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 Replies: 9 / Views: 2,302 |
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Pillar of the Community
United Kingdom
1682 Posts |
United States Mint to Discontinue $1 Coin 500-Coin Boxes WASHINGTON - The United States Mint announced today that it will discontinue the $1 coin 500-coin boxes (both Presidential $1 and Native American $1) in 2014. The United States Mint introduced the 500-coin boxes in 2012 as a convenient way for its customers to purchase $1 coins in large quantities after the discontinuation of the bulk bag program. This option was among several changes to the $1 coin product line the bureau made in conjunction with the decision in December 2011 to stop issuing the coins to the Federal Reserve for general circulation. Since that time, however, sales of the 500-coin boxes have declined. As a result, the bureau will discontinue the 500-coin boxes in 2014. Customers with 500-coin box subscriptions may change their subscriptions to a 250-coin box option. Boxes with 500 coins issued in 2013 will be available until June 30, 2014. http://www.usmint.gov/pressroom/?ac...ease&id=1533At this rate, you folks back home will never get rid of the dollar bill. |
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Moderator
 United States
188052 Posts |
It will take a literal act of congress.  |
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Pillar of the Community
708 Posts |
Seems the dollar coin is becoming less and less popular. A pity. But hey, maybe with my Walmart charity program, the half and $2 bill can rise from out of the dollar coin's ashes. |
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Valued Member
United States
143 Posts |
It's a shame, I was hoping to get a 500-box when I had some extra money to throw around too.
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Valued Member
United States
452 Posts |
Quote:
The Fed's analysis:
â€"Less payment system efficiency. Using $1 coins instead of $1 notes for transactions is inherently inefficient, requiring a replacement of one $1 note with more than one $1 coin to make up for the difference in the way coins and notes are used by the public.
â€"Less cost-effective. Replacing $1 notes with $1 coins is also not cost-effective for the U.S. government and public more broadly, primarily because the higher cost to produce coins compared with notes is not offset by the longer life of the coin.
â€"Higher costs under all projected scenarios. Circulating only $1 coins costs more under every scenario we considered (in net present value terms) than would continuing to provide $1 notes to the public.
â€"Increased costs to the private sector. Circulating only $1 coins could result in increased costs to the private sector, perhaps in the hundreds of millions of dollars per year, and would more than offset any "seigniorage revenue" to the government reported in earlier GAO studies. http://blogs.wsj.com/economics/2013...-with-coins/ |
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Moderator
United States
188052 Posts |
Quote:
But dollar coin advocates say the Fed study is skewed.
"The Fed earns billions in profits each year from paper currency, only a portion of which they return to Treasury," said Shawn Smeallie, executive director of the Dollar Coin Alliance, a trade group backed by metals companies, vending machine operators and some transit agencies. This is basically what I wanted to say in response to the quote by AES, but found this after reading the linked article.  More... Quote:
The group commissioned a study that estimated more than $13 billion in savings over 30 years from making the switch.
"The $13 billion in estimated savings earned from the dollar coin would all go from the Mint to the taxpayer. It's no surprise the Fed is fighting currency modernization, when you understand their motives behind this report. The best interests of taxpayers, not the Fed, must come first," Mr. Smeallie said. |
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Pillar of the Community
 United Kingdom
1682 Posts |
Here is what is said about why the UK eliminated the 1 pound note:
"By 1980 it had become apparent that with the general decline in purchasing power, the £1 unit of currency was more appropriate to a coin than a banknote. The note was in constant use on average lasting only nine months, whereas a coin can last as long as forty years or more and with the growth in the vending industry it was felt that a coin would be more useful." The UK pound coin was first released in 1983.
In 1994 it was noticed a need for a £2 coin which was released in 1998.
Today the UK pound is worth about $1.63 so a population of 68 million has coins which are worth $1.63 and $3.26 in our pockets.
Banknotes are issued at amounts of £5, £10, £20, and £50. The £50 are not normally used and shops might not accept them.
I moved to the UK in 1998 and adjusted fine to using £1 and £2 coins, so I never understand why it would not work in the US. Benefits should be even better with a population which is about 4.75 times larger than the UK.
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Pillar of the Community
United States
7617 Posts |
The ONLY way to make the dollar coin successful is to quit making $1 bills. You cannot have both and expect both to be successful at the same time.
The big problem, as I see it, is that there is a huge lobbying effort from both the metals suppliers (for the coins) and the paper supplier (for the currency) to keep the status quo. The way they see it, is it's good for business and helps keep people employed ..... Not to mention keeps their profits up, too!
Go tell a Congressman with a mine, smelter or paper mill in his district that you want to save the government money by eliminating a product produced with raw materials from his district and see how far that gets you!
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Moderator
United States
188052 Posts |
Quote:
The ONLY way to make the dollar coin successful is to quit making $1 bills. You cannot have both and expect both to be successful at the same time.  |
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Pillar of the Community
United States
1748 Posts |
We need to make our currency more cost efficient.
1. Eliminate the one cent coin.
2. Go to a nickel plated steel 5 cent coin.
3. With well over a billion dollar coins in existence, eliminate the one dollar note.
4. Eliminate the $2 note and use the existing supply of dollar coins for increments less than $5...no $2 coin.
That would leave us with only four coins to circulate and no notes less than $5 to produce. Very cost efficient and minimal disruption to the vending industry.
Edited by DoubleEagle20
12/18/2013 7:45 pm
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Replies: 9 / Views: 2,302 |
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Posted 12/12/2013 12:20 am
