Dollar Coins a Golden Opportunity for Vendors

2/15/2007 – Washington, DC

February 15 marked the release date for the first coin of the Presidential $1 Coin series, the golden dollar featuring first president George Washington. 

The $1 coins are being minted in compliance with the Presidential $1 Coin Act of 2005 (Public Law 109-145). According to U.S. Mint Director Edmund C. Moy, the Act was passed because "Congress recognized that the 50 States Quarters Program showed how a systematically changing design can spark public interest in a circulating coin, and we're hoping to build on that success."  

The Act calls for four $1 coins to be released in a year, each depicting a deceased U.S. president. The coins have the same proportions as the Sacagawea dollar coin and feature edge-incused inscriptions of the year of minting, "E Pluribus Unum," "In God We Trust," and the mint mark. Because the coins have the same proportions as the Sacagawea dollars, vending machines equipped for Sacagawea dollars will not need to be retrofitted for the presidential coins. 

Vending industry observers have long held that replacing dollar bills with dollar coins would boost vending sales significantly. It is estimated that vending operators currently lose hundreds of millions of dollars in sales annually because of machines rejecting worn-out and damaged dollar bills.   

Switching from a dollar bill to a dollar coin could save the U.S. Treasury and American taxpayers as much as $500 million a year in printing and production costs. It costs about 20 cents to make a dollar coin, and they last for 30 to 40 years or more, while a dollar bill costs 4 cents to make, but has a circulation life of only 21 months. 

The Mint is predicting that the coins will be very successful based on the popularity of the 50 States Quarters Program, but many doubt that the U.S. is ready for a dollar coin. The public failed to adopt the Susan B. Anthony and Sacagawea dollar coins. 

Historically, governments have only introduced a new coin while also eliminating the denomination's paper version. The dollar bill is still popular, so there are no plans to do away with the bill at this time, which may hamper the dollar coin's success.