Abstract: A method and apparatus for automatically identifying paper currency, stocks, stamps, and the like, by optically examining and viewing regions on the currency. The graphic pattern scanned is stored as signal information and then compared with signals representing predetermined standard information on the pattern of the currency. An identification is obtained upon the concurrence of a predetermined amount of the two information signals being compared. The system can accommodate lateral shifts of the currency and skew angles of arrival of the currency, and still provides a suitable identification. In the case of lateral shifts, it can either compensate for the shift or provide comparisons with a plurality of standard information signs, each for a different lateral displacement.