'Coin Modernization and Taxpayer Savings Act of 2008'

Bob P · Site Admin

I am posting this same thread on the CONECA forum, but wanted to know what the collectors response is to the passage of the 'Coin Modernization and Taxpayer Savings Act of 2008'. This bill (H.R. 5512) allows for the change in metal composition (especially cent and nickels) so that it is profitable to make these coins in the future. Currently it cost more to make these coins than they are worth.
In addition, does anyone have a guess as to what metal(s) could be used in the future? Could we see steel pennies again?

The text of the bill can be found here:

http://www.coinnews.net/2008/03/07/reintroduced-house-bill-seeks-to-change-the-composition-of-metals-in-coins-3976/

wavysteps2003 · Expert Member

From what I can gather, it will be a steel core and a copper plating, very similar to the Canadian cent that is now in circulation.

If this holds true, it will have two impacts for us who do collect the Lincoln and its mistakes. A longer lived coin with no worry about the insides oxidizing and more die anomalies. Steel on steel will cause die failure and die fatigue to happen quicker, so it will mean that more working dies will be made.

However, there is the prospect of laser cut dies which means no more hubbing and no more doubled dies. But we have heard that story before.

BJ Neff

Gabe · Senior Member

If it will save money, and not affect the coin's life.. why not?!

Dick · Expert Member

It would be a step in the right direction, if they were to choose the same alloy mix as Canadian cents, and nickels are using. It will give us, ( I say "us", in the truth it should read "you". Another fifty years, and I will be the oldest living human, at 135), something to look forward to, in the next fifty years. That is: Having cents. The junk that came out with the "last alloy change", has been disgusting, to say the least.
Dick

KurtS · Senior Member

coppercoins · Site Admin

Unfortunately if we go to steel cents they will probably rust, be difficult to strike, and will be ugly due to the excessive die wear of striking steel coins with steel dies....just like 1943.

One of the major reasons why that's a one year type is because it was a miserable failure. I guess what we learned 65 years ago isn't good enough for today...or maybe it was. Since I'm no metallurgist and don't know the different grades of steel, perhaps they've found a way to make it soft enough to strike it without complications. But for some reason, given the source, I doubt they've thought it through.

Beyond that, I'm all for the Mint finding a cheaper solution to our coinage - even though it's skipping the REAL point.

The REAL point is to get rid of the $1 bill, make as many $1 coins as needed for 3c each, and sell those to the Feds at a 97c seniorage so it will counteract the cost of cents and nickels.

Additionally, there would be no loss to the BEP because they really need to get busy on a $200 and $500 note, and start pumping out more $5 and $10 notes. For our economy to be as "rich" as it is, there's no reason why we should have the $100 note as the highest circulating denomination this country has.

Robert · Senior Member

I think we don't have higher denom currency is because of counterfeiting. Those bills would have to be much more sophisticated than even the new $5 notes.
Whenever a new type of note is issued, isn't it because someone (probably outside the US) has managed to fake the older notes? No matter how good our notes are someone always seems to duplicate them in a short while.

Higher denom currency would also benefit drug dealers by making the handling/storage/transportation of drug money easier.

But I do agree that $1, $5 and even $10 coins would be a good idea. They'd have to be of unusual size/shape/color and the paper money would have to be withdrawn. But then you run into other concerns like how does an ATM dispense coins? It's a huge cost to retrofit ATMs - who pays for that? And the cost of transporting all those coins (instead of paper money) from the mint would be much higher, especially at $4 per gallon gas. So you lose some benefit there. But then again the coins will last 30 years so that's a plus.

I'm not ready for a cashless society though. I still prefer "hard" cash to credit cards.

notabot · Advanced Member

Steel coated with copper looks the same as zinc caoted with copper. Best of all, we will have scads of smeltable steel ingots to make military stuff with.