Will increase in $2 note production affect $1 coins?

messydesk

Not having seen a $2 note in circulation for a Very Long Time, I was rather surprised to see the $2 note production as high as it is, and climbing. I assume this means these are actually used in commerce somewhere. Do you think either the 50c or $1 coins will become more popular in these areas due to the $2 note's use? With the increase in $2 note production, would Congress be more likely to abandon the $1 notes, inadvertently making the presidollars a success?

Zoins

Anyone know if the discontinuation of the $1 bill has ever been brought up in a congressional session?

Jdurg

I did hear that the $2 note is growing in popularity and usage. Especially after Best Buy got egg all over their face for assaulting a customer for using a $2 bill. Apparently it has growing popularity in the suburbs where businesses who give them out in change are doing so to generate even more business. (As people will get a $2 bill in change from a store and tell their friends about it, etc. etc.). Around here (Southern New England) I'm starting to see more and more vending machines say that they take up to $2 bills. I think the government is indeed trying to push them out a bit more and I see nothing wrong with it. I think they are beautiful bills, especially the reverse.

aficionado

What if they stop making the $1 bill and only make $1 coins.

But $2 bill production goes way up, basically replacing the $1 bill.

What have we gained in this scenario?

ziggy29

Widespread acceptance of the $2 bill and $1 coin can only rise significantly if they terminate the $1 bill. Unless they do that, attempts to make $1 coins and $2 bills workhorses in commerce are doomed to fail.

Bikingnut

Widespread acceptance of the $2 bill and $1 coin can only rise significantly if they terminate the $1 bill. Unless they do that, attempts to make $1 coins and $2 bills workhorses in commerce are doomed to fail.

Thats the key, termination of the $1 note.

Dennis

Coxe

I don't know why they would bother with the $2 bill and introduce the same problem with its acceptance. $5 as the lowest paper currency is low enough. I think if they ceased producing $1 bills, the dollar coins would gain acceptance but the $2 note would go nowhere.

Zoins

<< <i>I don't know why they would bother with the $2 bill and introduce the same problem with its acceptance. $5 as the lowest paper currency is low enough. I think if they ceased producing $1 bills, the dollar coins would gain acceptance but the $2 note would go nowhere. >>

In Europe, they have 2 Euro coins so it is conceivable to get rid of both the $1 and $2 bills.

mgoodm3

Apparently $2 bills are popular at strip clubs. Must be a lot of strip clubs to cause a boost in the production so much.

GoldenEyeNumismatics

If the dollar bill is discontinued I think $2 bills will become very common

Conder101

How is this for a possibility. The Fed is getting tired of having a bunch of storage vaults full of dollar coins and they know the new dollars are just going to consume a bunch more storage. Well they know the Congress isn't going to withdraw the dollar note. So they are building a stockpile of twos, and are planing on slashing their orders for ones from the BEP and restricting the number of ones that they will supply to banks making up the difference in dollar coins and twos. If the Fed stops ordering ones and just recycling the ones currently in circulation, within about 8 to 9 months most of them will be ratty and retired. It will allow the Fed to end the dollar note, circulate the two, and get the dollar coins out of their vaults. All without having to get the government to officially eliminate the dollar bill. (One ting the Fed will have to do is not let the banks get more ones by just upping their orders and then returning the "surplus" dollar coins. If they up their order, the number of ones they get stays the same and they get more coins and twos.)

But in order to do that the Fed will have to have a fair sized supply of twos on hand. They won't be able to order them and wait while they are printed.

mhammerman

The average life of a dollar bill is eighteen months. Yep, methinks conder has figured out the strategy.
You could give away free ice cream and someone would cry and moan about it...so expect plenty of weeping and griping when this starts happening.


Kno yo buks

Pentimento

I think that Conder's theory is pretty good, but the pressure to avoid a third failed small-size dollar coin rollout may be a greater factor than dollar coin storage issues.

I have also used and seen more $2 notes this year than ever before.

cladking

<< <i>What if they stop making the $1 bill and only make $1 coins.

But $2 bill production goes way up, basically replacing the $1 bill.

What have we gained in this scenario? >>



$2 bills would last about 50% longer in circulation due to lower velocity. More importantly
the economy would need only about 40% as many with a $1 coin in circulation. Essentially
most of the wear tearing up one dollar bills would be greatly magnified and transferred to
the far more durable $1 coin.

If this happens watch for quarter mintages to plummet and lots of tough states issues. They
probably would end up proof and mint set only.

BigDaddyz

I haven't even seen a $2 bill in a couple of years. I was floored to read the production numbers on them in the last few years. Where are they all going?

Coxe

I recall years ago they ($2 notes) were used at horse tracks. Hadn't heard about strip clubs, but I guess if the country is fed up enough with all this taking back America, they could be popular.

Conder101

Yes $2 is a common racetrack wager, but also back turn of the century $2 was also a common fee for the services of a lady of the evening. Another reason for adislike for the $2 bill.

Coxe

<< <i>Yes $2 is a common racetrack wager, but also back turn of the century $2 was also a common fee for the services of a lady of the evening. Another reason for adislike for the $2 bill. >>



That's under fifty bucks, inflation adjusted to today's dollars. Cheap ladies I guess.

drwstr123

Eliminate the $1 and the 1C------ Now the $2 bill and $1 coin fit in cash registers!