By Mike Fuljenz – Universal Coin & Bullion ……
“The United States should stop producing one-dollar bills and one-cent coins,” declares award-winning rare coins and precious metals expert and author Mike Fuljenz, President of Universal Coin & Bullion in Beaumont, Texas. He issued his money-saving message in advance of the World’s Fair of Money in Chicago, August 13 – 17, 2013.
“We are long overdue in following the lead of many other countries that have successfully eliminated their lowest denomination paper money and coins,” said Fuljenz.
“It costs about two cents to make each penny. Billions of them were struck last year, so Uncle Sam lost about $58 million just making pennies. It’s impractical to keep producing cents,” said Fuljenz.
“The Government Accountability Office estimates we’d save $4.4 billion in the next 30 years if we used one-dollar denomination coins instead of paper dollars. Canada stopping printing dollar bills and switched to dollar coins in 1987, and Canada also stopped minting pennies last year. We need to do this, too,” he emphasized.
If the cent is completely eliminated from production it won’t be the first time the United States has abolished a coin denomination.
“We used to have half-cents, two-cent, three-cent and even twenty-cent denomination coins. Actually, there have been over a half dozen different U.S. coin denominations, ranging from the half-cent copper coins to $20 gold pieces, that eventually were eliminated from production for circulation between 1857 and 1933,” explained Fuljenz.
He acknowledges that surveys conducted on behalf of penny and dollar bill advocates consistently indicate most American’s don’t want the cent or dollar bill discontinued.
“Surveys also consistently indicate most American’s don’t want higher taxes, but we still get them. When federal spending now is under intense scrutiny, eliminating cents and dollar bills can help save the government billions of dollars in the coming years. It makes sense to stop making cents.”
The U.S. began striking one-cent denomination coins for circulation in 1793 and made silver dollars starting in 1794.
Fuljenz will be attending the World’s Fair of Money in the Chicago suburb of Rosemont, Illinois, August 13 – 17, and will receive one of the top awards from the show’s sponsor, the nonprofit, 26,000-member American Numismatic Association (ANA).
* * *
About Mike Fuljenz
Known as America’s Gold Expert®, Fuljenz has been honored with more than 50 awards for his educational writing, consumer advocacy and service to the rare coin and precious metals community. His expertise has been used by the Federal Trade Commission (FTC), United States Postal Service, United States Mint, Royal Canadian Mint, the Numismatic Crime Information Center (NCIC) and the Better Business Bureau. In addition to being an award-winning numismatic author of books and newsletters and a frequent interview guest on radio and TV news and personal finance programs, he is a community leader in his hometown of Beaumont, Texas.
For additional information, contact Universal Coin & Bullion at (800) 459-2646 or visit online at www.UniversalCoin.com.
The U.S. has the opportunity of losing several items from its coins and currency range to bring it into line with current financial trends. The article stipulates the removal of the One Cent and the One Dollar. A hard-wearing, long-lasting One Dollar coin is already available to fill the gap of the Dollar note removal so why not embrace it properly. The need for a costly-to-produce One Cent coin is shrouded in sentiment – however, it no longer serves a functional role. I would also suggest that the Two Dollar notes in the market place should also be withdrawn as opportunity arises.
Some years ago, Australia bit the bullet and, over a short time, removed the costly One and Two Cent coins – and, the One and Two Dollar paper notes were replaced with Aluminium-Bronze coinage. Certain conditions now must be adhered to if these demonetized denomination items are to be tendered or banked.
Introduction of a circulating $2 coin has been conspicuously absent from the US debate, probably because the denomination is so unfamiliar to most Americans. Regardless, that intermediate denomination is mandatory for effective change-making in a decimal currency system. That’s why every other country that successfully eliminated its one-unit note in favor of a coin also has a companion 2-unit coin. Not having a $2 coin to fill the gap simply validates the nay-sayers’ complaints about “a pocket full of $1 coins”. Heck, I’d even tolerate a redesigned $2 bill if it would help overcome those objections and defang Crane Paper’s lobbyists.
Unfortunately in a country that still hasn’t figured out infrastructure maintenance, its health care system, its measurement system, and heaven knows what else, I doubt we’ll being spending anything – bill or coin – with “$2” on its front.