Dollar coin..vs..Dollar bill..

Gemineye · November 21, 2009 1:59AM

I am not making a political statement here by any means..I am just questioning what could be...
The criticism of our Treasury Secretary lately calls for his stepping down.He is in controll of our monetary situation and coinage.As a result of past policies we have seen ..our Dollar coinage.. being stored in vaults due to the fact that the dollar bill is being used and not removed from circulation....
Is there any chance or outlook that new policies will change this rule....???

291fifth · November 21, 2009 2:32AM

I'm quite sure that the issue of the dollar coin is close to dead last on the Treasury Secretary's "to do" list.

It's largely a union issue anyway. The BEP unions would take a major hit if production of the dollar note were dropped. Do you really think the current administration is going to do anything to offend big labor? I don't think so.

ocon4008 · November 21, 2009 2:36AM

tahoe98 · November 21, 2009 2:37AM

291fifth
......just NAILED IT!!

Gemineye · November 21, 2009 6:41AM

.....NOBODY CARES ANYMORE.....!!!!!.....

JJM · November 21, 2009 6:45AM

i dunno, but i flipped a homeless guy a prez dollar today and he said "whats this?"

i said its a double cheeseburger at McD's !

dcarr · November 21, 2009 6:56AM

<< 
It's largely a union issue anyway. The BEP unions would take a major hit if production of the dollar note were dropped. Do you really think the current administration is going to do anything to offend big labor? I don't think so. >>

<< 
291fifth
......just NAILED IT!!

>>

Nope, that's not it. What about potential increased employment at the US Mint ?

The real issue is this:

The dollar bill and the dollar coin are issued by two different (competing) entities.
The dollar coin is issued by the government-owned US Treasury (US Mint).
The dollar bill is issued by the corporate-owned Federal Reserve.
The Federal Reserve doesn't want to give up any of their "turf".

A couple years ago, there was a bill in congess to turn over control of the US Mint to the Federal Reserve.
That bill did not pass, but if it had, the dollar bill would probably be on it's way out already, in favor of the coin.

Also note that the US Mint is the custodian of the nation's gold reserves. And if that bill had passed,
at the stroke of a pen it would have forked over the largest hoard of gold in history.

291fifth · November 21, 2009 7:07AM

<< 

<< 
It's largely a union issue anyway. The BEP unions would take a major hit if production of the dollar note were dropped. Do you really think the current administration is going to do anything to offend big labor? I don't think so. >>

<< 
291fifth
......just NAILED IT!!

>>

Nope, that's not it. What about potential increased employment at the US Mint ?

The real issue is this:

The dollar bill and the dollar coin are issued by two different (competing) entities.
The dollar coin is issued by the government-owned US Treasury (US Mint).

The union issue is very real and has been a factor for quite some time.
The dollar bill is issued by the corporate-owned Federal Reserve.
The Federal Reserve doesn't want to give up any of their "turf".

A couple years ago, there was a bill in congess to turn over control of the US Mint to the Federal Reserve.
That bill did not pass, but if it had, the dollar bill would probably be on it's way out already, in favor of the coin.

Also note that the US Mint is the custodian of the nation's gold reserves. And if that bill had passed,
at the stroke of a pen it would have forked over the largest hoard of gold in history. >>

The union issue is very real and has been influencing this for many years. The BEP union does not want its members laid off. They could care less about the mint workers.

WaterSport · November 21, 2009 7:22AM

Unions????I beg to differ...It has to do with the vending machine industry not wanting to redo all their machines and the clout of the paper company that has been making the dollar paper for a heck of a long time and its political connection and finally the consumer advocates who claim billions will be paid by you if they did away with a dollar coin/bill. DESPITE the fact that Australia, New Zealand and a few other countries not only did away with paper bills, but, even dropped production of one dollar coins (not to mention cents and nickels) and low and behold they seem to be doing just fine.

WS

dcarr · November 21, 2009 7:30AM

<< Unions????I beg to differ...It has to do with the vending machine industry not wanting to redo all their machines ...
WS >>

Sorry, but that is just plain false.

The "Coin Coalition" is a vending machine lobby group that WANTED the new "golden" dollar coin to be issued.
Dollar bill processing equipment for vending machines is much more complicated and more costly to maintain compared to coin processing devices.
See here :
Coin Coalition

ecichlid · November 21, 2009 8:14AM

Thanks for posting this Daniel. Interesting.

ambro51 · November 21, 2009 10:16AM

The one and only truly successful dollar coin in American history was the 1853 Gold Dollar. Over 4 million struck, in Philadelphia alone, it circulated freely in an era when Silver coins were in a state of change and hoarding, and regional banknotes were distrusted by many. The Federal Government was still 10 years away from a nationalized paper currency.

