The Latin Monetary Union was formed by four countries from what continent?
When were the first Series 1981A Federal Reserve notes issued?
Civil War tokens generally corresponded to what U.S. coin of similar size and composition?
Yesterday’s post about the demise of the US cent was an April Fool’s joke. Most of you caught on but I wanted to make it clear to those of you who were still on the fence. I consider a good April Fool’s joke as one that is partially believable. Judging from the comments I got, this was a good one.
Rest assured that for now, the US cent is here to stay. The US Treasury web site provides details on what would have to happen for the cent to be removed from circulation.
As the United States Mint produces the coins that Congress mandates, it does not have the authority to abolish a unit of currency. If directed to do so by legislation enacted by the Congress and signed by the President, the Treasury Department would again study phasing out the penny. Because the demand exists and the Federal Reserve Banks require inventories to meet the demand, the United States Mint is committed to producing the penny.
In the comments on the April Fool’s post Susan asked how rounding would work. I don’t have any insider information, but I would guess that prices would be rounded up and down, not just up. When the half cent was removed from circulation, prices couldn’t be in half cent increments (which they were at the time). We don’t miss that because none of us ever experienced them. I expect the same to be true of our great grandchildren with cents. When the cent is done away they’ll think prices were always in 5 cent increments.
(Washington, D.C.) – Edmund C. Moy, current Director of the United States Mint, announced today that the one cent piece will no longer be produced by the mint. Citing the increasing price of zinc and copper as the main impetus for the decision, Moy explained, “We have no intention of continuing to spend more than it’s worth to mint the cent. The time has come to get rid of the cent and round consumer prices accordingly.”
“It’s about time. It’s outlived its usefulness,” says Tony Terranova, a New York City coin dealer who paid $437,000 for a 1792 penny prototype in what is believed to be the denomination’s highest auction price.
“Most people find them annoying when they get them in change,” he said. “I’ve seen people get pennies in change and actually throw them on the floor.”
The idea of a penniless society began to gain currency in 1989 with a bill in Congress to round off purchases to the nearest nickel. It was dropped, but the General Accounting Office in a 1996 report acknowledged that some people consider the penny a “nuisance coin.”
Mark Weller, Director of Americans for Common Cents, was displeased with the news. Wellers feels that “any time you have more accurate pricing, consumers benefit.”
Not so says Robert M. Whaples of Wake Forest University. He analyzed 200,000 transactions across seven states and concluded that consumers will not actually suffer. Purchases at gas stations and convenience stores are just as likely to come to $7.02 as $6.98, so the rounding up and rounding down will cancel themselves out. On average, shoppers will lose nothing.
“It’s part of their past, so it’s natural they want to keep it in their future,” said Dave Harper, editor of Numismatic News.
Wireless network Virgin Mobile USA, who launched a save-the-penny campaign, was not available for comment. One can only presume their penny truck that used to travel cross-country to gather pennies for charity will be parked for good.
Question: What coin first featured the phrase “In God We Trust”?
Answer: The first U.S. coin to feature this phrase was the two-cent piece. Authorized as part of the Coinage Act in 1864 and produced from 1864 to 1873, the motto was added because of an increased religious mind-set during the U.S. Civil War. Since 1938, all U.S. coins have featured the motto. Mint Director James Pollock originally proposed the motto of “God, Our Trust” (or “Our Country, Our God”). Secretary of the Treasury Salmon P. Chase later announced the revised motto, “In God We Trust.”