Friday, December 16, 2011

The Myth of The Dollar Coin

As many may have heard the presidential dollars will cease production of new circulating coins at the end of the year. That means 20 of 38 scheduled coins made it to circulation. Collectors issues of the remaining will still be made.

Now this is third failure of dollar coins following the Eisenhower and Anthony dollars, even add the Sacagawea to that list if you want. Despite 40 years of rejection their is a certain segment of people who want to force it on the U.S. by eliminating the dollar bill instead. (The same rich fools call for the end of the pennies and nickels.)

You want to see the future if the dollar bill gets eliminated...


Coin-Op Laundromat: A True Story 
Ten years ago my local laundromat took quarters and had machines that would convert quarters. Today the same 1960s washing machines are still there but the coin slots have been replaced with card slots. These re-loadable cash cards serve one function, to hold money. No names, IDs, or validation required. My card is six years old and has not failed. It has hundreds if not thousands of dollars pass through.

Why am sharing my lack of a washing machine in my apartment? Simple because it works better than carrying quarters.

Read that carefully: TREAT THIS AS CASH

If the dollar bill gets eliminated the rush will not be to dollar coins. The rush will be to these universal cash card that charge no fee, has no personal information, and can collect you change after each transaction. This would also be a great way to reduce the production of pennies and nickels without the whole rounding to the nearest dime scenario.

I do not want this to become a rant but the loud coin-pushers are whining so much something must be said.

Leave You with Some Facts:
  1. 50 years of NYC Subway tokens (1953-2003) gave way to Metrocards (1993-present) and even now a system is being tested to accept fares directly from a credit card, debit card, or smartphone.
  2. Cash cards can be exact so 8.675% sales tax can be precise without rounding up.
  3. Most places that have cash registers need electricity to make cash transaction so if power is comprised then the policy is to suspended transaction and ask customers to return later.
  4. The metric system was strongly pushed in 1975 for the U.S., as I sit here drinking my 8 oz can of orange drink.
  5. Vinyl, tapes, CDs, may sound better but digital downloads outsell them all.
  6. Pennies are an acceptable term for U.S. cents so I will continue using it.
  7. Remember the half dollar coin, that lasted longer than most dollar coins yet they are hardly seen or used in recent years.

So yes reduction of dollar coins is great. Heavy coins may be more cost effective but they are not as comfortable as dollar bills. For the young the two forms are obsolete and they already know that debit cards and smartphones are both efficient, cost effective, and comfortable.

Dang it! I think this did turn into a rant.

33 dollars worth, for Comments/Questions click here.:

Man said...

A small segment of the population are very anti-tech and hoard metals and coins for some apocalyptic future. Um...there is no reasoning with them so I refer to the book/movie Cormac McCarthy's The Road, because if everything goes real bad money will be useless. In the opposite direction, greatness and peace, then the future goes great and it will be all Star Trek like and money will also be useless.

Anonymous said...

I should ask you, why has every country that uses the euro, the UK or switzerland where there are only 1 and 2€ coins, £1 coins, and 1 and 2 franc coins (and it has been this way for a while now) not adopted a sort of "cash-card"?

Man said...

why has every country that uses the euro, the UK or switzerland where there are only 1 and 2€ coins, £1 coins, and 1 and 2 franc coins (and it has been this way for a while now) not adopted a sort of "cash-card"?

Because they are not American.
You cited countries who also love soccer and use the metric system. Americans will always do things different and with dozens of reasons why.

Europe has a history of using larger coins so that is why I also guessed that the 1 and 2 Euro cent coins were doomed to fail. For the same reason the dollar coin will fail in the U.S., the people just won't use them and businesses prefer other forms.

Anonymous said...

Well how about canada? They are very similar to the US in many ways, don't always use the metric system (although I'm not really sure why that's relevant) and have adopted a 1 dollar coin. Also, they are more of a hockey country...

Man said...

Well how about canada?

Better comparison, the Loonie and Toonie ($1 & $2) are very popular along with the cent and nickel. Canada is half way between European tradition and American culture. Canada switched back in the 1970s from $1 dollar to coin before technology caught up.

America is late to the coin switch and that has certain advantages. We can use cheaper metals, plastic, or abandon it all for e-cash.

I keep bringing up the metric system because it brings up the point culture and tradition will win over efficiency and peer pressure.

Dr. Math said...

In a way I had hoped the dollar coins would become more accepted with the public and that eventually bills and coins would be equal in use. Last year I found 5 or 6 dollars worth and thought people were finally starting to accept them. This year I have only found one Anthony Dollar so I suppose not. It is too bad they are going to be discontinued because I really enjoyed getting them in change. Then again this will make them harder to find so maybe it will be more enjoyable to find one.

Man said...

Then again this will make them harder to find so maybe it will be more enjoyable to find one.

Agreed, it has been several years since I found a half dollar in my change and it was one that official was never circulated. It was a great find because it showed anything was possible with change finds.

Tyler Lawrence said...

I'm sad to hear that they won't be continuing the Presidential dollar coins. I have a lot of them in my collection, but it's going to be harder to collect them since they are being ceased production.

Man said...

@Tyler, you're so right but at least you have some. The remaining coins in vaults will probably slowly get released so I'm not sure who will get them. NYC and maybe casinos?

Tyler Lawrence said...

I have the Presidential Dollar Book, 2007-2011, and I have 2 from 2007, 0 from 2008, 3 from 2009, 2 from 2010, and 2 from this year. Plus I have five doubles.

If the remaining are released, than they will be worth a lot more. Even though they always fail, the dollar coins are very sought for collection.

Man said...

I have the Presidential Dollar Book, 2007-2011
--Good buy, at least you won't have to buy the 2012- book.

