What does the government do with old money?

Every day, about forty million dollars worth of money is ready for the scrap heap, The worn and dog eared bills are collected by the banks, stacked in piles and sliced lengthwise in two halves. The stacks of half bills are separated and sent on separate trucks to the Treasury Department in Washington, There they are burned,

Metal coins last longer than paper bills, of course, but even they finally wear out. Thin worn coins are also collected by the banks and sent to the mints where they are remelted to make new coins,