New Dollar Coin With A Novel Idea!!!
jonesy
Posts: 5,031
Congress tries again for a dollar coin
After two bellyflops, Congress is considering a dollar coin again. This time it might actually work.
April 27, 2005: 4:24 PM EDT
By Gordon T. Anderson, CNN/Money staff writer
NEW YORK (CNN/Money) - Like lemmings rushing into the fjords, Congress cannot seem to resist a leap into the dollar-coin money pit.
Despite two wildly unsuccessful attempts to introduce a dollar coin, legislators are trying again.
On Wednesday, the House of Representatives passed a bill to create a new $1 coin, which would accompany the current Sacagawea piece. The measure enjoyed enormous bipartisan support, passing by a vote of 422 to 6.
Assuming a companion bill makes it through the Senate, the nation would be on its way to taking another stab at a dollar coin.
This time, however, lemmings might fly.
The Presidential $1 Coin Act was led in the House by Michael Castle (R-Del.) and Carolyn Maloney (D-N.Y.). In the Senate, shepherds are John Sununu (R-N.H.) and Minority Leader Harry Reid (D-Nev.).
Supporters realize that the dollar coin is the Rodney Dangerfield of American money. So they make clear that any new coin would augment -- not replace -- paper currency.
In fact, although the coins would enter into general circulation, their biggest selling point is that people might hoard them.
The idea steals a page from the popular 50 State Quarters series, in which the engraving on the 25-cent piece rotates to honor all the states. That legislation was also the brainchild of Rep. Castle.
The subjects depicted on the dollar coins would be the U.S. presidents. The plan is to introduce four new ones a year beginning in 2007, honoring each of the nation's chief executives in the order of their service.
After the 50 State series launched in the late 1990s, the government discovered that an astonishing number of people were collecting each new quarter as it rolled out of the U.S. Mint, taking the pieces out of circulation.
It costs the Mint less than five cents for each 25-cent piece it produces. So in a process called seignorage, the government makes money whenever someone "buys" a coin then chooses not to spend it.
The Treasury estimates that it has earned about $5 billion in seignorage profits from the quarters so far.
Proponents of a new dollar hope to build on that unexpected success by creating another coin with mass market appeal.
"The first goal is to increase collection and production of the dollar coin," says Elizabeth Wenk, a spokeswoman for Rep. Castle.
Vast public indifference
The recent history of the dollar coin in the United States is not a proud one.
In 1979, the Treasury Department introduced the Susan B. Anthony dollar, and produced nearly one billion of them between 1979 and 1981.
The Carter administration promoted it with a vengeance, calling it "the dollar of the future."
They hyped its cost-savings -- metal lasts much longer than paper, so you don't need to mint as often as you print.
They hyped its subject -- Anthony was the first woman (if you don't count Lady Liberty) to appear on U.S. money since the early 19th century.
They even hyped its design -- the 11-sided polygon (a hendecagon) was meant to mark a clear difference between the coin and all others.
Despite the fanfare, the public hated it. The Anthony dollar quickly became another quaint relic of the Seventies, like the AMC Pacer.
In 1999, Treasury made another attempt at a dollar coin. This time, it honored the Shoshone woman who helped guide Lewis and Clark across the West.
Boosters again made arguments about cost-savings and historical import. Americans again responded with vast national indifference.
Three years after its introduction, a General Accounting Office poll found that 97 percent of American had not used the coin within the past month, and that 74 percent could not remember ever using one.
History buffs should be happy
Although capitalism, not conservation, may be the best reason to act now, history buffs seem certain to be intrigued by the new series.
"In addition to their ability to generate money, these coins serve as integral markers of American history," said Castle in a statement.
For one thing, they will give some attention to such historical footnotes as William Henry Harrison and Millard Fillmore. For another, they could create a new partisan parlor game.
Republicans might snatch up Reagan and Teddy Roosevelt. Democrats might seek out Kennedy and FDR.
