Congressional Committee Discusses Budget Savings Benefit Of Dollar Coin
900 19th St. NW 8th Floor Washington, DC 20006
WASHINGTON (11/29/12) – Congress’ own budget watchdog once again recommended saving billions of dollars by modernizing U.S. currency from the $1 note to a $1 coin in testimony today in front of a House Financial Services subcommittee.
The independent, non-partisan Government Accountability Office (GAO) has now recommended a move to the dollar coin eight times to Congress. They have estimated that the federal government could save at least $4.4 billion, if not more, without raising a single tax or cutting a single program.
“GAO stands for accountability, reliability and independence,” Philip Diehl, former Director of the U.S. Mint testified, “Since 1990, GAO has issued seven reports, all reaching the same conclusion: billions will be saved. The estimated savings over 30 years have ranged from $4.4 billion to $15.7 billion. It didn’t matter whether a Republican or Democrat asked the question, the answer always came back the same.”
“We continue to believe that replacing the note with a coin is likely to provide a financial benefit to the government if the note is eliminated and negative public reaction is effectively managed through stakeholder outreach and public education,” said Lorelei St. James, who testified on behalf of the GAO. “Many other countries have successfully replaced low denomination notes with coins, even when initially faced with public opposition.”
“Canada’s replacement of the one-dollar bank note with a circulation coin, and later the introduction of the two-dollar coin, can be deemed a success, from the perspective of the Mint and all end-users of Canadian currency,” noted Beverley Lepine, Chief Operating Officer of the Royal Canadian Mint.
Today’s hearing was chaired by Congressman David Schweikert (R-AZ-5), cosponsor of the Currency Optimization, Innovation and National Savings (COINS) Act (H.R. 2977) and comes at a time when Congress is considering options for avoiding the fiscal cliff and addressing the federal budget deficit.
The COINS Act (H.R. 2977 and S. 2049) was introduced earlier this year by a bipartisan group including Congressman Schweikert, Senators Tom Harkin (D-IA), John McCain (R-AZ), Tom Coburn (R-OK), Mike Enzi (R-WY) and is designed to save the country billions of dollars by eliminating the wasteful, inefficient $1 note.
About Dollar Coin Alliance
The Dollar Coin Alliance is a coalition of small businesses, budget watchdogs, transit agencies, and labor groups dedicated to saving American taxpayers billions of dollars by transitioning to a one-dollar coin, and focused on educating taxpayers and policy-makers about the benefits of increasing dollar coin circulation. For more information, or to get involved, please visit www.DollarCoinAlliance.org.
CREDITS:Press release from Dollar Coin Alliance. Edited to add hyperlinks.
The testimony is by Lorelei St. James, Director, Physical Infrastructure Issues of the non-partisan Government Accountability Office. The testimony report, “Benefits and Considerations for Replacing the $1 Note with a $1 Coin,” reiterates the six previous GAO reports claiming large savings by replacing the paper dollar with a coin. This is not a new stance by the GAO. They have issued six reports since 1990 making the same recommendation with the last report (GAO-12-307) released on February 15, 2012—something I wrote about here.
Rather than concentrating on the redux of the GAO’s statements, the media missed the advance statement from Beverley Lepin, Chief Operating officer of the Royal Canadian Mint. In her testimony, Lepin will point out how the RCM changed alloys twice, has a coin recycling program, added color, and has anti-counterfeiting technology for their one-dollar (Loonie) and two-dollar (Toonie) coins.
Basically, Lepin is saying something only whispered by some: the Royal Canadian Mint is more advanced than the U.S. Mint.
But the problem is not the U.S. Mint’s fault. When it come to running their operation like a business, the RCM has a real business structure that works with the the Bank of Canada and the Parliament of Canada to ensure that their money supply is modern and more efficient. Neither Canada’s parliament nor the Bank of Canada micro-manages the RCM’s operations the way congress micro-manages the U.S. Mint.
I know that Article I, Section 8 of the United States Constitution says that “The Congress shall have Power… To coin Money, regulate the Value thereof, …” but it does not say that congress shall have the power to micro-manage the U.S. Mint to the point where it is running using rules that have been made as long as 220 year ago. Maybe it is time to learn the real lessons from the RCM and modernize the structure of the U.S. Mint.
