In George we trust

By Drew Lyon
The Free Press

MANKATO February 23, 2007 09:27 pm

— With the recent introduction of a new presidential dollar coin series, the U.S. Mint is set to wage battle against the dollar bill.
The gold George Washington dollar coin has been greeted with interest from coin collectors since its Feb. 15 national debut. More than 2 million dollar coins already have been produced at Mints in Denver and Philadelphia.
Because of its perceived similarity in size to the quarter, worries that the coin will get lost easily and a consumer public wary of change, the dollar coin has received a chilly commercial response.
This is not the first time the government has tried to change public opinion: The Susan B. Anthony coin was released in 1979 and the short-lived Sacagawea coin flopped with its release in 2000.
Terry Neils of Coins, Cards and Collectibles in Mankato isn’t sure about the long-term impact of the presidential coin series on commerce.
“The Mint has a stockpile of Susan Anthony and Sacagawea coins that they’re having a hard time getting rid of,” Neils said. “And I don’t know if the presidential program will kick off that much.”
At US Bank in Mankato, tellers have given out the Washington coins only upon request.
“People can’t get them into their billfolds,” said US bank teller coordinator David Williams, “and most won’t want to spend them when they do get them.”
Williams predicted the Washington coin, which weighs 8.1 grams (less than the weight of four quarters), would start to circulate around area businesses within a month.
“We got in $2,000 worth and we have gone through over half of them,” said Betty Uren of MinnStar Bank. “They have been mainly bought for collection, which we were surprised about. Most of them are in $25 rolls and (the collectors) keep them that way.”
At Community Bank in Mankato, Vice President Julie Vetter said the bank ordered $1,000 in coins, and all but 100 have already been sold.
“We actually had people calling us about them before the coins came in,” she said. “The collectors get excited about them.”
In part motivated by the success of the state quarters’ program, the Presidential Coin Act of 2005 requires the Mint to honor every U.S. commander-in-chief in the order of their presidency. John Adams, Thomas Jefferson and James Madison coins will be released in three-month intervals this year. The Statue of Liberty will appear on the tail side of every coin.
“I think the state quarters’ program caught (the Mint) by surprise,” said Neils, who recommend collectors buy dollar coins directly from the Mint. “And this does help get young people interested in presidential history.”
Because a president must be dead for at least two years to appear on the coin, the project will continue though at least 2016 until every president has been honored. Grover Cleveland, the only president to serve two non-consecutive terms, will have two coins bearing his likeness.
Referencing the success of dollar coin initiatives in Europe and Canada, Neils said the adjustment from the bill to the coin, which costs 10 cents to produce, makes economic sense.
“The average life span of a dollar bill is less than three to five years, and it costs more to produce,” he said. “A coin can last 150 years and still look nice. I can show you some silver dollars that are over 120 years and still look like they were made yesterday.”
David Cowan, facilities services director at Minnesota State University, said the 48 meters on campus don’t accept dollar coins because they only hold a maximum of 50 cents (30 minutes) at a time. He was unsure, however, if the campus’ Lot 21 pay-box was configured for dollar coins.
“That’s something we’ll have to look into,” he said.
The vending-machine industry, which relies heavily on coins and dollar bills, was already preparing for the shift in currency in 2000, when the much-publicized Sacagawea coin was released.
“The machines had to be programmed to accept the dollar coins,“ said Chuck Tuttle, vending general manager at Hermel Candy Co. of Mankato. “But the new coin has the same electronic signature as the Sacagawea coin. A lot of our change machines give out the dollar coins now, too.”
Ultimately, Neils said, until the government halts production of the dollar bill altogether, the dollar coin will remain a commodity for collectors.
“People won’t give up (the dollar bill) until they have to,” Neils said. “Unless the government makes the plunge of all or nothing, it’s not going to happen. There’s always going to be resistance until there is a physical change.”

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