Like you I am missing so many dollar coins I may have to start paying for my Metrocards in cash just to get the dollar coins as change.

Tyler Lawrence said...

Is a MetroCard just for New York City? When I started work in June, I used to see dollar coins and half dollars at least once a week. Now I don't see them at all. The last one I got was when a friend gave it to me on Thanksgiving. She said that the cashier at FYE gave it to her because they ran out of dollar bills.

Man said...

Is a MetroCard just for New York City?
--Yes, I have no idea what other cities us for public transportation.

When I started work in June, I used to see dollar coins and half dollars at least once a week.
--Interesting I just checked my own blog and most of my golden dollar finds have been in July, mostly April-August.
Could be a summer thing?
My Dollar Finds link.

Anonymous said...

When was the last series that every single modern denomination[1,2,5,10,20,50,100] was printed?

Man said...

When was the last series that every single modern denomination[1,2,5,10,20,50,100] was printed?

By "denomination" I will assume you mean U.S. bills.
$[1,5,10,20,50,100] for these 2009
$2 for this 2003-A

Tyler Lawrence said...

I don't live in a big city, I live in small town in Vermont, but some big cities here use buses for public transportation.

That's interesting about finding the dollar coins in the summer. I'd love to find a George Washington Presidential dollar coin, because with the ceased production, the more popular the President, the harder it's going to find one. I thought I'd never find a Abraham Lincoln one, but I have two.

As for the bills, it would be great if they redesigned the one dollar because every other bill has gone through redesigns. I have not seen a 2009 series $100 bill in circulation, but I saw one online and it looks really cool.

Man said...

but some big cities here use buses for public transportation.
--Subways and buses here take the Metrocard, occasionally someone uses coins to pay on buses an since it is $2.25 it takes a while to push all the coins through. Dollar coins would be good in this case.

As for the bills, it would be great if they redesigned the one dollar because every other bill has gone through redesigns.
--I was thinking if the want to save money they can make the $1 bill out of plastic like Canada is doing.

have not seen a 2009 series $100 bill in circulation
--Same here, I use the ATM occasionally and the only spit out $20 so I think I'll never get one.

Tyler Lawrence said...

I'm thinking the only way to get a 2009 $100 bill is from the bank.

I know some banks have rolls of dollar coins, so I'm hopefully going to get a chance to ask my local bank about it.

It would be harder for the one dollar bills to be worn out and faded if they were made from plastic.

Man said...

I'm thinking the only way to get a 2009 $100 bill is from the bank.
--Good call, I can always ask a bank teller for a new $100 instead of 5 old $20s.

Tyler Lawrence said...

Thanks. I'm sure that the bank should have them. I've been wanting to ask my bank if they have rolls of half dollars, because I heard some banks do.

Man said...

I've been wanting to ask my bank if they have rolls of half dollars, because I heard some banks do.

Yup, that is what many roll hunters do.

Tyler Lawrence said...

It's really the only way to get them now, unless you buy online which I don't.

Man said...

It's really the only way to get them now, unless you buy online which I don't.

Someone told me they were used in some casino, and you can get bucket fulls but I don't go to casinos so I cannot confirm this.

Tyler Lawrence said...

I got a 1997 P half dollar today. I was shocked but I hardly have newer ones, so I was happy.

Man said...

I got a 1997 P half dollar today. I was shocked but I hardly have newer ones, so I was happy.

Nice, hopefully a few more will pop up.

Tyler Lawrence said...

The oldest one I have is 1966, and the one I found last night is the newest one I have. I'd love to find a 2011 half dollar.

Man said...

I'd love to find a 2011 half dollar.

Although officially since 2002 no halves were released for circulation, that said I have found 2002 and later in my change.

Tyler Lawrence said...

Didn't the mint make them for collectors and proof sets after 2002?

I did get a George Washington Presidential One Dollar coin last night. It's really dirty, but I'm glad I got it.

Man said...

Didn't the mint make them for collectors and proof sets after 2002?

Yes but not to banks.
Still some banks have rolls and bags but they could be from collectors who turn them in after searching for high grade coins.

Robert Wayne said...

I'd love to use the dollar coins, Anthonys, Sacagaweas and Presidentials, but how can I use them if the banks won't even keep them in their inventory? Everytime I get paid and cash part of my paycheck I always ask the tellers if they have any dollar coins or half dollar coins and usually it's none or just a few dollar coins in the till. People can't use these coins if they can't get them.

Man said...

People can't use these coins if they can't get them.

True but you're the exception most others rather not get them so the banks just stopped ordering them.

I use to love getting half dollars.

Pockets O'Change said...

Hey Man,
Dr. Math directed me to this post and I just wanted to say a few things.
1. I would not like to see the demise of the penny or nickel, but would rather like to see a coin that would be more economical to produce.
2. The demise of the dollar, half dollar and the the infrequent use of the $2 seems pretty sad, they're simple to use and you can easily make change with them, you'd probably have less change (with all these haters not wanting so much clunky change in their pockets).
3. Canada is having a contest on right now to the next generation of money, which would be similar to the cash card, look at this article:
http://www.thestar.com/business/article/1159513--royal-canadian-mint-to-create-digital-currency
4. It seems inevitable that one day currency will cease to exist as a medium of exchange, it's quite sad to see that most would enjoy having a "digital currency" as opposed to a physical one. Fiat-money arguments aside, coins are part of history and probably the most successful medium of exchange, just sad to see it go away one day.

Man said...

Dr. Math directed me to this post and I just wanted to say a few things...

Agree with all your points and I saw that digital currency contest. At the end it will be the teenagers that dictate what form of cash is used. As they grow up using debit cards they will see cash as obsolete.

I do not like going on coin rants but at the time it seemed appropriate. One day I will rant about alleged fiat money and the myth of gold as precious metal.