As Of Right Now, Why Produce The Dollar Coin?

InternetJunky

So far there has been 1,590,850,000 Presidential dollars made according to Presidential Dollar Guide and 51.1 million Native American dollars produced so far according to Native Amercian Dollars With the economy hurting why produce coinage that nobody uses (other than some members of this forum and the very limited people that actually know they exist) that only causes the dollar to depreciate and costs I'm sure thousands of dollars (if not more per year) to produce? If you factor in payroll, metal, machine maintenance I'm sure it adds up. I mean don't get me wrong I'm all for replacing the dollar bill with the dollar coin in the future but why not take that $1.5+ billion and pay off some bills rather than produce coinage that won't regularly circulate anytime soon?

Am I missing something? Whats your opinion on the Presidential/Native American dollar program? Just my three cents.

claychaser

As a tool in commerce, I prefer the coins. Faster than pulling out the wallet, and you just don't get much for less than dollar anymore, so just go with change and skip the paper....

AUandAG

Hmmm, maybe when we are done with Presidents we'll get Senators or Representatives, etc.

Might be an ego thing and have nothing to do with running a country efficiently.

I collect them, but there is no reason to mint that quantity.
bob

DieClash

Consider that the BEP is printing 4-billion plus $1 FRNs a year. Now, if the Mint is only producing 1.5 Billion $1 coins per year it will take 2.5 years to meet the demand of the paper bills. Think, future no more $1 FRNs. So while, the BEP is still meeting demand for FRNs, the metal $1s are accumulating in inventory so that they will replace paper when the it is decided to cease printing paper dollars.

Now, consider that paper dollars last about 22 months in circulation and that coins last 22 year or so.

If the BEP produces 8 billion paper dollars in 24 months, then the FED will need to have at least 8 billion dollar coins before they decide to eliminate the paper.

After only 3 years of the Prexy dollars, we may have 6 billion in reserve and need another year to have enough inventory to replace the paper bill. JMHO.

rld14

The question should be... why produce the dollar bill?

Overdate

>>As Of Right Now, Why Produce The Dollar Coin?<<

It's a great American tradition, dating back over 100 years.

The Sacagawea dollar (2000-2008) barely circulated (except in Ecuador). The 2002 to 2008 issues had limited mintages and were sold to collectors only.

The Susan B. Anthony dollar barely circulated, mostly given out in change at stamp machines and used as transportation tokens in a few east coast cities. It took 19 years to absorb two years of production (1979-80). The 1981 issues were sold to collectors only.

The Eisenhower dollars barely circulated, even out west. The casinos for the most part used their own dollar-value tokens.

The Peace and Morgan dollars did circulate, but production was much greater than demand, resulting in tens of millions of uncirculated coins being stored by the government for decades.

Liberty Seated and Bust dollars did circulate, but were generally struck in small quantities more consistent with actual public demand. Many were melted or exported when silver prices slightly exceeded face value.

Since the 1870s, the dollar coin has been more about politics than about public coinage demand. Why should now be any different?

DieClash

Overdate, consider the "value of the dollar" during the times that it did circulate, albeit limitedly. The workhorse of silver circulating coinage in the 19th and early 20th century was the half-dollar.

Today, the workhorse is the quarter-dollar, even if it is only worth about 1.25 ¢ circa 1914.

The Mrs. went to the laundramat the other day to wash some throw rugs that are too big for our machine. She spent 44 quarters. If the machines accepted dollar coins this could have been done with 11 coins.

BTW, I think that the dollar bill has been more about politics and not the dollar coin.

The question should not be why produce the dollar coin, but rather why the paper dollar?

melvin289

Why produce the dollar coin? Probably since it doesn't circulate, like the 50¢ coin, the government makes a huge profit from the seigniorage. Look at the profits made off the State Quarter program. If they can do anywhere near that good off the Presidential Dollars it will mean $'s in the system. Each and every coin that is kept and not spent means just that much more profit in the government's hands. Just like the Elvis Stamps. They were never intended to be used for postage but to be put back and kept.

Ron

Edited to add a left out word and spelling.

holeinone1972

Because they are making a profit doing it.

TwoSides2aCoin

The dollar coin is the best value for .

richbeat

Because the Mint has no choice. They have to. Public Law 109-145 (December 22, 2005), the Presidential $1 Coin Act, and Public Law 110-82 (September 20, 2007), the Native American $1 Coin Act, requires the Mint to produce dollar coins with the Treasury Secretary to determine the quantities produced. The Native American dollar, however, cannot be "less than 20% of the total number of $1 coins minted and issued in such year."

sumnom

Why oh why weren't they doing this when the original sac was in production? We could look forward to circulating sacs rather than circulating p-bucks.

InternetJunky

<< <i>Consider that the BEP is printing 4-billion plus $1 FRNs a year. Now, if the Mint is only producing 1.5 Billion $1 coins per year it will take 2.5 years to meet the demand of the paper bills. Think, future no more $1 FRNs. So while, the BEP is still meeting demand for FRNs, the metal $1s are accumulating in inventory so that they will replace paper when the it is decided to cease printing paper dollars.

Now, consider that paper dollars last about 22 months in circulation and that coins last 22 year or so.

If the BEP produces 8 billion paper dollars in 24 months, then the FED will need to have at least 8 billion dollar coins before they decide to eliminate the paper.

After only 3 years of the Prexy dollars, we may have 6 billion in reserve and need another year to have enough inventory to replace the paper bill. JMHO. >>



This makes sense. But at the same time why release them to the public before the program is over? Of course the mint will make profit, but now these are being hoarded because nobodies going to spend something they paid over face value for which will only cause them to have to produce more to reach that 8 billion inventory mark, correct?

And yes richbeat, I'm aware of that bill but it's the government. Who says they have to follow their own rules?

19Lyds

<< <i>Consider that the BEP is printing 4-billion plus $1 FRNs a year. Now, if the Mint is only producing 1.5 Billion $1 coins per year it will take 2.5 years to meet the demand of the paper bills. Think, future no more $1 FRNs. So while, the BEP is still meeting demand for FRNs, the metal $1s are accumulating in inventory so that they will replace paper when the it is decided to cease printing paper dollars.

Now, consider that paper dollars last about 22 months in circulation and that coins last 22 year or so.

If the BEP produces 8 billion paper dollars in 24 months, then the FED will need to have at least 8 billion dollar coins before they decide to eliminate the paper.

After only 3 years of the Prexy dollars, we may have 6 billion in reserve and need another year to have enough inventory to replace the paper bill. JMHO. >>



Thanks for the insight. I never really considered the "practical application" with regard to the dollar coins and I think you are right on in your assessment.

However, production has been slipping on the one dollar coins which would throw a wrench into this plan as they are not producing 1.5 billion a year but more along the lines of 500 million or so per year.



I expect that there were some which seriously considered this a possibility but when it became obvious that, despite their efforts, the coin simply would not circulate, they've trimmed production back considerably. I also expect the figures to go down in the coming years.

So.............hopefully, someday, the Eisenhower Dollar will NOT be at the very bottom of the "List of Coins to Collect"!