Buy Presidential Dollar Coins with CC @ Face Value, Free Shipping
Jul 30, 2009, 12:59 pm
#3166
Join Date: Mar 2003
Location: Independence, MO USA
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They don't go back to the Mint, they go to the Federal Reserve Bank. Think of the Mint as a manufactor, the Fed. as a wholesale distributor and the bank as a retail store. We as customers don't deal with the Fed., but the bank does. When a bank has a product it can't "sell", it returns it to the Fed. The Mint never takes anything back. The only exception I can think of is there was a error made on a coin and those end up being destroyed somewhere within the system. Unless, coin collectors get them, but that's a different story.
The Mint and the Fed. were directed via the Coin Act to get the coins out into circulation. I don't think the Mint cares how they get out the door, once they are sold by the Mint, the coins are "in circulation". So we're helping the Mint accomplish it's mission. The banks on the other hand don't promote the coins and that is the Fed's problem. The banks process of sending the coins back to the Fed. takes the coins out of circulation, that is also the Fed's problem. Most of my banks keep some and send the rest back, so some of our coins actually get used by customers.
The Mint and the Fed. were directed via the Coin Act to get the coins out into circulation. I don't think the Mint cares how they get out the door, once they are sold by the Mint, the coins are "in circulation". So we're helping the Mint accomplish it's mission. The banks on the other hand don't promote the coins and that is the Fed's problem. The banks process of sending the coins back to the Fed. takes the coins out of circulation, that is also the Fed's problem. Most of my banks keep some and send the rest back, so some of our coins actually get used by customers.
Jul 30, 2009, 1:33 pm
#3167
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Join Date: Jul 2003
Posts: 11,377
There's an interesting report from the Federal Reserve released this month:
It looks like the Mint is just passing the buck as it were to the Reserve.
http://www.federalreserve.gov/BoardD...llarcoin09.pdf
(bolding mine)
It looks like the Mint is just passing the buck as it were to the Reserve.
http://www.federalreserve.gov/BoardD...llarcoin09.pdf
(bolding mine)
The Presidential $1 Coin Program experience is consistent with
those other $1 coin programs. There is no evidence to date that the current program has increased transactional demand. The Reserve Banks have studied detailed payment and inventory data for previous Presidential $1 Coin releases at the Reserve Bank offices and off-site coin terminals, supplemented these data with feedback from depository institutions about expected demand, and developed better forecasts for each successive release. The Reserve Banks have then actively managed inventories throughout the special ordering period for each coin, relocating coins as necessary to meet demand. As figure 2 indicates, however, depository institution demand has continued to decrease.
As communicated to Congress before the start of the program, Federal Reserve Bank $1 coin inventories have increased significantly over time, even though improved forecasting and ordering practices have reduced the number of residual coins at the end of each new release period. The Reserve Banks hold the residual coins as inventory at their offices and off-site coin terminals. Additionally and more significantly, depository institutions have re-deposited a significant number of excess $1 coins with the Reserve Banks.
As shown in figure 3 and table 2, previous $1 coin supplies, plus the excess $1 coins returned by depository institutions, elevated total Reserve Bank inventories of all $1 coins to $691 million as of May 31, 2009, or about $625 million more than the Reserve Banks held before the start of the program. Current supplies represent enough $1 coins for the Reserve Banks to meet transactional demand for $1 coins for about ten years. Because of vault storage constraints and insurance limitations at coin terminals, the Reserve Banks are exploring options for long-term storage of these excess coins.
those other $1 coin programs. There is no evidence to date that the current program has increased transactional demand. The Reserve Banks have studied detailed payment and inventory data for previous Presidential $1 Coin releases at the Reserve Bank offices and off-site coin terminals, supplemented these data with feedback from depository institutions about expected demand, and developed better forecasts for each successive release. The Reserve Banks have then actively managed inventories throughout the special ordering period for each coin, relocating coins as necessary to meet demand. As figure 2 indicates, however, depository institution demand has continued to decrease.
As communicated to Congress before the start of the program, Federal Reserve Bank $1 coin inventories have increased significantly over time, even though improved forecasting and ordering practices have reduced the number of residual coins at the end of each new release period. The Reserve Banks hold the residual coins as inventory at their offices and off-site coin terminals. Additionally and more significantly, depository institutions have re-deposited a significant number of excess $1 coins with the Reserve Banks.