Before some strict constitutionalist or ardent supporter of congress accuse me of trying to usurp congress’s powers, let me remind you that Article I, Section 8 also grants congress the power “To establish Post Offices and post Roads.” The last time I looked, the United States Postal Service is an independent organization that establishes and closes post offices and it has been over 50 years since the last time a “post Road” has been built.
I do not expect anything to happen as a result of this hearing except for verbal fireworks from the politicians, overly excited sound-bites from the cable news talking heads, and incorrect information from the print media—which we will correct here, of course. I will just sit back and enjoy the show of the last hearing of this type held by a Ron Paul-lead subcommittee.
GAO Reports
The following is a list of the reports and testimonies from the Government Accountability Office about replacing the one-dollar note with a one-dollar coin:
National Coinage Proposals: Limited Public Demand for New Dollar Coin or Elimination of Pennies, GAO/GGD-90-88, May 23, 1990
1-Dollar Coin: Reintroduction Could Save Millions If Properly Managed, GAO/GGD-93-56, March 11, 1993
Dollar Coin Could Save Millions, GAO/T-GGD-95-203, July 13, 1995
Financial Impact of Issuing the New $1 Coin, GAO/GGD-00-111R, April 7, 2000
U.S. Coins: Replacing the $1 Note with a $1 Coin Would Provide a Financial Benefit to the Government, GAO-11-281, March 4, 2011
U.S. Coins: Alternate Scenarios Suggest Different Benefits and Losses from Replacing the $1 Note with a $1 Coin), GAO-12-307, February 15, 2012
U.S. Coins: Benefits and Considerations for Replacing the $1 Note with a $1 Coin, GAO-13-164T, November 29, 2012
“Nothing exists except atoms and empty space; everything else is opinion.” — Democritus
The power of the opinion. Opinions drive us to do things based on what we hear, how we feel, and process the information around us. Opinions make us different and even binds us together as a species. Opinions can have a significant effect on society, like and election. Other times, opinions can be like screaming into the wind, like complaining about the U.S. Mint.
Sometimes, expressing our opinion can be fun. I have taken the fun part of expressing our opinions in collecting and numismatics and added the ability to express your opinion privately, without anyone knowing what you think. If you look in the right column of this page, there is Poll section where I will post a weekly poll asking for your opinion on something. Anything. All related to numismatics.
The first poll is asking which is your favorite dollar coin design of the six choices listed. Pick one, click on the “Vote” button, and your opinion will be recorded.
Polls will change every week on Monday. Some polls may be about something serious or I may ask less than serious questions. Regardless of the question, it is all in fun.
You can vote once per poll. Yes, I know there is a way to “beat the system.” But if you are that passionate about a question, go ahead!
“It were not best that we should all think alike; it is difference of opinion that makes horse races.” — Mark Twain in The Tragedy of Pudd’nhead Wilson
Cool collectibles come in various forms from a number of sources. This week, I received a nice collectible just for doing something I like to do: talk!
I have been a member of the Washington Numismatic Society for about a year and wanted to become involved. During the Whitman Show and the Maryland State Numismatic Association Annual Meeting, I was approached by the bulletin editor who is also a member of my home club sort of cornered me and convinced me to be the November program. He did not have to twist my arm (much) to get me to talk about Maryland Colonial Currency.
Not only have I posted articles about Maryland Colonial Currency (see this, this, that, and here), but I had published a full story in the Maryland Numismatist (Vol. 38, No. 1) that won the MSNA Article of the Year.
Since writing the article I had purchased a few notes and found more information. So I had taken the first presentation [PDF] I made to my coin club that inspired the articles and interest in Maryland colonial currency, and edited it for time and content.
After the presentation, I was presented with a bronze medal from WNS’s 75th Anniversary. WNS is the one of the oldest numismatic organizations in the area who celebrated their 75th anniversary in 2002. The medal is 38mm in diameter and 4mm at the thickest part of the design. It is nicely made by the Medallic Art Company of New York.
