Penniless Literally!

Since it was recently annouced that the penny costs more to make than it is worth politicans like Arizona Rep. Jim Kolbe have announced plans to reintroduce legislation to retire the penny. Would this be a good/bad/neutral move for coin collects? Are you for or against this type of legislation? What do you think would happen to the value of your penny collection?

 

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I see the cent as a dwindling piece of coinage in our countries history as of now. I believe that the cent may turn into an only proof collectors coin in a few years, but lose it's purpose as a tool of trade. I base this theory off of the Three Cent Silver/ Nickel coins of the mid 1800's. These coins were okay for trade at first, but soon turned too complicated an exchange to make that it was primarily coined as proof and only shortly after died as a coin. To connect the cent's monetary value to the unpopulr three cent coins shows how these lower denominations ended.
Finally, I think that the country needs cents in circulation as a means of exchange, but I think that the mint's will slim down on the number produced every year and let those already in circulation take on their continuing roll in circulation with less melting of the coins.
I still enjoy the fact that Abe's likeness is still portrayed on the cent after almost 100 years.

 

Tired designs around too long should be put out to pasture. The cent, dime and half, should be completely redesigned. (not just a new portrait of the old president) or retired. That includes proof and mint sets. If they are going to stop producing them for circulation they should stop producing them for proof and mint collectors too.

 

Would be nice to have it around until 2008, for 100 years even, and then, well, I'm open.

As long as there is sales tax, there will be requirements for pennies, unless of course we round off, which is to say "round UP."

 

I really don't care that much but IMHO the Gov. is going to do away with the cent.

Speedy

 

Where's the neutral option?

Slightly off topic question: If the U.S. were to stop producing cents, would those cents in circulation already be considered legal tender? Or would they slowly be redeemed and melted by the gov?

 

they would proberly give a period of grace for the coins to be turned in and after that date Demonaterize them, we had it over here when we converted to Decimel currency and again with the removal of the 1/2p and the resizing of other coinage.

De Orc :kewl:

 

All coins ever issued by the US government are still legal. In other words, you could take 200 half cents to the Dollar Store to buy that roll of tape. So in all probability, the cents would remain money.

There's also an article in my most recent CW (19 June) that the cent planchet supplier in Tennessee is of the opinion from various meetings with Mint officials that there are no plans to end the production of the cent as we know it now. The article gave the impression that the Mint was planning to wait out the metal price inflation. What with what the price of silver and gold have done recently, that doesn't surprise me.

 

On a slightly different note any one know what happend to the 10 "Double Eagle" $20 coins minted in 1933 that were siezed by the mint when someone sent them in to be authenticated??

De Orc

 

LOL- Buy it for looks; But it for life!
Doing away with the penny would increase the value of pennies in circulation, but could raise the price of everything up to the nearest nickel! I can't have that.

 

I am okay with doing away with the cent. It is horribly inconvenient, and somewhat embarrassing, to spend them. In many cases (i.e. vending machines, most toll plazas), you CAN'T spend them even if you wanted to. So all I do is drop them into a jar and take them to the Coinstar machine every few months, in the process of which I lose 9% or so. It isn't worth keeping it around.

 

Keep the cent, dump the paper dollar bill! It cost US Taxpayers over $500 million per year to produce these dollar bills that last only around 16 months in circulation. What does a dollar coin last? 30, 40 , 50 years easily?? If the mint wants to save money, they can start right here!

If I were the treasury, I would team up with banks, post offices, etc. and encourage (advertise) all to bring in all of this loose change sitting in jars and dresser drawers so these coins GET BACK into circulation. Put "Coinstar" type machines everywhere! There is absolutely NO reason why we need to mint 5 billion plus cents per year when there are BILLIONS upon BILLIONS more being hoarded with the rest of our loose change.

 

I'm in agreement with Midas- keep minting the cent, retire the $1 bill. I'd like to see a $5, a $10, and a $20 coin too.

 

Keep the penny. I like it. It has many fine uses and will continue to be of interest to future collectors.

 

We lose 20 million dollars a year minting microtransaction coins such as pennies.

 

Lately this subject is being played out almost as much as should I clean my coins. Regarless of what is said on this or any coin forum, the cent will not be stopped in the near future. Regardless of the cost to produce a cent it will not be stopped in the near future. Many millions of stores would have to redo the prices of all their merchandise and that would mean a realy lot of politicians would soon be out of work.
Also, as pointed out by many, all currency will soon enough be a thing of the past. Credit and Debit cards will rule supreme. No one will be using that stuff called cash. With electronic money there will be no need to worry about what country a coin or bill is from. It will automatically be transposed into the local monitary system. Soon enough a kid will be saying "Hey grandpa, what was that stuff called money way, way, way back when you were a kid?"
As to the cost of making coins. If you not only consider the metal costs but throw in the Mints heating bill, water bills, electric bills, phone bills, copy machines, fax machines, office supplies, and the actual cost of maintenance on the Mint buildings. Then throw in the cost of sending the coins to banks via planes, boats, cars, trucks, gas and maintenace on those vehicals. Now add the salaries of the people that work in the Mint. You will end up with the cost of a Cent somewhere way, way, way up there and your tax dollars are at work.
If you owned a store you would have to add up all the above when you price your merchandise don't you?

 

Seems like opinions on the topic are running about 50/50.

 

Which British Commonwealth country are you talking about?

 

See you like to be picky about semantics lol...

The US inherited the term "penny" from Britan; it was commonly used for our cent, and still is, even though it is not the official term for it.

The old British system was 12 pence to the shilling, 20 shillings to the pound, or 240 pence to the pound. ("Pence" signifies an amount of money; "penny" refers to the coin worth one pence.) Since Britain decimalized their currency in 1971, it is now a simple 100 pence = 1 pound system. They could call their penny a cent accuarately now if they chose, but they don't... see no reason why we can't still keep calling our cent a penny. After all, words mean whatever the general consesus takes them to mean; grammatical rules aren't set in stone by some official committee.

I find it ironic that what a lot of British people refer to as "Americanisms" are actually words and phrases that originated in Britain, but we kept using them after they stopped, or use them in a way differently than they do. Since now their penny equals 1/100 of a pound, I don't see what the big deal calling out cent, 1/100 of a dollar, a penny also. It's an accurate term, now, since it refers to the same fraction of the base unit as the British penny does, whether it be the official term or not.

 

The US Congress has decided that the American 1 cent coin IS a penny.

This is from the Presidential $1 act of 2005....

SEC. 303. REDESIGN OF REVERSE OF 1-CENT COINS AFTER 2009.
The design on the reverse of the 1-cent coins issued after
December 31, 2009, shall bear an image emblematic of President
Lincoln's preservation of the United States of America as a single
and united country.
SEC. 304. NUMISMATIC PENNIES WITH THE SAME METALLIC CONTENT
AS THE 1909 PENNY.
The Secretary of the Treasury shall issue 1-cent coins in 2009
with the exact metallic content as the 1-cent coin contained in

1909 in such number as the Secretary determines to be appropriate
for numismatic purposes.
SEC. 305. SENSE OF THE CONGRESS.
It is the sense of the Congress that the original Victor David
Brenner design for the 1-cent coin was a dramatic departure from
previous American coinage that should be reproduced, using the
original form and relief of the likeness of Abraham Lincoln, on
the 1-cent coins issued in 2009.