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The E-Sylum: Volume 10, Number 48, November 25, 2007, Article 19 GUARDIAN ARTICLE DEBATES U.K.'S NEED FOR COPPER COINS [David Sundman forwarded this article from the U.K.'s Guardian newspaper. -Editor] 'I don't think people on either side of the till would lament the passing of the 1p and 2p,' says Matthew Knowles, spokesman for the Federation of Small Businesses. 'Some people might worry that an item that's currently 99p would be rounded up, but changing that to a pound isn't going to cause too much of a problem. Handling small coins is time- consuming, and with the disappearance of bank branches and post offices there are fewer places to deposit cash. Many of our members would be glad to see them go. It would make life a lot easier.' As prices rise across the world, low-denomination coins are coming under increasing threat. Australia and New Zealand abandoned one- and two-cent coins in the 1990s, and last year the fearless Kiwis got rid of the five-cent piece as well — and there is no evidence that the move has been inflationary, or that shoppers have been inconvenienced. The cent is also under attack in the US and Canada, and in some parts of Euroland, with businesses arguing that transactions are speeded up if small denominations are eliminated. 'Are these people crazy?' said one respondent. 'I'd like to see the inflation rate when we do that.' Another wondered where you would stop. 'After a few years the same people would moan, 'What about the 5p? It doesn't buy anything.'' And a man in Gateshead invited all the 'shrapnel'-hating Londoners to send their coppers to him. (What an ugly, self-satisfied term 'shrapnel' is when applied to loose change: there are parts of the world where this shrapnel is what you'd get for a day's work.) It may be like voting Conservative: what people tell pollsters they do with low-denomination coins and what they actually do may be two different things. 'People love them and hate them at the same time,' says Catherine Eagleton, curator of modern money at the British Museum. Keith Cottrell, director of sales at the Royal Mint, is also sceptical of suggestions that people in the UK can no longer be bothered with low-denomination coins. 'In Italy and elsewhere in Europe, people rarely wait for their small change,' he says, 'but here they almost always do.' We may put coins in charity boxes, collect them in jars for a rainy day and then forget about them, ignore them if we see them lying in the street, but he's unwilling to believe we have yet reached the stage where we are deliberately throwing them away. Whether they survive or not, one thing is certain — coppers are not what they were. Both at the Mint and on a tour of the vast coin collection at the British Museum, I was shown a 2d piece dating from 1797 — a monster coin actually made of copper, unlike today's copper-plated steel imitations, and weighing two ounces. (The 'd' in 2d stands for denarii, the plural of denarius, which was a Roman coin. That we were still using a Roman-derived abbreviation in 1971 shows the remarkable continuity of the pre-decimal coinage.) If you dislike having to carry today's small change, imagine being weighed down by a few of those 2d coins. While there is evidence that many people no longer stoop to pick up coppers they see in the street, if this was laying on the pavement you would have to make a detour to get around it. In 1963, Danny Kaye starred in a film called The Man From the Diner's Club. It has not left a strong imprint on movie history, but according to the British Museum's Eagleton it deserves at least a footnote in financial history. She has supplied it, too — a picture of the poster for the film appears in the history of money she has helped co-author for the museum. It may be the catchline on the poster that appeals to her: 'The funniest picture since money went out of style!' Her point is that, 44 years on, money hasn't gone out of style. Plastic may have been around for half a century, but cash is far from dead, despite the eagerness of banks and retailers to kill it off. Back at the Royal Mint, Cottrell has his own version of the Danny Kaye story. Thirty years ago, he joined a company making bank notes and went in on the first day fired with enthusiasm. It was soon dampened. 'You know you've joined a dying industry,' said the man charged with doing the induction. Three decades on, Cottrell is still making a good living out of cash. Plastic may gradually be winning the war, but cash is putting up stern resistance. Cash still accounts for 63% of all payments by volume; cards overtook cash in value terms only three years ago; and plastic is not predicted to overtake cash in volume of transactions until 2014. To read the complete article, see: Full Story Wayne Homren, Editor The Numismatic Bibliomania Society is a non-profit organization promoting numismatic literature. See our web site at coinbooks.org. To submit items for publication in The E-Sylum, write to the Editor at this address: whomren@coinlibrary.com To subscribe go to: https://my.binhost.com/lists/listinfo/esylum | |
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