Polymer $1 & $2 bills: The solution to $1 bills wearing out too fast?

Okay, I sort of discussed this issue in my "Should the U.S. $1 and $2 bills be redesigned?" topic, but I figured I'd make one more thread that is to the point of the "polymer $1 bill issues"

I just wanted to say that, as you know, a polymer $1 bill should last about 6 years compared to a cotton linen $1 bill lasting only 1 1/2 years, and a polymer $1 bill would probably last even 7 or 8 years if a polymer $2 bill were circulated to take some of the load off the $1 denomination. That 7 to 8 years would be perfect if they ever decide to redesign the $1 and $2 bills regularly with the $5-$100 denominations, as they should. The current $1s and $2s would last long enough to prepare for destruction, just in time to be replaced by their newly redesigned counterpart.

As I said, I know and I agree that both, the $1 and $2 bills should be replaced with coins. I'm all for that, however, most of the American public is not. So, at least for now, how about circulating longer lasting polymer $1 and $2 bills instead?

 

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Sounds like a reasonable solution, But is it realistic??

 

Interesting idea but I wonder what polymer could outperform and pass the rigors of testing currency for durability of the original form. Likewise the printing on the polymer. The quality control testing of paper currency is very tough. I'd like the idea applied to larger notes and to see a $1 and $2 coin replace paper as an alternative.

 

I think the expense would outweigh the benefits, Additional start up cost,s and
Testing on such a large scale would be cost prohibitive!

 

The problem is the Guardian style polymer is proprietary; the US government would have to buy a license to produce them, unless it could come up with a reasonable polymer note on its own (Tyvek's out; it's durable and waterproof but doesn't hold ink very well). The startup expense would cancel out any benefit and I doubt the government would care to have its money supply dependent on technology it doesn't own.

Here's a much better solution: Eliminate paper $1's and $2's and replace them with coins instead. It's worked great for Canada and other countries. (How about eliminating the $2 denomination entirely for that matter? It's almost never used anyway.)

Doubt I'll see that happen anytime soon either but I think it's a much more reasonable alternative then switching to polymer. Best part is, we already produce $1 coins anyway... not that they're used in circulation much, but if the $1 paper bill was forecefully eliminated entirely people would use them out of necessity. Give them a choice, and they'll almost never use them... so just don't give them the choice. (Not like that'll ever happen... politicians don't want to take the political pressure for something that won't gain them any political capital if they force it through. Well not often anyway...)

 

Maybe someday!! Wishful thinking i guess!!

 

There are viable alternatives to polymer notes. As far as I know, some "durable paper" will be used for the next generation euro notes for example. http://en.wikipedia.org/wiki/Banknote#Durable_banknote_papers May be an option for US paper money too ...

Christian

 

Would that be technology the government owns??

 

That's an interesting one. .

 

I say this because to would be way to expensive to basicaly start over!

 

Changing the current rag $1 bill to polymer doesn't change the fact that a bill of such little value is cumbersome and a waste of money to produce and use compared to a dollar coin.

Paul

 

fyi: Check out this video [links to YouTube] for a Discovery Channel (in Spanish) program that went inside operations at Note Printing Australia to show how their polymer currency are produced.

I am not fluent in Spanish to translate but this is the YouTube info regarding the video:

Polymer_Banknote

Note_Printing_Australia

Reserve_Bank_of_Australia

 

I got a better solution: do nothing for real.

Every time when there's a debate, there's always resistance from the people, politics etc - you just waste insane amount of time AND money on this issue.

Changing paper money to polymer wouldn't happen in the US either - people are too stubborn. The only way people will start listening is when you start losing money printing money.

 

I heard Canada will be switching to polymer notes in the near future like Australia currently has.

 

Yes Canada is changing its notes to polymer. The government has told us that the first ones should be rolling out sometime near the very end of this year.

From my understanding only the $10 and $20 notes will be made initially into Polymer, with other denominations in polymer coming out later.

I am curious though whether they will make the $5 note out of polymer, or allow it to become a coin. Given the length of time it will take for these notes to come out, I just wonder if someone in government just might decide to do this in the end.

 

Pollymer notes are used here in Mexico. Following is a video (in English) on the printing and testing of their bank notes:

http://www.banxico.org.mx/billetes-...-de-moneda/banknote-printing-and-coin-mi.html

As a side note, seeing in this video the testing for bad notes makes me wonder why the U.S. Treasury has to inspect by hand every one of the new $100 notes. It seems to me that the Mexico testing method would very quickly find the bad notes.