Doing this presentation not only reminded me that I have more research to fill in some of the details, but that I am missing notes in my collection. I also found a new group of collectors in the area to learn from, which is always good. I paid my dues for 2013 and hope to attend more meetings.
A 2012 one Euro cent pocket change find from France next to a 2012 Lincoln cent.
Somewhere in my travels I received a 2012 one Euro cent coin from France. It is interesting how this coin made it into change here in the United States unless someone was really not paying attention since the Euro cent coin is smaller than our Lincoln cent. Although both are copper coated, our Lincoln cent is 19.05 mm (.75 inches) in diameter while the standard Euro cent is 16.25 mm (.639 inches). The Lincoln cent is also heavier at 2.5 grams made of copper-plated zinc with 2.5-percent being copper. The Euro cent is copper-plated steel weighing in at 2.27 grams where 5.65-percent is copper.
After doing an online search, I found that this is a 2012 coin from France.
As with all Euro coins, the reverse or common side depicts the same common Euro cent design that every country in the European Union uses and has used since Euro coins and currency were issued in 2002.
Le Triomphe de la République by sculptor Aimé-Jules Dalou at Place de la Nation in Paris features Marianne, the national emblem of France.
On the reverse, or national side, the coin features Marianne, the national emblem of France and an allegorical figure of Liberty and Reason. Marianne symbolizes “Le Triomphe de la République” (Triumph of the Republic), a bronze sculpture that overlooks the Place de la Nation in Paris. Marianne embodies the desire for a sound and lasting Europe.
To the right of Marianne are the letters “R” and “F” for the République Française (French Republic). The design is surrounded by 12 stars symbolizing the the 12 nations in the European Union at the time of the design. It was designed by Fabienne Courtiade, an engraver from Monnaie de Paris (Paris Mint) whose name appears as “F COURTIADE” between the fourth and fifth star (assuming clock-like positions). This design is used on France’s one, two, and five Euro cent coins—all copper-plated steel coins.
If nothing else, I am a little ahead of the game since the coin is worth 1.3-cents at the current exchange rate. I hope you had a good Thanksgiving.
Image of the statue “The Triumph of the Republic” courtesy of Wikimedia Commons.
After arriving in the New World in 1620, the Pilgrims celebrated their first harvest in 1621. The three-day even was attended by 53 Pilgrims and 90 Native Americans that lasted three days. The tradition of giving thanks for successes was a tradition that the Pilgrims brought with them from England. This three-day celebration in 1621 is considered the first Thanksgiving.
Thanksgiving was celebrated during many different times within the colonies, mainly to give thanks for something that was honorable to the colony or the locality that observed the celebration. The first national recognition of a Thanksgiving celebration came when General George Washington declared December 1777 as Thanksgiving honoring the defeat of the British at Saratoga. As President, George Washington declared the first national Thanksgiving celebration on November 26, 1789. The only other president to issue a Thanksgiving proclamation was President James Madison. From then, it was up to the individual states to declare a Thanksgiving holiday.
As part of his attempt to maintain the union, President Abraham Lincoln issued a proclamation that made Thanksgiving Day a national annual event on the last Thursday in November beginning in 1863.
Thanksgiving remained the last Thursday of November until 1939 when he declared Thanksgiving to be on the fourth Thursday of the month to give merchants more time to sell good during the Christmas shopping season. Congress passed a joint resolution in 1942 fixing Thanksgiving to the fourth Thursday of November.
In 1947, the National Turkey Federation has provided the President of the United State with one live turkey and two dressed turkeys. President Harry Truman is credited with pardoning the first turkey in 1947 but it did not become a tradition until President Ronald Reagan started in 1987 and continued by President George H.W. Bush in 1989. Since 1989, the pardoned turkeys have lived the rest of their lives at Frying Pan Park in Herndon, Virginia. Those pardoned by President Obama have gone to live at George and Martha’s old place in Mount Vernon, Virginia.
