THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, May 4, 1995 TAG: 9505040349
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Medium: 77 lines
Dollars would jangle in Americans' pockets rather than pad their wallets if Republican budget-cutters get their way.
They're eyeing millions in savings that could result from replacing $1 bills that wear out in 17 months with $1 dollar coins lasting 30 years.
A diverse coalition of special interests, ranging from blind operators of concession stands to public transit companies to copper-mining corporations, is backing the effort.
The opposition - paper and ink companies and the unions involved in printing the bills - has over the years succeeded in blocking the coin forces. But the coin proponents' cause has been given new life this year by the Republican Congress' struggle to balance the budget.
``Significant government savings are no further away than our wallets or purses,'' Rep. Jim Kolbe, R-Ariz., told the House Banking subcommittee on monetary policy Wednesday.
Although it costs twice as much to mint a coin as print a bill - 8 cents vs. 4 cents - the coins last 21 times longer, said Kolbe, who has introduced legislation to replace the dollar bill with a coin.
The Congressional Budget Office estimates the savings at $120 million to $180 million a year.
And switching to coins will save millions for private industry while offering added convenience for the public, proponents argue.
No longer would commuters riding express buses from Staten Island to Manhattan have to pay with 16 quarters - twice a day - because New York City buses don't accept dollar bills. No longer would shoppers in downtown Washington have to feed meters with 16 quarters to park for two hours. No longer would the Chicago Transit Authority have to pay 20 full-time employees to straighten out and stack the dollar bills its receives.
Nearly every other major industrial nation already has switched to high-denomination coins. Canada, for instance, has a one-dollar coin, nicknamed the ``Loonie'' after the picture of a loon that it carries, and plans to introduce a $2 coin next year.
Coin opponents answer proponents' argument with a single phrase: ``Susan B. Anthony.''
In 1979, the government introduced dollar coins with the picture of the famous feminist. The public hated them. Sixteen years later, nearly 300 million of them still sit in government vaults.
Coin backers counter that Susie Bs failed because they looked too much like a quarter. Any new dollar coin would be the same size as the Susie B but should be gold-colored and have a smooth edge like a nickel as opposed to a notched edge like a quarter, according to The Coin Coalition, the group lobbying.
Another problem with the Anthony dollar was that the government continued printing dollar bills, which kept the coins from receiving the mass circulation they needed to gain acceptance.
A rival lobbying group, Save The Greenback, says that just points to the lack of public support for the switch, which it said would encourage vending machine owners to raise prices, promote environmentally damaging strip mining of copper and increase many business' costs.
Other bill defenders warn about monkeying with the dollar's worldwide image of stability at a time when its value against other currencies is sinking. The same portrait of George Washington has been on the bill since 1869.
In the end, all the pros and cons will probably come down to one question: whether people think they'll be able to lighten their pockets and purses by carrying a few dollar coins instead of a handful of quarters or whether they believe they'll be giving up light bills for heavy coins.
``It will be harder to walk or run with a full pocket. The next time you're in a hurry, you might think about this,'' said Rep. Tom Davis, R-Va., whose suburban Washington district is home to many Bureau of Printing and Engraving employees. ILLUSTRATION: Color drawing
by CNB