor, the real-world act could land you in hot water with the law.
