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The main places I use cash almost refuse to take 50s and larger. There is a higher chance of counterfeit with the larger bills. I find the use of cash is a generational thing. In day to day transactions I will not even think about using plastic for transactions under $15 while my children hardly use cash at all and will use plastic even for a $2.00 purchase at a fastfood place.
I would like to see the One dollar bill replaced with a coin and the two dollar bill circulated more
I would like to see the One dollar bill replaced with a coin and the two dollar bill circulated more
They sort of go together. If you stopped printing $1 bills and only started circulating coins, then people would quickly realize that sitting on over a billion $2 banknotes is just stupid. If you have a billion of something, they are never going to be worth anything as a collectible. They will move into general circulation
Quote:
Originally Posted by MidValleyDad
I find the use of cash is a generational thing. In day to day transactions I will not even think about using plastic for transactions under $15 while my children hardly use cash at all and will use plastic even for a $2.00 purchase at a fastfood place.
That's true all over the world. My 82 year old father's brain almost melted because I bought something at Home Depot for $3 on a credit card. I said I preferred to charge because Home Depot keeps a record of all the charged purchases, so it is much easier for me to buy it again.
Quote:
Originally Posted by MidValleyDad
The main places I use cash almost refuse to take 50s and larger. There is a higher chance of counterfeit with the larger bills.
Canada had a rush of counterfeiting in 2004 where their rate was considerably higher than both the USA and Mexico. As a result they decided to replace all denominations with polymer notes as they are much harder to counterfeit (so far). Mexico just replaces the smaller bills with polymer since they are handled more and the higher cost is justified because they don't have to be replaced as often. The counterfeiters have simply moved up to a higher denomination. Of course with recent devaluations of peso (and other currencies) against the dollar, their most common big denomination is now worth about $23.
The larger question of reducing cash is one thing, but USA is still withdrawing over $2 trillion from bank accounts every year. So for the next few decades we are pretty firmly on the path where we increase the amount of cash every year. Cash is now about 8% of GDP when it was traditionally more like 6%.
The huge number of Washington's seem permanent. At least they are cheap to make as vending companies have gotten congress to pass laws that they will never be updated. Of course, they are an environmental catastrophe. Thousands of trucks full of these bills hauling them around, and sorting through them to destroy the aged bills. It is almost as big an environmental catastrophe as making pennies.
bills per person in USA
35.4 $1 George Washington
33.6 $100 Benjamin Franklin
26.6 $20 Andrew Jackson
8.5 $5 Abraham Lincoln
5.9 $10 Alexander Hamilton
5.0 $50 Ulysses S. Grant
3.6 $2 Thomas Jefferson
Using the highly sophisticated conversion the 4*$50=10*$20 we see that if we could get people to use 9 Grants per person, maybe we could get by with 17 Tubmans per person.
Producing these increasingly sophisticated banknotes is getting expensive and now as they have polymer windows, the destruction of them is becoming more of an environmental issues.
They have had a number of massive costly breakdowns trying to produce billions of new color Benjamins. I would suggest showing just a little discipline and limiting production to only a trillion dollars in color $100 banknotes.
Most ATM's I use nowadays have a series of denominations you can select from even 1's. I am located in Chicago and you get to select anywhere from 100's to 1's. I went to a bachelor party one weekend and lets just say it was very convenient to be able to pull out 500 1 dollar bills for all us guys without needing to talk to a teller.
Most ATM's I use nowadays have a series of denominations you can select from even 1's.
I was aware of a Talaris machine that would carry 1000 banknotes of one denomination (presumably $100) and 1700 banknotes of a second denomination (presumably $20 or $50). Casino machines will regularly dispense any combination of denominations and coins. But stocking a machine to service a single group going to a bachelor party that wants 500 $1 bills is truly remarkable.
It must be very difficult to stock an ATM in Sweden, considering the limited number of banknotes per person.
banknotes per person in USA
35.4 $1 George Washington
33.6 $100 Benjamin Franklin
26.6 $20 Andrew Jackson
8.5 $5 Abraham Lincoln
5.9 $10 Alexander Hamilton
5.0 $50 Ulysses S. Grant
3.6 $2 Thomas Jefferson
Last edited by PacoMartin; 07-12-2016 at 02:27 PM..
I was aware of a Talaris machine that would carry 1000 banknotes of one denomination (presumably $100) and 1700 banknotes of a second denomination (presumably $20 or $50). Casino machines will regularly dispense any combination of denominations and coins. But stocking a machine to service a single group going to a bachelor party that wants 500 $1 bills is truly remarkable.
I was quite surprised it offered $1 bill as an option. I was even more surprised to learn that I could withdraw 500 of them... lol
I was even more surprised to learn that I could withdraw 500 of them... lol
It may have just been an oversight. They just programmed the machine to deny denominations when they are empty. Sometimes they don't think of these things.
I read these stories about small municipalities who have their whole budget screwed up because a car was mistakenly appraised for $1 million dollars. I always think that it would be so simple to put a check on the software, that calls out all cars appraised for $100K or more so that some human can manually check if it makes sense or there was an error somewhere
I just use cash to pay my cleaning lady! The rest goes on cc with cashback, rewards, 45-day float, record keeping, etc.
With the number of people not using cash, you would think some sort of upper limit could be enacted on the $100 bill. An easy one would be to restrict production of the $100 bill to $1 trillion dollars. The color 2009A series is now up to $647 billion in notes.
It is not as radical a decision as stopping production of the €500 note which peaked at €306.8 billion in circulation. But just having some sort of upper limit will help citizens of the world to appreciate it's value,
The BLS calculates that $20 in 1982 has the same purchasing power as $50 today, but the twenty remains the choice of ATMs around the country. Australia and Euro zone pretty much use the fifty. United Kingdom is forever attached to the twenty pound notes which post BREXIT vote is worth about $26.45 instead of ~$30.
I seem to remember the $10 was more common about forty years ago. Now the BEP is faced with the task of replacing some 8 billion Jacksons with Tubmans. The fifty is the least circulated banknote behind only the two dollar bill.
From 2009 to 2012 the average withdrawal value increased from $108 to $118. Presumably it is somewhat higher today.
In 2012 the number of ATM withdrawals (5.8 billion) far exceeded the number of over-the-counter withdrawals (2.1 billion), the average value of over-the-counter withdrawals was $715, — no surprise.
Is it time to switch to the $50? Sometimes frugal people feel that smaller denominations help them to remain frugal. While the fifty is accepted in many places that refuse to take hundreds, there are many places that will not accept either.
More atm withdrawls because you don't get 'grilled' and looked at 'up and down' by a clerk, you deal with a machine who has no feelings, if you have the right credentials, you get the money, people like that.
I usually never get out more than $40 at a time usually just get 20. I've probably had a $50 bill in my hand less than a dozen times in my 37 years.
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