It may finally be time. It’s been talked about for decades. Now, it’s actually on the table.
Donald Trump (with substantial help from DOGE appointee Elon Musk), has proposed the US penny that has circulated in our change for over two centuries become a mere memory. The president’s initiative is an effort to save $85 million per year. That’s how much more it costs to mint pennies over their face value – more than three-cents per penny.
This isn’t a new concept. It’s been kicked around before, but, not always because of production costs. Some people have advocated their demise because they believe pennies are a pain. They contend penny candy and other low-cost items are long gone so pennies are just an annoyance of pocket change. Maybe. But, historically, they once were anything but....
Pennies actually built the United States. A cent minted in 1787 was the very first official coin created for the fledgling country. That inaugural cent was designed by none other than Ben Franklin. It featured a sun with rays above a sundial and the word “FUGIO” beside it. Fugio is Latin for “it flies” referring to time being so fleeting. At the bottom of the cent is Franklin’s admonition, “MIND YOUR BUSINESS,” a reference to his wise financial idiom, “Watch the pennies and the dollars will take care of themselves.” That’s now particularly true for collectors. They pay between $1,000 and $100,000 for early Fugio cents. Pennies have been and are a staple for collectors, young and old.
If the president gets his way, it may not solve all problems. After the penny, our next smallest coin is the nickel. If the penny goes away, it’s a given retail prices will be rounded up to the higher five-cent mark. Ergo, prices will rise. There’s something else. It costs over 13-cents to strike each nickel. Profits aren’t realized until a dime is struck. Dimes cost less than six-cents apiece to make. Would that make the nickel next on the chopping block?
As for durability, a penny stays in circulation an average of 25 years. Collectors know many cents found in change date back 50 years or more. Eventually, they must go somewhere. That’s why over three billion new US pennies are minted every year.
There’s a notable paradox with Trump’s initiative to save $85 million annually by eliminating the penny. After all, our same government spends $70 million annually to subsidize the Staten Island Ferry. It spent $28 million on camouflage military uniforms for Afghanistan that didn’t blend into the environment. How about $38 million in Covid Relief funds paid to dead people; five million dollars for a golf course at Andrews Air Force Base; or six million annually to (I’m not making this up) boost tourism in Egypt? This list goes on.
Most people over age 30, remember their early penny collection in the memorable Whitman Blue Folders found in every hobby store. Many stories behind the cents were compelling. For instance, pennies in 1943 struck out of steel. They were created so copper could be used to make bullet and cannon shells during World War II. That helped turn the tide. After the war, millions of pounds of those shell casings were melted back down to again make pennies.
Prior to the familiar Lincoln cent, we had “Indian Head” pennies. That label may, today, be politically iffy. Doesn’t matter. That’s what they were. Indian Head pennies remain a beloved, and often prized, collectible. Earlier large cents and even half cents are equally popular and substantially more valuable.
Sometimes change is hard to accept. Between 1979 and 2008, US consumers refused to accept the Susan B. Anthony copper/nickel or Sacagawea golden dollar coins. At that time, rumor was the government would soon discontinue the dollar bill. US consumers rebelled and the idea disappeared.
Not so in Canada and Mexico. Both countries long ago discontinued making pennies. Moreover, Canada successfully replaced its paper dollar with a metal coin featuring the image of a bird – the loon. Canadians love it. The coin affectionately became known as the “Loonie.” Its popularity grew so much, Canada created a two-dollar coin. Citizens loved it as well. They call it the “Toonie.”
So, will there be a change in US change? We’ll see. After all, Trump proposes lots of things. Many don’t come to pass. As for our beloved penny, I’d wager ol’ Ben was right some 238 years ago.
Time does fly. As for our future coinage…time will tell. And, in the meantime, we’ll continue to mind our business.
For more collecting stories and advice, log on to: http://prexford.com/.