WASHINGTON — Rep. Steve Stivers says the United States will save dollars if it makes pennies and nickels with steel instead of copper, zinc and nickel.
A bill that Stivers introduced last year would ensure that pennies and nickels are made of steel, although pennies would be dipped in copper. Yesterday, the measure received a hearing in a House subcommittee.
Stivers, R-Upper Arlington, said that according to the U.S. Mint, the cost to create a penny is 2.41 cents, and the cost to create a nickel is 11.18 cents. He said that by changing the composition of nickels, dimes and quarters, the United States would save as much as $207 million a year.
John Blake of the Cummins Allison Corp., which develops solutions to sort and authenticate currency, checks and coins, said that if Congress moves forward, it should consider whether the change would increase the risk of counterfeiting.
Blake said, however, that the low value of pennies and nickels makes it less likely that people would counterfeit steel versions of those coins. Nevertheless, he urged the subcommittee to be cautious before supporting a change in the coins.
Reducing the costs of producing nickels and pennies “will mean nothing if there are societal costs incurred due to the inability to properly process and circulate American currency throughout the world,” Blake said.
But Rodney Bosco, who works for Navigant Consulting, which provides analysis on accounting, financial and economic issues, said adopting a steel coin could reduce the per-unit material costs of those coins by between 84 and 89 percent — about $200 million a year.
The U.S. Mint is studying alternative compositions of its coins, but Stivers said that Congress should move forward with his bill nonetheless.
“Congress has the constitutional mandate to regulate currency,” he said. “I don’t think Congress should cede this authority … while I consider the folks at the U.S. Mint to be experts, it’s Congress’ responsibility to do this.”
jwehrman@dispatch.com
A bill that Stivers introduced last year would ensure that pennies and nickels are made of steel, although pennies would be dipped in copper. Yesterday, the measure received a hearing in a House subcommittee.
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| Wartime steel cent - undipped in copper |
Stivers, R-Upper Arlington, said that according to the U.S. Mint, the cost to create a penny is 2.41 cents, and the cost to create a nickel is 11.18 cents. He said that by changing the composition of nickels, dimes and quarters, the United States would save as much as $207 million a year.
John Blake of the Cummins Allison Corp., which develops solutions to sort and authenticate currency, checks and coins, said that if Congress moves forward, it should consider whether the change would increase the risk of counterfeiting.
Blake said, however, that the low value of pennies and nickels makes it less likely that people would counterfeit steel versions of those coins. Nevertheless, he urged the subcommittee to be cautious before supporting a change in the coins.
Reducing the costs of producing nickels and pennies “will mean nothing if there are societal costs incurred due to the inability to properly process and circulate American currency throughout the world,” Blake said.
But Rodney Bosco, who works for Navigant Consulting, which provides analysis on accounting, financial and economic issues, said adopting a steel coin could reduce the per-unit material costs of those coins by between 84 and 89 percent — about $200 million a year.
The U.S. Mint is studying alternative compositions of its coins, but Stivers said that Congress should move forward with his bill nonetheless.
“Congress has the constitutional mandate to regulate currency,” he said. “I don’t think Congress should cede this authority … while I consider the folks at the U.S. Mint to be experts, it’s Congress’ responsibility to do this.”
jwehrman@dispatch.com
