pres dollar glut

I"m not on the forum as much as I'd like and I apologize if this has been discussed before but I wanted to bring up a thought I had about the presidential dollars.
I was in the bank today asking about the new dollars. The teller in charge of ordering was not sure they were going to get them in because they don't want them sitting around. She told me they have almost
$4000 in sacs and susans in the vaults that they just need to get out of there and send back to the Feds, but the postage is so high, they are stalling a bit.
I look at the anticipated mintages of this dollar coin and the amount of unaccepted dollars sitting in vaults already, and I wonder if there are enough collectors and hoarders out there to use them up. The quarter was all together different in the fact that we use quarters frequently. We don't like the dollar coin.
My prediction is that in a year or two, the mint will cut numbers way down, or maybe switch to the mode they have for the halves and sacs, just releasing them for collectors. Those later years may be the best years to buy.
Has anyone got any comments for a skeptic like me?

 

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I think it was in the March issue of Coins magazine they interviewed the Mint Director (I forget his name), anyway, he said there were still about $100 million dollars in Sacs still in storage with nowhere to go. This tells us that both the mint and the banks are having a hard time getting rid of them. Why? It seems that they are rarely used for anything by most of the general population because its ones personal preference if they want to carry paper money in their wallet or coins in their pocket. This is why alot of the small town banks arent going to order any of the new dollars. Some collectors may come in asking for them but then what, the rest sit and wait to be used up and by the time the second new dollar is issued theres still a few thousand of the first dollar still sitting there. Theres a simple way to solve this problem but not without conflict, its to completely do away with the $1 dollar bill. There you go, theres my view. Does anyone agree with that?

 

i think it would be a great idea to sell the sac's to the public for 10 cents on the dollar. that'll get rid of them.

 

too many people are worried that if they dont have paper money there pants will fall off!! I always carry ikes and halves and havent had my pants fall off yet...neither the canadians. i also think it might be time to melt down SBA.

 

They are adding to the Sackie glut as we speak. The law mandates 1/3 of the dollar coin production be Sackies. The Fed ordered 300 million Washington coins. That means 150 million more sackies are headed to storage and this is just the first of at least 40 president dollars. By the time we get to Ford there will be several Billion Sackies sitting in storage.(Unless something changes)

 

Hello folks:

Since the dollar coin and two dollar coins have been circulating I can report safely the following info...
a. My pants have never fallen down due to having dollar coins and two dollar coins in my pocket.
b. My pockets have less change in them now after we have gotten the dollar and two dollar coins.
c. People 16 years of age and up have never seen a dollar bill in circulation, and those who are 10 years of age and up have never seen a two dollar bill in circulation. They don't miss it either.
d. The sky hasn't fallen either.

If you get rid of the dollar bill the coins will circulate. It is a no brainer.:smile

 

One more thought....

In Canada we have gotten use to having dollar coins and two dollar coins.

There came a time though when the economics replaced the sentimentality, and the bills had to go.

It was hard to change at first, but in time people got use to it.

 

Not personal choice...

I don't think they're not circulating because people don't want them to, I think it's because the stores don't use them. If people got them in change they'd spend them.

If people get them and spend them in a store, the store probly just deposits them with the rest of their money, and doesn't give them back out to customers.

If stores started doing this, people might grumble a bit, but they'd get over it. What a store might want to do is to give change in Sac's as the default, and only use the bills if people ask for them.

Whenever I'm in a store, and see inside the register, there's usually a few slots full of rolled coins, paper clips, rubber bands, thumb tacks, and other assorted office supplies. So, they can't claim that there's no room in the register.

I don't know why wal-mart stopped giving them out after the promotion was over, if they kept doing it, they'd probly be common in circulation.

 

Sometimes I wonder who manages these banks. Instead of having the rolls back in the vault why don't they get the rolls out with the tellers and ask customers if they want a roll or two when they are cashing a check.

They can't be used if the banks won't distribute them.

 

For the government, it's all about seignorage.