When the time comes to honor contemporary presidents, such as George W. Bush, Bill Clinton and their successors, their likenesses are to be minted whether they are living or dead.
That means by 2018 or so -- when Bush and Clinton would be in their early 70s -- the United States could break a long-standing tradition that money only honors the deceased.
------------------------
Currency flops through the ages. Click here for story.
Flashback: New nickels unveiled. Click here for story.
Treasury to mint new 24-karat gold coin. Click here for story.
Find this article at:
http://money.cnn.com/2005/04/27/pf/new_dollar/index.htm?cnn=yes
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Comments
If they keep this up,coins are'nt going to be worth squat.
<< <i>That proves that there are only 6 intelligent representatives in congress. >>
Total Copper Nutcase - African, British Ships, Channel Islands!!!
'Do not meddle in the affairs of dragons, for you are crunchy and taste good with ketchup'
<< <i>I really dislike the idea of living Presidents/Ex-Presidents being on our coins.
Gotta agree with you. They should go back to the most loved dollar design. The Morgan!!
<< <i>If the Government is serious about producing a $1 coin that circulated, they must STOP making $1 bills. Only when people are forced to use coins in this way will they ever circulate. >>
That's the point. They are not interested in a circulating $1 coin, but in the profit involved with hoarding.
Jim
..in that case, it will not circulate. Going for another failure, eh?
Liberty: Parent of Science & Industry
The only way a dollar coin will work is when they stop printing dollar bills.
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<< <i>I really dislike the idea of living Presidents/Ex-Presidents being on our coins.
What, you're not looking forward to a "W" dollar in 2017?
Or how about the Hillary Rodham $10 gold coin of 2017, from the same legislation?
The whole thing stinks.
<< <i>Going for another failure, eh? >>
Nope, they're going for a spectacular win, and they'll get it from us, reaping profits from seignoriage of our hoards. The Bill before Congress has nothing to do with creating circulating currency, just profit taking and a history lesson.
Need more $$$ for coins?
<< <i>I really dislike the idea of living Presidents/Ex-Presidents being on our coins.
Agree 100%
Tom
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<< <i>I can't wait for the Martin Van Buren and William Henry Harrison dollar coins to be minted!
Frankie!! You're sick!!
<< <i>That proves that there are only 6 intelligent representatives in congress >>
That bill was also the enabling legislation for the pure gold bullion coin, which may be why so many voted for it. Thought they are going to put first ladies on them--wow, what a brilliant idea.
<< <i>If the Government is serious about producing a $1 coin that circulated, they must STOP making $1 bills. Only when people are forced to use coins in this way will they ever circulate. >>
DUH!! I guess Congress is also too stupid to learn from Canada's success with the loonies as a result of eliminating the $1 bill.
At least they are not doing the First Lady gold coins.
<< <i>At least they are not doing the First Lady gold coins.
Uh -- yes they are -- it was part of the same legislation.
Also lost in the bill is a cent redesign -- four commemorative reverses in 2009, and a new reverse in 2010. The Memorial cent is coming to an end...
I agree with the thread, take a lead from Canada and do away with the paper money. That is the only way to make a one or two dollar coin work.
and it sets us apart from practitioners and consultants. Gregor
<< <i>If our government were to produce a bimetallic coin with silver content equivalent to the stated face value, paper dollars would wither and die. >>
Yes, that's the libertarian mantra, but I think the reality is that fiat money has been sufficiently ingrained into the culture that precious metal coinage would have little effect. It's a 19th century artifact that has no place in 21st century commerce.
The presidents on the coins is equally stupid, multiply that if they keep making the sac dollar.....
The 24K gold coins are stupid if they are going to keep producing the 22K coins, pick one of the other people.....
<< <i>
<< <i>At least they are not doing the First Lady gold coins.
Uh -- yes they are -- it was part of the same legislation.
>>
Make some nice dollar coins with what this country is about....LIBERTY!!
Bring her back.
