One Dollar Bill

How much longer will our one dollar bill be printed?

 

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I Don't know, makes a lot more sense to switch to the dollar coin. then the popularity of that coin series may increase? who knows.

 

I'd say they will be around for the foreseeable future. It would take Congressional action to do away with them so unless that happens they're not going anywhere anytime soon.

No, actually it doesn't. U.S. dollar bills last for an average of 5-6 years these days due to improvements in fitness-scanning equipment from the government. Many billions of dollar coins would need to be minted to replace the number of dollar bills in circulation.

With the high cost of metal and with the increased lifespan of dollar bills it is not economically feasible to replace them with coins (contrary to what politicians in copper-mining states such as Arizona will tell you). Not to mention the higher cost of shipping them around due to higher weight than dollar bills. It may have made economic sense to switch to dollar coins in about 1985 when metal prices were low but that ship has long since sailed.

 

Thus about one tenth of the average lifetime of a coin. But I agree, such low-value notes will not only continue to exist but also continue to be produced ...

Christian

 

BTW does not matter but its average life is only 22 months on paper 1$ , coins last longer so I think its what angle suits you, as to what is more cost effective. Different sources have different statistics just like cnn and fox.

 

Wait, What ? From the BEP website.

 

I think the Crane paper co will always win out over the supplier of the dollar coin co. which makes them is the US but is a foreign owned co (I think Korean?)

Its all based on jobs - even though the dollar coin is more practical

 

Not as long as Crane Paper Co. remains a powerful lobbyist.

 

Not sure about the latter. Now when it comes to coin blanks, one major supplier is indeed Korean - Poongsan. In the past few years some countries stopped buying blanks from them, due to some other products the company makes. Not sure though whether Poongsan produces any blanks for or in the US though.

Christian

 

You wouldn't need an equal amount of coins, to take the place of the dollar if they stopped printing it. In 2011 there were 1 billion dollar coins in storage. So that number can only have increased. Coins can last 100 years. I get 50 year old quarters every day that are in good condition.
Just becase they overproduce dollar bills doesn't mean we need that many dollar coins. How much money does a bank keep on hand compared to its total? 5%, less?
The same system would work with dollar coins. If you continue to print the $2 bill, then you only need a couple of dollar coins jingling in your pocket instead of a California bankroll. A one wrapped around an orange.

 

Wow, that's a very high density of misunderstandings....

When a bill is replaced by a coin, it takes a *larger* number of coins than bills in order to maintain circulation. This is because coins spend relatively longer times sitting in people's coin jars, vending machine hoppers, &c. before getting back into active circulation. Other countries that replaced bills by coins found that the number of coins needed was anywhere from 1.5 to 3 times the number of bills previously in circulation. The U.S. would probably be on the low end of that range, as Canada was. Still, to replace the 12.4 billion $1 notes currently in circulation, we'd likely need close to 20 billion $1 coins.

The inventory of $1 coins in storage topped out at 1.44 billion in 2012, and is now down to 1.11 billion, because demand for $1 coins does exist and the Mint hasn't made any for circulation since 2011. At current rates, the whole stockpile will be gone in another couple of decades. It's not nearly as huge as it's sometimes made out to be.

They don't "overproduce" $1 bills. If they did, the extras would just sit in Fed vaults instead of circulating, and the Fed would reduce its order for $1 bills next year to allow the excess inventory to draw down. I'm not sure why people think that the amount of currency produced is selected randomly by clueless people. It's not like Congress sets the print order, y'know.

NOS has it right upthread. Twenty or thirty years ago, metals were cheap and the paper $1 had a short lifespan, and switching to a $1 coin would have made good sense. But since then, metals prices have gone higher and improvements in the Fed's currency-processing equipment have more than quadrupled the average life of the paper $1. A lot of people still seem to believe that the $1 coin is the more cost-effective choice, but that hasn't been true in almost a decade now; we passed the balance point in about 2011.

 

Yeah you aren't getting it.
If there aren't any dollar bills, the dollar coins would have to circulate.
Ones are over produced and only a fraction of the amount of bills are required
for day to day commerce. Which would be replaced by 2 dollar bills and dollar
coins as I have already explained.

 

I believe John Q Public would rather carry/use folding money or plastic than go back to carrying coins around. I don’t ever leave the house and say wait, I need to take some coins with me.

 

The American public tends to resist change in all areas. They are not ready to carry coins instead of worthless paper. I prefer to carry 20 one dollar bills in my wallet instead of 20 one dollar coins in my pocket. If I had to carry 20 coins I'd be forced to put 10 in both front pockets to keep me balanced.

Think of a woman's purse. Most of them are large and the added weight would be a problem for them. No thanks to another unwanted coin.

 

Don’t tell that to Blockbuster Video or Radio Shack...

 

I would if I could find one. lol

 

Also, the constant rise in the use of credit cards has reduced the use of all bill denominations. Thus increasing their life considerably, and negating their replacement by coins.

 

Hmm, as you may know, here in the euro area, denominations up to €2 (currently $2.27) are coins - with €5 and above, it's paper. And yet I do certainly not carry twenty coins with me.

Christian

 

The exact same mentality is what is keeping the penny alive.
Times and systems change. The dinosaurs are extinct.
You won't have to carry 20 dollar coins around. Just one or 2 and some 2 dollar
bills. The 1 has no purchasing power anymore. It's the same as carrying around
a nickel or a dime when I was a kid. There's no need for 2/3 of our printed money to be ones. Half of them end up in the black market in Cuba, Venezuela, Mexico, Russia, etc.
Why are we providing them with currency when we get nothing in return?
The cost of printing all the ones can be slashed. They are unnecessary. The move to
other forms of payment will make the one history as soon as they realize we can get along with 2's and dollar coins.

 

I get your point but I don’t believe this to be accurate.