ultimate counterfeit buster''.

Thomas De La Rue, the British company which prints currency notes for countries from South America to the Far East, is so impressed with their latest Bermuda note that they have now asked permission to use samples for their own world-wide marketing programmes.

"De La Rue said that this particular note is the best example so far of the use of this special new inking process. And as it's the state of the art answer to would-be counterfeiters, countries all around the world are going to be studying our Bermuda note very carefully indeed,'' says Authority manager, Mr. Douglas Selley.

Recently issued to commemorate the Silver Anniversary of the Monetary Authority, the note's basic 1989 design, showing the Queen on the front and images of Government House and Camden, the Premier's official residence, on the back, remains the same. The Monarch Butterfly, seen hovering close by Her Majesty's head, however, now changes colour in a holographic kind of effect, if the note is tilted from side to side.

Other changes to the new note include an overprinted commemorative text printed on the front, updated signatures of Authority Chairman Mr. Mansfield Brock and Director Mr. Anthony Joaquin, a new serial prefix number, date of issue, and a revised legal clause stating that "This note is legal tender issued under the Bermuda Monetary Act 1969''.

The new notes are being introduced in the normal course of circulation. Mr.

Selley explains that the amount of money in circulation at any one time is always determined by the three banks' demands, and it is the banks who inform the Authority of estimated requirements. Worn notes are being gradually withdrawn and shredded.

Mr. Selley says the recently developed optically variable ink is causing a ripple of excitement in the monetary world, as it is already being acknowledged as a major step forward in the ceaseless fight against counterfeiters. Improved photocopiers have caused a splurge in successful counterfeiting operations. He says that countries, such as the US which "cannot afford'' to reprint notes in a variety of hard-to-copy colours, have had serious problems in this respect.

Mr. Selley is convinced that Bermuda's distinctive, colourful design, printed on superior quality paper which is watermarked and features a strip of silver printing the name of the Authority, has deterred any would-be counterfeiters.

"We're always on the look-out, of course,'' he adds, "we can't be complacent. Bank officials and merchants are very experienced in the feel, look and special features of our notes.'' As a final deterrent, there is also a hidden, ultra-violet image of Bermuda's famous cahow bird. Invisible to the naked eye, a machine which picks up the image is used in tests for possible counterfeiting.

The basic design of the $100 note was agreed by the Board of Directors who were anxious to market scenes of Bermuda that reflected the Island's history and beauty.

"They chose the two highest houses in the land (Government House and Camden) for the highest bank note,'' explains Mr. Selley, adding that the other features also included the Island's national flower, Bermudiana, a turtle, the Bermuda coat of arms and a tuna fish watermark.

Working from photographs, De La Rue's in-house artists sketch the designs on to tissue paper, colour and then engrave on metal plates. The whole process may last six to 12 months.

Mr. Selley says that the expensive process is justified by its success.

"In fact, the currency notes are what drives the revenues for the Authority's operations. For every $100 note issued, the banks have to give us the same amount in foreign currency -- this is usually US currency.'' That income is then invested in what is now a "substantial'' portfolio of investments. Any surpluses earned have been paid over to the Government.

"Our currency is very strong because we have international reserves which are stronger than most countries anywhere in the world. So if there should ever be a run on the banks for any reason, we have currency to fall back on.'' Mr. Selley says the Monetary Authority is proud of the fact that, by funding its own operations, the Bermuda people have never been asked to pay additional taxes to cover costs, as is the case in many other countries.

The Bermuda Monetary Authority also issues a lavishly produced Annual Report and Accounts which lists the financial positions of local banks and deposit companies, as well as details on Bermuda dollar liquidity, foreign currency liquid reserves and the Island's balance of payments estimates. This, declares Mr. Selley, has proved invaluable to prospective companies interested in setting up business here.

Further revenue is earned through the increasing business from currency collectors: "A lot of them are very impressed with our handsome notes,'' says Mr. Selley. "They will really be jumping when they see the new Monarch Butterfly!'' Bermuda is certainly not the only place to exhibit its historical currency collection (the exhibition at the Maritime Museum traces the entire process of designing and printing the $100 note): "We send samples to museums all over the world,'' says Mr. Selley, adding that uncirculated notes are sent to collectors in protective covers, "as even clean fingers leave acid deposits on the notes.'' One of the Authority's aims, says Mr. Selley, is to raise the profile of collecting as a hobby amongst Bermuda's children.

"Like stamp collecting, it's a very instructive exercise,'' he maintains.

"We think it helps children with their geography, it helps the concept of being part of the world community and we think that the various designs heightens awareness of the art aspect involved in the overall production of issuing currency. Of course, it should help them to understand a bit about money as well!'' NEW BILL -- Bermuda's new $100 bill features variably optical ink to guard against counterfeiting.