US Mint suspends Production of the $1 coins

Discussion in 'General Discussion | Miles/Points' started by jrp2, Dec 13, 2011.  |  Print Topic

  1. jrp2

    jrp2 Gold Member

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    I know it's been dead for a while now. However, now the mint isn't going to produce anymore to save money.

    WSJ article
     
  2. flyingdawg
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    flyingdawg Gold Member

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    That's pretty surprising, the goverment is doing something (albeit small) to logicaly save $$$. Time to start hoarding presidential $1 coins now for the grandkids ;).
     
  3. wombat18
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    wombat18 Silver Member

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    "demand hasn’t met supply"

    Sigh. I'm sure many of us liked being able to buy them. In big quantities. And got quite a kick spending them all over town. Banks just didn't like them, so they shipped them off to the Fed.
     
  4. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    You don't think that most here who ordered coins for points/miles actually spent them all over town, do you?

    The logical thing to do, IMO, would have been to stop printing paper $1 bills.
     
  5. JohnDeere19
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    JohnDeere19 Gold Member

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    They were perfect for farmers markets, but as long as the dollar bill sticks around, they'll have trouble getting a ubiquitous $1 coin.

    EDIT: looks like HaveMilesWillTravel agrees :p
     
  6. MLW20
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    MLW20 Gold Member

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    I had fun spending some of the coins but there was a problem when some places refused them. It should've been illegal for any business to deny payment by $1 coins!
     
  7. icurhere2
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    icurhere2 Gold Member

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    That would be an actual step toward cutting costs, so it's too logical. And note that production is "suspended" rather than terminated - I don't know that Congress has repealed the Act that requires the series of presidential coins ...
     
  8. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    As long as it's a reasonable quantity (e.g., three $1 coins for a coffee at Starbucks), I would have no problems walking out of the store if they didn't accept the payment. I would not expect a merchant to accept 1000 $1 coins for an HDTV, just like I wouldn't expect them to accept $1 bills. That's what "change banks" are for (remember them from SNL?).

    Of course, I generally try to pay with plastic so I don't have to visit the ATM, and I earn a few points/miles in the process.
     
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  9. MLW20
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    MLW20 Gold Member

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    I can't really agree here. $1 coins are legal tender. When gas stations want to have a Cash Price & a Higher Credit Price, I would usually pay with 40-50 $1 coins! Most places did not have a problem with it but some did not allow it.

    I told them I would charge if they gave me the better price which they would also refuse...

    I forgot to add- I also charge pretty much everything, even $1 at a 7-11. I only tried to use coins when no credit was accepted or when a biz tried to charge extra fees to use a credit card.
     
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  10. canucklehead
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    canucklehead Gold Member

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  11. Misterstuf
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    Misterstuf Silver Member

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    My first thought when I read this article was, "I wonder if anyone has posted this on MP yet."
    I guess jrp2 beat me to it. :rolleyes:

    I personally feel that the only way to make the US people accept the dollar coin is to fully stop printing dollar bills. Unfortunately, that isn't going to happen any time soon.
     
  12. flyingdawg
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    flyingdawg Gold Member

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    I suspect $1 (and $2) coins will become common US tender about the same year the US adopts widespread use of the metric system. Americans are a hard headed lot. I'm just saying....
     
  13. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Yes, they are legal tender, but that doesn't actually mean that a store has to accept huge amounts of small coins or bills as payment. Just like they don't have to accept bills greater than $20 if they so choose. It's a common misconception, though, as you'll see if you google something like "do stores have to accept pennies".

    Here's what would seem to be the official answer:

    http://www.treasury.gov/resource-center/faqs/Currency/Pages/legal-tender.aspx

    I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?

    The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."
    This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.
     
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  14. NYCAdventurer

    NYCAdventurer Gold Member

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    The mint may have stopped producing but I saw with my own eyes in the mint enough $1 coins to fill a handful of trucks. Maybe once they go through those they will start producing again. Who knows...
     
