The Andrew Jackson dollar coin released in mid-August is the seventh coin of the long-term Presidential Dollar series from the U.S. Mint. It also represents the third type of “mini-dollar” produced by the Mint since the Susan B. Anthony dollar was introduced in 1979. While popular with collectors, these small dollar coins have yet to be widely accepted by the public in spite of several government-sponsored promotional efforts. Because of this there have been renewed calls to abolish the paper one dollar bill to make the dollar coin the dollar of choice; though of course there would not really be a choice once paper dollars were removed from circulation.

Those opposed to the idea of eliminating the dollar bill often argue the aspect of convenience. There will still be higher denomination bills to carry in the wallet, so what difference does it make if there are a few ones in the mix? Dollar coin proponents counter from a perspective of cost savings. It costs about two to three times more to mint a coin than it does to print a dollar, but a coin has an estimated life span of 15 years compared to 18 months for the paper. But those coins weigh a lot more and are not as convenient to carry, say the bill proponents, and so it goes.

Though it might seem that this coin/currency debate is a fairly recent one, it has been ongoing for over thirty years. As early as 1975, near the end of the Eisenhower dollar series, the Mint commissioned the Research Triangle Institute to study coin denominations and alternative coinage systems. In its 1976 report the Institute recommended either eliminating the dollar coin, or reducing its size to save millions on production costs. Also noted was the fact that the Eisenhower dollar was not popular with the public (other than as a keepsake), most likely because it was cumbersome to carry and use due to its large size. The Institute recommended that if kept as a denomination the dollar coin should be sized between the quarter and the half dollar.

The momentum toward a revised dollar coin increased following a 1976 study, “A New Smaller Dollar Coin: Technical Considerations”, commissioned by the Treasury Department. Economics became the primary motivator, with estimates that the Federal Reserve would save up to 30 million dollars in printing costs if a coin replaced the dollar bill. Other voices joined the promotion, including Mint Director Stella Hackel, who stated that coins were easier to handle and more efficient than bills, and the National Automatic Merchandising Association, who repeated the assumption that the Ike dollar’s size was its undoing. Director Hackel, it might be noted, has achieved a bit of notoriety among numismatists for her presumptive order to destroy irreplaceable Mint records, some apparently going back to the turn of the 20th century, after taking office late in 1977.

One of the few voices raised against a new dollar coin at the time was the American Banker’s Association. Citing the failure of the $2 bill as a point of reference, the Association made this succinct, and as it turned out prescient, warning: “There are certain long term business interests which must be considered in any coinage change. Consumer substitution of dollar coins for dollar bills may work well on paper but not necessarily in practice. Fiscal responsibility demands that the Mint carry out studies before it changes its coinage”. Numismatic researcher Walter Breen also commented about the “problem” of dollar coins in his 1988 Complete Encyclopedia of U.S. and Colonial Coins. He noted that these large coins have never been widely used in this country, and after the first dollar notes began circulating in 1862 the public has tended to spend the notes and save the coins. Of course, dollar coins were silver in the 19th century, but the practice and habit of using small denomination currency is well established. Today, more than one generation has rarely (if ever) using a dollar coin for purchases.

Since the Anthony dollar, the Mint has had two subsequent dollar coin issues, the Sacagawea and the current Presidential dollar series. Both of the more recent types have also been well received by collectors, but once again the general public has been ambivalent. The Mint recently announced new initiatives to promote the use of dollar coins but it remains to be seen how effective those efforts will be. Most people today have grown accustomed to using currency and credit/debit cards, and when coins are used, the quarter is the highest denomination coin to be found in purse or pocket. Unless the mix of circulating coins and currency is changed to eliminate denomination duplication, users are likely to stay with what is familiar. Unfortunately for those of us who are advocates, that does not include dollar coins.