by Michael Jay » Feb 23rd, '07, 14:56
The method for doing this can be found in many books on magic, but unfortunately I don't know off hand which ones, specifically...
However, you'll find the methodology behind this trick in "The Amateur Magician's Handbook" (Hay) where it is described as a torn and restored card to cigarette. With a bit of imagination, it isn't hard to figure out how this would work with bills instead of a card (and, in all reality, much easier since the bills aren't nearly as stiff as a card).
Mike.