Congress to look at eliminating the one dollar bill

posted at 1:01 pm on December 1, 2012 by Jazz Shaw

I know that we’ve been debating getting rid of the penny for some time now, and there are a couple of reasonable arguments to be made for that. They cost more to produce than they’re worth and far too many of them are sitting on the sidelines. But until now I had no idea that we were considering dumping the dollar bill. And yet that’s precisely what Congress will be examining soon.

American consumers have shown about as much appetite for the $1 coin as kids do their spinach. They may not know what’s best for them either. Congressional auditors say doing away with dollar bills entirely and replacing them with dollar coins could save taxpayers some $4.4 billion over the next 30 years.

The latest projection from the Government Accountability Office on the potential savings from switching to dollar coins entirely comes as lawmakers begin exploring new ways for the government to save money by changing the money itself.

The Mint is preparing a report for Congress showing how changes in the metal content of coins could save money.

They list a few ways that the dollar bill is costing us money, some of which I’d never heard. One rather obvious one is that a coin will stay in circulation, on average, for thirty years, while dollar bills wear out and need to be replaced every four or five. And there are some niche groups – particularly vending machine owners – who favor coins for being less likely to jam, making their machines cheaper to maintain and keeping them in service longer.

But that doesn’t change the fact that almost nobody seems to like them, including most retailers.

But most people don’t seem to like carrying them. In the past five years, the U.S. Mint has produced 2.4 billion Presidential $1 coins. Most are stored by the Federal Reserve, and production was suspended about a year ago…

Even the $1 coin’s most ardent supporters recognize that they haven’t been popular. Philip Diehl, former director of the Mint, said there was a huge demand for the Sacagawea dollar coin when production began in 2001, but as time wore on, people stayed with what they knew best.

The solution – if you can call it that – seems to be to force people into using the coins by simply eliminating the paper dollar at the same time. Apparently Canada did it, going to the “Loonie” coin (no, I’m not making that up) and it’s worked out okay. There is also the question of abandoning the concept that the money we hold needs to have some value in and of itself, rather than representing a “promise of payment.” There was a time when coins were made of precious metals and the coins themselves had value. This hasn’t been the case in the US for a very long time, so if cheap metal (essentially worthless) coins save us some money over cheap paper (equally worthless) bills, why haven’t we already done away with the dollar bill? Doug Mataconis dredges up an interesting explanation.

The cost to produce a paper dollar seems unjustifiable in the face of the cost savings that would be obtained from switching to a coin, and it’s rather obvious that the main reason that previous dollar coin experiments have failed is because they did not include an effort to phase out the paper dollar. Interestingly, the reason for that isn’t necessarily because Congress was deliberately setting the dollar coin up to fail, but because power politics and cronyism intervened to essentially ensure that the experiment would be a failure. Specifically.the paper used by the mint to print currency is made by only one company, Crane & Co. of Massachusetts. When efforts were made in past years to tie the creation of a Dollar Coin to the elimination of the Dollar Bill, it has been strongly opposed, and ultimately blocked by the state’s Congressional delegation, including Senator John Kerry who last year introduced a bill to eliminate the Dollar Coin completely.

Well, imagine that. All of the paper used for printing money comes from a single vendor who probably controls the price? And the Congressional delegation from the state where they do business opposes coin currency? Who could have predicted that?


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Comment pages: 1 2

Of course, the fact that people don’t WANT this is irrelevant.

Then again, once Obamainflation takes effect, they’ll need to print $1,000,000 dollar bills which will take their place.

wildcat72 on December 1, 2012 at 1:07 PM

Has anyone thought about how this would hurt strippers?! Both figuratively and literally

Politricks on December 1, 2012 at 1:07 PM

Uh huh, and how am I supposed to stuff a $1 coin into the g-string of a dancer at Deja-Vu? Count me out of this stupid plan.

Bishop on December 1, 2012 at 1:08 PM

As if you needed ANOTHER reason to dislike John Francois Kerry.

Screw this “well, what if they don’t like it?” nonsense. What are people going to do, not buy things because they don’t like the coin ? What utter morons. I hope anyone falling into that category eventually starves because they refuse to buy food with dollar coins and that is the only money they have.

Such an idiotic discussion point. The very fact that our elected leaders cannot even take this simple step tells you all you need to know about the complete ineffectiveness of our government and why it should be maintained as small as humanly possible.

