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 Replies: 12 / Views: 2,485 |
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Pillar of the Community
United States
4868 Posts |
A new bill was introduced yesterday that proposes the elimination of the Canadian penny. Abolishing a country's smallest denominated coin is not new. It has certainly happened in the past, and several countries are publicly debating the issue or implementing a recall of their smallest coin right now. As examples, in recent months and weeks there has been talk of Russia removing their one-kopek, Denmark saying goodbye to their 25-øre and Malaysia abandoning their one-sen. Unlike the dilemma other countries face, like the U.S., the cost to manufacture the Canadian penny is actually less than its value. That's one less obstacle to overcome for those who would like to keep it. However, those who wish to abolish the penny are quick to note that just because its manufacturing costs are reasonable, that does not mean the penny's full production cost, which includes shipping them, does not exceed its value. Or, that inflation has not made them commercially insignificant. And that's part of the crux, which is common to most countries in this debate. While their may be reasons for keeping their smallest coin—its use in charities, sentimental value, historical measure, fear their removal would increase "round-up" product and service costs—the coins simply do not have the buying power, by far, compared to when they were first introduced. For many, they've become a source of hassle and are simply taking storage space in the home. The introduced Canadian bill, C-531, and what it seeks to do A New Democrat MP, Pat Martin introduced the bill on Wednesday and it calls for the abolishment of the penny. Summing up the purpose, Mr. Martin states: "To put it simply, the penny has virtually no commercial value, it barely circulates, and it costs more to produce than its worth. It's time to get rid of it." Martin's bill, C-531, is entitled An Act to amend the Currency Act and the Royal Canadian Mint Act. If passed, the penny would be eliminated and prices for cash transactions would round up or down to the nearest nickel. Skeptics are sure to point out that retailers are not likely to round down. In an open letter to the public today, Mr. Martin writes that C-531 is: "modeled after Australia and New Zealand who have eliminated their smallest denomination coins in recent years, as have France, Spain and the Netherlands. The support for this idea is growing too. A study prepared for the Royal Canadian Mint in September 2007 indicated that small retailers, big retailers and public opinion all agree with this initiative." Supporters of the measure are encouraged to share their viewpoints with their Members of Parliament. http://www.coinnews.net/2008/04/03/...on-mix-4027/ |
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Pillar of the Community
United States
5318 Posts |
I hope this passes in Canada, because it might ease our transition to elimination of the cent from business uses. The argument of a "cost round-up" are rather fallacious, imo. Transaction balances would round down as well. The Lincoln does so well as a collector coin in the US, it should continue in sets (and as a real copper coin--no more zinc garbage). There it might generate an actual profit  Edited by KurtS
04/04/2008 10:32 pm
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Pillar of the Community
Australia
2830 Posts |
G'day, Australia abolished its 1c & 2c coins more than a decade ago: 1991, in fact. They quickly disappeared from circulation. Our smallest coin is 5-cents.
The rounding up or down issue is a non-issue: 1 or 2 are rounded down; 3 or 4 are rounded up. No debate.
Most small shops price everything in multiples of 5-cents, so no issue arises.
Supermarkets still have everything priced across the spectrum.
When you pay by card, the transaction goes through without rounding. So, cents are still units of account, but they are not tangible.
Whether or not Canada is ready for this, I cannot say.
But, I can say, that after 17 years, no-one misses them ... AND the sun rose in the east this morning.
Peter in Oz
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Pillar of the Community
Canada
965 Posts |
We had no trouble getting the $1 and $2 coins to circulate, so this shouldn't be that hard to accept for Canadians, although it may not pass on the first try, it has been talked about for a few years now. Maybe it will actually happen this time? As a collector, I'll miss them, but as a consumer, it only makes sense.
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Pillar of the Community
Canada
868 Posts |
Hi Guy's
I guess there is alot of talking about removing the Canadian Pennies,it was even in the news paper this week they are asking the goverment to allow the removale of those pennies if this take effect it will be on a 3 or 5 years period,my self I'm not taking any chance I started to keep those in stock for futur use :-))).Yesterday I went to the bank and got 20 rolls of them that custumer bring's back to the bank you would be surprise to see what you can find in those rolls I even got some old pennie in the 40's.
One question I was asking my self if they do remove the pennies what would happen to all the US pennie that whe get in our change?
Andre
Edited by andre1621
04/05/2008 08:32 am
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Pillar of the Community
 United States
4868 Posts |
Even if the cent production ceases, there are still countless billions of them out there, both Canadian and US cents for that matter. Will those be refused in the marketplace after the cents are no longer produced?
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Pillar of the Community
Canada
868 Posts |
Hi Nds76
This is a good question and I guess only time will tell us,from what I see if Canada decided to end penny circulation,would the US do the same?
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Pillar of the Community
United States
4868 Posts |
I wish I had an answer. Even if the cent is not eliminated, the mint could even dramatically decrease production to cut costs. Like I said there are billions of cents out there and I don't feel there would be any real shortages if fewer are minted.
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Pillar of the Community
Australia
2830 Posts |
G'day, in Australia, cents are still legal tender. Banks will accept them at face value ... but they are not permitted to hand them out.
I'm told at my local bank, that every day, someone brings in a little stash ...
Eventually, local banks send them up the line, and they end up back at The Central Bank.
Peter
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Pillar of the Community
United States
2408 Posts |
Thanks for your posts Peter. For myself having lived in Adelaide some years ago, and Canada and now the US I can tell you Canadians aren't as pragmatic. Americans are even less. I would not count the penny dead just yet. There will be debates...
Did you know the US still uses the old English system? (inches, yards...)?
Marc
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Pillar of the Community
United States
1571 Posts |
My friends, Allow me to comment: Regarding the Canadian and US "penny", Or cent as it actually is known by, and the withdrawal from circulation, the case seems to be that sooner or later we are going to be without them. It is like leading a jorse to water. You can make him drink, but you can't make him water. and so the cents. They will quit using them, but they will still be around for another century! Ask any collector, if he/she would turn them in? No way! We will have them, even if they are not used. the ones left, or better said those that haven't "self-destructed", will still be around. The real copper cents we all know, and were raised with, will be long gone. melted! Or shipped out of the country, or both. Face it folks, like death, and taxes, the cent will become history. The end is inevitable! I, too will probably be gone then. I wonder if I'll be missed as much as the cent? Dick |
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Pillar of the Community
United States
5318 Posts |
Dick, I also think the copper cents will be especially hoarded and around for a long time. If not already, those in circulation may be soon converted to reduce Mint costs, but there will be plenty everywhere--collectors, dealers, flea markets, etc. Eventually I think the corroded zinc cents will be shunned, except for a few collector-worthy coins, with a premium on perfect copies. During the transition, the battered and corroded zinc cents will linger in circulation as a nuisance until their eventual obsolescence. I think there will be emergency coinage measures as things deleverage, our bills come home to roost, and our money adjusts to new economic realities. It will be "interesting times" for collectors--and to a larger degree, everyone. However, a "good penny" will be around for a long time--just like good collectors such as you--valued and remembered. Edited by KurtS
04/16/2008 2:27 pm
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Valued Member
United States
417 Posts |
I like the Canadian penny because of the maple leaf on the back. It just makes it seem like it's filled with pride. Plus, it's one less magnetic or non-magnetic, P or no-P, RCM or no RCM value to collect in circulation. Every penny counts and when the USD slips below the CAD, then I'm gonna have a head start!  |
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Replies: 12 / Views: 2,485 |
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Posted 04/05/2008 02:40 am
