I hope they do it!

This was posted by Roger on the NGC forums:

Revised U.S. coin and currency system. Your thoughts? RWB RWB
The Post-man always rings twice. Uhm... ring ring? Registered: Mon Jan 03 2005
Posts: 1693 </SPAN>The following revision to the United States coin and currency system has been proposed. Your thoughts would be appreciated. Features are:

Coins of denomination 10-cents, 25 cents, 1-dollar and 5-dollars issued for circulation.
Paper currency of denomination $10, $20, $50, $100 issued for circulation.
Coins of denomination 50-cents, 1-dollar (large size) and 5-dollars (gold, old standard) used exclusively for national commemorative coins.

All other coin and currency denominations to be eliminated beginning January 1, 2012. Accompanying these changes would be specifications for automatic rounding of cash purchases, with non-cash purchases continuing to be valid to the nearest one-cent. _________________________
Author of Renaissance of American Coinage (NLG Book-of-the-Year 3 years in a row) series and Guide Book of Peace Dollars. Contributor to the Red Book, Judd Patterns and many other fine numismatic books, discoverer of two gold patterns, and author of numerous coin research articles.



What are your thoughts?

Chris

 

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sounds alot better then it has any chance of happening.

 

Agreed. It's a nice idea, but it won't be happening anytime soon.

 

This is going to make the Copy and Replica guys in the orient jump for joy.

 

I imagine this news will lead to copper cent hoarding on a grand scale

 

What I like most about it is that the proposal calls for using the half dollar for commemorative coins. I've been wishing they would do this ever since the introduction of the States Quarters.

There are some people who don't like the idea of a $5 circulating coin to replace the $5 note because it would be too much of a hassle carrying a bunch of them in their pocket. First of all, Congress can choose whatever size and/or metallic composition they want, so it would be possible to make it a smaller and/or lighter coin. Secondly, I'd be willing to bet that most people don't have more than two or three $5 notes in their wallet right now.

Chris

 

If this gets approved, I'm gonna need a storage area big enough to store what basically amounts to my life savings in cents.

 

Question: On that date, what happens to the billions of cents & nickels already put into circulation?

 

Demonetized, probably.

 

They wouldn't demonetize them. The US has only ever demonetized one coin, and even that was reversed, so all coins ever produced are still legal coinage. Like the 200+ year old coins we collect today, they'll still be floating around somewhere.
Guy

 

Yeah, they wouldn't demonetize them.

But its unlikely many businesses would accept them after that, so you could probably only turn them in at the bank.

 

:thumb:
All for it but I too think inflation is near.

 

Mathematically, this won't work. All denominations must be integer multiples of the smallest denomination, or it becomes impossible to make change. If you eliminate the nickel, you must also eliminate either the dime or the quarter....

(For example, in the above system, if an item costs 60 cents and you pay with three quarters, there's no way to make the 15 cents' change. Likewise if the item costs 75 cents and you pay with two quarters and three dimes.)

 

Imagine all the complaining when the cent is no longer used . If they rounded up my Mother would put something back than lose a cent . As a lot of citizens raised during the depression years .
rzage

 

Why not just do away with all hard currency and just issue everyone cash cards?!

I don’t see the cent and 5 cent going away any time soon. You know if this was announced that all pennies and nickels would be hoarded and there’d be very few in circulation even if there are hundreds of billions that are still in households. If this were to happen, all purchases would have to be rounded up or down, which party in the transaction takes the loss?

 

If it's 60 cents and they give you 3 quarters you had them back a dime. If the nickel is important to them they can pay with a dollar.

 

Heck NO!

 

A cashless system would work great for businesses and banks, but lousy for everyone else. How would I pay the neighbor that mows my lawn, or buy some spaghetti dinner tickets which proceeds benefit the football team, or any number of such transactions where debit cards are useless?
Guy

 

+1