If you look in your /etc/passwd right now, you'll almost certainly see a single "x" where the (EDIT: no, it was still encrypted!) password originally was - nowadays that single "x" is an instruction to go look in /etc/shadow instead, for the salted hash of the password you're trying to check.
I think this minimizes the number of users who need read permissions to /etc/shadow, and the amount of time they need it for.
This has been your seemingly useless bit of Linux trivia for today. :)