How in God’s name does it make any sense at all to give these same kind of idiots control over anything, let alone health care ?

deadrody on December 1, 2012 at 1:09 PM

4.4 billion in 30 years? Wouldn’t figuring out the savings in 100 years make everyone love the idea? It would be soooo much money!

Lifeisdeath on December 1, 2012 at 1:09 PM

Has anyone thought about how this would hurt strippers?! Both figuratively and literally

Politricks on December 1, 2012 at 1:07 PM

Haven’t been in a long time, but I had heard that they don’t really go much for single dollars any more. Maybe they should come out with a $3 bill or something.

deadrody on December 1, 2012 at 1:10 PM

…no one has wanted the coins though it has been attempted several times…but hey…it’s the Washington mentality again!

KOOLAID2 on December 1, 2012 at 1:10 PM

I hate coins. I can fold up various paper notes in my money clip and have a nice little packet, coins would a jangling mess sagging in my pocket.

Bishop on December 1, 2012 at 1:12 PM

4.4 billion in 30 years? Wouldn’t figuring out the savings in 100 years make everyone love the idea? It would be soooo much money!

Lifeisdeath on December 1, 2012 at 1:09 PM

Nah, won’t fit into “forward”. You see, prior to Obamacare, we were headed towards a time where 100 would eventually become the average life expectancy. Now we’re headed back towards 30 being more like it.

wildcat72 on December 1, 2012 at 1:12 PM

Bring back the 2 dollar bill, make the 1 dollar a coin only, put Ronald Reagan on it so we can call it a “Ronnie” and I’ll support that.

SAZMD on December 1, 2012 at 1:12 PM

Has anyone thought about how this would hurt strippers?! Both figuratively and literally

Politricks on December 1, 2012 at 1:07 PM

They would unionize, insist on $2 bills being used, sue the US government. US government starts printing out much more $2 bills and they’re happy.

sentinelrules on December 1, 2012 at 1:12 PM

But that doesn’t change the fact that almost nobody seems to like them, including most retailers.

Well Duh… Nobody likes them for one simple reason. There is a widely held and false notion that a coin represents “REAL” money. And that as such the coins intrinsic and innate value is derived from the material content of the coin itself.

The Origin of coins are in precious metals, that was what is widely and falsely believed to have given them their value. While that notion is wrong, it is the majority held opinion.

Since everyone knows that any coin minted by the US Government for general circulation will not have the physical value of the face value of the coin, it falls under the metaphorical boundary of being a worthless token.

SWalker on December 1, 2012 at 1:12 PM

Has anyone thought about how this would hurt strippers?! Both figuratively and literally

Politricks on December 1, 2012 at 1:07 PM

…never thought about it…might be fun…like a little piggy bank?

KOOLAID2 on December 1, 2012 at 1:12 PM

Let’s just speed this up skip to the inevitible “Obama credits” based retinal scan system.

Kataklysmic on December 1, 2012 at 1:13 PM

I hate coins. I can fold up various paper notes in my money clip and have a nice little packet, coins would a jangling mess sagging in my pocket.

Bishop on December 1, 2012 at 1:12 PM

Men don’t like coins because they make noise in our pockets. Women don’t care because they carry purses. Guess which Obama is more like?

wildcat72 on December 1, 2012 at 1:13 PM

When do we start calling them Euro’s?

JPeterman on December 1, 2012 at 1:15 PM

Haven’t been in a long time, but I had heard that they don’t really go much for single dollars any more. Maybe they should come out with a $3 bill or something.<

No, $3 bills are only good for strippers in gay bars. <grin>

Horologium on December 1, 2012 at 1:16 PM

Oh… Is there anyone here brave enough to try guessing whose face would end up on that shiny new 1 dollar coin??? Let’s see your hand folks… o_O

SWalker on December 1, 2012 at 1:16 PM

wouldn’t they save more if they got rid of the penney?

renalin on December 1, 2012 at 1:17 PM

Get rid of money period.

Lets all just get the same allocation from the government. Get a food credit. Wear dietary sensors that shock us if eat anything greasy and all live in cages.

…….and of course lets exempt the wretched liars in the Ruling class in DC since they know best.

TEATERTOPIA……….Forward!

PappyD61 on December 1, 2012 at 1:17 PM

The solution – if you can call it that – seems to be to force people into using the coins by simply eliminating the paper dollar at the same time.

Will someone please think of the strippers at the nudie bars? I mean, a couple of quick twirls on the pole and some dude gets hit with a dollar coin right in the eye.