For instance, lets say that the government has $1,000 worth of copper, nickel and manganese sitting around in "lump" form. Now (being the government), they can transform that metal into money and increase its worth multiple times.

So, they take that $1,000 worth of metal and turn it into (just for the sake of argument) 20,000 SAC Dollars (now worth $20,000). Now, their metal has become worth $20,000 in the eyes of the General Accounting Office.

Whether the 20,000 SAC Dollars are sitting in a vault or not, which would you rather have: $1,000 worth of lump metal or $20,000 worth of SAC Dollars sitting around?

This same scenario will happen with the PREZ Dollars and is also a reason the old SBA Dollars aren't melted...

 

It would help if the Govt. used a bit of the seisnorage to lower the cost of the coins to the banks. My bank won't order them because they cost too much to ship.

 

Banks will give to customers what they want. If I go into the bank to cash my cheque for $20, they'll ask me what kind of bills (I call them notes, but that's another story ...) I want. Usually it's two tens. They're not going to force me to take 20 Sackies. And there are very few Americans who will want 20 Sackies. So it's not worth it for the bank to keep 1000 Sackies (or however many) in the vault. It just sits on their books and shelves wasting space. We need a societal change. Governments and revolutions are the only things that can do that, and they rarely do it well. Usually OVERDO it, in point of fact.

 

So I ask the question what do you take if the Bank tells you it is out of notes but has dollar coins? I bet you dont refuse them LOL how about they introduce a $2 & $5 coin to go along with the $1 all about the same size just different shapes and colours would that make you any happier? All that is required for this to happen is for the Goverment to stop producing notes, It has happend elsewhere so why not in the US, dont you want your Goverment to save your tax money?

De Orc :whistle:

 

i think that all of us collectors should go to our banks and always get sacs , susies and halves when we cash our checks and then go and spend those to get them circulating again it might work but i dont no its worth a shot im goin to start doing it whats there to loose?

Steve

 

But I DO do that with my modern halves

 

i agree, but i am as guilty as the rest. i kind of am like the bank in that whenever i go to the bank, if i deposit a check or cash i end up taking some dollar coins and toss them in a bank i have at home. if the deposit ends in anything but a zero, i take that number in dollar coins. 848? i take 8 coins. you get the idea. i know i should just be putting this money into something to make some interest, but it is forgotten money, i must have a few hundred by now and it is fun for me somehow. i'll put them into my ira when the bank is full. that said, i should be spending them, i suppose, but at least i am circulating them to my house. i will add that every teller at my bank can not stand the dollar coins, and they are exicted when i come and take some away. chalk that up as another reason the dollars are not catching on.

 

I've been into several banks in the past 2 weeks and asked about the Presidential dollars. I've gotten the same answer from each teller: "We haven't ordered any and probably won't." The reason? The bank has to commit $1,000 per box for coins they feel will not circulate. They believe they'll sit in the vault and collect dust like Susan Bs and Sacs. So, why would Presidential dollars be any different?

I did get a neat color brochure from one of the tellers. It was given to the bank by the Fed. It outlines the dollar coin program and the mint's marketing strategy. She said it was the only one she'd seen.

Anyway...

I maintain that the smart thing to do would be to mint a $10 coin or a $20 coin. The increased purchasing power would likely encourage more people to carry them and use them.

 

I do think there will be a glut...but I think they are just preparing for the demise of the paper dollar. When there are a few billion extra dollar coins around, they will be better ready to get rid of the bill.

 

I agree. The only way they will get these new dollars to circulate will be to eliminate the dollar bill. Evan the more helpful banks are going to be hesitant to get in $4000 worth of dollars per year. Like I said before, there is no way the collectors and hoarders are going to begin to use all these coins. Much less so the Sacs that are following on their coattails.
That added requirement that they mint more sacs along with the dollars is just plain dumb. Is that the politically correct way to describe them?

 

I burn thru a roll of dollar coins every 2 weeks.
I should counterstamp the coins I spend to see if it just the same coins going round and round.