Susan B's almost gone

To bring the discussion back to the coins, when the Mint takes a chuck of metal and smacks it between two dies, it is worth what the denomination says. If it goes into a cash drawer or sits in vault, it makes no difference - it is on the govt's books as money. When the Mint melts that coin into scrap, it has lost the profit it earned. BTW - relatively very few coins make it back to the Mint for melting under normal circumstances.

 

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For bills it is sold to the tres. for costs.

RN

 

The government is not a private enterprise. Theres no point to the federal reserve trying to make a profit on printing money., Firstly, profit is defined as taking in more money than you send out. if the reserve had to take in more money than it created and distributed, then this creates a fiscal negative in the economy. The economy is you and me. If we had to pay a value for the money coming into the economy, that leaves us with zero money, plus owing money to the federal reserve. Fact is, the sum of all coins and cash in existance is far less than the actual sum of cash balances that exist on computer records. There has to be enough cash in the economy to stimulate commerce and consumer buying. Not enough cash cripples the economy. Not enough cash means the consumer has no money to spend. Too much cash cripples the economy. Jf the streets were flooded with cash, then nobody would want to work, and then the economy would collapse, the surplus of cash would make the cash worthless. You pay taxes. The government pays its employees and its outside vendors with the flow of tax money. Money is constantly moving. Old money gets worn out and gets destroyed. Or a stash of money gets destroyed when grampa falls asleet and the cigar lights the house on fire. Or John Gotti and associates hide their money in the attic where it sits for 30 years. So the supply of money wears down, the banks dont have cash. The federal reserve starts up the printing press and prints cash to fill orders from the banks for more cash. The congressional budget office determines how much it costs to print money. They authorize in the budget a transfer of cash from the treasury to the federal reserve. the federal reserve pays its suppliers and its customers, and bada-bing. And the whole thing is a roller-coaster that never stops. it just rolls from one generation to the next, until the sun burns out. BUT THERE IS NO POINT TO ASSESSING A PROFIT AND LOSS FORMULA TO PRINTING MONEY.

 

How many of you here even collect S.B.A.s??? Besides the ones that mighta came in Proof sets...

 

http://www.federalreserve.gov/general.htm

 

Frequently Asked Questions
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What is the Federal Reserve System?

When was the Federal Reserve created?

What are the Federal Reserve’s responsibilities?

How is the Federal Reserve System structured?

Who owns the Federal Reserve?

How is the Federal Reserve funded?

Why did Congress want the Federal Reserve to be relatively independent?

Since the Federal Reserve has considerable discretion in carrying out its responsibilities, to whom is it accountable?

Are the Federal Reserve System and Reserve Banks ever audited?

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What is the Federal Reserve System?

The Federal Reserve System, often referred to as the Federal Reserve or simply "the Fed," is the central bank of the United States. It was created by Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role has evolved and expanded.
When was the Federal Reserve created?

The Federal Reserve was created on December 23, 1913, with the signing of the Federal Reserve Act by President Woodrow Wilson. The act had been drafted as House Resolution 7837 by Representative Carter Glass (D-VA), incoming chairman of the House Banking and Currency Committee.
What are the Federal Reserve's responsibilities?

Today, the Federal Reserve's responsibilities duties fall into four general areas:

* conducting the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices
* supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
* maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
* providing certain financial services to the U.S. government, to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation's payments systems

For an overview of the Federal Reserve and its responsibilities, see The Federal Reserve System: Purposes and Functions.

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How is the Federal Reserve System structured?

The Federal Reserve System has a structure designed by Congress to give it a broad perspective on the economy and on economic activity in all parts of the nation. It is a federal system, composed basically of a central, governmental agency--the Board of Governors--in Washington, D.C., and twelve regional Federal Reserve Banks, located in major cities throughout the nation. These components share responsibility for supervising and regulating certain financial institutions and activities; for providing banking services to depository institutions and to the federal government; and for ensuring that consumers receive adequate information and fair treatment in their business with the banking system.

