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<p>[QUOTE=&quot;Conder101, post: 1725300, member: 66&quot;]Seigniorage profits of coins and bills are figured differently.&nbsp; For paper money&nbsp; it is just so much waste paper until it is purchased by the Federal Reserve.&nbsp; At that point there is a seigniorage profit.&nbsp; With coins though the seigniorage profit is counted as soon as the coins are struck even if they&nbsp; just go straight into the storage vaults and are never acquired by the Fed or released into circulation.&nbsp; So if they strike a billion dollar coins and put them in the warehouse, they add 600 million to the books in the Treasury general Fund.&nbsp; If they print a billion dollar bills and the Fed doesn&#039;t want them right now so they put those in storage,, they have a printing expense and no profits for the General Fund books.&nbsp; When they stopped making the dollar coins that were just going into storage, there was no reason to increase dollar note production.&nbsp; When you stop making something that no one wants that doesn&#039;t make people want more of something else.</p><p><br /></p><p>As to how you know the reduction in Mint Seigniorage was from stopped the dollar coins, the mint reports report seigniorage by denomination and the number made for a total seigniorage per denomination.&nbsp; Then they total those to get the total seigniorage profit.&nbsp; When you look at the figures there is some variance in the cent , nickel, dime and quarter, but the seigniorage listed for the dollar coin drops from 400+ million in 2011 to 79 million in 2012&nbsp; (And that was the seigniorage on the coins struck in the last quarter of 2011.&nbsp; That 79 million will be gone when the 2013 mint report comes out.&nbsp; Seigniorage for the dollars will be $0[/QUOTE]</p><p><br /></p>

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