Congress Considers Doing Away With The $1 Bill

[eridani]

http://www.manufacturing.net/news/2012/11/congress-considers-doing-away-with-the-1-bill?et_cid=2972609&et_rid=54679148&linkid=http%3a%2f%2fwww.manufacturing.net%2fnews%2f2012%2f11%2fcongress-considers-doing-away-with-the-1-bill

American consumers have shown about as much appetite for the $1 coin as kids do their spinach. They may not know what's best for them either. Congressional auditors say doing away with dollar bills entirely and replacing them with dollar coins could save taxpayers some $4.4 billion over the next 30 years.

Vending machine operators have long championed the use of $1 coins because they don't jam the machines, cutting down on repair costs and lost sales. But most people don't seem to like carrying them. In the past five years, the U.S. Mint has produced 2.4 billion Presidential $1 coins. Most are stored by the Federal Reserve, and production was suspended about a year ago.

The latest projection from the Government Accountability Office on the potential savings from switching to dollar coins entirely comes as lawmakers begin exploring new ways for the government to save money by changing the money itself.

The Mint is preparing a report for Congress showing how changes in the metal content of coins could save money.

[dipsydoodle]

1. In the UK

we lost the £1 note back in 1984. I subsequently concluded it was to help clothing maufacturers - the coins wear your pockets out.

[Xipe Totec]

2. Monetary Units: None

I can always rely on the Hitchhickers Guide to the Galaxy for up to date information on any subject, including currency.


In fact there are three freely convertible currencies in the Galaxy, but none of them count. The Altarian Dollar has recently collapsed, the Flainian Pobble Bead is only exchangeable for other Flainian Pobble Beads, and the Triganic Pu has its own very special problems. It exchange rate of eight Ningis to one Pu is simple enough, but since Ningi is a triangular rubber coin six thousand eight hundred miles along each side, no one has ever collected enough to own one Pu. Nigis are not negotiable currency, because Galactibanks refuse to deal in fiddling small change. From this basic premise it is very simple to prove that the Galactibanks are also the product of a deranged imagination.


http://www.acc.umu.se/~ola/hitchhik.htm

[DJ13]

3. Giving new meaning to the term "money slot" in strip clubs

[Drale]

4. Although it would be cool to carry around a pouch of Gold Coins

I don't see them getting rid of the 1 dollar bill especially because everyones wallets are built to hold bills, not change.

[Retrograde]

12. They'll also hold $5 and $10 just as well

As for the coins - coin purses. Or however you currently carry quarters.

[NightWatcher]

5. they wont ditch the penny, but the dollar bill is on the chopping block?

Baby steps, guys. Baby steps

[Swede Atlanta]

17. Agree...I would rather they axe the penny and keep the dollar bill...

I can't afford $5 bills when I am at the stripper club!!

[bluestate10]

28. The government should get rid of the Penny, Nickel, and Dime. Those coins were made for a day when

stuff actually cost a Penny, Nickel or Dime. Those days are long gone.

[WinkyDink]

54. Oh? Well, why don't we just "round up" to the nearest 5 bucks, and solve BOTH "dilemmas"?

[bluestate10]

70. Rounding to the nearest quarter is best. The thing is the round up is a one time hit. nt

[KamaAina]

6. If they did that, they might consider bringing back the $2 bill

which might make the change more palatable.

[Brother Buzz]

15. Bring back the $2 bill?

Plenty of them in circulation in my town. Our hardware store has always used them; the local bank supplies them. Some merchants in town tend to pull them, but they are still plenty in circulation, especially in the bars and restaurants.

[WinkyDink]

55. Is your mayor Rod Serling?!

[former9thward]

49. The $2 bill is the only thing I use.

My bank always has a stack of them waiting for me when I come in. They are almost always uncirculated (stack is in serial number order).

[Brother Buzz]

56. Most of ours are new, too

The coveted ones that I seek and hoard are the ones dated 1952

[Terra Alta]

7. I'd much rather see them do away with pennies

Pennies are pretty much useless, and cost more to make then they're worth.

I don't carry much cash, but when I do I like for it to be actually dollar bills, and not loose change.

[The Time is Now]

10. Agreed

And it is not just urban myth: Here's one site among many that confirms that it costs $2.41 to manufacture a penny.

[jeff47]

32. Keep in mind that penny isn't spent once.

It'll be in circulation for decades, spent many, many times.

