Generating paper dollar bills is a more expensive proposition than ever, reports AOL News. This is why a trio of U.S. Senators – Shelby, Robert Casey and Tom Harkin – is taking the fight to the greenback once more, just as President Andrew "Old Hickory" Jackson had done back in the 1830s. That’s why the United States Government Accountability Office (GAO) is pushing Congress, the Federal Reserve and the Treasury to scrap paper $1 bills in favor of $1 coins. Resource for this article – US eyes replacing paper dollar bills with dollar coins by MoneyBlogNewz.
In thirty years, $5.5 billion could possibly be saved with change from paper dollars to coins
Long-term projections concerning the impact of replacing paper $1 bills with $1 coins indicate the U.S. government could conserve $5.5 billion over thirty years by switching. The government wouldn't have to produce cash nearly as often considering a coin lasts thirty years on average rather than the 3.3 years bills last. When it comes to generating coins, it is very cheap. Government Accountability Office studies show making paper bills are more expensive to do.
Each year at that time period, $184 million would be saved
The Government Accountability Office has not had much success in getting the change to take place even though it has tried for 20 years. A GAO report explained the monetary policy transition was intended to occur with the Presidential $1 Coin Act of 2005. As of December, 2010, the Federal Reserve banks really have about $1.1 billion $1 coins.
Only 4.2 million $1 coins are in public circulation, such as the discontinued Eisenhower, Susan B. Anthony and Sacagawea $1 coins and the current Presidential and Native American series. Ute Wartenberg is the American Numismatic Society Executive Director. He explained that the public opinion of coin use is what drives this. Wallets don't generally carry coins since they are heavier than bills.
Cut off the greenbacks, cut the cotton
Wartenberg explains that to be able to make the change, the $1 bills have to be taken out of circulation so there is no choice. Nations have done things like this before including British and Canadian governments who changed lowest denomination notes in the 1980s. Due to fear the cotton sector would die, the Southern U.S. legislators have been afraid to substitute paper dollar bills with coins since the United States Bureau of Engravings and Printing is supplied by the cotton sector.
The change in cash
The fight to return to “hard money" has precedence in United States political history, from the time of President Thomas Jefferson to the Lincoln administration and beyond. In "Andrew Jackson and the Financial institution War" by Robert Remini, Jefferson said that paper dollars were "the instrument of the swindler and the cheat." Paper cash might have a conversion to precious metal, for instance gold, which is why Jackson was not that happy over it.
Once Lincoln attained the presidency (1861-1865), greenbacks became official as a result of the Legal Tender Act of 1862. A system of nationally chartered banks that report to a main central financial institution arose, and the U.S. was easily flooded with paper money.
Citations
Amazon
amazon.com/exec/obidos/tg/detail/-/0393097579/lewrockwell/
AOL News
aolnews.com/2011/03/07/us-wants-to-take-your-dollars-and-replace-them-with-coins/
Lew Rockwell
lewrockwell.com/dilorenzo/dilorenzo30.html
Amazon.com
amazon.com/exec/obidos/ASIN/0945466293/lewrockwell/
Government Accountability Office
gao.gov/new.items/d11281.pdf
Fixing volatility in the International Monetary Fund
youtube.com/watch?v=v94p-da5_Lk
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