For All We Have
by Roger J. Robicheau
A table with chairs, that welcome sight
Our family, our friends, pure delight
A caring kiss with a gentle smile
Each tender hug lasts that country mile
The presence of love so fills the air
This gift of God brings our hearts so near
Reflections of past bring nurtured thought
Great visions come by, what life has taught
In thankful ways we embrace this day
And often think of loved ones away
Those serving us proud are often gone
But their spirit remains, closely drawn
Our Nation should praise each special one
For all we have is through what they’ve done
The freedom to have Thanksgiving Day
Keeps certain plates bare, please truly pray
On November 6, two weeks ago, the United States held an election and it resulted in basically no change in the political structure. President Barack Obama was re-elected, the House of Representatives is still being lead by the Republicans and the Senate by the Democrats. Leadership in both chambers should not change.
For numismatists, there will be one change in the 113th Congress with the retirement of Ron Paul (R-TX) who is currently Chairman of the Financial Services Subcommittee on Domestic Monetary Policy and Technology, the subcommittee that oversees the U.S. Mint. There will also be a change on the leadership of the Financial Services Committee itself with the retirement of Barney Frank (D-MA), the Democrats will have to select a ranking member. There is no speculation as to who will replace these two retiring representatives.
In retrospect, after worrying about Paul becoming chairman of this subcommittee, the Financial Services Committee was able to maneuver around Paul’s usual intransigence by taking on legislation at the committee level rather than rely on the vetting of the subcommittee. In fact, because of Paul’s attempted run for the presidency, his absence made it easy for the committee to bypass his subcommittee.
There is still work for the 112th congress to do aside from the “fiscal cliff” and sequestration. H.R. 5977, the Collectible Coin Protection Act, still needs to be acted upon. The Collectible Coin Protection Act will allow collectors, dealers, and grading services to bring legal actions that are much more effective, with much stronger remedies than previously existed. It will allow those harmed to work with the Justice Department to bring criminal actions, where appropriate.
Now that congress is in their lame duck session, the only way H.R. 5977 can become law, is to have it considered under suspension of the rules and force an up or down vote. In order for the bill to be considered under suspension of the rules will be to have members of congress co-sponsor the legislation. At the time of this writing, there are 11 co-sponsors from both sides of the aisle. I urge all of my readers to support H.R. 5977 by asking their representative to co-sponsor H.R. 5977. If you can help, read the information I wrote for the posting “ANACS Revelation Shows We Continue to Have Counterfeit Problems” that describes how to contact your member of congress.
Bibiana Boerio was nominate to be the Director of the U.S. Mint.
Another bit of business left for the lame duck Senate is the nomination of Bibiana Boerio to be the 39th Director of the United States Mint. Although there has been no report of problems with her nomination, the partisanship battles in the Senate could cause a senator to threaten a filibuster to put her confirmation on hold. If Boerio is not confirmed by the final adjournment of the 112th Congress, President Obama will have to resubmit her nomination to the 113th Congress after it is seated on January 3rd.
An issue that will probably be deferred to the 113th congress will be the report to congress that is required under the Coin Modernization, Oversight, and Continuity Act of 2010, (Public Law No: 111-302 [Text] [PDF]). The law requires the U.S. Mint to produce a report about the metals used for coinage and alternatives two years from enactment. Since the law was signed by the president on December 14, 2010, the U.S. Mint is required to submit their report by December 14, 2012.
Adolph A. Weinman’s Winged Liberty Head “Mercury” Dime effigy to be used on the new palladium bullion coin.
Another issue that will also probably be deferred to the 113th congress will be the study of the viability of issuing palladium bullion coins. Under the American Eagle Palladium Bullion Coin Act of 2010 (Public Law No: 111-303 [Text] [PDF]), the U.S. Mint is supposed to study whether it is viable to produce palladium coins as specified under the Act. That report is also due to congress on December 14, 2012.
Although there is no report from the U.S. Mint as to the status of either report, it would be reasonably certain that the U.S. Mint will submit both reports by December 14. However, it would also be reasonably certain that the House Financial Services Subcommittee on Domestic Monetary Policy and Technology will leave it for the next congress’s agenda.
Mark Twain in his gown (scarlet with grey sleeves and facings) for his D.Litt. degree, awarded to him by Oxford University
Under suspension of the rules, the House of Representatives voted 408-4 to pass H.R. 2453, Mark Twain Commemorative Coin Act. The bill has been officially enrolled and sent to the president for his signature.