JetBoy on December 1, 2012 at 1:20 PM

Oh… Is there anyone here brave enough to try guessing whose face would end up on that shiny new 1 dollar coin??? Let’s see your hand folks… o_O

SWalker on December 1, 2012 at 1:16 PM

Saul Alinsky, since he’s the Founding Father of the “New” Amerika.

wildcat72 on December 1, 2012 at 1:21 PM

Has anyone thought about how this would hurt strippers?! Both figuratively and literally

Politricks on December 1, 2012 at 1:07 PM

haha…and here I thought it was gonna take a teh ghey dude to think of that

JetBoy on December 1, 2012 at 1:21 PM

SWalker on December 1, 2012 at 1:16 PM

bho probably has a better chance of getting his gosh horrible face on a dollar coin than on Mt. Rushmore?
L

letget on December 1, 2012 at 1:21 PM

@wildcat72

Women don’t care because they carry purses.

Not true. I don’t carry much coin in my wallet because it stretches out the leather.

Guess which Obama is more like?

Neither. He carry’s a credit card.

moonsbreath on December 1, 2012 at 1:22 PM

I wonder: How do you eliminate the threat of counterfeiting with coins?

These days, they have to print new money in order to thwart the criminals; once they’ve got the coin mold down, then what? You can’t build a hologram into a coin.

Just sayin’

mountainaires on December 1, 2012 at 1:23 PM

Will someone please think of the strippers at the nudie bars? I mean, a couple of quick twirls on the pole and some dude gets hit with a dollar coin right in the eye.

JetBoy on December 1, 2012 at 1:20 PM

ROTFLMAO… Talk about bringing a whole new meaning to the term “got his Beer Goggles on“…

SWalker on December 1, 2012 at 1:23 PM

What metal would they use? I mean, we can’t mine for those precious resources it might disturb a spider.

moonsbreath on December 1, 2012 at 1:24 PM

Will someone please think of the strippers at the nudie bars? I mean, a couple of quick twirls on the pole and some dude gets hit with a dollar coin right in the eye.

JetBoy on December 1, 2012 at 1:20 PM

.
ROTFLMAO… Talk about bringing a whole new meaning to the term “got his Beer Goggles on“…

SWalker on December 1, 2012 at 1:23 PM

.
Dittos. That gave me my good “belly chuckle”, for the day. . : )

listens2glenn on December 1, 2012 at 1:25 PM

But that doesn’t change the fact that almost nobody seems to like them, including most retailers.

I can fit 5 or 6 one-dollar bills in my wallet along with a few higher denominations and carry them comfortably. Having those coins in my pocket becomes a nuisance. Funny they had to go to a 30 year time period to even come up with a number that even comes close to being noteworthy. When you say $1.5B over the next 10 years, it doesn’t sound so impressive, does it?

AZfederalist on December 1, 2012 at 1:27 PM

They’re just laying the groundwork for the $100 dollar coin and the $100,000 dollar bill.

crosspatch on December 1, 2012 at 1:32 PM

But that doesn’t change the fact that almost nobody seems to like them, including most retailers.

I can fit 5 or 6 one-dollar bills in my wallet along with a few higher denominations and carry them comfortably. Having those coins in my pocket becomes a nuisance. Funny they had to go to a 30 year time period to even come up with a number that even comes close to being noteworthy. When you say $1.5B over the next 10 years, it doesn’t sound so impressive, does it?

AZfederalist on December 1, 2012 at 1:27 PM

Funny thing is, you could get the entire Ronulan Nation behind this new 1 dollar coin just by ensuring that each coin was a Gold Alloy.

SWalker on December 1, 2012 at 1:34 PM

I wonder: How do you eliminate the threat of counterfeiting with coins?

These days, they have to print new money in order to thwart the criminals; once they’ve got the coin mold down, then what? You can’t build a hologram into a coin.

Just sayin’

mountainaires on December 1, 2012 at 1:23 PM

Especially if you go the low-cost route.

I wonder if there’s a way to cheaply rf chip them all or something. Those could probably be counterfeited too–and tracked. I suspect you actually could put holograms and such on a coin

I don’t think the $1 and $5 get counterfeited much though, so perhaps that’s not a huge issue.

TexasDan on December 1, 2012 at 1:37 PM

Fine idea, why not go for a $5.00 and $10.00 coin also. Many countries already do that (Germany).

Think of the growth in cottage industries at assisted care living facilities, with all the old people sewing together coin purses.

This country has always had $1.00 coins and even $20.00 coins. So what is new here only the paper money is new.

