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NewsFlash
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CoinopTODAY.com
By January l, 2008, all federal agencies are required to "take appropriate actions" Now that the release date is rapidly approaching on the new Presidential coin series, the U.S. Mint is issuing
more Press Releases and
newspaper interest and attention
have
increased. From
what we see and
sense, there is at
least some glimmer
of hope that
the sheer volume
of the new
Presidential
coins will increase circulation
and even eventually -
dare I say it - result in the
elimination of the $l bill!!
This is still a huge leap of
faith at the moment, but is
based on recent editorials
and press coverage.First, some background. The U.S. Mint released the designs of the first four Presidential $l coins on November 20.2006 and the official frst release of the George Washington coin will occur on February 15, 2007.Then new releases will follow quarterly through 2016. At the release ceremony in Washington, Representative Michael Castle (R-De) announced that the goal ofthe program is to increase circulation, promote history and save billions of dollars for the U.S. Treasury. So far so good. By January l, 2008, all federal agencies are required to "take appropriate actions" to ensure that all their business operations involving coins or curency are fully capable of accepting and dispensing $ I coins. This includes coin changer equipment and signage announcing acceptance of the $l coins. This will apply to all agencies and instrumentalities of the U.S., the postal services, military exchanges, transit systems and all entities that operate any business, including vending machines, on any premises owned by the United States or under the control ofany federal agency or instrumentality. Vending machines must display signs and notices regarding the ability of the machines to dispense dollar coins. The Mint is presently working on arfwork for this program. The irnminent release has prompted other comments about our coinage. That, together with a recent court decision, could generate further discussions on replacing the dollar bills. There have been a few editorials around the country calling for the elimination of dollar coins, and not just in coinage magazines. For example, in the LA Times on November 25,2006, there is an editorial that says; "As we hope the U.S. Mint knows, there's no better way to replace the outdated dollar bill than with the commemorative $l coin introduced this week." And then: "The coins. which bear the images of U.S. presidents are being touted as educational. But is there a new numismatic hidden agenda? The Mint is discouraging any such speculation." Of course the Mint can't directly encourage elimination of the $l bill, but it certainly can and, by law, is required to promote the new presidential coins. As the LA times editorial noted, "if they catch on, it will be easier to retire the dollar bill..." Another fortuitous decision could also speed the elimination of the dollar bill. A Federal District Court in the D.C. District ruled that the U.S. system of paper currency discriminates against blind Americans because all of the bills are the same size and otherwise indistinguishable by touch. This litigation was instituted by the American Council of the Blind. In his ruling, the District Court Judge ordered the Treasury Departrnent to begin discussion of possible remedies which could include the different sizes of notes or different denominations, raised numerals and/or perforations. All of these measures are costly and, at least as it relates to the $l bill, could be avoided easily by eliminating the $l bill and replacing it with a variety of dollar coins that are now on the market and will be coming into the market in vast numbers within months. Meanwhile, the U.S. government has appealed the decision and NAMA joined in the appeal, citing the enormous cost of retrofitting vending machines to recognize bills with diflerent sizes. Finally, the cost of zinc (which makes up 97% of the penny) still exceeds the face amount of the penny and therefore there is continued pressure to discontinue the penny. A nickel also costs more than 5 cents to produce. We reported earlier about the Coin Act of 2006 introduced by retiring Congressman Jim Kolbe (R.AZ). He will be gone when Congress returns and progress on the Bill is unlikely. If the Treasury continues to sustain losses, expect the metal content of the penny and nickel to change unless Congress passes a law making it illegal to melt down pennies and nickels. A Bill was introduced to ban the melting. Elimination of the penny could really help our cause by opening up a slot in cash drawers for $1 coins. It doesn't hurt to dream. does it? Click Here winter 2006 newsletter |
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