A major component of the System is the Federal Open Market Committee (FOMC), which is made up of the members of the Board of Governors, the president of the Federal Reserve Bank of New York, and presidents of four other Federal Reserve Banks, who serve on a rotating basis. The FOMC oversees open market operations, which is the main tool used by the Federal Reserve to influence money market conditions and the growth of money and credit.

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Who owns the Federal Reserve?

The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

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How is the Federal Reserve funded?

The Federal Reserve's income is derived primarily from the interest on U.S. government securities that it has acquired through open market operations. Other sources of income are the interest on foreign currency investments held by the System; fees received for services provided to depository institutions, such as check clearing, funds transfers, and automated clearinghouse operations; and interest on loans to depository institutions (the rate on which is the so-called discount rate). After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury.
Why did Congress want the Federal Reserve to be relatively independent?

The intent of Congress in shaping the Federal Reserve Act was to keep politics out of monetary policy. The System is independent of other branches and agencies of government. It is self-financed and therefore is not subject to the congressional budgetary process.
Since the Federal Reserve has considerable discretion in carrying out its responsibilities, to whom is it accountable?

The Federal Reserve's ultimate accountability is to Congress, which at any time can amend the Federal Reserve Act. Legislation requires that the Fed report annually on its activities to the Speaker of the House of Representatives, and twice annually on its plans for monetary policy to the banking committees of Congress. Fed officials also testify before Congress when requested.

To ensure financial accountability, the financial statements of the Federal Reserve Banks and the Board of Governors are audited annually by an independent outside auditor. In addition, the Government Accountability Office, as well as the Board's Office of Inspector General, can audit Federal Reserve activities.
Are the Federal Reserve System and Reserve Banks ever audited?

The Board of Governors, the Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review. Under the Federal Banking Agency Audit Act (enacted in 1978 as Public Law 95-320), which authorizes the Comptroller General of the United States to audit the Federal Reserve System, the Government Accountability Office (GAO) has conducted numerous reviews of Federal Reserve activities. In addition, the Board's Office of Inspector General (OIG) audits and investigates Board programs and operations as well as those Board functions delegated to the Reserve Banks. Completed and active GAO reviews and completed OIG audits, reviews, and assessments are listed in the Board’s Annual Report (before 2002, the reviews were listed in the Board's Annual Report: Budget Review).

The Board's financial statements, and its compliance with laws and regulations affecting those statements, are audited annually by an outside auditor retained by the OIG. The financial statements of the Reserve Banks are also audited annually by an independent outside auditor. In addition, the Reserve Banks are subject to annual examination by the Board. The Board's financial statements and the combined financial statements for the Reserve Banks are published in the Board's Annual Report.
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Last update: August 14, 2006

 

How are the Chairman and members of the Federal Reserve Board of Governors selected, and what is the term of office?

The seven members of the Board of Governors are nominated by the President of the United States and confirmed by the U.S. Senate. By law, the appointments must yield a "fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country," and no two Governors may come from the same Federal Reserve District.

The full term of a Governor is fourteen years; appointments are staggered so that one term expires on January 31 of each even-numbered year. A Governor who has served a full term may not be reappointed, but a Governor who was appointed to complete an unexpired term may be reappointed to a full fourteen-year term.

Once appointed, Governors may not be removed from office for their policy views. The lengthy terms and staggered appointments are intended to contribute to the insulation of the Board--and the Federal Reserve System as a whole--from day-to-day political pressures to which it might otherwise be subject. If all Governors serve full terms, a President would be able to appoint only two Governors during a four-year presidential term. Moreover, even a President reelected for a second term would not have appointed a majority of the Governors until late in the second term. In reality, many Governors do not complete their fourteen-year terms, and recent Presidents have averaged more than one appointment to the Board every two years.

