Future of US "Paper" Money

[Bruce Thornton]

It seems like the momentum is gaining towards getting rid of the $1 bill

Link and fully replacing it with the dollar coin.

 

I would like to pose a different suggestion, instead of switching to coins why not do like Canada and other countries have done and switch over to polymer notes.

They have a proven track record, Australia has been making polymer notes for around 20 plus years and the stats have shown that polymer notes last anywhere from 2.5-5 times as long in circulation as paper notes and have shown significant savings over their paper counterparts in some case cutting costs by over 50%. They are less like to transmit disease as polymer plastic is inert, they are recyclable, and have led to a dramatic reduction in counterfeiting in the countries which have made the switch.

They can also just go right into your wallet, unlike the dollar coins which can be a burden to carry around in your pocket as change.

 

Before my days as a grader at PMG, I would carry around dollar coins when setting up as a dealer at coin shows just to hand out in change as I thought it might create some interest being that it is not something that a non-collector sees on a regular basis and cannot even remember how many times, even coin collectors would ask me if they could please have one dollar bills instead because they didn't want to have to carry those heavy coins around.

 

I'm putting together an article on this subject to run in the near future and was curious to get some collector feedback.

What are your thoughts?

[Weg]

Bruce,

 

This is one instance where I feel change is not good. No pun intended, but it does fit.

 

I'm sure I could get used to $1 coins and no paper $1, though it is something I would not want to do. There are times when I have 8-10 $1 notes and with the $5s, $10s, $20s normally carried it makes the quarter folded notes a much larger item in my pocket. Eight to ten $1 coins is worse, it's the same argument used for decades; to much space and weight. That argument has been around for so long for a simple reason, it's valid.

 

Polymer notes would negate the concern over coins but as a paper currency collector the thought scares me even though I do not collect modern series. The switch from cloth-paper to a form of plastic for notes completely changes what we collect. When handled, the characteristics of cloth-paper vs polymer is different,very different. Folds, creases, counting marks, ect, the things we now look for will be changed. I may as well collect credit cards.

 

If a person wants to collect U. S. currency there are two basic types, paper or metal. Should the U.S. go to polymer there will be three types for an interim period of time, paper, plastic, or metal. Three materials with different characteristics.

 

I view polymer notes as the beginning of the end of collectable foldable currency. The end will be when everyone has to use something like debit cards; no more cash. All monatary transactions will be made with electronic 1s and 0s which will be easy to trace.

 

Bill

[mintcollector]

Bruce,

 

I have no reason to fear the US government and don't care if we as a nation make the move to electronic or polymer related currency. That being said, I think it would only increase interest in paper and coin currency; not decrease interest.

 

As a collector, I collect antique or vintage currency (1935 or earlier) and I only collect Morgan and Peace silver dollars; so this change would have little effect on me.

 

Polymer notes are an interesting idea, but for some reason I think it would be hard to convince part, if not most, of our government to use them...

Not to turn this into a political discussion, but understand that some powerful people in our government OPPOSE all change; good or bad. I am from a 'younger' generation, so I embrace change more than most. Enough said in that statement.

 

While this is an interesting topic, I really don't think that this issue will affect most currency and coin collectors either way. The only way it would effect you on this level is if you collect modern issues...

 

Thanks for the thought provoking discussion.

 

'mint'

[Steve in Tampa]

In my perfect world, we would eliminate the one dollar note and replace it with the two dollar note AND one dollar coins. The new one dollar coins are not as bulky as the old silver dollars your parents and grandparents grew up with, and as we all know, the U.S. has billions of these coins stockpiled and ready for disbursement. While visiting Atlanta, using their local transportation (MARTA), the change machines and automatic ticket machines used one dollar coins as change, and I had no problem with that. Matter of fact, I thought it was kinda cool.

 

As a collector of modern-era, small size one dollar star notes, the change would give me some sort of finality. Right now, I have every series & district of one dollar denomination star notes (CH-CU) from 1963 thru current, but........as long as they keep printing newer series, and different districts, my collection is not complete.