[bhikkhu]

42. We did away with them a couple years ago at our business

Nickels too - we pretty much round all prices down to the nearest quarter so we don't have to deal with the small stuff, and it works just fine.

[TrogL]

8. Canada has loonies and twonies

Makes for a thinner wallet and less coins in my pocket.

[mac56]

51. yup

About a month and a half ago I wrote about them on my blog. I pondered why the US Mint doesn't follow suit. Guess it's time to write an update.

http://namebrandketchup.wordpress.com/2012/10/13/geekin-the-902-loonies-and-toonies-are-awesome/

[RC]

9. Canada did it.

They use Loonies and toonies.

[NYC Liberal]

26. I've spent time in Canada and that was the one thing I didn't like.

My pockets were always full of heavy $1 and $2 coins that just became a pain to tote around. I always try to minimize the change I carry, so the prospect of having even more coins isn't too thrilling.

But I realize I could be in the minority on this.

[RC]

31. I'm with you there.

Those toonies do get heavy. I learned to use my credit card for most purchases, wherever I could.

[Electric Monk]

40. Yet another example of you being on the wrong side of an issue.

If you've got 5, and they seem too too heavy, trade them for a $10 bill with your next purchase.

[RC]

48. Sure and then make $2.19 purchase and start all over.

You need to visit Canada for some experience here.

[snooper2]

52. Talking about change in ones pocket is the wrong side of an issue?

Some people really DO take this place to seriously

[Electric Monk]

86. Talking about two ounces worth of coins being too heavy a burden is.

http://www.salon.com/2011/03/10/dollar_coin_replacement_bill/

Here’s the argument in favor of the switch:

Coins are cheaper and more durable: Due to rising cotton prices, the dollar bill is now literally worth less than the paper it’s printed on. Dollar coins cost considerably less to produce and last much longer. Dollar notes only last two to three years; dollar coins can last up to 30 years or more.

All the cool people are doing it: The European Union, Canada, and Britain have already made the switch, and now use mostly coin money. Their transitions took a coordinated government effort, but were also relatively painless. And given how easily Americans have adapted credit cards, online bill payments, and other forms of “digital money,” the switch might not be too jarring.

Coins are more eco-friendly: Retiring greenbacks could actually make the U.S. economy more green. Because of the paper they’re printed on, dollar bills can’t be recycled, and retired notes are shredded and put into landfills. Fewer paper bills would mean less waste to bury.

No more jams in vending machines: Some argue that the dollar coin could boost some businesses, with companies now forced to spend up to a billion dollars a year in repair costs and sales on vending machines. The dollar coin would eliminate these costs.

(edit: removed "nt" from subject line)

[Pab Sungenis]

92. It's easy to get used to.

Do you carry around a pocket full of quarters all day long? Of course not. You only keep what you need for making change and spend the rest.

The same happens with Canada's $1.00 and $2.00 coins. You get used to spending the coins instead of letting them pile up.

If they revamp and push the $2.00 bill and do away with the $1.00 most people will only keep one or two dollar coins in their pocket at a time. We will adapt.

[NYC Liberal]

95. I was carrying around far more change there than I ever have here.

You still have to carry around those coins to spend them, and that's much more of a pain than bills are. We've already had dollar coins for decades now and no one has rushed to use them. Yes of course if there were NO choice, people would be forced to use coins. But given a choice, the vast majority of people have spoken and do not want them. Yet every few years, without fail, the same debate crops up.

Sorry, but I'm just not a fan.

[wickerwoman]

37. It's the same in New Zealand

and you do get the infrequent delight of counting the "spare change" in your bag/jar/pocket and realising you have $30 more than you thought you did.

But honestly I pay for everything with plastic now... maybe once a month I use actual money. I don't really have skin in this game.

[TrogL]

50. We've also got a million dollar coin

[Spike89]

11. All for it, but kill the penny and make the $1 bigger

I like the idea of gold (colored) $1 coins, but they need to be obviously bigger than a quarter, maybe not as big as the old 50-cent pieces, but in the general area. You could do like the Canadians and add a $2 coin, make it the same size, but like theirs, easy to distinguish in other ways.

Unless you're heading to a strip club, you don't need lots of singles most of the time anyway.

