Regarding the article about novelty company Archie McPhee's problems reselling macerated currency, Tony Terranova writes:

Souvenir buildings have been produced in a variety of materials. One of the most unusual has to be macerated money. Because it's the home of the U.S. Treasury, Washington, D.C. Landmarks are primarily represented. The Washington Monument, Lincoln Memorial, U.S. Capital, and the White House have all been molded from worn-out currency that has been chopped up. Other items made of shredded bills include postcards, shoes, medallions, axes, presidential busts, top hats, and more.

Paper currency did not come into general use until the Civil War. An act of Congress in 1862 authorized the Treasury Department to come up with a method for destroying old paper notes that were no longer fit for circulate. Between 1874 and 1942, the Federal Reserve disposed of worn-out currency by soaking it into a pulp. Enterprising people, who may have been early recyclers, discovered that the pulp could be used like papier-mache to form shapes. Souvenir companies bought macerated paper by the ton and the graded greenbacks were reborn. The process was discontinued when the Federal Reserve started burning old bills. Sometimes, the item was labeled with how much money was used to make the piece such as, "Made of U.S. National Greenbacks redeemed and macerated at the U.S. Treasury, estimated $5,000."

To read the complete article, see:
Macerated Money Souvenirs Landmarks of Washington (www.buildingcollector.com/2014/07/macerated-money-souvenirs-landmarks-of.html)

GEORGE WASHINGTON MACERATED MONEY MEDAL, ND. 91.6mm. VF/XF with surface abrasions and a few edge dents, as shown. Obv: Bust of Washington to partial left. A scroll is inscribed to either side: FIRST IN WAR, FIRST IN/PEACE, AND FIRST IN THE HEARTS OF/ HIS COUNTRYMEN. The reverse bears the following inscription in the intaglio portion of the bust: "NATIONAL CURRENCY SOUVENIR CO. WASHINGTON, D.C." and "MADE OF MONEY DESTROYED BY U.,S. TREASURY ESTIAMTED $3000." $95.00

AN EXTREMELY LARGE MACERATED MONEY BUST OF ABRAHAM LINCOLN. 5 1⁄4" High. Base 5 3⁄4 x 3" . XF (The very whitearea on the nose is a scanning defect - it does not appear that way in hand.) Here is a bearded bust of President Lincoln - one of the largest piecesof macerated money art we have ever seen. The original paper label on the back is present but the inscription on it is no longer visible. $225.00

To read the earlier E-Sylum article, see:
PROBLEMS WITH RESELLING MACERATED CURRENCY (www.coinbooks.org/esylum_v19n28a35.html)