Coin Composition Changes Proposed Yet Again, but Now in Obama’s Budget

http://www.coinnews.net/2010/02/04/...-proposed-yet-again-but-now-in-obamas-budget/

 

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You can bet that the change in composition and weight will be protested by the vending machine industry! That's how the machines now detect slugs and foreign coins.

 

Congress has already ceded too much power to the executive branch, if it is costing too much to mint some coins, mint less of them, from what I have heard they have millions sitting in storage with no demand from the banks,

 

Producing less coins means overhead costs go up making each coin more expensive. Just because you make fewer coins doesn't make the cost of the buildings and machines go down or the personnel expenses a lot lower.

Make MORE coins to make each one cheaper to produce.

 

Why mess up a good thing!! Changing the composition, To most likely
A less expensive medal well isnt that typical of this administration
Cut,Cut,Cut

 

I well know what you mean. A friend of mine has a Vending Machine Buisness. He has enough problems with slugs and those baby sized dollars that don't work in his. Next they'll want to make them all out of Radium so we can find them in the dark.

 

Next will be talking about bottle top,s and pull tabs!!

 

Changing the composition is not a big item for me. I do hope they don't start another "golden coin" of another denomination due to the rapid tarnishing of these. Also I'm sure changing the composition is not going to get rid of all the dead presidents currently on our coinage.

 

how is a $1 bill a detriment to society?? I can see how a penny is, and a penny can be rounded. no problem but a dollar? and even the nickel. How is that a detriment to society?

 

Because a bill lasts about 2 weeks in circulation, where as a $1 coin would last 50 years or more.
Guy~

 

I love your rant and couldn't have said it better myself but must take great exception to this;

This does apply to pennies and to a small extent to nickles but not to the other denominations. People don't bother cashing in cents and they might sit around literally for decades but there is almost no hoard whatsoever of dimes and quarters out there. These simply get recycled back into the system on a continuing basis and this is proved by the fact that there are almost no (statistically zero) old quarters like the 1969 in XF or AU in circulation. These were all gone by about 1983 and there haven't been any since then.

You are right that the economic conditions result in a net inflow of coins back into the FED but this is the result of people cashing in their coins earlier. That is instead of keeping their quarters for two years on average they keep them for only one year. But there are no old hoards of old quarters anywhere at all. The FED distributes coins on a first in first out basis and people do not keep them for decades.

In 1999 a lot of people started setting aside nice old clad when the states coins were first issued. These were quarters that still existed as late as '99 like nice XF '70-D's and AU '74's. There were probably in excess of 50,000,000 older coins set aside and many of these have come back into circulation now.

I say there are no old hoards but of course for every rule there is an exception. But people shouldn't be left with the impression that there are millions of nice old clad out there always waiting for the economy to turn down or the value of nice old clad to go up. There might be thousands but there most certainly are not millions.

End of Rant !

:kewl:

 

Nickels have to be made because they serve as a bridge to make change. We could round them out of existence too, almost, except there'd be no way to provide 5c 15, change.

It's simply cheaper to mint a nickel out of material that costs less than to scrap out the current dime or quarter.

Making any coin with more value in metal than its face value is pure insanity.

 

I should add that making a coin that is a drain on the economy and on commercial transactions is a far greater insanity. To also make this coin at a loss is worse.

 

I read that statement before wrong. I thought you were implying getting rid of the $1 increment not the paper bill. I agree on getting rid of a $1 bill as any time i get them they seem to be in the worst condition. So on that "note" im with you guys that the $1 paper bill and the penny should be done away with. I feel however that if they make the $1 coin the only $1 valued piece they should bring the size of it up at LEAST to the half dollar. I say they should just bring back the peace dollar and call it a day. (not made of silver of course)

 

Actually, the Bureau of Engraving and Printing says a $1 bill lasts 21 months but the point is well taken: Release the millions of dollar coins into circulation currently in storage and withdraw the $1 bill from circulation as they get too old. In 21 months or so, there won't be paper $1 bills. The coin's estimated lifetime is a conservative 30 years.

Europe seems to function just fine with €1 and €2 coins with no comparable valued bills. When England changed to decimal coinage in 1971 it was predicted that the economy would collapse. It didn't. It just went on. People adapt when required to do so but don't if given them the choice.

Now on the withdrawl of 1¢ and 5¢ coins, that probably will donate to inflation. No merchant when faced with a sale that would have been $1.04 will make it $1. It will become $1.10. Only in electronic transactions will the fraction of a dime apply so does everyone need to use a debit card for every transaction to avoid the "coinage cost reduction" tax?

 

if you're going to get rid of the cent and nickel, then you need to eliminate the quarter and make a new denomination, maybe bring back the 20¢ or make a 30¢. eliminating the nickel would make the quarter useless too. imagine you buy something that is $10.30, and all you have is a $10 bill, a dime, and a quarter. how are you going to get change back?

 

Those $1 bills that wear out don't go to waste though. Back in the 70's we used to use it in the drilling mud to help seal the hole while drilling for oil/gas in Oklahoma. It was really weird the first time I saw those bags of ground up money that I would cut open and mix in the mud.