Many people did not and still do not trust banks, and as an alternative chose to store their savings in odd places like jars buried in the backyard, or stuffed in attic trunks or under mattresses. Paper currency does not tend to fare well when left under such conditions for a long time and can be destroyed or ruined.
If you possess (paper) money that has been damaged due to a fire, or that was perhaps stored in the attic or buried in the yard for "safekeeping," but was ruined, you may be in luck. There's a useful FREE service offered by the US government which will examine and verify mutilated currency that you send to them and (if verified) will return a check to you for the value reclaimed.
This is actually a case of government working for the people. So take advantage of it, if needed.
For more information, see the Castle Modern entry here.
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