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<p>[QUOTE=&quot;19Lyds, post: 1396243, member: 15929&quot;]Excelsior is a &quot;self appointed&quot; paramount expert who also has a vested interest in keeping the dollar bill by contributing to the Where&#039;s George website. Anything he says or interprets from the GAO Report, snippets and all, is directly related to the ciontinuance of that website and the tracking of one dollar notes.</p><p><br /></p><p>The bottom line, it costs 6.5 cents to produce a bill which needs to be replaced in 3 years. Cost = 65 cents</p><p>A dollar coin costs .30.5 cents to produce yet could last 15 to 25 times longer than a dollar bill. Cost = 60 cents times 75 years (25 times &quot;longer&quot;)</p><p><br /></p><p>Seigniorage valuation is a moot point since its basic definition is the cost to produce the coin vs its actual value. I suppose if you&#039;re an accountant, the term has value according to profit but the reality is the government profits by .69 cents per coin. Given the fact that coins last longer than bills, the profit (seigniorage) is reduced over the life of the coin since more bills need to be produced over 30 years than coin. Thus, the seigniorage value drops. But again, it&#039;s moot.</p><p><br /></p><p>I read in the GAO that, yes, there will be startup costs in order to increase production but to impy that there is a net loss of 3.5 billion dollars is simply nit-picking the report to support one&#039;s own opinion by manipulating numbers. Excelsior himself states: &quot;(These last two numbers conspicuously do *not* appear in the GAO report, but they can be calculated from the table on page 32 by deleting the entries regarding &quot;interest payments&quot;.) &quot; In other words In other words, modify the report to suit one&#039;s needs.</p><p><br /></p><p>Will the costs of materials needed increase? Of course they will. Everything goes up in cost! This also includes the price to produce one dollar bills which the paper folks conveniently forget to mention.</p><p><br /></p><p>Will there be problems encountered? Of course there will. There&#039;s problems encountered with everything the government does!</p><p><br /></p><p>However, the United States of America is the LAST industrialized nation to convert from paper to coins. None of those other countries are reporting significant show-stopping problems with producing coins. Their savings have been well documented or else they&#039;d swith back. And that is a fact. The last time I checked, the folks in those other countries were not affected by the transistion. They&#039;ve actually embraced the transistion and daily commerce moves smoothly!</p><p><br /></p><p>The problem with this country is the constant nit-picking about how this is going to happen or thats going to happen. It&#039;s why NOTHING gets accomplished.</p><p><br /></p><p>Of course, the paper folks are certainly welcome to their opinions, but when the opinions are based upon the distortion of reality to meet one&#039;s own financial needs, then, due to the democratic process and the general ignorance of the common man with regard to the monetary system, good economic actions get stalled to the point of ridiculousness!</p><p><br /></p><p>People &quot;choose&quot; dollar bills over dollar coins. Heck, even I do. Why? Because merchants simply do not order dollar coins to give out in change. Thats really a simple concept. However, if the dollar bill were discontinued, do folks really believe that customers would &quot;refuse&quot; a dollar coin? Heck no! I didn&#039;t refuse pound coins or two pound coins when I was in England! It&#039;s money man! It spends!</p><p><br /></p><p>Are dollar bills more expensive to procure! Of course they are! Why would anybody think they weren&#039;t? They&#039;re heavier, bulkier, require rolling and storage space! BUT, given the inventiveness of the economic community, I see these costs actually decreasing over time as more and more inventive methods of transporting these coins get implemented. Besides, money management costs are fully deductible as the &quot;cost of doing business&quot; so there won&#039;t be a big loss on that front.</p><p><br /></p><p>Once the coin becomes the only form of payment for the one dollar denomination, folks will accept it. We&#039;re like that you know![/QUOTE]</p><p><br /></p>

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