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The E-Sylum: Volume 10, Number 51, December 16, 2007, Article 18 ISRAEL DROPPING LOWEST DENOMINATION COIN, ADDING NEW 2 SHEKEL PIECE Dick Johnson writes: "Israel has done something with its coins that the United States should do: Issued a higher denomination coin and drop the lowest. Wise move. The Bank of Israel introduced a 2-shekel coin last Sunday, December 9, 2007. "It is all part of a well-devised plan, first started with the abolishment of the 1-agorot coin in 2005, the lowest denomination then in circulation (I wrote of this in The E-Sylum at the time: vol 8, no 8, article 13). The plan continues with a survey of Israeli citizens last summer. "That survey, conducted by Dr. Mina Tzemach, states most Israelis welcome the new 2 shekel coin. According to public opinion, its introduction will diminish the existing gap between NIS 1 (one New Israeli Shekel) and NIS 5 coins. This will facilitate the daily transactions and bring more efficiency in coin handling. "Note well the word 'efficiency.' Rounding off retail prices and abolishing coin denominations of low denominations creates greater efficiency in commerce. It also creates a demand for larger value coins to maintain a balance of the correct number of circulating denominations. (What's the ideal number of denominations? Count the number of coin compartments in cash registers in that country! Don't go over that number!) "The next step in Israel's coin system plan is to abolish the 5-agorot coin (comparable to U.S. 5-cent piece). A statement accompanied the announcement of the new 2-shekel coin: 'The next change in Israeli currency might be to abolish the unpopular 5-agorot coin, as a majority of Israelis do not appreciate receiving it in change.' "In addition to Israel, Australia, New Zealand and a number of Scandinavian countries have eliminated their lowest circulating coin denomination. Canada is just about to abolish their cent coin. When will the U.S. Treasury officials realize the inevitable -- it will be necessary to abolish the U.S. cent! "Eliminating the cent will lead to greater efficiency in American commerce. (And create a demand for higher denomination circulating coins to maintain that efficiency.) "The Israeli news story gives details on the design and designer of its new 2-shekel coin: -http://www.israel-times.com/business/2007/12/israel-a-new-2-shekel-coin-see s-daylight-3478/ 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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