Are US denominations efficient?

While the US and Canadian coin denominations are 1, 5, 10, 25, 50
cents and 1 dollar (and 2 dollars in Canada), I notice most other
industrialized countries use 1, 2, 5, 10, 20, 50 cents, pence, etc. and
1 and 2 dollars, pounds, euros, etc.

My question is: which system is more efficent in changemaking?
Does a 2 cent coin really make a difference? Is there an advantage to a
20 cent coin as opposed to a 25 cent coin?

The former Soviet denominations were weird: 1, 2, 3, 5, 10, 15,
20, and 50 kopecks and 1 rouble. Were there any specific advantages to
3 and 15 kopeck coins? I am aware that vending machines in the USSR
often only accepted one denomination. A 3 kopeck soda machine only took
3-kopeck coins. A 2 and a 1 or 3 one-kopeck coins wouldn't work. Ditto
with the 2 kopeck pay phones for local calls and the 15 kopeck long
distance phones (yes, they were seperate *phones*!) and the 5 kopeck
subway turnstiles....

Once upon a time the U.S. had a two cent coin, a three cent coin and
a twenty cent coin... and none were really acceptable to most of the
population. Similarly, the US$2 bill only was popular with seamen
and in several cities along the coast of the U.S. So the question of
what is acceptable or efficient really depends on acceptance by the
populace. The real issue for most businesses is refitting their cash
registers for more coins... that is where most of the resistance
comes in. If your register only has slots for 5 coins, you tend NOT
to want to see any other coin. So 1¢,5¢,10¢,25¢ and $1 will be it
for your place of business, and you will look askance at anyone
giving you a 50¢ coin...

I asked my local bank here in Toronto for a roll of 50¢ coins and I
get a dirty look and a comment that they do not HAVE any such rolls.
It IS legal tender, but they simply do not carry any... as the local
businesses have no space in their registers for them... That space
was taken by the $1 or $2 coin when those came out. Do I like the
50¢ coin? YES... Do local businesses like it? NO... Therefore no
local distribution of 50¢ coins.

As to a question of efficiency, it matters little as long as you
have the ability to make the correct change. 2*25¢= 1*50¢ and so
on... Today, with machines issuing dashboard receipts replacing
parking meters, and credit and debit cards replacing cheques and
cash, it no longer matters to many retailers or wholesalers as to
small change... it is becoming an oxymoron to some... they see so
little of it. We use tokens and tickets for the subway and busses,
have monthly passes that people pay for with debit cards, and refuse
to take $50 and $100 bills in lots of places to boot, so while your
mileage might vary, coins not really all that relevant to the issue
of efficiency.

Go figure....

RsH
--------------------------
On 29 Sep 2005 07:57:40 -0700, "John Charles Wilson"
wrote:

While the US and Canadian coin denominations are 1, 5, 10, 25, 50
cents and 1 dollar (and 2 dollars in Canada), I notice most other
industrialized countries use 1, 2, 5, 10, 20, 50 cents, pence, etc. and
1 and 2 dollars, pounds, euros, etc.

My question is: which system is more efficent in changemaking?
Does a 2 cent coin really make a difference? Is there an advantage to a
20 cent coin as opposed to a 25 cent coin?
================================================== =====

Copyright retained. My opinions - no one else's...
If this is illegal where you are, do not read it!

Before Euro, In spain we had the following pesetas coin:

1, 5, 10, 25, 50, 100, 200 and 500 ptas (Try to think on it as 1 cent, 2
cent, 10 cent, 25 cent, 50 cent, 1 dollar, 2 dollars, 5 dollars).
people only used 5, 25, 100 and 500

In the 80's and half 90's:
1, 2, 5, 10, 25, 50, 100
people only used 5, 25, 50

In the 60's
0.5, 1, 2.5, 5, 25, 50, 100 (rare, just in silver)
people only used 0,5, 1, 5, 25 and less, 50.

In the 40's
0.05, 0.1, 0.25, 0.50, 1, 2.5, 5, 25
people only used 0.25, 0.50, 1 and 5

So, in the same country you can find many denominations and extrange coins
not very used (2.5 or 2). Many people in spain miss a lot a 25 cent coin,
may be for the 25 pesetas coin we lost.

fernando

"RsH" escribió en el mensaje
...
Once upon a time the U.S. had a two cent coin, a three cent coin and
a twenty cent coin... and none were really acceptable to most of the
population. Similarly, the US$2 bill only was popular with seamen
and in several cities along the coast of the U.S. So the question of
what is acceptable or efficient really depends on acceptance by the
populace. The real issue for most businesses is refitting their cash
registers for more coins... that is where most of the resistance
comes in. If your register only has slots for 5 coins, you tend NOT
to want to see any other coin. So 1¢,5¢,10¢,25¢ and $1 will be it
for your place of business, and you will look askance at anyone
giving you a 50¢ coin...

