$1B in Unwanted Coins Languish in Federal Reserve

Wednesday, 29 Jun 2011 02:31 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The United States Federal Reserve’s coffers are bulging with $1 billion worth of unwanted $1 coins that cost $300 million to produce, and it could produce a billion more $1 coins by 2016, according to an investigation by National Public Radio (NPR).

The Fed’s three attempts to popularize the use of $1 coins dates to the Susan B. Anthony coin that went into circulation starting in 1979, and again in 1999.

unwanted coins,Federal Reserve,Susan B. Anthony dollar,Sacagawea dollar,George Washington
The Sacagawea dollar started circulating in 2000, and is still being produced.

The U.S. began production of presidential $1 coins in 2007, with the face of an individual president gracing each series released quarterly, starting with George Washington (the current series bears the likeness of Ulysses S. Grant).

NPR quotes a 2010 Federal Reserve report to Congress that said the coins are languishing in vaults "with no perceivable benefit to the taxpayer," and that they’re being returned by banks in increasing amounts.

"We have no reason to expect demand to improve," said the report. "We also note that a 2008 Harris poll found that more than three-fourths of people questioned continue to prefer the $1 note."

One benefit of the coins is that they last longer than bills, the Fed has long maintained. A study by the Government Accountability Office suggests that $5.5 billion could be saved over 30 years by switching exclusively to $1 coins over bills.

The trick is to get the public to switch over to the coins, which some suggest is politically impossible.

Former Delaware Republican Rep. Mike Castle, who sponsored the bill for the production of the presidential coins, told NPR that “politically it's not something the members want to deal with, so it's just very hard to get something like that done."

"It's ridiculous to have this kind of over-inventory pile up," Castle continued. "I might actually make some phone calls myself as a result of reading these reports and learning more about what this problem appears to be."

While there’s a certain logic to completing the series of presidential coins, it also seems outlandish to produce something no one wants, suggested former Rep. Earl Pomeroy, D-N.D.

"Is the nation waiting with bated breath for us to get to the Calvin Coolidge coin?” he wondered. “No! Maybe we should call a halt to this whole thing."



© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Obama's Immigration Speech Gets Most Viewers on Univision

Friday, 21 Nov 2014 20:00 PM

As the lead-in to the Latin Grammys, President Barack Obama's speech announcing his sweeping immigration reforms reached . . .

Jimmy Carter Lashes Back at 'Warmonger' McCain

Friday, 21 Nov 2014 19:35 PM

Former president Jimmy Carter considers it a compliment that Arizona Republican Sen. John McCain thinks Barack Obama is  . . .

Obama to Ferguson: 'Keep Protests Peaceful'

Friday, 21 Nov 2014 19:23 PM

President Barack Obama says his message to Ferguson, Missouri, as it awaits a grand jury's decision in this summer's fat . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved