Why U.S. Dollar Coins Are Not Circulating

Dollar-coins-by-ElementaryTechTeacher-2.jpg How many of those portraits of George Washington do you have sitting in your billfold?

If you are like most Americans, you probably have plenty of one dollar bills in your wallet or purse.

You likely have not put much thought into using any other form of money but the trusty dollar bill to pay for those low-expense purchases.

But what about using dollar coins?

The U.S. Mint has been trying for decades now to get Americans to grow fond of using the dollar coin for everyday purchases. After all, coins last longer than paper money — by many decades. Also, coins are easy to recycle. Dollar coins are also easier to use with vending machines.

So why don’t we use dollar coins instead of dollar bills?

U.S. Dollar Coins

Dollar coins have had circulation problems since the U.S. Mint started making them.

In the 1970s, Americans had good excuses not to use the dollar coin. Eisenhower dollars (1971-1978) were as large and nearly as heavy as the old silver dollars of the 19th and early 20th centuries.

Then, in 1979, the U.S. Mint tried to take the weight off Americans’ backs by producing the smaller, lighter Susan B. Anthony dollar (1979-1981, 1999).

However, the U.S. Mint made a few mistakes when coming up with a revolutionary design for a dollar coin, as seen with the Susan B. Anthony Dollar.


Susan B. Anthony Dollar Troubles

The biggest problem with Susan B. Anthony dollars is that they are almost identical in size to the quarter.

Furthermore, because Susan B. Anthony dollars and quarters also are made with reeded edges (those ridges on the edge of some coins) and have the same copper-nickel metal composition, they were often mistaken for each other.

It’s no surprise that the Susan B. Anthony dollar was notoriously dubbed the "Carter Quarter".

A history lesson for you: Jimmy Carter (U.S. President from 1977 to 1981) was in the White House during the time the Susan B. Anthony dollar was planned, struck, and later shunned by the public.

 

Sacagawea Dollar Coins

The need for dollar coins for vending machines resulted in the re-striking of Susan B. Anthony dollars almost 20 years after the coin was last previously struck. But even then, the dollar coin still had not found its stride in widespread daily transactions.

Dollar-coins-by-Pablito-2.jpg The public was ecstatic when, in 2000, the U.S. Mint first released the "golden" dollar.

Bearing an image of the Shoshone Native American Sacagawea, the dollar coin was supposed to fix all the problems that were left to fester with the Susan B. Anthony dollar.

Though the same diameter and weight as the Susan B. Anthony dollar, the Sacagawea dollar coin is, most strikingly, golden-colored. The coin is not really gold, by the way. It has a copper core with an outer coating of manganese brass.

But the differences do not stop there. The Sacagawea dollar coin has smooth edges (unlike the quarter), has a distinctive rim, and therefore actually feels different in one’s hand than does the quarter. This also helps the blind to distinguish the new dollar coin from a quarter.

 

Dollar Coins Have Circulation Problems

So why doesn’t the dollar coin circulate well?

Surely, the exciting Presidential dollar coin series should have stirred more public interest in using the dollar coin.

Alas, the dollar coin barely qualifies as a circulating coin, in the actual sense. The situation has officials at the U.S. Mint — and plenty of other people — scratching their heads.

It could be that the public simply sees the dollar coin as a novelty. Think about it, do you save a dollar coin if you happen to find one in circulation? Or do you spend it, just as you would an ordinary dollar bill?

Many people seem to think of dollar coins as something special. Therefore, most do not like to spend them.

While the public is not used to seeing dollar coins, they really are nothing "special," or uncommon. Since the 1970s the U.S. Mint has been making hundreds of millions of them annually for most of the years that dollar coins have been struck for circulation.

 

Dollar Coins vs Dollar Bills

It could just be that the most significant reason we do not use dollar coins is that we still have an alternative — the dollar bill.

Should the nation stop producing dollar bills, if for nothing else than to force the public into using dollar coins? No doubt this would do the trick. But would it be a popular move?

This was just what the doctor ordered for our friendly neighbors to the north. In 1987, when the Canadian government first issued the gold-colored Loonie dollar coin (named for the Canadian Loon pictured on the coin), the Canadian dollar bill was removed.

The transition was smooth for Canadians. Now, the Canadians even use a Toonie 2 dollar coin. The use of both these coins was widespread and without controversy.

 

Will The Dollar Coin Survive?

The U.S. Mint is doing whatever it can to promote the usage of the dollar coin.

In August 2008, the Mint launched a campaign in 4 U.S. cities (Austin, Texas; Grand Rapids, Michigan; Portland, Oregon; and Charlotte, North Carolina) to encourage the use of the dollar coin in everyday circulation.

What are the benefits of the dollar coin?

Because they last longer than dollar bills and are recyclable, the U.S. Mint estimates that dollar coins will save our country billions of dollars over time.

Will this campaign (or any others like it) actually work?

Those prospects are doubtful.

Our culture is used to the light, foldable, easy-to-carry dollar bill. Generations of Americans have used the dollar bill, and they have become as much a part of our culture as has the penny (another monetary item that may not have long to live).

Therefore, the only way ou
r nation will ever truly wean itself from its paper dollar fix is to do as our northern neighbors did and rid itself of the dollar bill altogether. This move, though it may sound rash to some, is just what our nation needs to do to make the dollar coin a part of mainstream circulation.

