The Federal Reserve banks used take recognizable "uncurrent" or mutilated coins at face value to be recycled into new coins. In 2015 and extended through 2016 they halted the program.
Quote:Quick Circulating Coin Facts:
Mutilated Coins:
United States coins no longer fit for circulation are classified as "uncurrent" or mutilated.
Uncurrent coins are coins that are worn yet recognizable as to genuineness and denomination, and are machine countable. Uncurrent coins are redeemed by the Federal Reserve Banks, then forwarded to the Mint for disposition.
PLEASE NOTE: The Federal Reserve Banks' acceptance of uncurrent coin deposits is temporarily suspended. See Notice of Suspension.
Mutilated coins are coins that are chipped, fused and not machine countable. Mutilated coins are only redeemable through the United States Philadelphia Mint facility.
PLEASE NOTE: The United States Mint's acceptance of mutilated coins is temporarily suspended. See Notice of Extension of Suspension.
Uuncurrent or mutilated coins redeemed by the Mint are melted and reused in the manufacture of coinage strips.
https://www.usmint.gov/about_the_mi...ecifications At the time I read that tons and tons or barges of mutilated coins and or other materials were coming in from foreign lands to be exchanged as
that was questionable.
Outside the following link I've not found any more info on the program lately. Thanks, Doug.