Featured Opinion/Editorial - United States Coinage Needs Overhaul Now!!!

When I go to the bank, I ask if they have any half dollars, when they do I save the silver and spend the rest, if they do not have half dollars I will ask for 2 dollar bills, I will keep the best and spend the rest

 

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I agree with many of the points made in the post. However, I don't think the half dollar fell out of use due to Kennedy's portrayal on it. I think inflation and the increasing use of dollar bills relegated the half dollar to the nation's change jar. Half dollars are just too big and bulky to be useful in today's economy (IMO). A while back, ModernCoinMart had a contest where they asked contributors to decide how they would change US currency if they had broad powers. Here was my entry: [h=6]As Director of the Mint, I would start by ending the current practice of spamming our coinage with constantly changing designs (ie; the State Quarters, Lifetime of Lincoln Pennies, and Presidential Dollars). I would take my cue from Theodore Roosevelt and commission a talented sculptor to make American coins impressive again - and then I'd stick with the same design for a decade or more. I think it's time that we turn away from showing dead politicians on our coins and instead go back to representations of the virtues of our Republic. I would have artistic representations of Liberty, Sacrifice, Duty, Honor, and Ingenuity put on the obverse of the coins, and use Roman numerals to clearly label denominations on the reverse. I would also reduce the weight of all circulating coins, especially the dollar, with weight directly proportionate to value.[/h]

 

Great read, interesting points. I completely agree on the Kennedy half as I am NOT a fan of Kennedy himself or still living family members. Nothing against what he did in politics just personality-wise he rubs me the wrong way. Along those lines I also agree with why not honor with a commemorative and be done with it. Then again they did commemorative for states back around the 1920's (granted it wasn't all of them mostly centenials of varying lengths) and yet we still had the statehood quarter program. History repeats itself over and over again. We also do need to do SOMETHING to help our current situation minting coins that are over face value and yes it's an uphill battle. Case in point the business world will never get rid of the cent. How can they put that $10 item on sale for 9.99 if you don't have the odd 4 cents to pay for it? We still have 9/10 of a cent on gasoline for god's sake. It's the psychological edge marketers and sales uses to trick most people into buying something, buying more, buying because it's on sale even if just for a few cents. I personally think the better issue would be to if even possible make the coins a bit smaller or even thinner? I think a small diameter change would not be noticed by Jon Q. Public to cause outrage. The other item that isn't touched upon that could help reduce the cost/value differential is labor. I don't know but it's my guess that mint machinists are union and paid wonderfully. If nothing else to keep stealing down. Not to mention they are federal workers entitled to wonderful benefits that raise the production cost side of things. Cut those items back from all mint employees to Congressmen and watch the saving roll in from all directions. Maybe if they have to actually work then some coinage laws would be updated...lol.

 

While Mike makes some very good points, he just doesn’t go far enough. If you really want to make fiscal sense, and I know this is utter numismatic blasphemy, we should eliminate coins completely and deal only in credits. Coins are actually obsolete and the only reason we use them anymore is because of tradition. Getting rid of coins would cause a few important things to change (no pun intended). Banking costs would plummet, cash registers would be unnecessary, armored cars would become armored sub-compacts, copper, nickel, silver, zinc etc. would be better used in computer hardware, and thousands more positive changes would save this country billions annually.

Now coin collectors would tar and feather the guy that suggests such a move and I would most likely brake out my torch and join them, but the coin has outlived its usefulness and has no real value anyway. The only reason it has value is because we say it does just like the almighty greenback. Since we are only fooling ourselves, why not move to a credit based economy and eliminate the lie of the value of our coins and currency? What's that on the horizon? It seems to be the glow of torches coming this way. :help!A:

 

because hard money (coins and notes) are the only defense that every day people have from computer hackers, bank officials or anyone else corrupt who would rather they didn't have any means of purchase outside of the commercial loop. A credit society opens us up to corruption on a grand scale and takes every day money decisions out of the average person's hands. As in the days of intrinsic coinage, there will always be some form of coinage that is used in transactions between the public because the public will never be satisfied to have their money on a theoretical basis. They will want some hard cash. It may not be what we know today, but something of value will always be a vehicle of exchange.

