Coin of the realm

Coin of the realm

Grand Rapids (Mich.) Press: The United States Mint has launched a campaign to promote usage of the dollar coin as an alternative to paper bills. Grand Rapids is one of four cities nationwide chosen to push the change. The coins could save billions in printing costs, if embraced by the public. But that won’t happen unless the government does what it has been unwilling to do in the past: phase out the dollar bill. Dollar coins will remain little more than novelties and collector’s items, until that happens.

There are good reasons to switch. The General Accounting Office estimates that more than $500 million a year would be saved by going paperless with dollars. The coins cost more to produce, but last 30 years, compared to 21 months for paper bills. The coins also can be melted down and recycled into new coins. Dollars bills taken out of circulation are destroyed.

The United States is one of the few countries with a $1 bill. Other nations, such as Canada, Japan, Australia and those in the European Union have phased out small denomination bills and replaced them with coins. Canada replaced its dollar bill with a coin in 1987 (the Loonie). It followed that with a $2 coin (the Toonie). After initial grumbling, Canadians have accepted both. Experiences in other countries indicates that it takes two to three years for the public to adapt to such a switch.