The news that the Treasury will once again sheepishly release a small batch of dollar coins raises the question: Why are Americans so hung up on paper money when countries like Britain and Canada have enjoyed the benefits of coinage for years? Don’t scoff—the Government Accountability Office estimates potential savings at $500 to $747.5 million annually.
Slate:
There’s no reason the United States shouldn’t be using dollar coins right now. Canadian and Australian dollars are made of metal. So are the British pound sterling and the euro. That’s because coins are vastly more durable than paper money. Though a coin costs about three times as much to produce as a bill, it will circulate for an average of 30 years, whereas a dollar bill lasts 22 months, and for the last few of those, has all the charm of a grimy, germy handkerchief.
The United States General Accounting Office says we’ll save $500 million a year in production costs if we shift to coins; another GAO document puts the savings even higher, at $747.5 million. The catch is, people have to use them. Surveys suggest that the public prefers keeping the bill, by margins that vary widely from poll to poll, but the chief hold-up is habit. Shoppers won’t use dollar coins till they see businesses taking them; businesses won’t use them until banks give them out routinely; and the banks aren’t going to invest in infrastructure changes, like new coin-counting machines, until they see the public using the coins. Everyone’s waiting for someone else to move first.
Coins would be accepted in a matter of months, maybe weeks, if Congress phased out the dollar bill. (The Treasury does not set policy on these matters, merely carrying out congressional orders.) Instead, the Treasury just keeps stamping out coins, asking us politely to use them.
In the early ‘70s, the Eisenhower dollar—the same size as the preceding century’s silver dollars—arrived, failing to circulate much because it was huge and heavy. (It’s a remarkable artifact of the space race, however: One side shows Ike’s bald noggin, and the other has the American eagle setting its talons down on the moon.) The next push came in 1979, with the infamous Susan B. Anthony dollar. As every American who was sentient that year remembers, it failed because its size, thickness, and reeded edge made it far too easy to mistake for a quarter. Tellers and cashiers immediately began making 75-cent errors. It was a fiasco, and a perfect symbol of the Carter administration: an eminently reasonable policy hamstrung by inept execution.
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By James Yell, March 16, 2007 at 4:14 pm #
(Unregistered commenter)
Here we go again. As to the paranoids, “well just because your paranoid, it doesn’t mean they are not out to get you” and considering this administrations disregard to the Bill of Rights spying with coinage wouldn’t be that big of a stretch.
However, yes, the old dollar coin was very large and didn’t continue to meet the needs of society because of that. No the various incarnations of the dollar coin have not failed because they are too large, but because they are too close to the size of the quarter and giving it a dingy, fake gold (tarnished brass) look didn’t help a bit. Perhaps people with excellent vision and tactile senses can separate them easily from quarters, but the rest can’t.
The only change I can think of if not sided is to put a hole in the center of each coin, make it easier to stack them too. The next stupid release of the quarter that is a dollar coin, should be paid for by the vending machine company.
The probable savings in money, might well be there if people would use them, but they will not use them as long as they can be confused with the quarter, or are so heavy as to be objectionable in the pocket. For myself I never found the size of the traditional dollar coin a problem, but then I was always to poor to have more than one or two.
Report thisBy Tom Weidermeijer, March 16, 2007 at 2:04 pm #
(Unregistered commenter)
JKoch: I would NEVER want to do away with cash. Anonymity of cash is one of the last true freedoms we have here. Everything else can be tracked.
Christopher: The size of the dollar coin is not shriking. Susan B’s and the ones today are exactly the same.
Honestly, almost all vending machines accept them. No, for real. That is also why we don’t want an 11 sided coin, etc.
It would be cool if we made them bi-metal like Canada’s.
Report thisBy mite, March 16, 2007 at 11:25 am #
(Unregistered commenter)
Prior to December 23, 1913 with the treason of a few Congressmen and the passage of the Federal Reserve and Internal Revenue Acts, Congress coin and regulated the value. Article 1, Sec:8
search google.com ‘freedom to fascism’ and
‘money masters Part 1&2;’truth of the federal reserve’
‘terrorstorm’
http://www.supremelaw.org/sls/31answers.htm
Now as the secret becomes known by millions of people they want to change to coins. Well unknown to but a few this new coin will be ‘chipped’ to trace the coins location. With plans to go to the ‘Amero’and the ‘North American Uion. The total destruction of the U.S.-Canada-Mexico’s sovereignty’s into another European Union and a One World government.
http://www.americapolicy.org http://www.worldnetdaily.com
http://www.givemeliberty.org
These acts of treason will finally lead to a total cashless society and total control by our masters- The Banks.
Did you know that the U.S. Gold Reserve is no longer on U.S. Soil? It was given for security to the Bankers for all future loans printed (treasury) by the federal reserve in ‘federal reserve notes. On March 9, 1933 the U.S. Government became bankrupt. search for The Bankruptcy of the U.S. Government.
Report thisBy Skruff, March 16, 2007 at 10:55 am #
(Unregistered commenter)
...so the government saves 750 Million and returns it to the taxpayers in the form of....3 dollar bills.