Another thing to keep in mind is the presidents authority under “Regulation W” really it dose exist. This is where the existing currency is compromised by excessive forgeries or holdings by the “Wrong” People. North Korea was in the wholesale forgery business for awhile and paying off their Middle East Debts with bogus US $20.00′s. It was used a few times in the war in VietNam when it was felt that to much military script got into the hands of the North. Use you imagination on this one. It’s fun.

jpcpt03 on December 1, 2012 at 1:39 PM

I don’t think the $1 and $5 get counterfeited much though, so perhaps that’s not a huge issue.

TexasDan on December 1, 2012 at 1:37 PM

There’s not much of a market for currently circulated coins, they are just to expensive for the counterfeiter to produce to make them any profit.

SWalker on December 1, 2012 at 1:39 PM

They’re just laying the groundwork for the $100 dollar coin and the $100,000 dollar bill.

crosspatch on December 1, 2012 at 1:32 PM

Now, you’re just being silly.

100K won’t buy anything at all.

trigon on December 1, 2012 at 1:40 PM

Specifically.the paper used by the mint to print currency is made by only one company, Crane & Co. of Massachusetts. When efforts were made in past years to tie the creation of a Dollar Coin to the elimination of the Dollar Bill, it has been strongly opposed, and ultimately blocked by the state’s Congressional delegation, including Senator John Kerry who last year introduced a bill to eliminate the Dollar Coin completely.

In a more just and sane society, Halliburton would be exclusively in charge of making our paper currency.

Just thought I’d say that to rile up the Obamunists….

Sir Rants-A-Lot on December 1, 2012 at 1:41 PM

IIRC, doesn’t the last batch of dollar coins have the mint year and ‘In God We Trust’ on the edge of the coin not on the front or back? Wonder if the new ones will do the same or will the get rid of ‘In God We Trust’ to make those happy who don’t believe?
L

letget on December 1, 2012 at 1:42 PM

But that doesn’t change the fact that almost nobody seems to like them, including most retailers.

I can fit 5 or 6 one-dollar bills in my wallet along with a few higher denominations and carry them comfortably. Having those coins in my pocket becomes a nuisance. Funny they had to go to a 30 year time period to even come up with a number that even comes close to being noteworthy. When you say $1.5B over the next 10 years, it doesn’t sound so impressive, does it?

AZfederalist on December 1, 2012 at 1:27 PM

Two thoughts. (1)Getting rid of bills for coins changes their “perceived” value. If we start to think of a dollar coin as just “pocket change” then price inflation ensues. (2) Exchanging other bills for coins really isn’t the end goal. Forcing everyone to digital currency transactions is the end goal. Digital currency is the easiest to manipulate.

Jurisprudence on December 1, 2012 at 1:45 PM

IIRC, doesn’t the last batch of dollar coins have the mint year and ‘In God We Trust’ on the edge of the coin not on the front or back? Wonder if the new ones will do the same or will the get rid of ‘In God We Trust’ to make those happy who don’t believe?
L

letget on December 1, 2012 at 1:42 PM

Just depends upon who the “God” is. Might as well say “In Government you belong, in Obama you must trust.” //sarc

Jurisprudence on December 1, 2012 at 1:48 PM

No.

J.E. Dyer on December 1, 2012 at 1:50 PM

The Origin of coins are in precious metals, that was what is widely and falsely believed to have given them their value. While that notion is wrong, it is the majority held opinion.

Since everyone knows that any coin minted by the US Government for general circulation will not have the physical value of the face value of the coin, it falls under the metaphorical boundary of being a worthless token.

SWalker on December 1, 2012 at 1:12 PM

We need to distinguish between American dollar coins, dimes and quarters made prior to 1965, and those made from 1965 to the present day. Those made before 1965 were made out of 90 percent silver; after 1965 the silver was replaced by the far less precious nickel and copper. So a “junk silver” Morgan dollar coin from the turn of the 20th century that contains 0.777 troy ounces of silver would be worth at least 30 dollars in today’s currency, with the current spot price of silver at about $34.50 an ounce.

There are also a few dollar coins from the mid to late 1960s that are made of 40 percent silver.

As for today’s coins, including state quarters? Essentially worthless tokens, yes.

