Joe Karson's Routine
 
Magician borrows a dollar bill, which is marked by the owner. The magician rolls up the bill into a small, tight parcel and places it under a handkerchief, then gives it to a spectator to hold. The magician then borrows a freshly lit cigarette, breaks it in half, and the marked bill is found inside one of the pieces! The spectator holding the hanky is asked to look at what they are holding and discovers a piece of paper instead of the bill.