A Post on New Currency That’s Much Longer Than it Should Be
Martin Crutsinger of the AP writes in a story released today:
Can George Washington and Thomas Jefferson succeed where Susan B. Anthony and Sacajawea failed? The U.S. Mint is hoping America’s presidents will win acceptance, finally, for the maligned dollar coin.
File this one under, “Esoteric and Seemingly Inconsequential Issues About Which I Have Surprisingly Strong Opinions.”
I’ve wished for years that the US would discontinue the dollar bill—they don’t do much and cost more to produce than they are actually worth. I had hopes for the Sacajawea coin back in 2000, but I doubt that its failure was due to a lack of popularity for Lewis and Clark’s guide. When introduced, the US Mint encouraged numismatists to keep the coins in their collections and thus take them out of circulation, which is a nice way of working against inflation. Also, the Mint didn’t produce many of the coins. I didn’t see a Sacajawea dollar until 2002 or 2003. Thirdly, when there are two forms of currency worth the same amount, I assume that people will use the one with which they are most familiar. In this case, people kept using dollar bills. There are also a host of other problems to introducing any new coin. Cash registers don’t have slots for them, only a few vending machines can take them, etc.
I do wish, however, that the U.S. would go to the dollar coin, discontinue printing dollar bills, and commit to taking the bills out of circulation. While they’re at it, why not introduce the two dollar coin as well, which would help ease fears that dollar coins would be too heavy? When we were in New Zealand, we used both one dollar and two dollar coins, which was very easy and actually didn’t weigh our pockets down. As an aside, I think we could learn a lot from New Zealand’s currency. Their “paper” bills—which are really a tough, pliable, and waterproof plastic—look cool with their variety of colors; the denominations are in different sizes, making detection between the bills easy; and the smallest denomination they have is a five dollar bill. Also, the Kiwis have eliminated the penny, which is a brilliant idea, in my opinion. All transactions there are rounded up or down to the nearest five cents. Sometimes you pay a little more than you should and sometimes you pay a little less, but it evens out. I know that discontinuing the penny would take away the pride, altruism, and sense that they are helping humanity when they put a penny in the “Take a Penny, Leave a Penny” dish at the gas station, but I think we’ll recover.
In conclusion, dollar coins: good. Dollar bills: bad. Pennies: awful.


Tyler, to help you on your quest, I’d love to unload you of all of your dollar bills. And I’ll be even so kind to pick up all of your pennies as well. You’re welcome!
Comment by Eddy E — November 20, 2006 @ 8:16 am
Having just deposited 38 bucks at Dollar Rent-a-Car, I agree that paper dollars will become a thing of the past. However, I suspect people will be reluctant to give their one dollar bills over to Eddy. My two cents. . . for what it’s worth. . . which evidently is nothing to you, you penny abolitionist!
Comment by Timbo — November 20, 2006 @ 10:07 am
I think we should go with Japan’s model and have $1, $2 and $5 coins. That worked very well. The smallest bill was approximately $10 (1000 yen).
Comment by Bill Ekhardt — November 20, 2006 @ 6:15 pm
But where will they put the Masonic propaganda?
Comment by jamie — November 20, 2006 @ 6:56 pm
People, people! Please, think of the strippers. The dollar bill must continue its foldable ways.
Comment by mune — November 21, 2006 @ 7:34 pm
So many comments for such a banal topic… or is it? I do believe there would be a number of infaltion issues if the penny were to disappear. But if retailers would be willing to round up AND down then I think those issues would be nullified.
What do you think? Will we ever switch to an all digital currency ala back to the future?
Comment by Matt Barber — November 21, 2006 @ 8:31 pm
Since I work at a coin shop, I think I can speak with some authority. We need to get rid of both the penny and the nickel. It costs 1.6 cents (if memory serves me right) to make a penny. The government also loses money on nickels. Leave it to the government to continue producing a product that they lose millions of dollars on annually.
Sacagaweas were an awful idea. 1) Few people can pronounce it 2) It’s an ugly coin 3) Many people don’t know what to do with a dollar coin (some businesses won’t take them, vending machines, etc.)
On the other hand, the Presidential dollars are brilliant. If they’re going to make this work, this is the way to do it. The state quarter series has done a lot for modern collecting, and this is along the same lines. It will eliminate the first two problems the Sacs have, and if popular enough, the third can be resolved.
However, I personally hate pocket change. I’d much rather carry bills. Better yet, let’s switch to all plastic so I don’t have to carry any real money. I’m all for digital currency.
Comment by Roger Overton — November 21, 2006 @ 10:09 pm
I almost always use digital currency. If we all stopped using paper and coin currency we would open a fantastic world for the collectors.
Comment by Bill Ekhardt — November 22, 2006 @ 6:10 am
I’m all for digital currency as well, but I share Mune’s concern for the strippers. Perhaps we could create an electronic equivalent of placing folded bills into G-strings. They could have E-strings instead. My two cents, or…dimes, or…charge the damn thing!
Comment by Timbo — November 22, 2006 @ 8:40 am
More g-strings in the e thread than I expected. Guess I attended Fuller too soon.
Comment by Tom Pratt — November 22, 2006 @ 9:13 pm
Actually, Tom, the previous commenters mentioning tipping dancers aren’t connected to Fuller, but are or were Talbot students at some point. You can draw your own conclusions on that point. I’ll just quote the Sports Guy and say, “Yup, these are my readers.”
Comment by Tyler Watson — November 22, 2006 @ 10:12 pm
It’s great you’ve got those guys reading and feeling free to speak up. Props to you.
Comment by Tom Pratt — November 24, 2006 @ 9:30 pm