Weekly News Column Opinion and Laughs on The Record

Nix the Penny Mr. Secretary

Jeff Borgardt's Soundoff from Summit Column 6/9/05

Memo to the Secretary of the United States Treasury John Snow:
 The time for action is now. I write this letter to press for movement
on a matter of critical importance to the United States economy —
the penny.
 I believe the Treasury Department should phase out the penny.
  This action would result in increased productivity and save the
taxpayer millions in production costs wasted by the mass
production of this neglected coin.
    The penny is no longer an effective currency that can be traded for goods and services. It has only the slightest value in quantities weighed by the dozen. To say the continued mass production of
this coin is inefficient would be a vast understatement.
    The American fiscal currency depends upon the fiscal faith of the
consumer. The mass production of a functionally worthless coin
undermines this faith.
    Why should the Treasury Department continue to produce tons of
worthless coin that have no value? To do so risks the appearance
of befuddlement. The Treasury Department could even begin to
appear out of touch with the very currency it produces.
    As a proud resident of the Land of Lincoln, I understand those reluctant to phase out a coin with such a striking image of Honest
Abe. However, given the multitudes of schools, roads and towns
named for the Great Emancipator, Lincoln is in no danger of lack
of praise. Further, placing our greatest president on a coin with no
functional value can be viewed as an insult, rather than a
compliment.
    As for raw production of this coin, I propose future issues of
nickels and dimes use the materials now reserved for pennies.
    I have true respect for the hard working and committed currency
professionals at the Treasury Department. I write not in opposition
but in a spirit of friendship and the genuine belief that U.S currency
can function better than it now does.
    To continue my argument, the cost of transferred bags of pennies
to usable currency is a drain on our economy. Some bank
branches have even begun charging fees to exchange bills for
bags of coins. Professional cashiers despise pennies.
    To those who fear phasing out the penny may present risks of
inflation, I retort that the economic benefit of a more effective
currency would far outweigh any potential inflation.
    Therefore, I suggest the creation of a blue-ribbon commission of
economists, business leaders and politicians to study this
pressing problem and propose a solution to the President and the
Public.
    The penny has outlived its use. The Treasury Department must
change with the times and the time for action is now.