Yet the piles have continued to grow because the law requires the US Mint to issue four new presidential coins each year even if most of the previous year's coins remain in government vaults.
Further on this one: Australia has long since gotten rid of 1 and 2 cent pieces and replaced $1 and $2 notes with coins. There is some talk about no longer minting 5c coins either (which would leave 10c as the smallest).
If they want people to use coins, they should stop printing notes.
If they want people to use notes, they should stop minting coins.
That's as simple as that, but obviously there's a disagreement here between the Fed trying to reduce its costs and some politicians trying to please their electors. Though I hardly see what a politician would gain in such a "struggle"... I don't believe anyone would vote for someone because he has saved the $1 notes. That's just ridiculous.
This, but I'm sure there's a logical reason why coins are minted rather than issuing sub-divisions of paper currency on paper as well.
Possibly because paper currency makes higher quantities of cash easier to use/carry/etc. due to light weight. Compare to change, which is usually in small amounts and covers differences, and is cumbersome to carry in large amounts.
That's as simple as that, but obviously there's a disagreement here between the Fed trying to reduce its costs and some politicians trying to please their electors. Though I hardly see what a politician would gain in such a "struggle"... I don't believe anyone would vote for someone because he has saved the $1 notes. That's just ridiculous.
As a European, you could crack oh so many jokes about how, when viewing American politics as a whole, us fighting over the freaking one dollar note wouldn't surprise you.
"Itz got Jarj Washintin on eet! Protect the father of our countreh from de ebil <insert political movement advocating for the end of the 1 dollar bill>!"
Apparently there is a similar issue with the £5 coin.
Are people in the US allowed to refuse legal tender? Just stop printing the dollar bill, then fine a shopkeeper for refusing to accept a dollar coin and use it as a publicity stunt.
IIR legal tender only applies to change in a shop transaction. Shops can accept anything they want in term of payment (legal tender or otherwise), but customers must accept anything that is legal tender as change.
Apparently there is a similar issue with the £5 coin.
Are people in the US allowed to refuse legal tender? Just stop printing the dollar bill, then fine a shopkeeper for refusing to accept a dollar coin and use it as a publicity stunt.
Interesting info: The Australian Pound, which was replaced in circulation more than 40 years ago, is still legal tender. Although you'd probably be laughed at if you tried to pay for anything in Aussie Pounds.
IIR legal tender only applies to change in a shop transaction. Shops can accept anything they want in term of payment (legal tender or otherwise), but customers must accept anything that is legal tender as change.
IIRC shops have to accept legal tender, excluding coppers over a certain value, coins over a certain value etc. Clearly they can choose to accept anything else they want to. See how lots of places will accept euros and even dollars at a really awful "simplified" exchange rate.
IIRC shops have to accept legal tender, excluding coppers over a certain value, coins over a certain value etc. Clearly they can choose to accept anything else they want to. See how lots of places will accept euros and even dollars at a really awful "simplified" exchange rate.
Well, shops can refuse to serve anyone they want, so I'm not sure how they would be obligated to accept legal tender. What about £50s? I know some shops don't accept those...
Well, shops can refuse to serve anyone they want, so I'm not sure how they would be obligated to accept legal tender. What about £50s? I know some shops don't accept those...
The $1 coins of the past were simply too large. It was felt that people expected a coin that was substantially larger than quarter. Now that $1 coins are much smaller and patterned after the British pound, perhaps they would have a chance. The latest version is a lot better than the monstrosities of the past.
And going to $1 coins would also mean $2 bills would likely become much more prevalent as the British 2 pound note is.
But I think one thing is clear. Americans will continue to resist change until the $1 bills are no longer in circulation.
People only resist because the Fed affords them the possibility to resist in still printing those damn' $1 notes!
On January 1st 2002, 12 European countries have switched from a currency to another. Less than a week later, more than 95% of transactions were in euros only. This was only possible because central banks systematically destroyed the national currencies notes and coins.
If national currencies hadn't been immediately destroyed, and were still being printed, of course Europeans would still use them! They switched to the euro because there was no alternative. That's all.
Now let's imagine the average American guy pays something $17 and receive 3 coins of $1 in change. He'll ask for notes only if they exist, but if they don't exist anymore, do you really believe he'll refuse the 3 coins?
I love the $1 coins. I know certain machines (like the ticket vendor machines for Baltimore's Light Rail) that give change in them, so I make a point to pay with large bills when I go.
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