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COIN Act to Kill Penny

Posted By Jim On 07/18/2006 @ 7:07 pm In Government | 16 Comments

First Lincoln gets offed by Booth and now Rep. Jim Kolbe (R-Arizona) makes a second attempt to make sure the penny doesn’t get a centenial celebration (the penny was introduced Aug 2. 1909). Lincoln gets no respect these days. The Currency Overhaul for an Industrious Nation Act (someone worked real hard at fitting a bill to the acronym COIN) would have everyone round all cash transactions to the nearest 5 cents but all other transactions would still be to the penny – thus eliminating the penny. There are a lot of financial reasons to remove the penny but now that the cost of zinc makes a penny worth 1.4 cents, Kolbe’s making another try at it. There are some surprising statistics in the article such as:

Over half of the U.S. Mint’s coin production comes in the form of pennies. At current prices, the Mint would spend some $44 million producing pennies this year, nearly $14 million more than in 2005.

Personally, I think the penny is useless and we could go far in eliminating its use in everyday life and anytime you can remove some excess in the government I’m all for it. While $44M isn’t all that much in a budget of trillions, it’s better to spend it on something else than some coin no one really uses.

There are other parts of the bill that have merit as well such as a change to who can supply the Mint paper. Right now the rules make it so that Crane Paper in Massachusetts is the sole supplier of paper to the Bureau of Engraving, a protection they’ev enjoyed since 1879.

Down with the penny!

via CNN Money [3].


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[3] CNN Money: http://money.cnn.com/2006/07/18/news/penny/index.htm?cnn=yes

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