I asked my local bank here in Toronto for a roll of 50¢ coins and I
get a dirty look and a comment that they do not HAVE any such rolls.
It IS legal tender, but they simply do not carry any... as the local
businesses have no space in their registers for them... That space
was taken by the $1 or $2 coin when those came out. Do I like the
50¢ coin? YES... Do local businesses like it? NO... Therefore no
local distribution of 50¢ coins.

As to a question of efficiency, it matters little as long as you
have the ability to make the correct change. 2*25¢= 1*50¢ and so
on... Today, with machines issuing dashboard receipts replacing
parking meters, and credit and debit cards replacing cheques and
cash, it no longer matters to many retailers or wholesalers as to
small change... it is becoming an oxymoron to some... they see so
little of it. We use tokens and tickets for the subway and busses,
have monthly passes that people pay for with debit cards, and refuse
to take $50 and $100 bills in lots of places to boot, so while your
mileage might vary, coins not really all that relevant to the issue
of efficiency.

Go figure....

RsH
--------------------------
On 29 Sep 2005 07:57:40 -0700, "John Charles Wilson"
wrote:

While the US and Canadian coin denominations are 1, 5, 10, 25, 50
cents and 1 dollar (and 2 dollars in Canada), I notice most other
industrialized countries use 1, 2, 5, 10, 20, 50 cents, pence, etc. and
1 and 2 dollars, pounds, euros, etc.

My question is: which system is more efficent in changemaking?
Does a 2 cent coin really make a difference? Is there an advantage to a
20 cent coin as opposed to a 25 cent coin?
================================================== =====

Copyright retained. My opinions - no one else's...
If this is illegal where you are, do not read it!

Welcome Newcomer. Coinage reform is an eternal axe-grinding topic here
on RCC. If you are that interested, try searching Google Groups for old
threads on the topic.

There is a practical advantage to the US 25 cent coin that outweighs
everything else. Every coin-op vending machine in the country takes
them. A 20 cent coin is theoretically more efficient for cashiers, but
retooling machines would be prohibitive. Also, everyone is used to
quarters. IMO the real reform issues are simply how and when to retire
small denominations, and the design and introduction of new larger
denominations.

My own slant is that the US is decades overdue on both of these. I
favor transitioning to a 4 coin system as fast as possible: 10c, 25c,
$1, and $5. Dump the 1c, 5c, 50c, and $1 and $2 notes immediately.

--Dave

John Charles Wilson wrote:

While the US and Canadian coin denominations are 1, 5, 10, 25, 50
cents and 1 dollar (and 2 dollars in Canada), I notice most other
industrialized countries use 1, 2, 5, 10, 20, 50 cents, pence, etc. and
1 and 2 dollars, pounds, euros, etc.

My question is: which system is more efficent in changemaking?
Does a 2 cent coin really make a difference? Is there an advantage to a
20 cent coin as opposed to a 25 cent coin?

The former Soviet denominations were weird: 1, 2, 3, 5, 10, 15,
20, and 50 kopecks and 1 rouble. Were there any specific advantages to
3 and 15 kopeck coins? I am aware that vending machines in the USSR
often only accepted one denomination. A 3 kopeck soda machine only took
3-kopeck coins. A 2 and a 1 or 3 one-kopeck coins wouldn't work. Ditto
with the 2 kopeck pay phones for local calls and the 15 kopeck long
distance phones (yes, they were seperate *phones*!) and the 5 kopeck
subway turnstiles....

In article , Dave Allured
wrote:

My own slant is that the US is decades overdue on both of these. I
favor transitioning to a 4 coin system as fast as possible: 10c, 25c,
$1, and $5. Dump the 1c, 5c, 50c, and $1 and $2 notes immediately.

Do you think the public, who will whine over _any_ change, would accept
such changes slowly, or all at once as you suggest?

Personally, I think a gradual change is better, but maybe making lots
of changes all at once would get the whining over with quicker.

Paul

--
Paul Anderson
OpenVMS Engineering
Hewlett-Packard Company

Are you serious? Only 10, 25, $1 and $5? Thinks of any priced item,
rounded or not. When you add the sales taxes, and these vary from city to
city, and state to state, you end up with all sorts of odd totals. Do you
then round up or down to the nearest amount ending in zero? That is the
silliest suggestion I have ever seen.

Tony

"Dave Allured" wrote in message
...
Welcome Newcomer. Coinage reform is an eternal axe-grinding topic here
on RCC. If you are that interested, try searching Google Groups for old
threads on the topic.

There is a practical advantage to the US 25 cent coin that outweighs
everything else. Every coin-op vending machine in the country takes
them. A 20 cent coin is theoretically more efficient for cashiers, but
retooling machines would be prohibitive. Also, everyone is used to
quarters. IMO the real reform issues are simply how and when to retire
small denominations, and the design and introduction of new larger
denominations.

