WASHINGTON — The penny may be losing its shine in Washington, as a bipartisan-backed bill to end its production cleared a key House committee last week- with fiscal hawks and factory workers unexpectedly on the same coin. Heads or tails, the penny’s days are numbered.
Treasury Secretary Scott Bessent speaking at the Young Americas Foundation Conservative Student Conference last week, joined the drumbeat saying he would be “killing” the penny in Philadelphia Monday (8-11).
Last month, Congressman Frank D. Lucas’ (RCheyenne) penny bill, the Modernize and Improve our National Tender Act, gave the Treasury the ammunition it needed by passing the penny bill out of the Financial Services Committee.
The MINT Act would cease the production of the penny while ensuring that every penny still in circulation remains as legal tender. It would also allow the Mint to produce the nickel with nickel-plated zinc, giving greater flexibility to produce cheaper coins.
When Abraham Lincoln first appeared on the penny in 1909, a cent could buy a loaf of bread. Today, it’s worth about 1/33rd of that- and lawmakers say it’s time to let it go.
The government made its final order of penny blanks in May, marking the first step to end the production of the one-cent coin.
According to Lucas, “the one-cent piece has run its course… The world has changed…Let’sjustbepractical and move forward.”
Les White, owner of Liberty Coin and Gold LLC in Norman, doesn’t like additional tax expenditures for the American people but understands the logic behind why the penny is still being produced. He referenced the term “seniorage,” where the government gets to mint coins other than the penny for small costs but sell it to the public for a higher cost, “they make money by literally making money.”
White suspects the U.S Treasury’s reasoning behind continuedproductionofthe penny and “keeping up appearances even if it costs,” is because of the confidence in the U.S Dollar and having the reputation of reserve currency of the world.
Several English speaking countries like New Zealand, Australia and Canada use dollars as their currency, but none of them make pennies anymore because of the expense.
Lucas, a known coin collector, is reportedly building a type collection of coins produced by the U.S. Mint. He co-sponsored the bill that created the American Buffalo Commemorative Silver Dollar in 2001.
His bill would cement former President Trump’s February directive instructing the Treasury Department to end penny production and round all cash transactions to the nearest nickel. It passed under the umbrella of the Common Cents Act, introduced by House Republican Conference Chair Lisa McClain (R-MI), though her original text was replaced by Lucas’ MINT Act.
Trump has long criticized the penny as a “wasteful” coin, pointing to its outsized production cost as reason enough to pull it from circulation.
White’s initial reaction to this was that Trump may not have a full, comprehensive understanding of American mint production.
The MINT Act is supported by the United Steelworkers Union– which represents the 250 employees that previously manufactured zinc coin blanks for the penny– saying that the “bill preserves jobs, supports American industry, and delivers savings to taxpayers”.
The House Financial Services Committee, which oversees banking, insurance and other related matters, advanced the “Common Cents Act” by a vote of 35-13 on July 23.
Last year, three billion pennies were produced, resulting in losses of over $85 million, the 19th straight year the mint has lost money on keeping the copper coin in circulation. No action will be taken on the bill until the House returns from summer recess.
In funerary lieu of the coin, White believes the common coin user should know that they weren’t always called pennies. They used to be cents, but were later weighed by ‘penny weight,’ due to their evolving composition.
Lucas told Roll Call in 2011, “When it comes to quality, mechanical manufacture and the artistic images that are embodied on our coins, we need to work very diligently to leave an impressive historic record… it’s not just coins to put in the parking meter down on the corner. You are leaving a record of your civilization.”
Gaylord News is a reporting project of the University of Oklahoma Gaylord College of Journalism and Mass Communication. For more stories by Gaylord News go to GaylordNews.net.
