Get Rid of the Penny

[Smallc]

The metal in the penny had nothing to do with their value. If they were using a more expensive metal, it would have been more expensive to make them now.

[Smallc]

As it was pointed out by the senator to the department of finance answering the question, the 1.13 price, the government always get their money first, and the business wouldn't take a loss of 3 cents,

It wouldn't necessarily be a loss, and about half of transactions would round up, and about half down. I think many businesses would use the Swedish rounding model rather than just rounding up.

[Topaz]

In the senate committe on this, the MINT said they are losing money making the penny and with the nickel, they are ahead 2.5 cents. One question I have is what happens to the US penny here in Canada? Do they collect and send them back to the US or do they get melted down with the rest or can they legally?

[eyeball]

When it comes to taxes and democracy, I firmly believe that governments should send each of us a bill once every four years or so, payable on the same day that we vote.

Given that voting isn't mandatory...

[dpwozney]

The metal in the penny had nothing to do with their value. If they were using a more expensive metal, it would have been more expensive to make them now.

Copper pennies made before 1997 are worth more than face value because of the copper content. If copper pennies were still being made today, the stated value of the dollar would be much higher, there would have been much less inflation in the past couple of decades, and the cost to make copper pennies now would be close to the cost to make them decades ago.

[Smallc]

Ummmm.....no. What you fail to see is that if the pennies themselves (as in the actual physical object) were worth more than they are now, they would be costing us even more money. Inflation has little (read nothing) to do with what a currency is made out of.

[dpwozney]

If copper pennies were still being made today, they would not have to make as many pennies each year as they do now to replace the copper pennies now being taken out of circulation by people collecting copper pennies.

Also, the copper penny distribution and manufacturing fractional cost is a smaller fraction of the overall value of copper penny, compared to the steel penny distribution and manufacturing fractional cost of the overall value of steel penny.

Debasing the metal in coins is what allows inflation to occur.

[Smallc]

If copper pennies were still being made today, they would not have to make as many pennies each year as they do now to replace the copper pennies now being taken out of circulation by people collecting copper pennies.

Right, that's a huge problem.

[William Ashley]

http://www.youtube.com/user/ANewsVanIsland#p/u/73/gu1LAoqF-8Y

I'm 100% in favour of dropping the penny if in fact it actually saves $150 on minting costs.

Hopefully the 30 billion can still be circulated but no new pennies minted.

in a "phase out period"

eg. keep it legal tender but have prices round out to the nearest nickle.

The actual cost is another matter as weight of transport, probably does add up.

The mint costs should be taken into consideration.

I would propose the following system be used

5 cent, 25 cent, 1$, 2$, $10 coins.

$20, $50 bills circulated.

"commodities options" buy ins for "coins" such as gold through the mint that would hold legal as legal tender at $100, $500 and $1000.

eg. 1/16th ounce 1/8th ounce and 1/4 ounce of gold. (people likelywouldn't buy these but orders could be taken.

I would then change the size of the nickle to the size of the dime, and the size of the quarter to the size of the penny, the looney to the nickle the tooney to the quarter, the 5er to the looney and the dixer to the tooney.

In phases... eg. give 10 years for the penny to decirculate and the dime to decirculate.

different colours. with a 10-20 year phase period for all of the stuff.

Edited June 10, 2010 by William Ashley

[August1991]

Bank of Montreal has unveiled a plan to introduce automated coin-counting machines in new and renovated branches across Canada, as it prepares to revamp most of its aging network of branches. Toronto-Dominion Bank installed similar machines at 13 branches in Ontario over the past year on a test basis to see if they help get customers in the door.

Both TD and BMO are banking on one simple truth: People hate loose change, and many of them might be willing to switch banks if they had an easy way to get rid of it.

...

The machines dont charge fees or take a percentage of the haul the way most generic coin counters in supermarkets and malls do. However, users must take their receipt to the teller in order to get paid. At that point, BMO has the chance to pitch them on opening an account, if they arent already a customer.

G&M

Trust that the market will solve a problem.

Edited March 28, 2011 by August1991

[RNG]

G&M

Trust that the market will solve a problem.

Interestingly enough, I have been disgusted for years about the fact that even in the 80's you could walk into the "First Local Bank of Dumbf**k, Montana" and they would have a coin sorting/counting machine for customers to use, free. And the BMO makes out like they are heros?

Edited March 29, 2011 by RNG

[August1991]

The federal budget is guaranteed to leave Canadians penniless — literally.

Among the victims of cutbacks outlined by Finance Minister Jim Flaherty in the government's 2012 federal budget on Thursday is Canada's one-cent coin.

CBC

At least this federal budget got one thing right. And let this be a lesson that MLF gets results.