Oh, on the subject of pennies, yeah, they cost more than 1-cent to make, but they can circulate for decades. Dollars cost less than a dollar to make, but they average a couple years at best. The actual cost of the currency isn't linked at all to its value, and cost to the taxpayer isn't simply manufacturing cost--it is replacement frequency X cost. I don't know the actual cost of minting a penny, but it would be interesting to compare the cost of the various currencies over time. For instance, if a bill is useful for 2 years and a coin for 20 years, how much (if any) cheaper is it to print a dollar bill and replace it 10 times compared to minting 4 quarters once?

[doc03]

13. If they want to do away with the dollar bill just quit making them.

I don't care if they do away with the dollar and the penny. If I remember right when I was in Germany 40 years ago they had 1 and 2 Mark coins and their bills started at 5.

[Art_from_Ark]

18. Germany also had 5-mark coins

that were issued from 1951 to 2001.

[doc03]

19. I kinda thought I saw 5 Mark coins too, but that was

a long time ago. Do you know if there were bills under 5 Marks in 1969?

[Art_from_Ark]

21. In the '60s, the notes started at 5 marks and went up to 1000 marks,

and the 5-mark coins were made of silver.

[doc03]

22. I did a search on that myself and I believe it was in 1987

they started making silver 10 mark coins.

[Art_from_Ark]

24. I think all the 10-mark coins were special collector coins

that never circulated. The first 10-mark coins were issued in 1972 to commemorate the Munich Olympics, but then no more were made until 1987, when the German Mint realized that it could make a significant amount of money selling silver coins to collectors, and then the floodgates were opened.

[slackmaster]

14. I think the use of $2 bills should be aggressively encouraged

I love $2 bills.

[Enrique]

16. Obama hates George Washington!

[doc03]

20. I know how to get the Republican's vote on it, put

Saint Ronnie on the coin.

[Nye Bevan]

23. Surely this would be great for the blind? (nt)

[doc03]

33. Blind people have a heightened sense of touch (That's what

I have always heard anyway) if they can read Braille it shouldn't be that difficult to make a coin they could identify. I posted earlier that when I was in Germany 40 years ago they had 1,2 and 5 D Mark coins and their smallest denomination currency was a 5 D Mark bill. The Germans and us GIs had the intelligence to function with them.

[NYC Liberal]

25. I hope not. I cannot STAND $1 coins. They are heavy, take up more space, and are harder to store.

We need fewer coins, not more.

How about polymer notes?

[doc03]

29. They wouldn't necessarily be bigger or heavier. They could be made any

size or any material they wanted. An old silver dime is worth about $3.00 in scrap value. A penny costs more to make than their value.

[NYC Liberal]

35. Any coins are a pain. I try to minimize my change as much as possible

and get rid of it ASAP.

Polymer notes are what we should be going with imo.

[Romulox]

43. All US coins (save the dime) get larger as the amount goes up. Break that symmetry, for what?

That's a huge problem here. A dollar coin that about 95% the same size and feel as an existing coin.

[doc03]

47. It would save the treasury money. Back in the day of gold coins they were smaller then silver ones.

I like coins and have never had aproblem telling one from the other. Why is it other countries do it and Americans
can't? Like I pointed out here before we had 1,2 and 5 Mark coins in Germany and the currency started at 5 Marks
and American Gis had enough intellegence to function. I don't know why the government doesn't just stop making
the dollar bill, some people just won't accept change unless they are forced to.

[Romulox]

58. You didn't even attempt to address the issue of coin size.

Most other countries in the world do not have identical sized coins for different denominations. In fact, that is a common complaint about US bill size--we are almost unique in the world as far as having bills that are all identical in size, thus making it very difficult for the blind to use currency.

The Susan B. Anthony/Sacajawea coins are massive step backwards, in this respect.

[doc03]

83. I don't understand the problem with the size of a coin, I haven't had any

problem with that. The Susan B. Anthony maybe could be mistaken since it was also
silver in color, close to the same thickness and had the same type edge as the quarter. The Sacajawea and the Presidential coins are gold in color, they are thicker, heavier and have a smooth edge. If the size is the problem the treasury could make them any size they wanted, they could even put hole in them to tell them appart like some countries do. I did address the coin size, back when I was in Germany they had Pfennigs in various sizes and denominations and 1,2 and 5 Mark coins. Their currency started at 5 Marks didn't have 1s or 2s. The Germans seemed to get along with them and us GIs didn't have any problem with them you could buy a beer with one. I may be wrong it has been a long time but I think their currency was all the same size too. I like the dollar coins myself, I used to buy stamps in the machine at our post office because it gave Sacajaweas as change, I also used the change machines in the rest stops in Ohio to get dollar coins.