Sir Rants-A-Lot on December 1, 2012 at 1:54 PM

If they put Obumer’s mug on it, I insist it be made of Iron Pyrite

derft on December 1, 2012 at 1:55 PM

O/T, please go to the Green Room and look at ‘I’m sure I’m wrong to wish this story true’, it is a hoot, true or not!
L

letget on December 1, 2012 at 1:58 PM

Bring back the 2 dollar bill, make the 1 dollar a coin only, put Ronald Reagan on it so we can call it a “Ronnie” and I’ll support that.

SAZMD on December 1, 2012 at 1:12 PM

They actually still produce the $2 bill. It’s just sees so relatively little use that they don’t have to replenish the supply that often.

Shump on December 1, 2012 at 2:01 PM

Only if its an Obama Dollar.

Curtiss on December 1, 2012 at 2:02 PM

O/T kinda

Heard Rush say something about plans in place for guvmit seizure of IRA funds.

What’s the deal?

Bruno Strozek on December 1, 2012 at 2:03 PM

“The Mint is preparing a report for Congress…”. I wonder how much that “report”, showing Congress how much much we’ll save by scrapping the paper dollar, will cost us?!

ellifint on December 1, 2012 at 2:06 PM

And it can’t be made of metal alloy. It has to made from bio-plastic and gluten free.

Curtiss on December 1, 2012 at 2:06 PM

O/T kinda

Heard Rush say something about plans in place for guvmit seizure of IRA funds.

What’s the deal?

Bruno Strozek on December 1, 2012 at 2:03 PM

Simple really, Democrats Marxists believe the 401s and IRA’s are money that has been criminally allowed to go fallow…

SWalker on December 1, 2012 at 2:08 PM

Wot… again?

PersonFromPorlock on December 1, 2012 at 2:12 PM

Just eliminate all money. Capitalism is evil.

besser tot als rot on December 1, 2012 at 2:13 PM

Bruno Strozek on December 1, 2012 at 2:03 PM

This was covered yesterday here at HA.

http://hotair.com/headlines/archives/2012/11/30/americans-401k-plans-an-untapped-source-for-tax-revenue/
L

letget on December 1, 2012 at 2:13 PM

Heard Rush say something about plans in place for guvmit seizure of IRA funds.

What’s the deal?

Bruno Strozek on December 1, 2012 at 2:03 PM

One of the main reasons I’ve never put any money into one of those statist piggy banks.

besser tot als rot on December 1, 2012 at 2:14 PM

letget on December 1, 2012 at 2:13 PM

Missed it.

Thanks!

Bruno Strozek on December 1, 2012 at 2:17 PM

Yes…a dollar coin.

And you just know that the government will recommend putting our current Prez’s mug on it with the other side that ridiculous campaign symbol.

And of course as the dollar decreases in value the metal in the coin becomes way valuable than the face value of $1.00.

Saving 4.4 billion in ONE year might justify it, but not spread out over 30.

KirknBurker on December 1, 2012 at 2:20 PM

This is just an excuse to put Obama’s face on a coin.

portlandon on December 1, 2012 at 2:23 PM

This is just an excuse to put Obama’s face on a coin.

portlandon on December 1, 2012 at 2:23 PM

I don’t think Obama’s jug ears would fit, even in profile. Plus, it wouldn’t show the differing levels of gray in his hair on a day-to-day basis.

Jurisprudence on December 1, 2012 at 2:28 PM

They may not know what’s best for them either.

Just like with soda sizes!
/

Mr. Prodigy on December 1, 2012 at 2:30 PM

One of the reasons for the distaste toward the Susan B. Anthony dollar coin was because it was sized too closely to the quarter. To make a coin acceptable, it has to be easily identifiable by feel, too. The Sacagawea dollar coin failed partly because of the lingering distaste from the Anthony dollars, but also because the coin had no “heft” to it; it felt phony because of its lightness. It didn’t “feel” like a dollar in comparison to our other coinage. If the US Mint could get past their myopia they might come up with something usable.

I’m currently working in Canada, and using this “Loonie” without any problem. The Canadian coins, by the way, are sized and denominated pretty much the same as US coins: quarters, dimes, nickels, pennies. And the Loonie (and the double-Loonie). Yes, they do make a bulk in my pocket – is it necessary to carry all of your spare change with you at all times? Most US folks don’t do that now with quarters (or pennies), so everyone’s coin jars would get more valuable.

I assume folks carry all of those dollar bills so that they can spend them; why wouldn’t they spend dollar coins with equal fervor? A wad of 20 $1-bills makes for a good-sized bulk, too, ya know.

ss396 on December 1, 2012 at 2:41 PM

Ron Paul tried to warn you.