Ciccio · November 21, 2009 1:19PM

I really hope you Americans (I live here but I am italian) do not switch from notes to coins.
We have had the same situation with the Euros.
When you have 10 euros in your pocket (10 coins or fewer) you don't feel the real value of it.
You just want to get rid of the heavy bunch of metal you have in your pocket.
We all were used to paper money (2 euros were 4 of the 1000 lire bills - now it's just one coin) and we haven't understood yet the value of the coin.
Not even after almost 8 years...

Try it for yourself, grab 10 prez dollars, leave the notes home and see how long they last.

Just my 2 cents (btw, do not get rid of the cent either!)

Kablemodem · November 21, 2009 2:05PM

<< I really hope you Americans (I live here but I am italian) do not switch from notes to coins.
We have had the same situation with the Euros.
When you have 10 euros in your pocket (10 coins or fewer) you don't feel the real value of it.
You just want to get rid of the heavy bunch of metal you have in your pocket.
We all were used to paper money (2 euros were 4 of the 1000 lire bills - now it's just one coin) and we haven't understood yet the value of the coin.
Not even after almost 8 years...

Try it for yourself, grab 10 prez dollars, leave the notes home and see how long they last.

Just my 2 cents (btw, do not get rid of the cent either!) >>

If we did eliminate the $1 bill we would still be using the same monetary system, so there is no new unit to get used to as there was switching from the Lire to Euro.

Theoretically you would never need to carry more than 4 dollar coins as you would use a $5 bill if you would have 5 dollar coins. I always carry cash and use cash for most transactions under $20. I rarely have more than 4 $1 bills in my pocket. It shouldn't be that hard to keep the number of dollar coins in your pocket to a minimum.

Mission16 · November 21, 2009 2:13PM

I always kinda figured that the paper dollar might go away after Ted Kennedy died.

ProofArtworkonCircs · November 21, 2009 2:24PM

<>

Decades ago, a bum said he was trapped in Camden, NJ because he did not have a bridge token for the subway to Philadelphia. He wanted $. I flipped him a bridge token I happened to have on me. Same answer. "What's this?"'

ProofArtworkonCircs · November 21, 2009 2:28PM

<<The dollar bill is issued by the corporate-owned Federal Reserve.>>

But it is printed by the BEP of the Treasury Department.

morgandollar1878 · November 21, 2009 3:00PM

<<

>>

That sign reminds me of somthing that you would see in Monty Ptython.

DieClash · December 11, 2009 4:20AM

For what its worth, I posted the following comment on the The Mint should give up on the dollar coin; MOST coins don't circulate. thread. I think its appropos here too:

<< In pursuit of the question

<< Just who is "in charge" of our circulating FRN denominations? >>

I've searched the web and I believe that the U.S. Congress doesn't have a say as to what denominations the FED requires but rather this is vested in the authority of the Treasury Dept. overseen by the Secretary of the Treasury accountable to the Executive Branch. I found this FAQ on the Dept. of Treasury website. Treasury FAQ.

It seems that if the Secretary of Treasury could "stop distributing currency in denominations of $500, $1,000, $5,000 and $10,000" in 1969 then they can do the same to cease producing the $1 FRN today.

I think this is bolstered by the fact that Congress failed to pass an Act to protect the Greenback in the '90s.Link >>

Anyway, since the Secretary oversees both the BEP and USMint, then it seems to me he has the Congressional authority to mint any number of circulating $1 coins and to cease the $1 FRN as he sees fit.

Let's petition the President and the Secretary instead of Congress!

19Lyds · December 11, 2009 4:41AM

<< Is there any chance or outlook that new policies will change this rule....??? >>

In a word..........No.

I recently heard from a retired BEP Director that the reason the dollar bill continues to be printed is because the dollar coin is not being used enough to stop the presses from rolling and a certain amount of dollars must be kept in the system.

To me, this is a Catch-22 which will never change until someone takes a bold step forward.

As long as they are available, people (this includes consumers AND businesses) will favor the paper dollar over the dollar coin simply because in most peoples perspectives, thats the way it has always been done. After all, why change it if it ain't broke?

LindeDad · December 11, 2009 4:55AM

<< As long as they are available, people (this includes consumers AND businesses) will favor the paper dollar over the dollar coin simply because in most peoples perspectives, thats the way it has always been done. After all, why change it if it ain't broke? >>

Who says it's not broke IMO wasteful practices can be curtailed by good management decisions and direction even in government.
Yeah I know it’s hard to believe but we can hope.