[defacto7]

89. Never had a problem with them, ever.

They are heavier, thicker. I can count my change in my pocket without looking. It's no problem.

[Pab Sungenis]

93. The dollar is NOT the same size as a quarter!

if you hold them in your hand at the same time, the difference is obvious.

Plus, the newer (post-1999) dollars have a smooth or lettered edge and distinctive color, which makes them much easier to distinguish from quarters.

[Kaleva]

27. I think this is a good idea.

[aquart]

30. No.

[defacto7]

34. I have really become fond of $1 coins.

I get them every week at the bank. They are much easier to use than the dollar bills. Yeah... get rid of the bills, such a waste and we already have the dollar coins minted and ready.

Dump the penny too.

[Bake]

82. I have one that I have carried in my pocket with other change for five years.

That way, in an emergency, I'm never "broke." I like the dollar coin. I'd say I carry it for good luck, but if that were true, it has done a shitty job of it because my luck hasn't changed for the better.

Bake

[defacto7]

87. Didn't you know?

For good luck... you spend it!

Then get another!

[pansypoo53219]

36. how much do they have to study this? the $1 bill makes more sense.

oh wait. retards in govt. but it will return if killed.

what happened to the 50¢?

[Chan790]

66. You're wrong, if the dollar-bill is eliminated...it won't return.

It's not a "people won't use them" thing...I used to work in a bank and these things are discussed between the banks and the US Mint, then the internal-regulators discuss them with branch personnel...there's already a plan to de-circulate $1-bills to compel uptake of the $1-coin for when the day comes.

It's as simple as the reserve bank will stop supplying $1-bills to currency-distributors (ie. Brinks, Garda) and incoming $1-bills will be "retired" (because the physical-currency belongs to the US Mint, they can simply recall it from banks or distributors and replace it with coins.) Make no mistake, except any you horde under your mattress, $1-bills will simply disappear over 3 months. They'll disappear from banks within 1 week as that's how often the cash-order and branch-rectification occurs. They'll just come one day with the incoming cash-order (with $1 coins) and they'll make the swap for all the $1-bills in the branch at the same time during the vault-balancing/rectification.

[rugger1869]

81. I thought...

Currency belongs to the Federal Reserve and coin belongs to the Mint.

[Pab Sungenis]

94. They both belong to the Federal Reserve.

The Federal Reserve buys coinage from the Mint at face value and distributes it. The exception is the dollar coin, which the Treasury allows direct consumer shipments of.

[HiPointDem]

38. i'd rather do away with congress. that would save more money.

[Ghost in the Machine]

85. ^^^^^THIS!!^^^^^ .... K&R'ed just for your post! n/t

[Egalitarian Thug]

39. Complete lack of leadership for even trivial shit like this. This is about the 5th time we've gone

through this and it will probably end like the last four, they'll wast a few million of our dollars and do nothing.

It's like that idiotic scheme President Carter had to slowly transition to the metric system. New Flash! Sheeple don't like change, so if you need to change, just fucking do it and they will adapt.

Coins are fine and if we need to convert to them, just fucking do it FFS!

Same with the penny, fuck Illinois, tell them that unless they are willing to pick up the check, they will have to find something else to put Lincoln's face on.

[AlexSatan]

41. +1 (nt)

[Romulox]

44. This is like dinosaurs arguing over how they like their tar pits. Change has come.

Not many men carry coins these days. I rarely carry more than $20 in paper.

So issue this worthless coin, if you want. It will primarily lead to price inflation in the vending machine industry (suddenly, a SNICKERS will cost exactly one Susan B. Anthony, I can assure you...)

But most men will not adapt by buying a change purse. I will simply not shop at places that only accept cash.

[Egalitarian Thug]

61. Thankfully, you don't speak for most men.

And buying a change purse? wtf?

[Romulox]

65. You are so obsessed with being contrary that you failed to make any sense.

Electronic currency is the future. Deal with it.

"And buying a change purse? wtf?"

That's where large volumes of coins are kept.

What are you even disagreeing with, here?

[Egalitarian Thug]

71. Really? I believe that both sentences of that were perfectly understandable.

"Not many men carry coins these days"
Your demonstrably false assertion.

"But most men will not adapt by buying a change purse."
You equally absurd assumption that buying a change purse is somehow required to carry those coins that men in your world don't carry.

