Maloney’s statement continued, with an admission that the Presidential $1 Coin Act of 2005 may need revision. Mint currently have the clear legislative authority to manage their inventories better and avoid these surpluses of coins that need to be stored.” “I believe that the Treasury and the U.S. Mint and Treasury are to blame for mismanaging coin production. Carolyn Maloney released a statement suggesting the U.S. Hayes.īy the end of the program, there could be as many as two billion unused dollar coins sitting in underground Federal Reserve vaults. The next series of coins will be minted in August with the likeness of Rutherford B. Mint is required to keep churning out presidential dollar coins through 2016. Unless the law is changed or repealed, the U.S. In order for the golden dollars to circulate as currency, private banks must buy them from the Federal Reserve. The coins are not technically legal tender yet. Kestenbaum estimates the unused coins will cost taxpayers $300 million if they don’t make it into the economy. Malibu Barbie-Inspired Pop-Up Is Coming to NYC This Spring We’re paying someone to dig ditches and then fill them. “It costs about 30 cents to make one of these dollar coins, and to the extent that those coins are then just sitting in a vault, it’s basically like an art project. Mint program has already created more than a billion unused golden dollars accumulating in underground vaults run by the Federal Reserve Bank, according to David Kestenbaum, a journalist with National Public Radio who was one of the first to investigate this government waste for NPR's global economics blog Planet Money. The Presidential $1 Coin Program experience is consistent with previous $1 coin programs, demonstrating low transactional demand.” “For previous $1 coin programs,” the authors noted, “the Reserve Banks encountered large excess inventories for much longer periods because transactional demand was very low. Authors of the report expressed fear the program was already wasting resources, just one year into the minting process. Six years later, the effort Maloney championed may be costing taxpayers hundreds of millions of dollars, because very few dollar coins are making their way into the hands of American consumers.Īccording to a 2008 Federal Reserve Board report, the golden coins are piling up in underground vaults because of low demand by banks and the public. The law passed the House of Representatives with overwhelming support, 291 to 113. “This bill earns money for the government, benefits small businesses and consumers, educates all users of American currency about their presidents and first ladies,” she said at the time. Maloney sponsored the Presidential $1 Coin Act, proclaiming it would be a net win for taxpayers. Carolyn Maloney told her fellow lawmakers they’d be fools not to support a bill creating dollar coins embossed with the faces of U.S.
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