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Usually dollar coins are just a money grab by the feds. They make a fortune on the seigniorage and most of them go unused because people collect them in the foolish belief that they'll be worth more as 'rare' coins. This is different, though, in that they want to retire the greenback.
This.
It'd actually be slightly cheaper to produce the coins than the dollar as the durability of the dollar coins more than out ways the extra production cost. Of course, since people hate coins they'd have to produce many more coins than they would dollars which swings the cost back in favor of the dollar bills. Despite that, the GAO recommends coins. Why? Seigniorage. Just like the State quarters which a bunch of people bought as a collection, dollar coins would end up in change jars effectively out of circulation. Meanwhile the treasury puts them into circulation by issuing bonds which collect interest. The government'd make a bit more in seigniorage with the coins since there'd be a couple billion more of them in circulation, and by circulation I, of course, mean roaming around in somebody's change jar doing absolutely nothing. Win from the government's perspective... of course, they'res no free lunch.
If the vending machine companies wanted people to use the dollar coin, they would equip the machines to take the dollar coin, which exists. But they don't.
Many already do. It is just that I never see to get $1.00 coins whenever the government tries to make them..People seem to just hord them.
but what i really was suggesting was to get rid of making any physical currency. we can just change over to using credit/debit cars or some other digital form of currency. i rarely use physical currency these days as it stands.
It'll happen eventually. But people who promote this need to understand there's a 'tax' that goes along with it - bank transaction fees that are passed on to the consumer. So everything will cost 1% more or greater.
I'm pretty sure it is not an urban legend, but this was the official reason.
TREASURY DEPARTMENT
WASHINGTON, D.C.
July 14, 1969
FOR IMMEDIATE RELEASE
(THIS IS A SIMULTANEOUS RELEASE BY TREASURY AND FEDERAL RESERVE SYSTEM)
LARGE DENOMINATIONS OF CURRENCY TO BE DISCONTINUED
The Treasury Department and the Federal Reserve System announced today that the issuance of currency in denominations of $500, $1,000, $5,000, and $10,000 will be discontinued immediately. Use of these large denominations has declined sharply over the last two decades and the need for them appears insufficient to warrant the added cost of production and custody of new supplies.
The large denomination notes were first authorized primarily for interbank transactions by an amendment to the Federal Reserve Act in 1918. With demand for them shrinking, printings of new notes of these denominations were discontinued in 1946, and the supply that was on hand at that time has now diminished to the point where continued issuance of such notes would require additional printings. Surveys have indicated that transactions for which the large denomination notes have been used could be met by other means, such as checks or $100 notes.
Under the decision announced today all existing supplies of large denomination bills at the Federal Reserve Banks will be turned over to the Treasury for destruction as will circulating notes that find their way back to the Federal Reserve Banks in the normal course of business.
The Federal Reserve will continue to issue notes in denominations of $1, $5, $10, $20, $50, and $100. Currency comprises only about 25 percent of the nation's money supply, the vast bulk of which is made up of demand deposits (checking accounts).
This was the reason back then. Now days currency size is limited to $100 to better keep drug cartels and other illegal businesses from laundering money and sending it across town or across the border undetected. $1 million in $100 notes weighs about 10 kilos/22 pounds so a few million is quite bulky, but if they had $1000 bills then it would be much easier to conceal millions of dollars.
Have you any idea how many Americans do NOT have a bank account, never mind a debit card ???
Why do you think that US ghettos have so many check cashing stores ?
MOST poor Americans do not have their SS or welfare checks deposited into a bank account, by electronic means, because they don't HAVE a bank account. That is why they continue to get their checks delivered by the US Post Office. Same thing for their IRS refund checks.
Sorry to say this...............BUT you are living in a dream world, if you think that a system of "no cash money ' is going to work in your country.
I can just see it now, street walkers in Elizabeth, Bayonne or Patterson , equipped with electronic debit machines, so their johns can "charge it " to their bank account. Yeah right !!!
And those "clockers " selling dope on the corner, are going to allow "debit sales " ??
Not going to happen.
Jim B
Toronto.
yeah right? not gonna happen? it happens when you dont give people a choice. just like people would use $1 coins if there were no $1 bills. people manage to figure out how to do it and they make changes.
Have you any idea how many Americans do NOT have a bank account, never mind a debit card ???
Why do you think that US ghettos have so many check cashing stores ?
MOST poor Americans do not have their SS or welfare checks deposited into a bank account, by electronic means, because they don't HAVE a bank account. That is why they continue to get their checks delivered by the US Post Office. Same thing for their IRS refund checks.
Sorry to say this...............BUT you are living in a dream world, if you think that a system of "no cash money ' is going to work in your country.
I can just see it now, street walkers in Elizabeth, Bayonne or Patterson , equipped with electronic debit machines, so their johns can "charge it " to their bank account. Yeah right !!!
And those "clockers " selling dope on the corner, are going to allow "debit sales " ??
Not going to happen.
Jim B
Toronto.
Someone already refuted this somewhat, but Jim it is clearly obvious you have absolutely no idea what you are talking about.
Most people? Over 97% of people have direct deposit of their social security checks! Every state also gives public assistance on electronic card now. A simple google search would have found this. Also not every American city has prostitutes and drug dealers on every corner waiting to accept cash. You should leave Canada sometime to get a more accurate picture of America. It is actually pretty much like Canada, except cheaper with less socialist laws.
I spent five years, as a expedite owner/operator, delivering high value freight to, amongst other places, NEW JERSEY. I was in the USA for at least 3 or 4 days of every week, of the month. I think I have a very good idea of what cities in YOUR country look like.
Plus I'm 66 years old, and I have been observing the USA, and it's problems with crime and criminals, for over 50 years, now. How much news do you see, about Canada, on a day to day basis ? Not much, I wager.
If you were to turn on my TV set, here in Toronto, you would see that I get over 200 US based channels, on my full house cable service. And you get how many from Canada ??
I spent five years, as a expedite owner/operator, delivering high value freight to, amongst other places, NEW JERSEY. I was in the USA for at least 3 or 4 days of every week, of the month. I think I have a very good idea of what cities in YOUR country look like.
Plus I'm 66 years old, and I have been observing the USA, and it's problems with crime and criminals, for over 50 years, now. How much news do you see, about Canada, on a day to day basis ? Not much, I wager.
If you were to turn on my TV set, here in Toronto, you would see that I get over 200 US based channels, on my full house cable service. And you get how many from Canada ??
Paper money has a short life compared to coin money. Canada walked away from $1 bills and has been using one dollar and two dollar coins for a while.
I personally am for the one dollar coin. I get too many one dollar bills and they get in the way unless I am going to a strip club.
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