 

The vast majority of people in this country do not have hard money at their disposal even with the option available to them. That doesn't represent much of a defense if people have the option and don't use it. If people have actual vast quantities of hard money, it is in all likelihood sitting in a bank where it is just as susceptible to computer hackers and bank officials. I used to say that I'd never use an ATM but now I prefer them to actual tellers. People will go with what they get used to whether it is a coinless/cashless society or a credit based society. I currently use a debit card more often than I use cash. I almost never have cash in my wallet. I and many others are already on our way to a cashless society whether we know it or not. It is coming and I bet it isn’t that far off. My paycheck is deposited directly to the bank. I use my debit card to draw on those funds. I pay bills electronically. I shop for groceries using a debit card. I am virtually using credits now. It’s coming.

 

My point, moen, is that a credit or cashless society will be easier to cheat or corrupt. A computer hacker can make himself seem like a millionaire or even become a real one in a computerized system.

People to people transactions will always need some sort of currency, be they beaver pelts, paper dollars, buttons, stamps, etc., because people inherently don't trust authority figures and governments and also because it's harder to commit fraud with a currency in place.

 

Hum? Your position seems resolute. I disagree for the reasons already stated. I'm not looking forward to or even hoping for a credit based society, I'm just saying that it is just a matter of time before it is here. It will simply be too cost effective to avoid regardless of what people might want or not want. It will happen most likely in your and my lifetime.
Sure people will always trade one item for another or simply trade for some type of favor but a government sanctioned physical currency is in its twilight. Do you disagree that we are at least in part already on our way to a credit based society based on the examples I have previously mentioned?

 

Maybe we can breath a little more life to that thread.

With the Canadian cessation of minting pennies, I believe they will just start sucking ours out of the country. While it is illegal to melt down US copper pennies in the US, it may not be in Canada. Can anyone imagine anyone committing such a crime.

 

Our coinage system is clearly rather ****** up. The idea of trying to have coins contain 90% ( or whatever)of face value in metal is silly. Prices will fluctuate, that is why early Gold got exported and Melted.

The mint couldn't even come close to meeting demand for coins until the mid 19th century, so foreign coins freely circulated.

The half-cent was axed in 1857. I'm guessing that had to have the purchasing power of well over a modern time, thus making the smallest denomination ( cent) kind of like a modern quarter. It's hard to compare such things because they weren't buying gasoline, computers, etc. in 1857.....so you'd have to look at stuff like grains, land, livestock and so forth.

Well the debasement of minor coins began long before 1965. How about going back to 1857 with the small cent ?

Or 1866 with the nickel ?

Large cents were too big, would you want your modern quarter to be that size ? The half-dime was probably too small and easily lost. I'm pretty sure ( in 1866) a nickel would be worth far less in metal than a half-dime.

Halves and deuces certainly circulated well. Look at all the slick Barbers around and the lack of even nice Fine or better coins. Lots of worn out red seal deuces.....that would perhaps have been enough to fill your car up , even in the 1950's ?

Canada is always ahead of us. The penny is useless, they get thrown in the trash by many. A simple flat washer costs ten cents at the hardware store. I've been known to make a washer out of a penny or dime ( if I need a smaller one) by drilling the correct size hole in said coin....and saving a trip to the hardware store.

I argue that smallest coin in 1858 was essentially the equivalent of a quarter....and long before debit cards, credit cards, etc.

Therefore kill both the penny and nickel, have only dimes and quarters, no halves.

If you want to get really crazy stop making singles entirely and use those stored dollar coins, no need for $2 coins ( maybe later).

So you have dimes, quarters, and dollars. Nickels would just fade away, round to the nearest dime if using cash....you should not lose any money as a consumer under this method...you could even gain by stopping the pump at $50.04.

Vending machines wouldn't really be effected, they don't sell much for under $1 anyway, not like items are 45,55,65 cents, .... plus even if they were, you can change a $1 properly. The guy putting in two quarters for the 45 cent item losses a nickel.

Even if nickels have say 4.8 cents worth of metal content, they must cost more like 9 cents apiece after overhead production costs are figured in. There should be enough billions of them in piggy banks where they can circulate along with pennies for a few years easily.

Again a nickel is nothing to the poorest American on Welfare. You can't really buy anything for under 25 cents anymore....you might get a banana for 25 cents if the store has them on sale for 49 cents a pound, or a bottle of water, that's about it.