 

I go weeks without using coins or currency. The monthly bills are paid on-line, and a debit card takes care of everything else. If it wasn't for nieces, nephews, and grandchildrens birthdays, I wouldn't have any need for currency.

[RogerRamjet-migration]

I agree with Steve. The only reason I believe the dollar coin does not circulate is because the $1 bill still does. Let's get those $2 out there circulating.

 

Then again, I thought that instead of the ATB quarters that are now being producted we should have done ATB $2 bills. Putting a National park theme on the back of the $2 bill would make a beautiful note. This would create interest in $2 bills and the increase use/colelcting of them while incorporating the $1 coin.

 

I have also read that the poly notes are used mostly in countries with a much smaller currency printing number than the U.S. Do not know this as a fact but would make sense.

 

[Bruce Thornton]

Roger I complete agree about the $2, I've talked to several people about this as well.

I think it would be a fantastic program just imagine how good the back of a $2 bill could look with the national parks on the back of them with all of that real estate to work with. Could be pretty amazing.

 

I agree with Steve. The only reason I believe the dollar coin does not circulate is because the $1 bill still does. Let's get those $2 out there circulating.

 

Then again, I thought that instead of the ATB quarters that are now being producted we should have done ATB $2 bills. Putting a National park theme on the back of the $2 bill would make a beautiful note. This would create interest in $2 bills and the increase use/colelcting of them while incorporating the $1 coin.

 

I have also read that the poly notes are used mostly in countries with a much smaller currency printing number than the U.S. Do not know this as a fact but would make sense.

[Weg]

 

Steve, I would think that through a little bit. Many paper currency collectors started their collecting with coins; that's where that collecting gene was activated. When there is no more cash, only the electronic 1s and 0s what will spark the collecting interest for the next generation. Without cash to entice new collectors I can see us going the way of stamp collectors along with any value of our collections.

 

Bruce, can you say a bit about the difference in grading poly notes vs cloth-paper notes?

[Twominator]

I will jump on the $2 bandwagon as well. Eliminate the paper $1 and introduce more of the $2 denom into circulation. $2 goes a lot farther these days anyway. As far as the $1 coin goes, I think it's chances are dead for circulation. I personally do not care to keep a few of the coins in my pocket on a daily basis especially when the debit card is small, flat and and can take care of any of my purchases.

[GW]

I doubt that we will ever get rid of the 1 dollar bill. same as trying to get rid of the penny.

george washington needs to b on something. everything's going electronic now a days.

switching to coins or polymer notes is only a matter of time.

[Chris1976]

from my understanding, they want to do away with the $1 paper currency (because it has a short life span after production), 1 cent coin (due to it cost more to produce them then they are "worth") and do away with the 5 cent coin (have not heard the reasoning for this yet). While I wouldnt mind carrying two or 3 of the dollar coins for the most part, I still have issues with the idea that instead of droping just a quarter or so (quarter being the largest coin typically carried), you would be droping dollars at a time.

 

This happens to me all the time while getting in and out of my truck or even just going for a ride in the corvette. Change falls out all the time. Most working class people can't really afford to toss away dollars at a time due to it falling out of their pockets.

 

My other thought about the changes I spoke of in the begining of this post is that it would push retailers and suppliers to raise the price of everything to compensate for the loss of the smaller denominations. Seems more like a way to force further inflation, especially since places like here in GA, Michigan, Florida, etc have a 6% sales tax. With the elimination of the nickel and cent coins the tax rate would also go up since, let's face it, sellers and the good ole Gov won't lower prices, they will only increase.

 

As for the use of electronic payments, again the sellers will increase prices due to processing fees. Not to mention there are already a couple of banks that are charging a monthly fee just for having the use of a debit card on top of their monthly charge for simply having the account. A couple of other banks charge 50 to 75 cents per transaction paid for by the use of a debit card.

[Weg]

Sales tax was the reason for mill coins. When taxed a % of the sale the total will not usually come out to a nice even number. It may cost the mint more than a penny to make a cent coin but they are needed unless the sales with tax are rounded up.

 

I don't even like the sound of that.