[vendtalk] U.S. Mint Tests Cheaper Coinage, Seeks Minimal Effect On Vending

[Bill Reif]

This is interesting. I think the mint's arguments miss the mark. The 
face value vs production value argument ignores the fact that coins 
circulate hundreds of times in their useful lives. Since bad money 
drives good money of the same denomination out of circulation, the 
introduction of cheap coinage will decrease the usefulness of what's 
already circulating.

Those of us who handle large amounts of coinage, either in the vending 
or the retail end, know of the hassle of fetching, counting out to 
customers & coin mechs, and hauling back to the bank for rerolling. Our 
customers feel no better about having to deal with coins, carrying as 
few as possible until some machine we don't own, perhaps a newspaper 
machine, parking meter or laundromat, prompts them to ask us or our 
cashiers to be their human bill changer. Many have the same contempt for 
dollar coins we all have for pennies.

In my opinion, the mint would save itself and us a lot of transition 
money if they just hung in their until the transition from coinage and 
from money itself, already largely under way, is completed. Many of us 
already have card readers waiting and would be glad to decrease those 
trips to the bank or payments to armored couriers.

Cordially,
Bill

On 1/5/2013 4:01 PM, Vandervoort's wrote:
> Opinion - I hope they do not have to import the materials to make the new
> coinage!
>
>   
>
>
> Vending Times
>
> Issue Date: Vol. 53, No. 1, January 2013, Posted On: 1/3/2013
>
>
> U.S. Mint Tests Cheaper Coinage, Seeks Minimal Effect On Vending
>
>
>
> Emily Jed
>   <mailto:Emily at vendingtimes.net> Emily at vendingtimes.net
>
>
> 	
> 	
>
> WASHINGTON -- It costs 2¢ to make and distribute a Lincoln penny, and more
> than 11¢ for a nickel, according to a new two-year study released by the
> U.S. Mint. But the agency is on a mission to find a way to bring the metal
> and production costs of U.S. coins closer to their actual face value, and
> with the least possible impact to the vending industry.
>
>   
>
> The Mint has been working with a research and development consultant to test
> scores of metals and dozens of different alloys to identify potential
> cost-cutting changes to the composition and methods of manufacturing
> circulating coinage.
>
>   
>
> In a progress report, the Mint explained that additional R&D is necessary
> before it can recommend any changes to the current coin composition. Going
> forward, the agency said it will continue to develop and test potential
> alternative materials; conduct production-scale runs to validate supply
> chains, "manufacturability" and costs; and further verify the estimated
> costs to stakeholders that depend on coins.
>
>   
>
> The Mint said in its report that vending operators are an important group
> among those stakeholders. The vending industry, which has worked closely
> with the agency, estimates a one-time upgrade of its machines to accept
> coins of the same size and weight as the current ones, but with a different
> electromagnetic signature, would cost between $700 million and $3.5 billion.
>
>
>   
>
> Except for pennies, all current U.S. circulating coins have the
> electromagnetic properties of copper, the report says.
>
>   
>
> Another challenge for the Mint is the rising cost of copper, used in all
> U.S. coins, and nickel, used in all except pennies. Only four of the 80
> metals on the periodic table -- aluminum, iron, zinc and lead -- presently
> cost less than copper and nickel, according to the report.
>
>   
>
> The U.S. Mint is now beginning the second part of its testing to determine
> if it can produce coins that are not only cost efficient, but also have the
> same weight, durability and look as current coins.
>
>   
>
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