As shown in figure 3 and table 2, previous $1 coin supplies, plus the excess $1 coins returned by depository institutions, elevated total Reserve Bank inventories of all $1 coins to $691 million as of May 31, 2009, or about $625 million more than the Reserve Banks held before the start of the program. Current supplies represent enough $1 coins for the Reserve Banks to meet transactional demand for $1 coins for about ten years. Because of vault storage constraints and insurance limitations at coin terminals, the Reserve Banks are exploring options for long-term storage of these excess coins.
Last edited by soitgoes; Jul 30, 2009 at 1:40 pm
Jul 30, 2009, 1:51 pm
#3168
Original Member
Join Date: May 1998
Posts: 1,139
I would love to know whether the Mint Orders data is just the amount ordered from the Mint by the Banking System. I am betting that it is.
Fascinating, also, that there is no suggestion of reducing the production of $1 bills rather than worrying about storing 10 years worth of coins. When given the choice of $1 coins or many quarters, dimes & nickels, the retail banks will choose the $1 coin. When given a choice of $1 bills or dollar coins, they will continue to choose the $1 bill as a matter of habit.
Fascinating, also, that there is no suggestion of reducing the production of $1 bills rather than worrying about storing 10 years worth of coins. When given the choice of $1 coins or many quarters, dimes & nickels, the retail banks will choose the $1 coin. When given a choice of $1 bills or dollar coins, they will continue to choose the $1 bill as a matter of habit.
Jul 30, 2009, 3:37 pm
#3169
Join Date: Mar 2009
Location: LAX
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If they really want us off the $1 bill they are going to have to stop printing them. They need to go out there and announce that in a year or two the $1 bill no longer be circulated. That's the only way they are going to increase demand for the coins. People don't shop for groceries until the fridge is empty.
Jul 30, 2009, 4:20 pm
#3170
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If they really want us off the $1 bill they are going to have to stop printing them. They need to go out there and announce that in a year or two the $1 bill no longer be circulated. That's the only way they are going to increase demand for the coins. People don't shop for groceries until the fridge is empty.
Jul 30, 2009, 4:24 pm
#3171
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Last edited by soitgoes; Jul 30, 2009 at 4:35 pm
Jul 30, 2009, 4:32 pm
#3172
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[QUOTE=soitgoes;12149825]
I guess they figured out that dollar coins don't work as well at strip clubs.
I would love to know whether the Mint Orders data is just the amount ordered from the Mint by the Banking System. I am betting that it is./QUOTE]
My understanding from the report is it is the amount the Federal Reserve ordered from the Mint--mostly based on orders from the banks.
I can't recall in which law it is, but IIRC they already slipped something into law to "protect" the $1 bill. I could be wrong, but I think that it was actually enacted.
My understanding from the report is it is the amount the Federal Reserve ordered from the Mint--mostly based on orders from the banks.
I can't recall in which law it is, but IIRC they already slipped something into law to "protect" the $1 bill. I could be wrong, but I think that it was actually enacted.
Jul 30, 2009, 4:35 pm
#3173
Moderator: Avis and Rental Cars
Join Date: Oct 2006
Posts: 8,033
I had my first denial today when trying to deposit the coins. I frequent 5 Wachovias near me and only one is cold toward the process. When I went in today, I was told that "We don't have space in the vault" with an attitude. They said they'll have space next Thursday, so I'll be sure to have a good 5-8K for deposit there next Thursday. In the meantime, I'll visit the other/nice ones 
Jul 30, 2009, 4:37 pm
#3174
Moderator: Avis and Rental Cars
Join Date: Oct 2006
Posts: 8,033
[QUOTE=UnitedEF;12149868]
Totally OT, but fitting for your comment: I've gone by many gentleman's clubs in Montreal and often wondered how you tip the ladies? Do they take Loonies? Do you have to warm them up first? Where do you put them, etc 
Jul 30, 2009, 7:17 pm
#3175
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I don't understand why my orders from the 17th and 20th of July haven't yet been processed... They are still on hold. 
Jul 30, 2009, 7:46 pm
#3177
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Jul 30, 2009, 8:30 pm
#3180
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It's too bad because they really should dump the $1 bill and the penny.