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Federal Reserve Board

Halt Minting the Presidental Series Dollar Coin

The case to halt minting the Presidential Dollar Coin is well documented in the media. http://www.npr.org/2011/06/28/137394348/-1-billion-that-nobody-wants

 

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http://www.npr.org/blogs/money/2011/07/13/137795995/how-frequent-fliers-exploit-a-government-program-to-get-free-trips

 

 

First, the minting Presidential Series dollars has cost $300 million since it was mandated by Congress in 2005. Minting money like this is wasting money. We are half-way through the series in 2011, but the completion of the Presidential coin series is planned to be 2015. This means that by halting production, the US will save another $300 million. Secondly, there is no popular demand for the coin. If there were, we'd be seeing them today in great numbers, but the public is clearly uninterested in the coin and wants to continue with paper dollars. There is a huge storage problem at the US Mint. Bags of these coins are piling up and taking up valuable space. More than $1 billion dollars have been stored at the Federal Reserve. Thirdly, media stories have been accumulating that the public is purchasing them in lots of several thousand dollars with the intent of garnering them only for frequent-flyer miles. They are returned to the banks immediately upon shipment, still in their mint rolls, to pay for the credit card payment. Thus they obtain thousands of free miles and get free trips on the air carriers of their choice. This is equivalent to obtaining something for nothing. The largest abusers of this activity have been warned to cease and desist. Clearly without the demand for this coin's circulation, but with a small, abusive public taking advantage of it only for free travel miles, this makes it a clearcut winner. Halting production of minting Presidential series dollars will save $300 million.

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Idea No. 3976