Monday, February 12, 2007

A New Dollar Coin Series

CNN Money - Presidential dollar coin on the way
Hoping to replicate the success of the state-quarter program, the U.S. Mint tries again to make the dollar-coin work.

The U.S. Mint will issue a dollar coin featuring the likeness of George Washington this Thursday, the first in the series of presidential coin dollars.
I'm not sure that Presidential coins will have the draw that state quarters have had. It seems to me that many people that aren't normally coin collects are likely to collect quarters that represent their home state or states where they have lived, etc. But no one really has a "home president," do they? I'm not saying it won't work at all, just that I don't think it will meet with equivalent demand.

Plus, I think, the fact that it is a dollar, not a quarter will factor in as well, for this reason:
The coins, which will be the size, weight and metal composition of the Sacagawea $1 coin will feature the portraits of U.S. presidents in the order they served.
I know that I personally don't like the fact that the current dollar coin is too close in size to the quarter. People want money that is easily distinguishable so that we don't have to think too hard when we pay for things. And nobody wants to accidentally give someone a dollar when they mean to only give them a quarter.

There were some things about the coin series that I found particularly interesting:
Gerald Ford is currently the last president on the release schedule. Under the Presidential Coin Act of 2005, none of the coins will bear the image of any living former or current President. Coins of deceased former presidents won't be made until two years following the date of death.
I assume he is the last because, although Reagan is dead, Carter, who served before him, is not. And if you are going to go in order, you can't have Reagan without Carter. And there was also this fact:
Each president will be honored with only one coin regardless of the number of consecutive terms they served. President Grover Cleveland, who served two non-consecutive terms, will be featured on two coins.
Again, if you are going to do it in order, Cleveland has to get two.

The final interesting fact in the article is this:
The Mint says that the coins are not meant to be a replacement of paper dollar bills. But there is a cost difference between paper and coin dollars, which can last longer in circulation.

A 2002 Government Accounting Office report released in 2002 concluded that if dollar coins replaced the paper dollar, the government would save $500 million annually.
My question is, why the heck not? If it would save $500 million annually, why not get rid of the paper dollar? Is the paper dollar really that important?

1 comment:

Anonymous said...

I can tell you why these coins won't work in one word.


They look like arcade tokens!

Look at the U.S. coins that have been issued over the past 75 years. These new coins can't hold a candle to them.

The idea is great! The execution STINKS!