Or follow these instructions: "Magic Tricks with Money" taken off page 66 from Tricks to Pick Up Chicks:
Effect: You show a dollar and borrow a business card or piece of paper. The dollar is folded in half and the card is placed folded on the outside. A pen or pencil clearly is shoved through the dollar and paper. However, when the pencil is removed, there is no apparent damage at all even though the paper has a hole in it.
Secret: There is a special slit in the dollar but how it is folded makes it look like the pencil legitimately travels through the center.
Performance: At home, get a dollar and put it on a cutting board. With a razor blade, carefully cut around the innermost half of the circular seal on the left side of the face of a dollar. On the inside of the black seal containing a large letter, cut the half that is closet toward the left end. When the bill is folded in half, a pencil can pass into the slit and along the back of the bill. However, from the front of the bill, it will look like the pencil is pacing right down the center of the bill. Now that you have your bill gimmicked, there is another set up to do when you do this trick with someone. Find your dream-girl and show her your bill. The position of the opening is perfect to hide with your finger. Fold the bill in half. Also, fold down about an inch or so of the non gimmicked side of the dollar. Crease this part. Take a piece of paper and fold over the entire bill from under the part you have folded down and the back up high enough to cover the slit you made at home. Once you have this figured out, you can create quite an illusion. Stick a sharpened pencil into the slit from the inside of your folded bill. The pencil will come out the back of the slit and be driven behind the bill as you press the pencil through the paper! Right before you you push the pencil all the way though, you are able to show both sides. Hold your thumb and fingers on each side to press the sides closed to hide the secret. Let them see how fair this all looks otherwise. You can even let your lucky lady push it through and break the paper. It will look 100% real from all sides! Pull the pencil out and show that the bill is still fine by holding toward the ends of each side of the bill. Nobody would ever suspect a hole toward the edge and will only be looking at the center.
Tip: If you use a business card for this, fold the business card with 1/3 of a distance instead of in half. Put the smaller part on the front side toward the spectator and the long side on the back to cover beyond the hole the pencil will travel through. This is so you can show both sides and hide the hole in back right before you puncture all the way through.
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