And you chose Romney.

Tsk, Tsk..

fatlibertarianinokc on December 1, 2012 at 2:51 PM

If congress wanted to save money, it should eliminate the penny, quarter and nickel. They should then introduce a 50 cent piece with Reagan on it. That will give us just 2 coins to deal with. Oh… and leave the dollar alone. Who wants a pocketful of metal slapping at your testes as you walk.

Red Creek on December 1, 2012 at 2:54 PM

I hope the U.S. doesn’t go to a $1 coin either because it would probably have Obama on it and everyone would call it a “Loony” then, damgaging the reputation of the Canadian loonie coin.

andycanuck on December 1, 2012 at 2:55 PM

We just need to overhaul the currency.

Pennies serve no purpose, and nickels only barely. People can pay with debit cards to the nearest cent, or they can be made to round up or down to the nearest tenth of a dollar – their choice – when paying with currency.

Canada has the “loonie” coin, and the “twonie”. We could do the same, and make the minimum the five dollar bill. One dollar bills are just not worth the trouble.

The reason that folks don’t use the dollar coins is because they aren’t familiar with them, and they are in the habit of not using them. They will quickly adapt when the $1 bill goes extinct.

oakland on December 1, 2012 at 3:01 PM

Why not just start using plastic tiddlywinks and get it over with.

Actually, they’re chomping at the bit to go cashless. No more “under the table” stuff. No more buying ammo or certain other items without them knowing about it and all the details. No more buying anything without them knowing about it and taxing the transaction automatically.

If there are bank “holidays” in the future, you won’t have that reserve of cash at home to spend and your accounts will be frozen.

If they’re smart, they’ll sell this as a way to eliminate (oh suuurre) illegal drug trafficking, prostitution, and dealing in stolen goods. History shows we’ll gladly give up our freedoms to “protect” us and create a more perfect union.

Dr. ZhivBlago on December 1, 2012 at 3:13 PM

Will they bring back the $500 and $1000 bills or would that give the people too much freedom ?

tmitsss on December 1, 2012 at 3:34 PM

This is all payback from Obama to the stripper’s union which backed him this last election. Think about it… no longer will strippers accept $1 coins, but instead, they will only take $5 bills. They get an instant 500% payraise, joe-public pays for it, and the stripper’s union is happy :)

Mo_mac on December 1, 2012 at 3:34 PM

This cynic believes we will soon see a call in of all money for reissue soon to a new and only viable currency–flushing out all that hidden cash from those who anticipated our confiscatory government taking over. Making private ownership of gold etc. a felony would take care of the rest of private wealth….

Don’t laugh yet. What rational person would have predicted our recent historical collapse of government as servant?

Don L on December 1, 2012 at 3:37 PM

I can fit 5 or 6 one-dollar bills in my wallet along with a few higher denominations and carry them comfortably. Having those coins in my pocket becomes a nuisance.

AZfederalist on December 1, 2012 at 1:27 PM

I don’t understand why more people aren’t just saying this. It’s the issue.

Coins smell. At best, they smell like metal. They work their way through pockets, they fall out when you sit down. Dollar coins are heavier, larger, or both, and having just a few dollars in your pocket is walking with a weird weight on the top of your thigh.

*cough*

The mechanics of it put men back to Elizabethan era purse-sacks.

If there are people walking around without any dollars in their pockets — chump change — supporting this, please give us poor people a glance. Be advised that many of us will occasionally carry up to ten of the suckers. And that’s not on a shopping day.

Axe on December 1, 2012 at 3:40 PM

Far be it from me to ever compliment Canada over the United States, but I visited them this past summer, and of course, had to use their money while I was over there. I had no problem with the $1 and $2 coins. Thought it was a great idea, and since it also saves money, I think we should go to it. Yeah, I know we all hate to change things, but in a year, we’ll all be saying why we waited so long, and why were we so resistant to change?

asc85 on December 1, 2012 at 3:41 PM

I heard someone a few years ago telling about how they had saved quite a bit of money by not spending dollar bills. If they were given dollar bills as change, they went into a box at home. Each purchase had to be made with bills larger than a one dollar bill.

He said that he saved money by putting away the ones, he also saved because every time he had to break a larger bill, he had second thoughts about whether he really wanted to break his larger bills, so he ended up not buying a lot of small stuff, especially impulse items that seemingly don’t cost much.

It was an interesting idea.

I never tried it because I rarely carry cash anyway.