Is there anything else that you need explained to you?

Edited to add; Do you by chance live in the north east? Maybe this reported male aversion to pocket change is some local phenomenon?

[Romulox]

73. OK. I thought there might have been a substantive point to discuss. Should've known! nt

[Egalitarian Thug]

78. There is. Just not yours. n/t

[louis-t]

63. 44 replies before someone sees what this is about.

I wouldn't be surprised to find out the lobbying behind this is from someone (think ALEC and Chamber of Commerce) who will make a ton of money off of getting rid of lesser coins and bills. This started back when vending machine prices were .50 or .75 for soft drinks and bill scanners were not available.

[Romulox]

68. Yup. The idea that we are "saving money" when our money is fiat currency, printed at will, is silly

But people are easy to manipulate.

[mac56]

76. "I will simply not shop at places that only accept cash."

Clearly you don't live in a rural community. Or hire the neighbor kid to mow your lawn.

[Fla_Democrat]

45. Bring back the

Eisenhower dollar ( http://en.wikipedia.org/wiki/Eisenhower_dollar ) and the Kennedy half dollar ( http://en.wikipedia.org/wiki/Kennedy_half_dollar )

If we're gonna do it, do it right. Have a coin that actually feels substantial, and not easily confused with a smaller denomination. Hell with having to put on my glasses to pick my dollar from my quarters.

[hobbit709]

46. When I was in Italy in the early 70's the smallest coin was a 10 lire piece-dime sized aluminum coin

The only thing it was really good for was riding the elevator in apartment buildings. If you bought something at a store and it came to an odd amount, you got your change in a couple of pieces of candy.

[WinkyDink]

53. Congress isn't considering this. THE MINT is. And I'll bet only men dislike coins. ;-)

Carry a murse, guys!

[defacto7]

88. I love those coins...

Once you start using them, you find how much easy is it to use them. The problem is that the businesses are not teaching their employees to use them for change. They just collect them, send them to the bank, and guys like me get $10 or $20 a week from the bank.

Just use them people....

I'm a guy BTW.

Also, the cost to the government is minimal. I think there are a couple a billion of them already minted and waiting. There would be no business of for mint on this one.

[Peregrine]

57. Go 100% electronic

no coinage or currency

[mac56]

60. Yeah, what could possibly go wrong with that plan?!

[Egalitarian Thug]

64. ^ This ^

Is there any hope at all?

[Romulox]

72. You know that your "money in the bank" is just an electronic notation on a computer, right?

Unless you have your net-worth stashed in the mattress, your money is already electronic.

[mac56]

75. Of course. But I still have a modicum of security.

If everyone goes all-electronic, using nothing but cards and digital transactions, not so much IMO.

[Romulox]

77. I'm not sure how you mean. Every check you write, for example, is a "digital transaction".

Every bank deposit, too. To the extent that the credit and debit card networks are vulnerable, the banks use the exact same infrastructure to credit and debit your account.

[defacto7]

90. Unless you are the very wealthy

who have millions in gold, platinum, bars in vaults. Yes, you can actually go and look at it too. You can even take some home if your that stupid. It can be delivered to your house by the truck load if you want.

I know people who have this stuff. But It doesn't help too much when you want tooth paste at Wall Mart though.

[d_r]

59. they still have cash?

[Deep13]

62. and pennies, I hope. nt

[HereSince1628]

69. I rather doubt they will be more successful with the dollar.

As a penny collector, with many dozen complete sets of Lincoln Memorial tails, I'd LOVE to see the penny go out of production

I'd love to see these rolls of pennies turn into rolls of dollars...er if dollars go away, rolls of $20 would do!!!!!

[JohnnyRingo]

67. ...And yet we'll keep the penny?

Someone isn't thinking here.

[Drunken Irishman]

79. THIS IS COMMUNIST TALK!

[littlemissmartypants]

80. If I could make the rules

I would make a small rectangular dollar coin just like the bill that you could only read with a magnifying glass of a metal infused with helium so it would float thereby saving pockets from wear while making some interesting looking pockets yet only minted to be the catalyst for redesign of all types of vending machines in particular the condom machines in strip clubs. LMSP

[One of the 99]

84. This would devistate the strip club industry ;-) nt

[defacto7]

91. Yeah, it wouldn't quite stay put.

But you may have fun trying.... just before you're thrown out.