We don't need the nickel either !

 

What happens to all the pennies ? The gov't has to mint about 5 billion a year. So there should be 500 Zincolns per person now.

 

Although I agree with the concept of a reduced or coin free society her in the United States. I cannot come up with a better system. Maybe eliminating the cent first as they are doing in Canada and see how it works. I would take fifty years or more for the circulating coinage to be used up. The credit thing I don't know. I pay bills in person still. The computer thing not for me. Therefore a credit type of system I don't think so not anytime in the near future.

 

This article is spot on: There is a definite need to revamp our coinage regarding the denominations available (get rid of the penny), the designs, and how we should be using commemorative coins. We won't be getting rid of coins anytime soon, though! The reason the Mint hasn't gotten rid of the penny is because the customers (that's us) still want them! I don't think anyone above has mentioned charities: Pennies are used for gathering rather large amounts of money for charities that acquire them in small amounts from donors. After all, it's always easy for people to give away a bunch of pennies, right? What if charities started asking for quarters? Maybe not so much, I think.And if we don't get rid of the penny, what about that idea that came about in 1974 to replace the zinc and copper penny with a 100% aluminium coin? I can't imagine that the zinc industry has enough politicians in their pockets to keep that from happening, do they? There ARE solutions that don't require the total removal of a denomination.

 

I agree with the poster above who said this reads more as a rant than anything else....done by someone who restates obvious and easily researched facts and figures. No new ground is being broken in this article; it only tells us what we already know as far as coinage history and rehashes common sense points that have been beaten to death elsewhere. As far as following Canada's lead in coin production, etc., seeing how we've already followed their lead by making a small golden dollar (we all saw how well that worked out), plus, considering how inefficiently the rest of their government programs work, I'm not sure they're the best role model.

 

I dont see this happenning unless you figure out how to employ those who will loose their jobs from this.

 

worse case scenario, world governments collapse and survivors render paper money worthless and buy/trade on a system of precious medals. Anyway yeah scrap the penny but first mint 2015 pennies to a total of less than one million so i can have one cent that will skyrocket in value =)

 

I'm all for nixing the cent and nickel. I also though the government will never do this think we should start making circulating coins with bullion value along with paper money. Make the intrinsic value less then face to deter hoarding and melting. How about silver $10 $20 and $50 coins and gold alloy $100 $500 and $1000 coins. And the way inflations gone bring back the $500 and $1000 notes. Up until recent a $100 bill wouldn't fill the tank on my truck. And $10k in $1000 bills takes up a lot less space then $100 bills. But no the government ie big brother wants us to become cashless so they can keep track of all our business. So do the banks and the credit card companies as they make a percentage on every credit card transaction. That ultimately gets passed along to you the consumer in higher prices. Some places offer a cash discount. More should. Yet another way this country's government gone far awry from what our founding fathers intended

 

A slight correction to the above article. In addition to the 1K face value bags of Morgan/Peace silver dollars sold by the US mint in 1964, it was also possible to buy $1,000 face value bags of Liberty Seated silver dollars.

I think dates were mixed and most of the coins were slightly circulated. I don't know if there were any BU ones in there. I was told this by a coin dealer near Philly who bought one or more of those bags. Of course these were all dated 1873 & earlier: thus pushing back the years US Gov't silver dollars were hoarded.

 

Not that time can be turned back but wouldn't it be nice if Lincoln had never made it onto the penny. Our coinage prior to then was attractive. Not that the Lincoln penny is ugly, just that it started the trend of putting people on coins. I don't particularly like the Ike, SBA or other recent dollars. From the age of 12 through 16 I had a paper route, which was late 50's early 60's. People often paid me with Franklin and Walking Liberty halves.
They were common and used in commerce by many. The Kennedy half was hoarded so not seen in change. I think the final nail on the halves was removal of silver. Once that happened people stopped using them.
What I would like to see is the elimination of clad coinage. Use copper exclusively even if that means replacing coins more often than now. Since size is a big consideration, make the new dollar the size of a quarter, the half the size of a nickel, the quarter the size of a penny, and leave the dime the same size. Get ride of nickels and pennies. And put Liberty back where she belongs!

 

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