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The United States Mint has made several attempts to introduce a coin which would replace the dollar bill. Each time, the end result has been mass production of coins which end up stored in vaults due to lack of demand. Many other countries, including Australia and our neighbor Canada, have replaced their “dollar bill” with a coin version. So why do Americans prefer the bill over the coin so much?

The U.S. Mint pumps out 3.4 billion fresh single dollar bills each year. The truth is, dollar bills wear out in about 18 months while the coins last approximately 30 years. While each coin is more expensive to produce than a bill, the difference in time spent in circulation would mean the overall cost of having a dollar coin instead of a bill over time would be much lower. With this huge of a difference, wouldn’t it be more economical as a nation to utilize the coins? In 2002, the Government Accountability Office stated that our nation could save $500 million a year in production costs if we switched to coins instead of bills. Given the fact that taxpayers could save several hundred million dollars per year just by implementing the dollar coin and phasing out the dollar bill, wouldn’t the appeal to everyone? So just exactly how much is it worth to be able to have a dollar bill instead of a dollar coin?

The many advantages of a dollar coin are not only from a tax savings perspective. Vending machines would be more accessible as individuals are more likely to put coins in a machine instead of dig out a dollar bill. Coins are better for the environment than bills. Less paper is used to print them, the last longer than bills, and less energy is spent producing them. Coins are also easier than bills to count than bills since they don’t stick together and they can be weighed, whereas the bill cannot. Coins are also healthier than bills. Since they aren’t fibrous like the bill, they don’t absorb as many germs or dirt. Coins are washable by simply running under soap and water, but bills are much more difficult to clean without risking damage to the bill.

Current complaints regarding the dollar coin are that it is too close in size to a quarter. People also do not like the added weight in their pockets compared to a dollar bill. Since paper money can be folded and shaped to fit nearly anywhere, it is easier to carry than the coin. Other disadvantages would include the upgrades required to implement the new coins.  Many cash registers and the aforementioned vending mentions would all require equipment upgrades in order to be able to accept the new dollar coin. Counterfeiting is much easier to regulate with bills than coins since new technology allows for special inks, watermarks, and paper. Coins are much easier to counterfeit, therefore, perhaps a savings in created in the form of economic stability.

All in all, there are both advantages and disadvantages to each form of money. However, given our nation’s current financial struggles, the American people may begin to push for every dollar savings they can which could result in a look at the bottom line. In addition, as the “Green Initiative” spreads, the idea of the coin may go further from an environmental perspective. Yet, the fact remains, many attempts have been made to implement a dollar coin into circulation without success. Americans are just hesitant to adopt this new standard and it could remain a difficult sell. Only time will tell what the future of our money looks like. 

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Ever wondered what your dollar bill is made of? Do you know why money doesn’t disintegrate when left in the washing machine? That’s because paper money is more cloth than it is paper! In fact there is no paper at all, or even wood, used in any of our dollar bills. Paper money is made out of rags of paper, also known as heavy paper. These rags are cotton and linen fabrics beaten together to create cotton and linen fibers, making it really sturdy and durable.  

These rag fibers bond together more strongly than that of the fibers found on normal paper. Note that normal paper is made out of selected cellulose fiber which comes from trees, and these cellulose based paper absorbs water immediately and falls apart when so, as opposed to rags made out of cotton and linen fibers which molecule structures don’t break down easy. These rag fibers are fundamentally unaffected by water, its composition is so strong that it remains unaltered upon immersion in water or most liquids. The concoction of materials used is also much more resilient than normal paper, it resists wear and tear, and also does not contain the usual agents that makes ordinary paper glow slightly under an ultraviolet light. Paper money or banknote paper is also sometimes impregnated with polyvinyl alcohol or gelatin to give it that extra strength and durability.

Paper money is basically composed of 25 percent linen fibers and 75 percent cotton fibers, and red and blue synthetic fibers of various lengths are distributed evenly and consistently throughout the paper like material. It is said that prior to World War I, these fibers were made out of silk, but the practice was quickly discontinued because it wasn’t cost effective and practical.

Most banknotes these days are made using the mould method in which a watermark and thread is incorporated during the material forming process, mainly to thwart currency counterfeiters. To keep up and stay ahead of currency forgers, paper money today has also become so high-tech, and the newer designs include state-of-the-art technology like Cornerstone, Platinum and Optiks, all of which increases the strength and security of paper money.

Manufacturers of banknote paper were also swift to recognize the problems associated with dirt and they developed a special paper with a thin layer of varnish on the surface to repel them. Recently, the composition of materials used in producing paper money has also changed dramatically with the introduction of synthetic technology, which comprises an impenetrable network inside the cotton fiber structure, supporting the banknote and intensifying its mechanical stability, Newer products like Synthec and Diamone Composite has also responded to this call and the growing demand for higher mechanical stability of the paper, making paper money more resistant to wear and tear. Consisting of 80 percent cotton fiber and 20 percent synthetic fiber, Synthec based paper money lasts longer and is more flexible. Some countries around the world have also adopted polymer, which is basically soft plastic, to replace the traditional cotton and linen composites. 

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The United States Treasury Department has outlined very specific guidelines for dealing with suspected counterfeit money. On their government website, there is a list of things that they suggest you do for your own security.

First of all, if you suspect a counterfeit, report it to your local police or the U.S. Secret Service. If you are away from home, you should report the suspected counterfeit note to the closest police department located in the same town, or a neighboring one. This should also be done if you are in another country.

Here are some of the guidelines on the website:

• You should not give the bill back to the person who gave it to you.
• Try to delay the person, if possible.
• Avoid putting your fingerprints on the bill. Put it in an envelope or a plastic bag.
• Give the bill to an identified police officer, or mail it to the U.S. Secret Service Agent that is closest to you. Do not give it to anyone else.

There are several ways to spot a counterfeit bill on the website as well. There should be a watermark that is visible when looking at either side of the bill when it is held up to the light. There is also a security thread that is embedded in each bill. This thread is also visible when the bill is held up to the light.

If you have an ultraviolet light available, each bill will glow a certain color under that light (unless it is a $1 bill). If there is no glow, then it could be a counterfeit.

There are further details on dealing with suspected counterfeit bills on the United States Department of Treasury website, www.ustreas.gov. Visit their website for more information on counterfeit bills.

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