[vendtalk] New Money & No More $1 Bill Solution

[Vandervoorts]

FYI - For the "what it is worth" Department -

 One of the possibilities that the US Bureau of Engraving stated for
achieving the intent of the court in making paper money accessible to the
blind was the following:
1.  Obsolete the US $1 bill as fast as possible.
2.  Replace the use of the $1 bill with the $1 coin for all transactions.
3.  Introduce new $2, $5, $10, $20, $50, and $100 bills in some new format
that would meet the need of the blind.

 While I got no feeling one way or the other about that solution as being
the preferred on, this solution is pretty much what NAMA's lobbying effort
has been. 
 For more info, please see the latest article in Vending Times copied below
or use this web link:
http://www.vendingtimes.com/ME2/dirmod.asp?sid=&nm=&type=Publishing&mod=Publ
ications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=DFD8749
CF1CE4E05AB50971417F62F71


Vending Times 
Issue Date Vol 49, No. 1, January 2009

(Also, Issue Date: Vol. 40, No. 11 / August 25, 2000 - September 24, 2000,
Posted On: 12/10/2008)

NAMA Rebuts Atlanta Journal-Constitution $1 Coin Attack  
 
CHICAGO — The National Automatic Merchandising Association [NAMA] has
responded to a column authored by Richard Miniter of the Hudson Institute
that appeared in the Nov. 30 edition of the Atlanta Journal-Constitution.
The opinion-piece alleged that “special interests” were lobbying Congress to
waste taxpayer money on replacing the $1 bill with a circulating coin, to
the detriment of the banknote-loving American public. The column may be
found here:

www.ajc.com/search/content/opinion/stories/2008/11/30/minitered_1130.html

NAMA president and chief executive officer Richard M. Geerdes issued the
following statement in response:

“In April, 2000, the Government’s General Accountability Office estimated
annual savings using $1 coins instead of printing $1 bills would be $522
million. It is perfectly reasonable to assume that the savings from the
coin, which lasts 30 years, as opposed to the bill, which lasts two years,
would have risen to at least $600 million a year by 2008.  

“Mr. Miniter is right in pointing out that the cost to produce coins has
risen substantially in recent years. According to the United States Mint’s
2007 Annual Report, the cost to produce a penny has risen to 1.67¢ and the
cost of the nickel has risen to 9.53¢. The cost to make a $1 coin in 2007
was 16¢ per coin. So the penny and nickel yielded a loss to the American
taxpayer of $98 million for the year, while the $1 coin yielded a profit to
the taxpayer of $574 million. Now what coin does Mr. Miniter urge the
Government to stop making – the $1 coin?

“Not only would $1 coins be good for the taxpayer, they would also be good
for the vending industry and the millions of Americans who buy from vending
machines every day. Coins work virtually 100% of the time, while many
thousands of vending machine sales are thwarted every day by low quality $1
bills. Up to half of vending machine operators’ service calls are due to
jammed bill acceptors. Dollar coins would reduce service calls. And $1 coins
are much cheaper to dispense in change than $1 bills.

“Progress is being made in the vending industry in making credit and debit
card options available to customers, but substantial capital costs and per
transaction fees remain a barrier.

“The vending industry is committed to making as many modern payment options
as possible available to the public, including credit cards, debit cards and
$1 coins.”

Dan Mathews, NAMA executive vice-president and chief operating officer,
released the association’s rebuttal to the press. He added, “There is simply
no question that everyone would benefit if $1 bills were replaced with $1
coins.

“This issue is very important to us at NAMA,” Mathews emphasized, “and we
will continue to take whatever steps are necessary to help make it happen.”
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