My own slant is that the US is decades overdue on both of these. I
favor transitioning to a 4 coin system as fast as possible: 10c, 25c,
$1, and $5. Dump the 1c, 5c, 50c, and $1 and $2 notes immediately.

--Dave

John Charles Wilson wrote:

While the US and Canadian coin denominations are 1, 5, 10, 25, 50
cents and 1 dollar (and 2 dollars in Canada), I notice most other
industrialized countries use 1, 2, 5, 10, 20, 50 cents, pence, etc. and
1 and 2 dollars, pounds, euros, etc.

My question is: which system is more efficent in changemaking?
Does a 2 cent coin really make a difference? Is there an advantage to a
20 cent coin as opposed to a 25 cent coin?

The former Soviet denominations were weird: 1, 2, 3, 5, 10, 15,
20, and 50 kopecks and 1 rouble. Were there any specific advantages to
3 and 15 kopeck coins? I am aware that vending machines in the USSR
often only accepted one denomination. A 3 kopeck soda machine only took
3-kopeck coins. A 2 and a 1 or 3 one-kopeck coins wouldn't work. Ditto
with the 2 kopeck pay phones for local calls and the 15 kopeck long
distance phones (yes, they were seperate *phones*!) and the 5 kopeck
subway turnstiles....



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In a recent message "Fernando de la Cuadra" wrote:


Before Euro, In spain we had the following pesetas coin:

1, 5, 10, 25, 50, 100, 200 and 500 ptas (Try to think on it as 1 cent, 2
cent, 10 cent, 25 cent, 50 cent, 1 dollar, 2 dollars, 5 dollars).
people only used 5, 25, 100 and 500

Interesting. When we visited Spain in pre-euro days I wondered why I only
received three 10 peseta coins and one 50 peseta coin (and 1 peseta coins
only in a market in Bilbao before we headed home)

Interestingly, the most common coins I get in my change (other than the
one pound) are the 2p and 20p.

Our local sports centre is always crying out for 5p coins, and were very pleased
when I used two pounds worth to pay my entrance charge the other day. The problem
there is size - people do not like them as they are so small.

--
Tony Clayton
Coins of the UK : http://www.coinsoftheuk.info
Sent using RISCOS on an Acorn Strong Arm RiscPC
.... Famous Quotes: "...and tits doesn't belong on the list!" - G. Carlin

In a recent message "A.E. Gelat" wrote:

Are you serious? Only 10, 25, $1 and $5? Thinks of any priced item,
rounded or not. When you add the sales taxes, and these vary from city to
city, and state to state, you end up with all sorts of odd totals. Do you
then round up or down to the nearest amount ending in zero? That is the
silliest suggestion I have ever seen.

Tony

Not so silly if you live in New Zealand or Australia.

Same tax problem, but everyone rounds to 5c since they abandoned
the 1c and 2c coppers. Interestingly, the New Zealanders are
proposing to eliminate the 5c as well.

The problem of rounding is only really significant if you are
making a small purchase. The most common small purchase I make
is for a newspaper, but this is exactly 60p anyway, so that is not
a problem.

Above two pounds rounding to the nearest 10 pence would give a maximum
difference of 2.5 %.

We do this all the time with petrol (gas to our transatlantic friends).
Our local garge sells at 95.9 p per litre (US$6.39 per US gallon)
and always rounds to the nearest penny. If they rounded to the nearest 10p
a typical 45 pound bill would be 0.1% out at most.

--
Tony Clayton
Coins of the UK : http://www.coinsoftheuk.info
Sent using RISCOS on an Acorn Strong Arm RiscPC
.... Hackers do it with bugs.

Dave Allured wrote:

Welcome Newcomer. Coinage reform is an eternal axe-grinding topic here
on RCC. If you are that interested, try searching Google Groups for old
threads on the topic.

There is a practical advantage to the US 25 cent coin that outweighs
everything else. Every coin-op vending machine in the country takes
them. A 20 cent coin is theoretically more efficient for cashiers, but
retooling machines would be prohibitive. Also, everyone is used to
quarters. IMO the real reform issues are simply how and when to retire
small denominations, and the design and introduction of new larger
denominations.

My own slant is that the US is decades overdue on both of these. I
favor transitioning to a 4 coin system as fast as possible: 10c, 25c,
$1, and $5. Dump the 1c, 5c, 50c, and $1 and $2 notes immediately.

--Dave


Whatcha got against the 5¢ coin?

And howcum we don't have a $25 note?

JAM

Dave Allured wrote:


There is a practical advantage to the US 25 cent coin that outweighs
everything else. Every coin-op vending machine in the country takes
them.

Plus the fact that it would take 5 coins to make a dollar as opposed to
4 for quarters. Besides, what would you call it - a fifth? 8*)

John