As the originator of this thread, I have to agree with this comment about
coins and banknotes - today's high(er) value coin is no different, in terms
of spending power, than the lower value coins were 50 or more years ago.
Personally, I like the £1 and £2 coins (UK) and the $1 and $2 coins
(Canada). I have never found it a problem with ending up with a pocket full
of heavy coinage. Sometimes though you find a bonus - you have a bit of
change in your pocket, and find that it comes to say £8 (around $12). Hey,
I don't need to break into the next £10 note in my wallet to buy lunch.
By contrast, I find that US banknotes are not nice. They all look the same,
are very old fashioned in design (just compare them with, say, the very
modern Canadian banknotes), and a wallet full of them can add up to not much
money if they are mostly $1 bills. Give me coins every time, at least for
the lower denominations.
As regards the problem of having to carry (or collect) huge quantities of
very small denominations of coinage, that is a problem of course, as has
been pointed out, of having separate local state taxes collected at the
till, rather than be included in the displayed price. Canada has the same
problem, with collecting both the federal GST (Goods and Services Tax) and
Provincial sales taxes at the till. There is a new harmonised sales tax
being rolled out Province by Province, but I'm sure it will still be
collected at the till. The UK, acting under EU law, includes VAT (Value
Added Tax) in the displayed prices. Yes, when something is displayed as
being £4.99, you get 1 penny change, which is then pretty useless to spend
on anything else, but overall seems manageable. I much prefer seeing the
displayed price as being the price you pay at the till.
Australia has the best system (perhaps Pat can correct this if I have got it
wrong). There coins are now denominated at a minimum of $0.05, with
displayed prices (which include sales taxes) rounded to the nearest $0.05.
If a price is displayed at $4.99, you only pay $4.95. If the retailer wants
more, he has to price at $5.00. A great way to cut down on loose change.
As I mentioned before, it amazes me that Americans have a problem with
something that the rest of the world has adopted wholesale, because it works
(like the metric system). Just what is the problem?
John F-L
----- Original Message -----
From: "Michael G. Koerner" <mgk...@dataex.com>
To: "U.S. Metric Association" <usma@colostate.edu>
Sent: Thursday, August 12, 2010 7:34 PM
Subject: [USMA:48361] Fw: Re: USA $1 Coin
Subject:
[USMA:48360] Fw: Re: USA $1 Coins
From:
"John M. Steele" <jmsteele9...@sbcglobal.net>
Date:
Thu, 12 Aug 2010 02:54:12 -0700 (PDT)
To:
U.S. Metric Association <usma@colostate.edu>
OK, $1 coin lovers, such a deal I have for you. It is time to "fish or
cut bait." No more "can't find 'em" excuses. I learned of this deal
through another discussion forum:
http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?langId=-1&storeId=10001&catalogId=10001&identifier=8100
The US Mint will sell you $250 in $1 coins (circulation grade) AT PAR.
They will absorb the credit card fees, shipping and handling, and deliver
to your door. They are obviously taking a small loss on each to move
inventory.
Scammers have used the program to earn air miles and credit card points
and immediately deposit the coins at their bank. So the Mint has had to
add some limitations, you can only buy $1000 worth every 10 days, and you
have to promise that you understand you are not supposed to abuse the
program. (Please keep in mind that $1000 weighs 8.1 kg plus the weight of
shipping materials.) That limit is considerably faster than I use cash,
although, frankly, I prefer bills and larger denominations.
Actually, the USMint is still making out BIG TIME, even with the free
shipping on the coins, as it only costs about 7-8¢ each for them to make
the coins. As soon as the dies begin to spearate from the newly struck
coins, they go on the Federal books at $1 each, for a 92-93¢/coin profit
(called 'seigniorage', a GREAT spelling-bee word!). Subtract the shipping
and the Feds are still making nearly 90¢/coin.
As for that 'abuse', I would just flag those purchases such that they will
not be eligible for those CC bonuses.
As for quantities of metal in one's pocket, ask those who live in places
where high-value coins are the norm. The quantity of metal in pockets and
coin purses is usually less, because there is more of a tendency to SPEND
lower coins, along with the higher ones, in normal daily small-time
commerce, rather than to just accumulate them as here in the USA.
70 years ago (1940), the USA still used the same slate of coins and
banknotes as today - 1¢, 5¢, 10¢, 25¢, 50¢ (all of today's dimensions) and
scarce $1 coins and then banknotes for $1 on up. Half Dollars (50¢) were
more common in circulation than Quarters (25¢). BUT, back then, when
figuring in inflation, the Quarter (25¢) of today was a bit less than the
1¢ of 1940. A beer at a bar was usually 5¢; postage on a first class
letter was 3¢; a decent lunch, 10-15¢; a daily newspaper 3 or 4¢. A
top-of-the-line livingroom radio, $175 (their day's equal of the $3K-4K
theater-style big-screen home entertainment center of today). And so
forth.
Nearly ALL daily small-time commerce in 1940 was in coins *ONLY* and to
have even ONE banknote in the wallet was to be carrying around REAL money!
On today's scale, 1940 money/prices would be like carrying around and
using 5¢ banknotes back then - and prior to 1933, the USA had regular
circulating coins of up to $20 - well over $500, perhaps over $1K, in
today's money.
--
___________________________________________ ____
_______________
Regards, | |\ ____
| | | | |\
Michael G. Koerner May they | | | | | | rise
again!
Appleton, Wisconsin USA | | | | | |
___________________________________________ | | | | | |
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