The U.S. Mint Might Stop Producing Pennies
Papi
Posts: 1,189 ✭✭
Here we go again.
I didn't know the Secretary could suspend production, essentially forcing Congress to act. I know they did it on the Presidential Dollars, but no one uses those anyway.
From The WSJ:
Treasury hasn’t announced any plans about suspending production of the penny. Mr. Lew’s memo also said he would call on Congress to authorize the use of alternative metals for coins in circulation.
“We’ve been looking at the penny for a long time, because obviously the value of a penny has gotten smaller and smaller as time has gone on,” Mr. Lew said at a forum on the $10 bill last November. “Even with low inflation, it continues to diminish.”
Several bills have been introduced in Congress to eliminate the penny, but none has passed. Because many consumers don’t use pennies, they’re removed from circulation quickly, requiring the U.S. Mint to produce more of those than all other coins put together. While Congress would need to pass a law to change currency denominations, suspending production could speed that process.
Suspending penny production could raise objections from the zinc industry and create logistical headaches for businesses. Zinc accounts for 97.5% of penny content.
Some economists have said the nuisance and waste costs of producing the penny outweigh any benefits. Since 2006, the rising metals prices have pushed the unit cost of producing the penny and the nickel above their face value. It cost 1.7 cents to produce a penny in the 2014 fiscal year.
Write to Nick Timiraos at nick.timiraos@wsj.com
No more Pennies
I didn't know the Secretary could suspend production, essentially forcing Congress to act. I know they did it on the Presidential Dollars, but no one uses those anyway.
From The WSJ:
Treasury hasn’t announced any plans about suspending production of the penny. Mr. Lew’s memo also said he would call on Congress to authorize the use of alternative metals for coins in circulation.
“We’ve been looking at the penny for a long time, because obviously the value of a penny has gotten smaller and smaller as time has gone on,” Mr. Lew said at a forum on the $10 bill last November. “Even with low inflation, it continues to diminish.”
Several bills have been introduced in Congress to eliminate the penny, but none has passed. Because many consumers don’t use pennies, they’re removed from circulation quickly, requiring the U.S. Mint to produce more of those than all other coins put together. While Congress would need to pass a law to change currency denominations, suspending production could speed that process.
Suspending penny production could raise objections from the zinc industry and create logistical headaches for businesses. Zinc accounts for 97.5% of penny content.
Some economists have said the nuisance and waste costs of producing the penny outweigh any benefits. Since 2006, the rising metals prices have pushed the unit cost of producing the penny and the nickel above their face value. It cost 1.7 cents to produce a penny in the 2014 fiscal year.
Write to Nick Timiraos at nick.timiraos@wsj.com
No more Pennies
0
Comments
Looks like a storage spiderweb in the upper right hand corner, evident on other coins as well. Spider probably starved, a bag of US cents is not where to set up home.
BST transactions: dbldie55, jayPem, 78saen, UltraHighRelief, nibanny, liefgold, FallGuy, lkeigwin, mbogoman, Sandman70gt, keets, joeykoins, ianrussell (@GC), EagleEye, ThePennyLady, GRANDAM, Ilikecolor, Gluggo, okiedude, Voyageur, LJenkins11, fastfreddie, ms70, pursuitofliberty, ZoidMeister,Coin Finder, GotTheBug, edwardjulio, Coinnmore, Nickpatton, Namvet69,...
"Jesus died for you and for me, Thank you,Jesus"!!!
--- If it should happen I die and leave this world and you want to remember me. Please only remember my opening Sig Line.COINS FOR SALE AT LINK BELOW (READ CAREFULLY)
https://photos.app.goo.gl/oqym2YtcS7ZAZ73D6
Looking for Top Pop Mercury Dime Varieties & High Grade Mercury Dime Toners.
HH
1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
Any help locating any of these OBW rolls would be gratefully appreciated!
They'll come out in droves (probably redeemed at banks) and we can stop the minting madness.
Lance.
``https://ebay.us/m/KxolR5
The People will revolt!
Just the same handful of old ladies who write Letters to the Editor. Amazing how much clout they have!
Truth is, the noises against are always louder than the voices for, even though the voices for may be far, far greater in number.
Here's a warning parable for coin collectors...
Hoard em up.
Why?
I'm sure that if the cent and/or nickel are ever discontinued for commerce, they will live on forever as NCLT rolls, mint sets, and proofs just like the Kennedys and all those stupid dollar coins!
HH
And while they're at it, they can discontinue the nickel too, make the dime a minuscule copper, and add a decent $1, $5, and $10 coin.
Amen
I'm in favor of killing the penny but if it isn't going to happen and the gov't wants consumers to spend those they're hoarding, easy: declare the penny worth two cents.
They'll come out in droves (probably redeemed at banks) and we can stop the minting madness.
Lance.
I like this idea, stop making new pennies, but keep using all the existing pennies as legal tender for either one or two cents, instead of rounding prices (or totals) to the nearest nickel as has often been proposed, simply round the prices (or totals) to even numbers.
Liberty: Parent of Science & Industry
But an abrupt end would be stupid & irresponsible. Instead, reduce production & distribution over a period of time. And give cash businesses the option to use cents for as long as they want.
Maybe someone from Canada will tell us about their experience with "Phasing out the Penny".
Successful BST transactions with forum members thebigeng, SPalladino, Zoidmeister, coin22lover, coinsarefun, jwitten, CommemKing.
And while they're at it, they can discontinue the nickel too, make the dime a minuscule copper, and add a decent $1, $5, and $10 coin.
I agree with this. Make the $5 and $10 bi-metallic too.
almost yearly... and still, nothing gets done. Cheers, RickO
Once again we cycle through the 'useless cent' discussion.... It is amazing how this comes up
almost yearly... and still, nothing gets done. Cheers, RickO
1+
"Jesus died for you and for me, Thank you,Jesus"!!!
--- If it should happen I die and leave this world and you want to remember me. Please only remember my opening Sig Line.The People will revolt!
Unlikely...most won't even bend over to pick one up