Doing away with dollar coins

[Dan Hughes]

For the past few years, several members of congress have been trying to get the US to phase out dollar bills and use dollar coins instead. Using coins instead of paper dollars will save us tons of money, they say.

But in a sudden about-face, the White House has just announced that the dollar coins will be virtually eliminated, except for those made for collectors.

This will save us tons of money, they say.

Looks like either way we'll save tons of money!

Huh?

Here's the story:
http://thetreasurecorner.com

---Dan Hughes

 

[Frankn]

That's the Government! Everything they do saves money on paper, but cost us money in reality. Frank

 

[mts]

I'm not exactly sure that I agree with your premise. My understanding (and I could be very wrong) was that the mint was going to halt the process of making NEW presidential dollar coins. The reason is because we have way too many already. If the ones we currently have were to suddenly make it out into circulation and be accepted, the mint would potentially start making more.

So I don't think they are "doing away with dollar coins". They still want the dollar coin to replace the paper dollar so that idea hasn't gone away. They just realize that we have more dollar coins than we need right now so there is no reason to keep minting more until the ones we have get used first.

But perhaps I'm way off base on this.

 

[Dan Hughes]

They still want the dollar coin to replace the paper dollar so that idea hasn't gone away. They just realize that we have more dollar coins than we need right now so there is no reason to keep minting more until the ones we have get used first.

And the dollar coins we have won't get used until they quit printing dollar bills. And if THAT ever happens, those dollar coins will disappear from those warehouses FAST.

 

[mts]

They still want the dollar coin to replace the paper dollar so that idea hasn't gone away. They just realize that we have more dollar coins than we need right now so there is no reason to keep minting more until the ones we have get used first.

And the dollar coins we have won't get used until they quit printing dollar bills. And if THAT ever happens, those dollar coins will disappear from those warehouses FAST.

It's really two different issues.

1. To date, they've done absolutely nothing to really force people to use dollar coins. They still want the dollar coin to replace the dollar bill (due to the savings you cite in the podcast). But if they aren't going to force the issue then it isn't going to happen. They haven't changed their minds about wanting this to happen and the recent developments really don't impact this at all.

2. They've passed legislation in the past that forces the mint to create a certain number of coins each year regardless of whether or not anyone is using them. This is what the recent developments attempt to fix. It is wasteful to keep making millions of coins if you already have billions that no one is using. Yes, if they can get people to give up the dollar bill then these dollar coins would suddenly become necessary. But unless they are going to make us quit cold turkey on dollar bills then they would have plenty of time to mint more dollar coins to meet demand.

So I disagree with your original premise that they've decided to give up trying to replace the dollar bill with the dollar coin. I think they've just come to their senses and recognized that with the current state of affairs, it makes no sense to keep making dollar coins until we can get wider acceptance of them. Legislation that forces the mint to create massive amounts of a product that no one is using is bad legislation and needs to be killed.

 

[Dan Hughes]

Totally agree with you on all points, mts. But until they make the paper dollar scarce, the dollar coins won't fly. And I've heard absolutely nothing about any serious plan to do that.

Would it be political suicide to be the one held responsible (by the public) for doing away with dollar bills? If so, who in congress has the courage to formally introduce such a bill?

 

[spartacus53]

I'm all for minting dollar coins, that way people will spend them like quarters Besides, coins do nothing more than rip holes in your pockets

I say stick with the paper currency

 

[Joe(TX)]

...Well I guess that I have a different perspective.....I work for the Night Shift for a major Hospital in the Houston area and the dollar coins work good in all of the candy and coke and sandwich vending machines...with the dollar coins...I can carry maybe 4 coins all the time and have plenty enough to buy what I need without having to go back to my locker and find more coins....without the dollar coins the equivalent in quarters would be 16 coins which can get a bit bulky,......also on the way to work the toll bridge and toll roads all accept the dollar coins ....which speeds me up for work especially if I am late.....LOL.....the full service lines can get up to about 8 to 10 cars especially on a Friday or Saturday Nights......so I really like the dollar coins and think that they do a great service.....Joe

 

[Graddick]

Would it be political suicide to be the one held responsible (by the public) for doing away with dollar bills? If so, who in congress has the courage to formally introduce such a bill?

You've pretty much hit the nail on the head. Just look at the idiocy in South Carolina that was prompted by the phase-out of incandescent light bulbs. I can already imagine some politician decry how "This country is changing. Everything isn't exactly the same as it was when I was a boy! How dare someone improve things!" Here in Canada they shredded all the one dollar bills when they introduced the $1 coin, and they did the same thing to the $2 bills when $2 coins came out. You can't give people an option.

The people on this forum ought to be the #1 backers of the new dollar coin. Imagine all those dollar coins circulating and some being dropped in parks. Thanks to the Canadian dollar coins, I seldom go out to metal detect parks without finding at least $5 in change.

 

[Frankn]

Think about it ! Would you rather walk down the street with 20 $1 in your wallet or 20 $1coins in your pocket. It's kind of a lopsided issue.
By the way, vending machines around here take dollarbills and some take credit cards. The parking meters are being replaced with boxes on the corner that take $1 bills or credit cards. At the end of the week , I usually wind up with 10 or more $1's in my wallet. Those coins are heavy. Frank

 

[Graddick]

Think about it ! Would you rather walk down the street with 20 $1 in your wallet or 20 $1coins in your pocket.

The coins obviously. I don't even carry paper money around with me. It's so disgustingly filthy. I'll grab a handful of change if I'm going to make a small purchase (<$5) otherwise I just charge it.

