Re: Are US denominations efficient?

Dave Allured wrote: 
Welcome Newcomer.  Coinage reform is an eternal axe-grinding topic here
on RCC.  If you are that interested, try searching Google Groups for old
threads on the topic.

There is a practical advantage to the US 25 cent coin that outweighs
everything else.  Every coin-op vending machine in the country takes
them.  A 20 cent coin is theoretically more efficient for cashiers, but
retooling machines would be prohibitive.  Also, everyone is used to
quarters.  IMO the real reform issues are simply how and when to retire
small denominations, and the design and introduction of new larger
denominations.

My own slant is that the US is decades overdue on both of these.  I
favor transitioning to a 4 coin system as fast as possible: 10c, 25c,
$1, and $5.  Dump the 1c, 5c, 50c, and $1 and $2 notes immediately.

The only problem there is that the 10¢ and 25¢ denominations are incompatible with each other without a 5¢ coin. With only 10¢ and 25¢ coins, it is difficult or impossible to do many intermediate amounts, ie 15¢, 55¢, 65¢, 90¢, etc.

If the 5¢ is dropped, the 10¢ must be dropped at the same time, making 25¢ the smallest coin.

As for the 5¢ and 10¢ coins, I have been treating them like 'pennies' over the past few years, too (tossing them into the jar at the end of the day), as there is really no practical reason to carry them anymore. I still carry a few 25¢ coins as they are usefull for things such as parking meters and newspaper boxes.

I would also welcome dropping $1 FRNs, along with interducing a new $2 coin and a reintroduced $5 coin (dropping both denominated FRNs).

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Regards,                                    |    |\    ____
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Michael G. Koerner               May they   |    | |  |    | |   rise again!
Appleton, Wisconsin USA                     |    | |  |    | |
___________________________________________ |    | |  |    | | _______________
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    (rec.collecting.coins)