THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, June 1, 1995 TAG: 9506010012
SECTION: FRONT PAGE: A10 EDITION: FINAL
TYPE: Letter
LENGTH: Short : 35 lines
Your editorial supporting a mandatory dollar coin stated that the government would save $35 million a year due to the fact that coins last longer than paper. In fact, the Congressional Budget Office says that production savings would amount to only $20 million a year. U.S. Mint Director Philip Diehl told Congress switching would actually cost the government $22 million over the first five years.
That's not even counting what consumers will be paying. The prices of vending-machine products are sure to rise. Half of all vending machines will have to have a $2 bill acceptor added, and every machine will have to have a new tubing device to accept the $1 coin and give it back in change. These modifications will run about $2.7 billion. These costs will be passed on to the consumer.
The dollar-coin bill would mint coins exactly the same size as the Susan B. Anthony dollar, a coin that failed in no small part due to its closeness in size to the quarter. If this new coin comes to fruition, I fear it will have more in common with the Susan B. Anthony than just size; it will also be a major failure at great expense to the taxpayer.
DAVID RYDER
Former director
U.S. Mint
Washington, D.C., May 20, 1995 by CNB