  15. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    What pisses me off is that I was in the process of giving my little nephews four presidential quarters a year for a little binder that has bits of historical information about the presidents. Now it looks like that might not get completed.
     
  16. MLW20
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    MLW20 Gold Member

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    I know that stores do not have to accept large quantities of the coins but if stores refuse to accept them or get annoyed when people use them, then there was no point for the Dept of Treasury to produce them.

    Stores not accepting large bills is a whole other topic & done for very different reasons than not accepting coins.
     
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  17. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Well, you invoked the "legal tender" argument that people usually use to argue that stores have to take certain coins or bills. Hence my explanation. What else did you mean with that phrase?

    And the Mint is producing them by order of Congress, I believe. And Congress presumably didn't intend for them to be primarily used by people paying large amounts in one dollar coins, so I think it's not correct to say that if stores don't accept huge piles of coins there would be no point in producing them.

    Correct, and I didn't say or mean to imply that it's the same reason. Just that stores may not accept them and that it's their right.

    Personally, I consider it common courtesy to try and use reasonable denominations of bills and coins when paying for stuff. Doesn't always work, of course. If I buy a one dollar coffee at my local coffee shop, I apologize if I only have a $20 or $50 bill as I understand that coffee shops typically don't have unlimited quantities of small bills in their cash register.
     
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  18. canucklehead
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    canucklehead Gold Member

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    Only 20 of 39 deceased Presidents have been observed. Wonder if this violates the Presidential $1 Coin Act?
     
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  19. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    The article ends with

    "All isn’t lost. The next coin in the series, the President
    Chester A. Arthur
    $1 coin, will still be released in Spring 2012, though with a much lower production run based on collector demand, Wolin said."

    So maybe they'll produce a small number of coins for the remaining presidents.
     
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  20. MLW20
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    MLW20 Gold Member

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    I hear ya! My point with legal tender was that if stores refuse to accept them, then what good are they. I don't know about you, but even when using a few coins I would get puzzled looks at times, employees asking their boss if it was real money and so on... There were also times when shops loved them, especially food trucks that seem to never have singles or change!

    I only used large sums- 15 or more at gas stations.
     
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  21. Scottrick
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    Scottrick Gold Member

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    Finally. Dollar coins are stupid, at least in their current incarnation. There's no point to having dollar coins and dollar bills. I also don't understand why they are near identical to quarters. Take a page from the euro and make them thicker or heavier or something very obviously different.

    This also reminds me of the Death to Pennies video.

    The Mint keeps designing new coins. Stop. Just stop. We only need two coins, maybe three. A dime. A quarter. Maybe a dollar coin. Maybe I could be convinced that we need a nickel to make change for a quarter. And only one version of each. Four versions a year for 10 years is nonsense. Bureaucrats apparently love coming up with new things (laws, coins, etc.) to show that we still need them.
     
  22. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Well, I never really had large numbers of coins as I didn't participate in the coin abuse (as I call it... as it cost the taxpayer money for shipping coins unnecessarily around the country). I got a pile from a local bank recently when I was looking for a few specific ones for the nephews I mentioned earlier in the thread (the local US Bank branch had a hard time finding 20 coins in the coin drawers of the various tellers... no rolls at all). And the local train system ticket vending machine spits out dollar coins as change, so when occasionally it doesn't want to read my credit cards, I get a few back. I have used them for the bus to the airport and at some coffee shops, but only in small numbers. I more or less refuse to fill up my car at gas stations that don't let me pay at the pump, so I don't use cash there ever.
     
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  23. Pointslover

    Pointslover Active Member

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    Dude - this has been a long time comming - too much media coverage on that one.
     
  24. daemon14

    daemon14 Gold Member

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    Maybe after a few inflation cycles, the value of a dollar will be akin to 25¢ today and it'll only make sense for coinage. I still think we should get rid of the penny. Maybe even the nickel. Round all cash transactions to the 10¢!
     
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  25. LIH Prem
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    LIH Prem Gold Member

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    how ironic. :)

    -David
     

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