A bank note handling apparatus of a circulating type utilizes bank notes deposited by customers as payable bank notes. The following devices are provided in the form of a loop in a conveying passage downstream from a paying-in and paying-out device for use in depositing or withdrawing bank notes by customers: bank note stacking devices for stacking circulated bank notes; a first discriminating device for discriminating bank notes; a bank note receiving device for receiving bank notes that are not to be circulated; a second discriminating device for discriminating bank notes; a device for properly arranging the obverse and reverse sides of bank notes; and a temporary receiving device for temporarily receiving bank notes to be deposited or withdrawn. Hence, the conveying passages for the paying-in and paying-out device and the respective stacking devices are shortened, reducing the processing time.