Jvette on December 1, 2012 at 3:42 PM

Dr. ZhivBlago on December 1, 2012 at 3:13 PM

Sadly, I agree and I am one who does not use cash often. It is more convenient not to carry it.

My husband on the other hand refuses to use a debit or credit card and only uses cash.

It all goes back to the simple adage, “He that has the gold makes the rules.”

Jvette on December 1, 2012 at 3:46 PM

Will they bring back the $500 and $1000 bills or would that give the people too much freedom ?

tmitsss on December 1, 2012 at 3:34 PM

If something doesn’t give, we can probably expect new $10,000, $100,000,000 and $1M bills. I hope they put Obama’s picture on the million.

Axe on December 1, 2012 at 3:52 PM

Only 4.4 billion over 30 years! What will be the extra amount of fuel that will have to be used to transport all those heavy metal dollars around in the next 30 years? My guess is the cost of that fuel will exceed 4.4 billion dollars.

SC.Charlie on December 1, 2012 at 3:52 PM

save 4.4 billion over 30, yes 30! years for the federal government. Cost the economy orders of magnitude more.

It may not seem too much, but the small dollar coin slightly bigger than a quarter weighs about 50 per lb. When a bank needs to move a million of them from one place to another that million coins weighs 20,000 lbs compared to a million dollar bills which weighs just 2,200 lbs.

All that weight will bear down on the economy far more than 4.4 billion over 30 years.

Anyone think that 30 years of moving these coins around just for the BANKING system will cost less than 4.4 billion is just nuts.

Just for moving money around, Armoured vehicles are limited to 25,000 gross vehicle weight and the vehicles weigh around 12,000 lbs. Leaving 13,000 lbs available to transport the money.

So, a delivery of just 1 dollar units would be change from moving 5.85 million in one truck to a limit of $650,000. Now think about how much other currency will be pushed out of the truck if they have half a million in dollar coins. How many extra trips will be required?

astonerii on November 30, 2012 at 6:22 PM

Here are the numbers to back me up.
Based on 1 million dollars. While the Coins are about the same volume, they are 9 times more dense, meaning 9 times the weight. That can translate into 9 trucks being required to move the same amount of money. 9 trucks, 9 times the fuel cost increase, 9 times the man power, 9 times the security.

QTY______#/lb___Total_Lb__#/in^3____Total Volume
1000000__50_____20000_____14.9______67114.09396
1000000__450____2222______14.5______68965.51724

astonerii on December 1, 2012 at 4:06 PM

I personally prefer dollar coins to the bills. My criteria is that it shouldn’t take a pocket full of coins to buy a soda pop from a vending machine. Dollar bill feeders on vending machines are temperamental.

However, the marketplace (US citizens) reject it each time it is re-introduced. As a result they don’t circulate sufficiently.

The marketplace should be the deciding factor, or we will just reap the unintended consequences (whatever they are…) you always get when you force something on consumers. The marketplace has already given its decision.

Jgriff on December 1, 2012 at 4:17 PM

I hope American readers won’t beat up on me, but let me tell you what happened when they did this in Canada…might be useful to know how it actually worked out, in the middle of yelling about it. The Canadian gov’t withdrew the dollar bill in 1988, on the grounds of cost, and introduced a $1 coin, with a picture of a loon on it, thus the “loonie.” A few years later they withdrew the $2 bill, which was also in circulation, and replaced it with, naturally, the “toonie.”

That was 24 years ago. We had no choice…the dollar was gone…and the world didn’t come to an end. I don’t carry a lot of cash…some $20s and 10s and 5s (which are quite different colours…there’s an idea you might try), and some loose change. Not a lot, just enough for parking meters and panhandlers. You don’t let it build up in your pocket and it doesn’t get heavy.

Lots of money saved, no inconvenience. People bitched about it, but the objections were dumb, and they soon died out.

And guess what…at the end of this year they will abolish the penny!!! Cashmageddon!!!!

BillBC on December 1, 2012 at 4:17 PM

I am old enough to remember when fifty cent pieces were in common circulation. But that was in the 1950s.

SC.Charlie on December 1, 2012 at 4:26 PM

I am old enough to remember when fifty cent pieces were in common circulation. But that was in the 1950s.

SC.Charlie on December 1, 2012 at 4:26 PM

I used quite a few in the late 70s and early 80′s, then they just kind of stopped being handed out for change.

astonerii on December 1, 2012 at 4:34 PM

It would be nice if cogresscritters focused on making the dollar worth something again.

katy the mean old lady on December 1, 2012 at 4:40 PM

could save taxpayers some $4.4 billion over the next 30 years.

