Nothing new, but worth discussing

numonebuyer

It has been discussed in this forum how the American public really does not care to use the $1 coin. It has also been brought up that it is rare to see a 50 cent piece used in normal day-to-day transactions. And for most people the use of a penny is downright frustrating.

So, why do we (meaning the US Government) have any coin in circulation other than the nickel, dime, and quarter? If the coins are rarely used, why mint them?

BillJones

For the cent it's very simple - TRADITION. A lot of people would hate to see it go. It's also been said that sales taxes would go up too if there were no cents to make change.

As for the half dollar, perhaps it has something to do with having a large coin to put in Proof and mint sets. There have been a number of years were no JFK half dollars have been for circulation. And since the mint system generates seignorage (the mint profit realized between the cost of making a coin and its face value.) from making these coins, their production shows up as a profit on the government's books even if the coins don't circulate.

coppercoins

Just got back from Europe and England and have had first hand experience with every-day use of coins having a face value of over $2...I thought the Europeans had it right with the size and shape of the coins, but the UK seems to like thick, cumbersome coins. The one pound coin is three times the thickness of a quarter and is difficult to carry in any quantity. Their lowest note is nearly $10. They seem to get along fine, but I had to cinch my belt to keep my trousers from hugging my ankles. At one time I had 16 pounds 44 pence in change in my pocket, and it was a drag, literally. For those who don't know the exchange, that's over $30 in change.

I am for a $1 coin, or at least I think I am. I wouldn't want them weighing me down with them, and I do often carry as many as 10 $1 notes. Kinda touchy situation with me. I want them to get rid of the $1 note, but I don't want to have to carry 10 more coins to have the same amount of money...I know, change them to $5 notes, but that's not the point.

NoGvmnt

Simple, keep the $1.00 note, make a $2.00 coin.

Jim

BBN

I know Americans don't want to use a dollar coin, but they could make it small. Here's an idea. Just like one of Mexico's coins use dual metals. Like an outer silver ring, an inner golden color ring and a hole in the middle. Anyone that confuses this with a quarter is loopy.

LanLord

I think it's less tradition than it is the seniorage which these coins add to the bottom line in the budget.

Make 18 billion cents, create 180 million new dollars to move around like chess pieces.

Sad but I believe it's true.

NoGvmnt

"I know Americans don't want to use a dollar coin, but they could make it small. Here's an idea. Just like one of Mexico's coins use dual metals. Like an outer silver ring, an inner golden color ring and a hole in the middle. Anyone that confuses this with a quarter is loopy. "




Ahhhhhh, but the devices must portray something American, like maybe a copy of the Constitution with a big crap stain on it.

Jim

BBN

<< <i>

Ahhhhhh, but the devices must portray something American, like maybe a copy of the Constitution with a big crap stain on it.

Jim >>


Absolutely!!! Especially since the government has basically crapped on the constitution the last several years. Maybe they should have an image of someone in an airport security checkpoint bending over and grabbing their ankles.

tmot99

There is a similar thread going which I also replied.

My theory is that the dollar coin won't circulate as long as there is a dollar bill. The general opinion is that people don't want to carry change. But that's exactly why a dollar coin without a bill WILL work. As soon as you end up with 4 of them in your pocket, you will use them to "lighten the load".

And if we are going to have bills, why not use a more stable product other than paper? There are a lot plastic alternatives available that would make them last longer and not cost that much more to make yet still have the security.

windwhispersintrees

If vending companies & cash register companies make their products accomodate halves & dollar coins, they might get used more.
However, major store chains, banks etc. would need to retrofit their cash drawers too in order to get these coins into circulation.
Also, there's probably some sort of higher handling charges for banks to obtain coins vs. paper because of the extra weight.

Seems like as long as it'll cost businesses significant money and inconvenience to convert to serious use of halves and dollars, they'll avoid
doing so. Next time, instead of spending the marketing money on goofy golden dollar ads, maybe the government could use that money to subsidize conversion.

If I got the coins in change, I'd certainly spend them. However, I've yet to receive a golden dollar from any transaction.