The E-Sylum:  Volume 8, Number 54, December 25, 2005, Article 14

THE ONGOING DOLLAR COIN DEBATE

Arthur Shippee writes: "Here is a note from a retired
Canadian friend of mine, to whom I'd sent Mark Tomasko's
note about bills vs. coins: "Penny, nickel, dime, quarter,
looney, twoony: I love them all! They make money transactions
interesting, colourful, potentially threatening (you
still have to do math!). In terms of usefulness it is
perhaps a moot question, as I use cards for everything
ver a dollar, and in Saskatoon we can now even use cards
at parking meters. Coins connect me to the historic past
of western civilization. A pocketful of even pennies,
worthless though they may be, gives me by their sheer
weight the sense that I am after all a man of substance!"

Steve Woodland writes: "Time and time again, I read
comments like those of Mark Tomasko in v8#53 of the
E-Sylum, where Americans think that "paper dollar bills"
are the only way to go, and that the people in those
countries that have large denomination coins in circulation,
such as Canada and the European Union, run around with
pockets and purses laden with pounds of heavy change. As
a Canadian who has lived without a one-dollar bill since
1987 and without a two-dollar bill since 1996, I have come
to appreciate the benefit of our one-dollar "loonie" and
two-dollar "twoonie" coins. First, they don't wear out
as easily as paper money, and while this doesn't save
huge amounts of money, it does save money. Second, the
coins are much more useful in vending machines, toll
booths, public transit and parking meters, where coinage
dominates. Third, the large denomination coins are much
lighter than the same amount of money in small denomination
coins. For example, a Canadian "loonie" weighs in at 7
grams and a "twoonie" at 7.3 grams, while the equivalent
in 25-cent pieces would weigh 17.6 grams and 35.2 grams
respectively. Mr. Tomasko can continue to carry around
his quarters, I'll stick to my 1-dollar and 2-dollar coins.

As a further observation on the issue of 1-dollar circulation
coins in the US, I concur with Bret Evans' comments in his
article "Top 10 numismatic faux pas" in the 2005 issue of
Collector's Guide. In discussing the disinterest by the US
public in the Susan B. Anthony 1-dollar coin, Mr. Evans
states that while the 1-dollar coin was needed for vending
machine, public transit and toll road operations, it "...was
doomed to failure for two reasons. First off, the Suzie was
too similar to the 25-cent coin in both size and colour.
Hard to distinguish from its lower value sister, the coin
was a source of frustration. The other problem was that the
$1 note was still being issued on demand.  If the Suzie had
been the only $1 denomination [in circulation], consumers
would have eventually adjusted.  Faced with choosing between
a confusing newcomer and a tried and true performer, most
Americans chose [to stick with] the banknote."

There, that's my two cents worth! (hmmm, another item
of currency that should be considered for retirement)"

  Wayne Homren, Editor

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