Save? Won’t happen. That’s chump change that will get spent somewhere else. That’s only about $147 million per year. The government spends 3 times that in an hour. How ’bout Congress actually does something meaningful for a change? What trivial nonsense will they “look at” next?

lynncgb on December 1, 2012 at 4:42 PM

If congress wanted to save money, it should eliminate the penny, quarter and nickel. impeach Obama and remove him from office!
Red Creek on December 1, 2012 at 2:54 PM

Fixed!

But I agree entirely about eliminating the penny. With our stratospheric sales tax rates in California, it’s infuriating to have to receive 98 cents in change when the tab comes to $4.02 at the fast food restaurant, and I have no pennies or other change in my pocket.

Sir Rants-A-Lot on December 1, 2012 at 4:56 PM

I am old enough to remember when fifty cent pieces were in common circulation. But that was in the 1950s.

SC.Charlie on December 1, 2012 at 4:26 PM

Yes, nowadays, it seems like you can only find and collect half dollars at a gambling casino.

Sir Rants-A-Lot on December 1, 2012 at 4:58 PM

More political correctness run amok: the “golden” Sacajewea dollar pays homage to a Native American and started in 2000, but when the law authorizing the presidential dollars became law in 2009, Congress was worried about the Sac. dollar being phased out and they did not want to be seen as disrespecting the Native Americans.

Congress’ politically correct solution? Require the Mint to make FOUR Sacs for every ONE presidential dollar. Hence, the Mint now has BILLIONS of Sacs (and President dollars too, but to a much lesser extent) sitting around in storage vaults. In fact, the Mint now spends MILLIONS every year just to STORE the dollar coins. Just dumb.

Captain Kirock on December 1, 2012 at 5:17 PM

Uh huh, and how am I supposed to stuff a $1 coin into the g-string of a dancer Susan B. Anthony’s g-string at Deja-Vu? Count me out of this stupid plan.

Bishop on December 1, 2012 at 1:08 PM

FIFY.

The War Planner on December 1, 2012 at 5:26 PM

STELLA!

How about a $4.00 coin?

LegendHasIt on December 1, 2012 at 6:38 PM

Has anyone thought about how this would hurt strippers?! Both figuratively and literally

Politricks on December 1, 2012 at 1:07 PM

The last strip club I went to (it’s been a while) already was giving out their paper bill small change in two-dollar denominations, under that idea that if customers had a pocket full of them, that’s what the girls would get for their efforts. And they were new $2s, too — or at least, they were right out of the bank wrappers and from wherever the U.S. Treasury had been storing the things before sending them out into circulation.

jon1979 on December 1, 2012 at 6:45 PM

Back when I was playing at running a business that dealt with cash sales… We made a point of giving change in $2.00 bills where appropriate…. Sure, no one really liked them… But they almost always sparked a bit of conversation, and a lot of them got set aside, or given to the grandkids or something… Not a lot got spent…
And just about every time the customer looked at again, they remembered the weird guy who gave them a good deal on something rare and interesting.

For years, they would come back and comment on that $2.00 bill.

LegendHasIt on December 1, 2012 at 6:54 PM

The paper bill needs to be phased out for it to work. As Jazz notes, Canada did that. Also, in the early ’80s, Japan did that with the 500 yen coin (phased out the bill over a few years as the coin was introduced). Life goes on.

acasilaco on December 1, 2012 at 8:06 PM

Why bother with a dollar coin? Another year of Obama and the dollar stores are going to have to put 5′s in front of their signs.

southsideironworks on December 1, 2012 at 8:16 PM

Switching to the coin doesn’t make sense…they will make the wheelbarrow too heavy when you need to go buy a loaf of bread.

Left Coast Right Mind on December 1, 2012 at 8:45 PM

It seems to me that the only way that $1 (or 1 Canadian dollar or 1 English pound etc.) coin makes it is to have no competition from the bill/note version. And the only way this has happened in the past is to have the government–not the consumers–force that decision.

Did the government have to force the adoption of the 3 1/4″ floppy, and then change it to the 3.5″ floppy, and then the writeable CD or DVD? No. The market accepted the improvements and accepted the changes without coercion (except in the Apple world). The same should happen with the dollar coin. Since it has long been an option, and been minimally used, that should indicate what the public wants, and is willing to pay for.

Kevin K. on December 1, 2012 at 8:49 PM

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