As stipulated in the Banking Act of 1935, the Chairman and Vice Chairman of the Board are chosen by the President from among the sitting Governors and must be confirmed by the Senate. They serve terms of four years and may be reappointed as Chairman or Vice Chairman until their terms as Governors expire. The Chairman serves as public spokesperson and representative of the Board and manager of the Board's staff and presides at Board meetings. Affirming the apolitical nature of the Board, recent Presidents representing both major political parties have selected the same person as Board Chairman.

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Who are the current Board members?

List of current Board members.
What are the salaries of the Board members?

Congress sets the salaries of the Board members. For 2006, the Chairman's annual salary is $183,500. The annual salary of the other Board members (including the Vice Chairman) is $165,200.

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How can I request to have a Board member speak at an event?

Write directly to the Board member, addressing him or her as "The Honorable." Because the Board receives many requests, please allow at least ten business days for a response. Requests may be faxed to 202-452-3819 or mailed to the following address:

Federal Reserve Board
20th Street and Constitution Avenue, NW
Washington, DC 20551
How can I send comments, suggestions, or requests to a Board member by e-mail?

Because of the many requests and suggestions received from the public, we cannot provide the individual e-mail addresses of the Board members.
How many employees work at the Board?

About 1,850 people work at the Board of Governors in Washington , D.C. For more information, see the Board's Annual Report: Budget Review on the Board's web site.
Is it legal for Board employees to own stock or to trade in the market?

Yes, generally. Board employees, and their spouses and minor children, are allowed to own or trade stock, except the stock of depository institutions or affiliates of such institutions. Also, employees who have ongoing access to the most sensitive Federal Open Market Committee information, and their spouses and minor children, may not own stock in primary government securities dealers or their affiliates, and they are restricted as to when they may buy and sell securities.
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Last update: May 10, 2006

 

http://wfhummel.cnchost.com/index.html

This link I added to my list of amazing web resourses. Its a very thorough run through on the US monetary system as it is currently legally set up, as well as the basic economic theory behind it.

Ruben

 

I don't have a single SBA in my collection. I've seen them and had several in my possession, but spent them a while ago. The next ones i come across I will keep.

I do have 2 SAC's in my collection, but those are just two circ coins i've come across ever since they came out. That's right....in 7 or 8 years or whatever i've only seen TWO!!!!

 

The mint dosen't send $5.00 Gold Eagles to the banks.:kewl:

 

One of each date, mintmark and type is all I need to stay happy. ever I ever acquire any others in lots, i'll spend which ever version is in worse shape

 

I collect SBAs. I don't have any from general circulation, only those that are UNC and Proof.

I figure it is a short set and will be relatively easy to have it be the first complete set I collect. I plan on including the major type differences which will make it a little more difficult than if I just had one of each date, mint mark and type (unc/proof).

 

This thread has rekindled my interest in collecting Susan Bs and Sacs again. Well...not collecting so much as picking up a few each time I go to the bank, looking them over, and tossing them into a mason jar.

 

I doubt I caught you on anything wrong. Your correct that the Mint 'sells' the coins for face value, and there might be some aspect of the Fed with is privatized. I think the main reason for the coins being sold at face is that the rules are just lazy to change it as they did for bills. If anything, it is the issue of 'profit' which is complex. Profit is evidently meaningless for the Mint, at least as a business enterprise would look at it.

Ruben

 

I appreciated the info as well, but in all honesty did not have the patience at the moment to read it all. I do, however, think there is a distinction between "The Federal Reserve" and our 12 local Federal Reserve banks. The banks themselves with tellers and bankbooks are private institutions as far as I know. "The Fed" as they call it is the quasi-federal agency.

 

It sounds like they are about to stop making pennies.shop keepers sound like they dont like pennys.i guess they would rather have quarters,dollar bils,and ect.too much to carry

 

Take some time to read it. It is very interesting and it might change your mind since it is written from the Fed itself.

Ruben

 

I certainly will, but I am going from memory that the old Federal Reserve Bank in Boston (A on our currency) was the First Natl Bank of Boston, which has merged so many times I am not sure what it is part of now. If it was owned by the givt then that would not be the case.