 

[spartacus53]

Graddick, what makes you think coins are clean Do you boil your money before you tae it out to spend

 

[Graddick]

Graddick, what makes you think coins are clean Do you boil your money before you tae it out to spend

Metal is a much more antiseptic surface than the cloth/paper that bills are made out of. The dirt and grime that bacteria feed on is easily wiped off a coin's surface each time it is handled. Paper money, however, is made of small fibers that accumulate filth and (with the added body heat present in a wallet) provide ideal conditions for bacteria growth.

I'm not a hypochondriac or anything, but why use dirty things when cleaner alternatives are available?

 

[Rockin Chairs Gold]

I'm not exactly sure that I agree with your premise. My understanding (and I could be very wrong) was that the mint was going to halt the process of making NEW presidential dollar coins. The reason is because we have way too many already. If the ones we currently have were to suddenly make it out into circulation and be accepted, the mint would potentially start making more.

So I don't think they are "doing away with dollar coins". They still want the dollar coin to replace the paper dollar so that idea hasn't gone away. They just realize that we have more dollar coins than we need right now so there is no reason to keep minting more until the ones we have get used first.

But perhaps I'm way off base on this.

What I don't understand is they are saying $1.00 coin is not popular, yet at the same time you never see them in circulation. If they don't put them out to the public we never have a chance to use them and see what we think of them.

To me the Federal reserve is to blame if they don't circulate the coin it can never have a chance to become popular. I've nothing against the coin, I just never see them. Rick

 

[Graddick]

I'm not exactly sure that I agree with your premise. My understanding (and I could be very wrong) was that the mint was going to halt the process of making NEW presidential dollar coins. The reason is because we have way too many already. If the ones we currently have were to suddenly make it out into circulation and be accepted, the mint would potentially start making more.

So I don't think they are "doing away with dollar coins". They still want the dollar coin to replace the paper dollar so that idea hasn't gone away. They just realize that we have more dollar coins than we need right now so there is no reason to keep minting more until the ones we have get used first.

But perhaps I'm way off base on this.

What I don't understand is they are saying $1.00 coin is not popular, yet at the same time you never see them in circulation. If they don't put them out to the public we never have a chance to use them and see what we think of them.

To me the Federal reserve is to blame if they don't circulate the coin it can never have a chance to become popular. I've nothing against the coin, I just never see them. Rick

It's not the government's fault that the coins don't circulate. It's the fault of banks and their customers. Banks only request the amount and type of cash that they think their depositors will want to withdraw. No bank is going to force dollar coins on customers since they don't want to upset their customers. So unless you go in and specify that you want dollar coins they will simply assume that you want paper dollars. Even if you do go out and use them (which I always do whenever I visit the US) they'll just end up back at the bank when the store deposits its money and the coins will end up back in a government vault.

 

[piegrande]

An old retired Baptist pastor here in Mexico several years ago visited Houston on an invitation from the Baptist pastor there. He came back with a bunch of coins, including a number of one dollar coins.

Later, he needed cash for some medical issues. I bought those coins. The dollar coins made me nervous, because I had never seen brown dollar coins. Still, I'd have given him the money if necessary. So, I took them.

I checked the web and found they were good coins.

When I took them to the bank in McAllen, the woman there was also enchanted with them. Even as a bank employee, she had not seen dollar coins, and another employee assured her they were valid.

Those suckers corrode easily and look like crap.

 

[Smudge]

I think the U.S. is the only country left still issuing paper dollar bills. It's just ridiculous. A dollar has an average lifespan of six months. The dollar coin will last for years.

Honestly, what is Congress thinking??

Oh yeah, I forgot.

It's Congress.



If "con" is the opposite of "pro" then opposite of "Progress" must be....

 

[luvsdux]

I didn't take time to read all the replies to this post, so forgive me if I mention what has been covered already. Several years ago , while visiting in Canada, I had a conversation with a lady who was working the desk in the motel we were staying in. She said the introduction of the the loonies and toonies (1 and 2 dollar coins) was very unpopular at first. ultimately over several years the savings over paper money was fairly substantial and as people got used to the new currency they became quite comfortable with it. That said, once I got familiar with it on my visits up there, I came to like the system very much and would be tickled to see the US go the same route, possibly even adding a 5 dollar coin. For those that don't know, the loonies and toonies are easy to identify with just a glance and would be easy for a blind person to tell as well. The size and weight are much more pocketable than our Morgan or Peace silver coins were and there's something to be said in favor of having $4 in 2 coins in your pocket. IMHO there's a lot to be said for 1 and 2$ coins showing up in parks and tot lots etc. when detecting. My two bits.
luvsdux

 

[Gunny71]

I think the U.S. is the only country left still issuing paper dollar bills. It's just ridiculous. A dollar has an average lifespan of six months. The dollar coin will last for years.

Honestly, what is Congress thinking??

Oh yeah, I forgot.

It's Congress.



If "con" is the opposite of "pro" then opposite of "Progress" must be....

I hear you, but I have to go with paper. I don't use credit cards much at all, and prefer to pay all my bills in cash.
I carry a couple hundred dollars on me almost all the time. How can I do this with coins? Could Governments going to all coins be doing so with the ulterior motive of making people use credit?

 

[mts]

I carry a couple hundred dollars on me almost all the time. How can I do this with coins?

So you are saying that you currently carry around 200 one dollar bills at a time? Surely you could continue to carry mostly 20's, 10's, and 5's instead and just take the dollar coins as change.... And if they created a $2 coin you'd have even less change to carry.