The savings in cost of making those long-living dollar coins versus quick-to-degrade dollar bills just may help relieve some of that national debt we all keep hearing about, too.
 

dollar-coin-generations-by-KClvey.jpg

 

More About Dollar Coins:

Joshua McMorrow-Hernandez

My love for coins and numismatics began when I was 11 years old. I primarily collect and study U.S. coins produced during the 20th century. I've also been studying meteorology and watching weather patterns for years. I enjoy sharing little-known facts and fun stuff about coins, weather, travel, health, and living green with others.

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  • karen

    I have a quarter/sacagewea coin. No date, all gold color. P
    on front..How can I tell if it is a fake.

    • Gavina

      Chances are it is not fake. No one fakes the $1 coin because they are uncommon and almost none of them are antiques. You probably have a newer $1 coin with one of those three unique images placed on the back. Search Wikipedia for “Sacagewea dollar” and it will provide you reliable information about the coin. I checked it and confirmed the information myself.

    • Gavina

      Chances are it is not fake. No one fakes the $1 coin because they are uncommon and almost none of them are antiques. You probably have a newer $1 coin with one of those three unique images placed on the back. Search Wikipedia for “Sacagewea dollar” and it will provide you reliable information about the coin. I checked it and confirmed the information myself.

  • Skeld

    Take a stand. Just do it. For ten years now Ai have done just that. Go to your bank and demand dollar-coins, half-dollar-coins, and two-dollars-bills (pay for them, cent for cent/dollar for dollar, of course). Keep a stock of them at home and restock as needed so that you can use dollar-coins, half-dollar-coins, and two-dollars-federal-reserve-notes in your everyday, cash transactions. ALWAYS avoid dollar-bills; keep your wallet/pocket/purse stocked with adequate numbers and varieties of change. Change includes federal-reserve-notes! Coins are cash, too! Have back-up supplies of cash/change with you and available wherever you go. Don’t be squeemish about explaining to people why you choose to use dollar-coins in place of filthy, wasteful one-dollar-f.r.notes.

  • Bubs

    Considering how the US dollar will soon be worthless, this topic seems rather pointless.

  • Anonymous

    I totally agree. Just stop making the dollar bill. Now. Two dollar bill usage would explode!

    • CarrieH

      We should have $2.00 coins. Euros are one and two dollar coins, no paper

  • dam

    i found a Sacagawea coin is it worth anything now

  • James

    I have read a few articles about this today. To say that Americans do not want the coins is bogus. One article I read said banks were sending “large amounts” of the $1 coins back to the feds. I would love to know what banks were doing that. I have accounts and 2 credit unions and 1 state bank in my town, and they have all given me the same song and dance for years. I’m sorry we don’t currently have the dollar coins available. One time they told me the purchase of the rolls was limited to 2 per customer per coin design, and I’m talking the ones that are suppose to be circulated. How does the Federal Government expect Americans to use the coins if we CANT GET ACCESS TO THEM. If they have billions is $1 coins laying around it’s not because Americans don’t wan’t to use them its because the banking system is reluctant and/or discouraging the use of the coins. :(

  • FlamingMassLiberal

    I love dollar coins except for the SBA coins because of their almost exact look/feel to the quarter, but otherwise I use dollar coins in every transaction where it makes sense to use a dollar. I’m also a fan of the two dollar bill and use that just as regularly. Half-Dollars I use on occasion, but not often.

    The last picture in this article showing the three coins is great. I think those designs, obtuse and reverse (Apollo logo, soaring Bald Eagle, Statute of Liberty), of each coin should be the “dollar coin standard” in terms of design. It honors the legacy of the dollar coin and bridges generations that can appreciate at least one of the designs.

    I think pulling the current SBA from circulation should be done as so few use them. Reissue SBAs using the current golden dollar format, stop printing dollar bills, and as existing bills wear out, gradually pull them from circulation by replacing them with coins.

    Switching to coins has worked for many other countries, but America always seems to have an aversion to change…pun intended.

    • JoshuaTheFunTimesGuide

      Thank you for your feedback and adding your “two cents” to the discussion!

  • Edmund C. Nowiszewski

    I was hoping to purchase about 150 dollar coins for a wedding gift to be different and put it in a treasure chest but after going to the bank this morning, it appears impossible to even get 1. They don’t carry them and I can’t even order them, not even with a minimum. Any they get in the coin counter machine goes right to the armored cars when they are picked up so I can’t even buy regular coins in circulation. Is there any advice as to where I might find these coins without paying a “collector’s” premium?
    Thank you

    • JoshuaTheFunTimesGuide

      Have you tried going to another bank or asking a friend if they can try doing so at theirs? Unfortunately it can be difficult to pick up either dollar coins or half dollars at banks, but persistence will pay off. Good luck!

  • Folk Hellfang

    My dreams of a dollar coin pouch stuffed in my belt, taunting old timey pickpockets seem to be evaporating.

  • Ronaldus Evers

    Coins are minted by the mint. Bills are notes printed by the reserve. When the shit finally hits the fan, only the coins will be legal tender. Know the difference, and be ready.

    • http://log18.us/ Mike Tayon

      Wow, VERY interesting comment, thank you! Food for thought for sure!!!!! :)

  • http://log18.us/ Mike Tayon

    I just wish, if they MUST make $1 coins, that they would be made of Nickel, and/or Copper, something tangible and that has worth! A Copper dollar would be easily distinguishable, and maybe only worth let’s say .10 or .15 cents right now, but 20 years from now, it might be worth a dollar, see? :)