Gov. Seeking To Change Coin Compositions

I have seen vending machines that take everything from one cent to a twenty dollar bill, including half dollars and baby dollars. (I do not know about Eisenhower dollars, since I would never spend one anyway!)

But it has been a while since I have paid attention to any vending machines (other than the car wash). I would not be surprised if a lot of them only took credit/debit cards like the ones at the post office. If a proposed cent and nickel composition change required modifications to the vending machines, I would not be surprised if the vending industry converted everything to credit/debit and completely forsook coins altogether.

The whole rounding issue is really a non-issue. For every purchase you have that is rounded up, you will have another that is rounded down. In the end it is a wash.

A shopkeeper could round everything down and spin it is a cash discount or their way of sticking it to the man. Eventually, every place of business will round down and advertise the practice because the majority of the consumers will (incorrectly) believe that rounding is a rip-off.

The same way they do now.

Everything would be rounded to the nearest 10 cents, unless you can land on 25 and 75 cents.

The UK went through this same situation when they changed to the current decimal system a few years ago and will go through it again when they switch over to Euros.

What say the Brits about what we Yanks will have to go through if the cent is indeed dropped?

Oh, and another thought - does a coinage system similar to the Euro coins ... say without the two-cent piece ... have any merit as a possible model for future USA coinage? A series of coins in increasing sizes (or with bi-metal composition) just makes sense, doesn't it? How about moving Lincoln to a nickel-bronze five-cent piece; upping Jefferson to an aluminum dime; retain Washington on a smaller quarter and Kennedy on a smaller 50-cent piece; and then cram all the rest of the presidents, political figures, ethnic groups, scenic wonders, movie stars, Mythical Creatures, and mint directors onto a zinc-coated dollar coin that will dissolve in five years and disappear?

The present USA monetary system has been on heroic life-support measures since silver was dropped from most coins in the mid-sixties, IMHO. I do believe it's time to overhaul our system from top to bottom as did much of Europe, not just take baby steps by eliminating the cent and paper dollar (the five is becoming obsolete, too). Mind you, I'm not in favor of dumping the Lincolns and then trusting merchants to round up/down equitably enough so as not to end the recession. But if we're going to fix what has been broken since 1964 or so, let's do it right, okay?

I used to think that too until I started going to banks all the time. The number of people who operate on a cash only basis (especially in poorer urban areas) is much higher than I ever thought. Coins might go away, but I doubt bills will during any of our lifetimes.

I make a $2.10 purchase and give you $3. Without five cent pieces how do you give change and who gets shorted?

No you drop the five cent you might as well drop the dime and round to the nearest quarter.

i think the main reason why the gov. is trying to do away with the cent and possibly the nickel is because it is ultimately costing more $$ to make them than what they they are worth. I am sure they are thinking of all the effects of taking these denominations out of circulation.

i actually for once think that the gov. is 'trying' to be fiscally respoinsible. Canada already changed their composition and saved the gov. a few billion in coining costs. I think as the debt grows, the gov will continue to start looking at other areas where they can save.

now, I know fiscal responsibility is a whole new issue, thats not the point.

i think I just deep down really miss the way things use to be, ie. gold certs, gold.silver coins etc... =D

It would be relatively painless to replace the 1¢ coin and the $1 note
with a 2¢ coin and $2 note respectively.

The "twos" would simply take the place of the "ones" in cash drawers.
Since modern vending machines really don't use One Cent coins, a
slightly larger Two Cent coin is not as much of a problem as changing
the size of another denomination of coin.

Having a (Lincoln?!) Two Cent coin would minimize the inevitable complaints about "rounding".
(since the maximum rounded amount would be 1¢ either way)

Same deal with the $2 note. This would give some purpose to the $1 coin,
without forcing change amounts less than $5 to be paid in all coins.

Given the 95% copper Cent's proven longevity in circulation
(and zinc Cents' quick deterioration), the Mint isn't really saving
any money on a long-term basis when they have to replace a zinc coin
several times during what would have been the circulation lifetime of
a single copper Cent.


Cash has made a bit of a comeback (not just in poor urban areas),
thanks to the recession and higher bank fees. Every cashier I've asked
has said that they've seen more cash payments in the past two years.

I see people's cards getting declined all the time. And they're usually
ahead of me in line, so I have to wait longer just because they don't
know that they're broke.