Give me a break 750 million is not even a drop in the governmental bucket, Thanks, I’ll keep my greenbacks.
Report thisBy bill margolis, March 16, 2007 at 9:54 am #
(Unregistered commenter)
It’s not ineptness, it is the continuing dull incompetence! You need only compare the $20 bill with the polymer bank notes from Australia, and the innovative bills from other countries. Yes, for the new dollar coin, they did change color, but are foolishly keeping it in the shape of a circle. Hey guys, look around at the world’s coinage! What is wrong with 11-sided, or 9-sided, etc?
Report thisBy Bert, March 16, 2007 at 9:15 am #
(Unregistered commenter)
We DO have coinage, and it used to be worth something, that is until everyone since Reagan had their way with our dollar, I smell a rat with the dollar coin business, besides, e-money will basically just about make currency obsolete. A nice shiny gold-colored coin kind of LOOKS like it’s worth something, though, hmmmm....
Report thisBy JKoch, March 16, 2007 at 8:20 am #
(Unregistered commenter)
Why not abolish coins and paper, save the metal for other uses, and rely mainly on “plastic” money like EasyPass or phone, ATM, and credit cards? Some people would object to “loss of privacy,” but the main casualty would be tax evasion. Most petty payments are of no interest to any Big Brother. Our NSA already has the ability to tap most phone traffic, but cannot possibly monitor or decipher much of the huge amount of [largely worthless] jabber. Alberto González is not going to nail some NM Democrat because he bought Viagra or watched a dirty flick, since such snooping would require judicial warrant, and Naughty Newt and Kinky Karl would also be in the crosshairs.
Report thisBy Tom Weidermeijer, March 16, 2007 at 7:36 am #
(Unregistered commenter)
Dear US Mint:
Canada uses $1 and $2 coins since they DON’T HAVE PAPER money any more.
If you really want us to start using dollar coins, stop making paper ones.
I just got one of the new dollar coins yesterday. It is not the same color as a Sacagawea. It is a light gold-tone and AGAIN easily mistakable for a quarter. The Sac is a much different color than a quarter.
I don’t mind dollar coins, but paper ones fit in my wallet.
Also, get rid of the g’dam penny, make a $2 coin and make our bills different colors and make them look… you know, cool. Have you EVER seen other countries’ money???
As they say, even a blind squirrel finds a nut once in a while, so the mint discovered the state quarters, but regardless of whose administration they are under, they have no idea what the people want.
Here is a question I have had, if you only have dollar coins, how do you put one in a g-string at a strip club?
Report thisBy yank in london, March 16, 2007 at 7:18 am #
(Unregistered commenter)
I have to be suspicious of a country in which its highest denomination, generally circulated coin won’t even buy you a pack of gum.
The smallest British note is a fiver - currently worth about 10 USD and the largest coin is worth two quid (about four USD).
About time you got with the programme!
Report thisBy albert, March 16, 2007 at 6:34 am #
(Unregistered commenter)
The problem is they come out with a coin that is barely distinguishible from a quarter. The gold color is just stupid as the defining difference. If they made it more like the old half dollars, it might work. Plus, you’ve got to get vending machine makers to make slots that will accept it. The only ones I’ve seen are at the post offices. I personally hate the coins because they are so easy to mistake for a quarter. When I get them back out of a stamp machine, I have to separate them from the rest of my change until I can trade them for bills, so I don’t end up losing money.
Report thisThis is just more of the stupidity from our federal government. The ones who have proven over and over again that they are not capable of solving or even lessening even the simplest of problems.
By martin weiss, March 16, 2007 at 5:30 am #
(Unregistered commenter)
It is instructive of social value that the dollar has become pocket change.
Report thisAs a boy, I could buy more for a nickel than the dollar buys now.
Perhaps if there were any intrinsic value in our coins, as in silver, folks would regain respect for coins.
By Christopher Robin, March 16, 2007 at 4:59 am #
(Unregistered commenter)
The size of the dollar coin is shrinking.....At the rate were going another few years, and this debate will be moot.
Report thisBy Frank, March 16, 2007 at 3:01 am #
(Unregistered commenter)
You are deluding yourself if you think the dollar coin would be widely accepted in America. The reason is simple: WEIGHT. Men don’t carry purses, and most of us hate carrying coins of any significant quantity in our pockets. I may carry one or two coins just to avoid the necessity of getting more back because some item costs $1.04 after tax. Coins just hangs there in the front pocket like dead weight, swinging my pocket around inside my pants, occasionally crashing into my balls , rubbing my leg, etc. Coins are annoying. Every time I get back in my car after spending money and getting change back, I take the copins out of my pocket and put it in the coin tray until it accumulates to the point I have to empty it out. Then it goes into a jar at home and every few months into a coin counter at the bank.
Paper money by comparison, is thin and light, and you can carry lots of it in a slim wallet without any discomfort or annoyance, front pocket or back. Paper money is here to stay until we go completely cashless.
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