Walmann · December 11, 2009 4:57AM

The other major issue is public use of dollar coins versus dollar bills.

The public finds paper currency more convenient than coins.

That in itself is a major obstacle.

MsMorrisine · December 11, 2009 5:17AM

and would there be as many dollar coin counterfeiters as the pound coin counterfeiters?

JupitarCoins · December 11, 2009 5:35AM

<<

>>

dcarr · December 11, 2009 7:34AM

<< ...
The public finds paper currency more convenient than coins.
... >>

I, for one, find one-dollar coins far more convenient than one-dollar bills.

nycounsel · December 11, 2009 7:56AM

Unions????I beg to differ...It has to do with the vending machine industry not wanting to redo all their machines

The strip club industry is probably also opposed to eliminating the dollar bill.

As am I. I've been collecting coins for 30 years, and have no interest in using dollar coins instead of dollar bills.

ambro51 · December 11, 2009 8:11AM

Ive said it before.....the main "buying" money used by citizens of this country are the Debit/Credit Card, The Twenty Dollar Bill....and coin wise, probably the quarter.

Other than that....we GET coins back when we buy with the Twenty Dollar Bill.

Funny, this morning I was holding ten Ike dollars, in a nice heavy stack. Thinking about how bloody uncomfortable it would be to go through a day in commerce using those things.

Why not make the dollar coin something like the original gold dollar? Small, gem like, shiny gold color and a little smaller than a dime. That way, you could indeed have ten or twenty of them in your pocket at any time.

AJ2525 · December 11, 2009 1:14PM

I don't care about the debate.

Get rid of the paper dollar.

Stop production of the cent after 100 years.

DieClash · December 13, 2009 6:26AM

<< I don't care about the debate.

Get rid of the paper dollar.

Stop production of the cent after 100 years. >>

revamping our circulating coinage denominations and FRNs is long overdue in this country.

tahoe98 · December 13, 2009 6:34AM

<< 

<< ...
The public finds paper currency more convenient than coins.
... >>

I, for one, find one-dollar coins far more convenient than one-dollar bills. >>

......i truly believe you're not in the majority.

19Lyds · December 13, 2009 7:07AM

<< The other major issue is public use of dollar coins versus dollar bills.

The public finds paper currency more convenient than coins.

That in itself is a major obstacle. >>

The reality is that consumers will not "use" these coins until they start "getting" these coins as change.

Retail Merchants are unable to account for where to put the dollar coins in cash drawers for easy dispersal so they go in with the other "oddball" coinage that merchants receive. I think that if "blame" were placeable on the success or failure of the dollar coins, it resides solely with retail merchants who will not accomodate the coin. If they do not accomodate it, then they won't order them and folks will never see them. If folks never see them then the coin simply will not be successful.

This country is not willing to accept change out of fear that things actually will change. The cent, nickel, dime, and quarter have been used over multiple generations and folks are simply used to it. It will be extremely difficult to get them to change. Almost to the point of "forcing" them to change and no politician is willing to step up to the podium and force that change.

Perhaps if public service ads were used on National TV encouraging folks to use the dollar coin, thing might change but in reality, folks are simply ignorant regarding the costs to produce all those paper dollars and since you rarely ever see one all beat to crap (which occurs in less than a year), folks think they last forever. In other words, they don;t see the need for the change.

tahoe98 · December 13, 2009 7:13AM

"Perhaps if public service ads were used on National TV encouraging folks to use the dollar coin, thing might change but in reality, folks are simply ignorant regarding the costs to produce all those paper dollars and since you rarely ever see one all beat to crap (which occurs in less than a year), folks think they last forever. In other words, they don;t see the need for the change."

.....this was supposed to happen a while back! i wonder what happened? i NEVER saw an ad about this at all!

jjrrww · December 13, 2009 8:58AM

Here is another point of interest. Coca-Cola has retrofitted a large number of their vending machines in this area to accept the $1 coin. They will take an SBA, Sakie, or Pres Dollar one and the same. I've bought many a soda in that manner, and I've found that they work faster and easier than trying to get a limp paper dollar into the bill acceptor. The U-Scan registers at Kroger accept them, too!

The problem? There is no sign or sticker on the machines indicating that these coins will work! You just have to try it. They drop back into the reject slot if they are not accepted.

It seems to me that the vending machine industry as a whole would really jump onto these coins, because they are so easily run through the same counters as nickels dimes and quarters.

Dollar coin..vs..Dollar bill..

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