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NOTE: No trees were killed in the sending of this message. However, a large number of electrons were terribly inconvenienced.
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Current focus 1855 date type set
This is the first time I've seen it suggested that the coin will co-exist with the Sacagawea. Personally, I like the Sac better than the presidential idea.
Great transactions with oih82w8, JasonGaming, Moose1913.
Who were the six to vote against this proposal? They deserve our recognition.
If the government wants people to spend/collect a dollar coin, they will have to stop making $1 bills. They will also have to produce a low quantity of the coins to make them desirable. If everyone can get one for a buck, they'll be worthless in the long run. If it takes effort to get them, people will collect them avidly.
It would seem that these statements would be simple and obvious, but what's more obvious is that the government is completely misguided and has no idea what they are doing. At a time when people are tired of dead presidents on coins they are pushing to put that on coins nobody wants already to see if they'll collect them. A manufactured collectible of a coin nobody wants bearing images nobody wants to collect. Sounds like a winner to me!
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http://www.lincolncent.com
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USAF veteran, 1986-1996 :: support our troops - the American way.
Ditto
Oh, and BTW, why do we still use 1 cent coins- think about it, the half cent was last minted in 1857
Manufactured collectibles never succeed in the long run I agree; this is often the case.
GTS
<< <i>think about it, the half cent was last minted in 1857 >>
And when it was discontinued it had the equivilant purchasing power that a quarter does today. So in 1858 here were no coins that had the purchasing power less than that of todays half dollar. Today we have four coins with less purchasing power than a cent had in 1857.
I can't wait to get that James K. Polk dollar.
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From another thread. Linked here. Interesting pictures of the 1st ladies
You cringed for SBA, you cried for Eunice -- get ready for these babes
<< <i> I am surprised that nobody has mentioned the positive effects for the future of the coin hobby. As with stte quarters, millions of new collectors will be brought into the fold. True, most won't stay or gravitate towards other more rare coins, but if only a portion of them stay, that is a good thing for the hobby IMO >>
So if even a fraction of these "millions of new collectors" gravitate to the older coins the added competition drives the prices up forcing many long term collectors out of the market. This is good for the hobby?
No, seriously. If the coins were made with holes in the center, you could string 'em and carry 'em around that way.
(...or make a weapon out of them. Hm. I hadn't considered that. Oh well.)
The only downside to a hole-in-the-middle coin is it limits your design choices somewhat.
<< <i>BARF...old dead presidents...
Make some nice dollar coins with what this country is about....LIBERTY!!
Bring her back. >>
Thank you!!!
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And, do you really believe that millions of self-respecting liberals WON'T want the Hillary coin? I think not. My wife doesn't much care for coins, but I think even she would get excited about that.
<< <i>I don't know what it is - but I think this program will work. If gazillions of kids pick states quarters out of change, there is good reason to imagine them doing the same w/this. >>
Except for the fact that they can pick quarters out of change because quarters circulate freely and they can see large quantities of them. Unless hey drop the dollar note the dollar coins will sit in he bank vaults and the kids will never see them. If they don't see them, they can't hoard them. They think the designs will make them circulate, but unless they circulate no one will see the different designs. In order for them to circulate they they need to drop the dollar bil. If they drop the dollar bill the dollar coins will circulate no matter what is on them.
<< <i>
<< <i> I am surprised that nobody has mentioned the positive effects for the future of the coin hobby. As with stte quarters, millions of new collectors will be brought into the fold. True, most won't stay or gravitate towards other more rare coins, but if only a portion of them stay, that is a good thing for the hobby IMO >>
So if even a fraction of these "millions of new collectors" gravitate to the older coins the added competition drives the prices up forcing many long term collectors out of the market. This is good for the hobby? >>
I do see your point there andIt crossed my mine as I posted earlier. I guess I was in the school of thought that before state quarters, this was a dying hobby. (I might be completely wrong there...that is just how I felt since I never saw any young people at shows. I have also been told that is has always been though so I dunno'....)