U.S. TREASURY CONSIDERS PLANS TO ELIMINATE CENT

Treasury Secretary Jacob Lew originally planned to put Susan B. Anthony on the front of the $10 bill and suspend production of the penny in a revamp of the nation’s money, according to a memo he sent to President Barack Obama last year.

The March 2015 memo, which hadn’t previously been reported, sheds new light on a couple of long-running currency dramas. The penny suspension hadn’t been announced, though Mr. Lew last fall said it was under consideration.

Treasury hasn’t announced any plans about suspending production of the penny. Mr. Lew’s memo also said he would call on Congress to authorize the use of alternative metals for coins in circulation.

“We’ve been looking at the penny for a long time, because obviously the value of a penny has gotten smaller and smaller as time has gone on,” Mr. Lew said at a forum on the $10 bill last November. “Even with low inflation, it continues to diminish.”

Several bills have been introduced in Congress to eliminate the penny, but none has passed. Because many consumers don’t use pennies, they’re removed from circulation quickly, requiring the U.S. Mint to produce more of those than all other coins put together. While Congress would need to pass a law to change currency denominations, suspending production could speed that process.

Suspending penny production could raise objections from the zinc industry and create logistical headaches for businesses. Zinc accounts for 97.5% of penny content.

Some economists have said the nuisance and waste costs of producing the penny outweigh any benefits. Since 2006, the rising metals prices have pushed the unit cost of producing the penny and the nickel above their face value. It cost 1.7 cents to produce a penny in the 2014 fiscal year.

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Treasury Secretary Lew Planned to Put Susan B. Anthony on $10 Bill (www.wsj.com/articles/lew-planned-to-put-susan-b-anthony-on-10-bill-1461083466)

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