When the bill becomes law, the Twain commemorative will be in 2016 to sell 100,000 $5 gold coins and 350,000 silver dollars whose designs “shall be emblematic of the life and legacy of Mark Twain.” There will be the usual $35 surcharge for the gold coin and $10 for the silver dollar that will be distributed evenly to:
After looking at the list, I could not imagine why Elmira College is on the list until I discovered the Center for Mark Twain Studies. Twain was married in February 1870 to the former Olivia Langdon in Elmira. While Twain and his family lived in Hartford, Connecticut, he summered at Quarry Farm in Elmira, the hole of Susan Crane, Olivia’s sister.
Twain would be amused by the commemorative. While he had a love for science and technology, Twain did not embrace his celebrity as much as some do today. Even after he faced financial troubles from bad investments and the depression from the death of his daughter Susy of meningitis, friends pushed Twain to the lecture circuit. His lectures were humorous bordering on an early form of stand-up comedy full of self-deprecating humor. Part of his talks marveled how people would pay to hear his speak or seek him out for advice.
Samuel L. Clemens stamp, 1940
Twain always marveled at the concept of celebrity for the sake of being famous. He thought that the great thinkers and inventors should have been more revered. Twain befriended Nikola Tesla understanding that Tesla was a far greater innovator that people gave him credit for. At the same time, he become friends with Henry Huttleston Rogers, a principal of Standard Oil, who largely stayed out of the limelight while company founder John D. Rockefeller remained the face of the corporation.
Mark Twain, or Samuel Longhorne Clemens as he was born, was an interesting character in United States culture. It would be interesting to see if the design of his commemorative would honor his humor and character or go the safe route by honoring his writing. Using Tom Sawyer and Huckleberry Finn as themes would be safe designs. Basing a design on his humor would be more daring and fun.
In Flanders fields the poppies blow
Between the crosses, row on row,
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.
We are the Dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved, and now we lie
In Flanders fields.
Take up our quarrel with the foe:
To you from failing hands we throw
The torch; be yours to hold it high.
If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders fields.
“In Flanders Fields” was written during World War I by Lieutenant Colonel John McCrae, a Canadian physician stationed in northern France. Aside from being a physician, he was a teacher, poet, and author. McCrea was appointed as a field surgeon and was in charge of a field hospital during the Second Battle of Ypres when his friend and former student Lieutenant Alexis Helmer was killed in the battle. The death and funeral of his friend inspired McCrae to write the poem.
“In Flanders Fields” was published anonymously in the British magazine Punch on December 8, 1915. However, the index for the year printed only a few weeks later attributed the poem to McCrea. The poem became one of the most popular of the war and was extensively printed in the United States while its leaders were debated whether to join the war.
McCrae died of pneumonia on January 28, 1918 while commanding No. 3 Canadian General Hospital (McGill) at Boulogne. He was buried with full military honors at Wimereaux Cemetery near the English Channel 3 miles from Boulogne.
2004 Canada Poppy Quarter, the first colorized coin ever issued for circulation by any mint.
McCrae’s poem has made the poppy a popular and powerful symbol of Remembrance Day celebrated on the eleventh day of the eleventh month in the Commonwealth Realm to mark the anniversary of Armistice Day in 1919. In the United States, we celebrate it as Veterans Day.
The remembrance poppy is not as strong a symbol in the United States since the nation did not declare war on Germany until April 1917. The American Legion has used the poppy as part of its fund raising efforts.
Maybe the United States should embrace the poppy as well. Why not create a commemorative coin with a colored poppy as the design and use the seignorage from the sales to support the work of the Department of Veterans Affairs? How about changing the reverse of the Roosevelt Dime to be a red-colored poppy to raise awareness of all our veterans? Using the Roosevelt Dime would give it a needed refresh and would tie both World Wars in one coin. Then the U.S. Mint could strike special silver dime for sale to the public.
On February 25, 1863, President Abraham Lincoln signed the National Bank Act of 1863 that created a single currency standard for the United States where the notes would be backed by the United States Treasury and printed by the federal government. The result of this act lead to the establishment of the National Currency Bureau which was later rename to the Bureau of Engraving and Printing.
Loading ...
