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 Replies: 23 / Views: 2,242 |
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Forum Dad
 United States
24147 Posts |
 The U.S. House of Representatives finally took some action (Thurs. May 8th) in an attempt to solve the penny crisis. The question doesn't seem to be "should we eliminate the penny?" but rather, "what should it be made of?" The bill, HR-5512, calls for a penny made out of copper-coated steel to be issued within 270 days (about 9 months) from the date of enactment. The bill also calls for a steel nickel (hmm, is this an oxymoron?) but doesn't set a timetable. U.S. Mint Director Ed Moy opposes this bill, primarily because it doesn't give the Treasury Department enough authority to prescribe the alloys U.S. coins are made from, plus Moy says that 270 days is too short to allow for proper testing and implementation. Furthermore, he hinted that the price of steel might even go too high in the near future to coin pennies cost-effectively. Even though this bill passed the House unanimously on a voice vote, it is not expected to emerge unscathed from the Senate. A competing bill is expected to be introduced by Sen. Wayne Allard (R-Colorado) in the coming weeks, perhaps before the Memorial Day recess. Judging by Moy's comments about the use of steel, I tend to think that perhaps Moy favors aluminum or some other metal besides steel. The last time the U.S. made steel coins, it was a disaster! The 1943 steel cent, issued during World War II to conserve copper for the war effort, was widely reviled by the public. It was partially coated in zinc, and therefore silver-colored, which made it easily confused with the dime. Read Full StoryAll Recent News
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Valued Member
United States
69 Posts |
I think if they coat the steel with copper it will make it more acceptable to the public, but I still question the savings. The dies would wear out faster and who knows what the price of steel will be in the future. I don't have an answer but I wonder about the need for the 1 cent denomination.
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Pillar of the Community
United States
4867 Posts |
This is a load of crap that the mint claims it needs time for testing a new composition. It's already been tested by the Royal Canadian Mint. I really don't see what the problem is. |
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Member
United States
3242 Posts |
My last 6 year in the Army I sent a lot of time waiting for my boss as he had to testify before the house of representative & congress. He was in charge of fielding all the new Patriot missiles. and just siting there listening to them. give you a headache. It like they do not know what is happening in the own county! they ask some the dumbest question and then there the lobbyist. It going to take someone district or state to get extra money or a pay off that sad but true we are ran by the big CEO&Money and now they can agree on how to a cent? That is centless !  after all that work and I use that term loosely Representatives Moy Want Aluminum He must be heavy in Aluminum stock? Edited by amac44
05/13/2008 10:41 am
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Pillar of the Community
United States
615 Posts |
Well don't forget you have a bunch of uneducated people electing these people. The masses aren't to bright.
This isn't who wants to be a millionaire -- real life doesn't have A, B, C, or D choices. Ask a 100 people on the street some high level question about economic, finance, or legal question --- I bet few get it right. I bet half of them voted though. Glad to know they are helping form those policies.
I saw a report that 20% of the people in this country can't find the U.S.A on a map. That is awful.
I was watching, "Are you smarter than a 5th grader" and the guy was very well educated ... didn't know how old you had to be a U.S. Senator. I bet he voted in the last election for the U.S. Senate.
There is a reason the founding fathers gave us the electoral college, Senator elected by State governments (later changed), and so on... they knew most people were clueless. It just doesn't matter to most people enough to actually learn about the issues, and learn enough about the pros and cons. They are making the calls though without knowing.
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Pillar of the Community
United States
5318 Posts |
"I tend to think that perhaps Moy favors aluminum or some other metal besides steel. The last time the U.S. made steel coins, it was a disaster!" I happen to favor the Canadian steel/Ni/Cu composition over Cu/Zn for cents. However, I suspect the Mint would have to retool their dies for that harder planchet, and who knows what else? Perhaps govt. politics exclude Moy from being so direct about his reasons?  Whatever the reasons, I have to question the thought process behind pushing steel as a foregone conclusion in the House. Have they tested and discussed other planchet compositions? It should be possible to formulate a planchet composition that isn't quite so hard on dies, where they could get new production up and running faster. Edited by KurtS
05/13/2008 12:48 pm
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Moderator
 United States
6563 Posts |
I'd love the see the cent done away with. But alas...there are too many hands in too many pockets. There is no profit in it for anyone so it will never happen
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Valued Member
United States
393 Posts |
The comparison with "rearranging the deck chairs on the Titanic" applies here. Worldwide, countries are eliminating the cent and some have eliminated the nickel. But here we are brainstorming trying to figure out how to make something that's almost worthless even more worthless. I wonder if the ultimate goal of the government is to keep making cents until everybody realizes they're worthless and stops using them. |
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Pillar of the Community
United States
5318 Posts |
 tnwalker10. Many countries got rid of their 1/100 coin as soon as it made fiscal sense. It's obviously past due for the US. |
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Pillar of the Community
United States
2269 Posts |
If the mint switched to a steel cent, then how long will it take before the cost of steel becomes too high?
Will there be a plastic cent in the future? The last time I looked, all metals have been rising in price. It would make more sense for the government to eliminate the cent, instead of finding alternative metals that will someday become more valuable than the penny itself.
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Member
United States
3242 Posts |
Steel is high if its made in the USA. I hope they tag that bill like the gold&silver coin it must be metal's that are mined and made the USA. I wont get but one small steel mill up and running but at least we will put some Americans back too work. I about 60-70% of our steel mills are shut down due cheap Japanese & Chinese steel made 1/2 price as US made steel. but we can not ship our steel to there country that wrong from the word go and you know that someone is getting a payoff by them!
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Pillar of the Community
United States
2269 Posts |
I would also prefer if the Mint would use metals that were mined in the US. I know that silver, gold, and platinum must be mined in the US, but I wonder about the metals found in all circulating coinage. |
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Pillar of the Community
United States
4867 Posts |
It doesn't matter to me one way or another where the metals are mined. Gotta do what is cost effective. I don't want the government to spend more than they have to.
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Valued Member
United States
336 Posts |
it will be more cost effective if they just use the penny and nickel in the mint sets and proof set.that way they make money.there are to many pennies and nickels out there .they made billions of the for a long time.(start saving the bu rolls!)if they do it this way.
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Pillar of the Community
United States
4867 Posts |
I was thinking that too that cents should be minted just for mint sets. There are already billions if not trillions if cents in circulation so why keep minting them in the masses? Just use what we have now. I believe the supply is ample.
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Pillar of the Community
United States
2600 Posts |
Metals are energy hogs. Their production costs are ties to it and it does not make a difference whether it is steel, aluminum, gold or anything else. It is going to become impossible to make a coin and have it's production come even close to it's intrinsic value. That means guys like me will be hoarding it for metal value, waiting until you can melt it and that will create artificial demand and drive up production. History has already proven it, look at gold and silver.
Makes me wonder if the answer is an all paper monetary system. We are becoming a cashless society, anyway.
Jim
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Replies: 23 / Views: 2,242 |
Posted 05/13/2008 10:29 am
