Coin Shortage

[gregintenn]

What the.hell is this new fiasco? One of only a handful of things the federal government IS supposed to do is to mint coins.

Anybody have a straight answer for this sudden shortage?

[Shorty]

It's not a production shortage but rather a distribution shortage from people spending less with paper money and coins.  A lot of folks went electronic.

[gregintenn]

54 minutes ago, Shorty said:

It's not a production shortage but rather a distribution shortage from people spending less with paper money and coins.  A lot of folks went electronic.

Where’d they go? People hoarding them?

[Grayfox54]

Most of the coins are in pants pockets, purses and sitting on the dresser. People are staying home. Those that do go out often pay in cash with paper bills. Most don't use exact change.  Businesses are still having to make change, but very few coins are coming back in. 

[quedz]

1 hour ago, Shorty said:

A lot of folks went electronic.

Never have been fan of dirty money and much less so now. Debit card for me...

[peejman]

There are thousands of coffee mugs, cans, and bottles full of coins in homes. When banks try to charge people who bring bulk coins in, they quit doing it. That and credit cards means circulation has dropped drastically in the last 6 months. 

[TomInMN]

I saw last week that there's a credit union in WI that's paying a bounty on coins now. I think it's $5 for every $100 in coins exchanged?

[gregintenn]

13 minutes ago, TomInMN said:

I saw last week that there's a credit union in WI that's paying a bounty on coins now. I think it's $5 for every $100 in coins exchanged?

That seems like a losing proposition for the credit union.

[TomInMN]

50 minutes ago, gregintenn said:

That seems like a losing proposition for the credit union.

On paper, for sure. It's more of a goodwill effort towards with the local business community.

[jpx2rk]

1 hour ago, gregintenn said:

That seems like a losing proposition for the credit union.

Actually, the bank has to pay the armored car service to deliver the coin in bulk (bags or rolled), so it actually reduces the CU's overall operating expenses by a small amount, which is returned to the CU's customers.

[TomInMN]

1 hour ago, jpx2rk said:

Actually, the bank has to pay the armored car service to deliver the coin in bulk (bags or rolled), so it actually reduces the CU's overall operating expenses by a small amount, which is returned to the CU's customers.

Thanks for the info. I hadn't considered that delivery might cost something.

[Shorty]

I saw a couple of articles citing restaurants that were giving out food vouchers if you come in and swap $5-10 in coins for $5-10 in bills just so they could have coins on hand for making change.

[bersaguy]

Chik-Filet has some kind of free food promo if you pay with coins instead of plastic or paper money. I don't knw all the particulars on it but I'm sure it's on their website. I probably have 50-75.00 dollars of change in a coffee can that has just been accumulating over the 3 or more years. I'm going to the bank Saturday and get some coin wrappers and roll up what I have.....lol.

[krunchnik]

One fear I have always had-what if the power grid goes down in a semi permanent situation-all your money is in the bank-only way to access is with a card-which means you need electricity.

But I guess if that happens money will be of little use anyways-maybe we could deal in donkey's or gun's or maybe ammo-just asking what if???

[gregintenn]

4 minutes ago, krunchnik said:

One fear I have always had-what if the power grid goes down in a semi permanent situation-all your money is in the bank-only way to access is with a card-which means you need electricity.

But I guess if that happens money will be of little use anyways-maybe we could deal in donkey's or gun's or maybe ammo-just asking what if???

My safes have manually operated locks.

[Jeb48]

I heard the shortage was because the mint is being run on partial staff because of C-19.

We took a bunch of change I had sitting around to the local produce stand we go to and let them buy them for face value. My wife then rolled about $20 worth of pennies and she id going to buy future produce with them till they are gone.

[Ronald_55]

2 hours ago, krunchnik said:

One fear I have always had-what if the power grid goes down in a semi permanent situation-all your money is in the bank-only way to access is with a card-which means you need electricity.

But I guess if that happens money will be of little use anyways-maybe we could deal in donkey's or gun's or maybe ammo-just asking what if???

Would be rock bottom if I start giving people ammo that isn't moving at ft/s....

[Dirtshooter]

My son said his banker told him this "coin shortage" was a bunch of bull. He said it is all part of "the" plan to quit using currency and going to "the chip", no credit cards, no currency, just a chip or "NO SOUP FOR YOU".  Truth or not I do not know. Just passing it along. I guess when people refuse the chip and they won't take the money, I don't know what folks with hungry children would do, but I have a really good idea!!

[xsubsailor]

1 hour ago, Dirtshooter said:

My son said his banker told him this "coin shortage" was a bunch of bull. He said it is all part of "the" plan to quit using currency and going to "the chip", no credit cards, no currency, just a chip or "NO SOUP FOR YOU".  Truth or not I do not know. Just passing it along. I guess when people refuse the chip and they won't take the money, I don't know what folks with hungry children would do, but I have a really good idea!!

I wonder how they plan on getting around this:

upload photo

 

[KahrMan]

21 minutes ago, xsubsailor said:

I wonder how they plan on getting around this:

upload photo

 

There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services. Private businesses are free to develop their own policies on whether to accept cash unless there is a state law that says otherwise.

Section 31 U.S.C. 5103, entitled "Legal tender," states: "United States coins and currency [including Federal Reserve notes and circulating notes of Federal Reserve Banks and national banks] are legal tender for all debts, public charges, taxes, and dues." This statute means that all U.S. money as identified above is a valid and legal offer of payment for debts when tendered to a creditor.

[A.J. Holst]

On 7/30/2020 at 6:07 PM, TomInMN said:

Thanks for the info. I hadn't considered that delivery might cost something.

So do the ATMs and ITMs.

Most of this equipment is leased.

[nightrunner]

On 7/30/2020 at 7:08 PM, krunchnik said:

One fear I have always had-what if the power grid goes down in a semi permanent situation-all your money is in the bank-only way to access is with a card-which means you need electricity.

But I guess if that happens money will be of little use anyways-maybe we could deal in donkey's or gun's or maybe ammo-just asking what if???

I was only 13 when 9/11 happened but I still remember one of the first things the president did was call for a bank holiday for 3 days. Couldn’t touch your money. And this was back in 2001 (obviously) but everyone used cash for everything. At least the people I was around you didn’t use debit or credit cards unless absolutely necessary.

Now days it wouldn’t make much difference but the situation you described would be a big deal.

[xsubsailor]

9 minutes ago, KahrMan said:

There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services.

Trump's not out of office yet 

[jpx2rk]

The barter system has been around for ages, some people like or prefer that, especially when they are low on cash.  I doubt if private business, persons, or organizations stop accepting paper money or coins as payment for services, especially in cities and towns.  The large box stores are NOT going to switch over to the barter system anytime soon.  

[Erik88]

13 hours ago, Dirtshooter said:

My son said his banker told him this "coin shortage" was a bunch of bull. He said it is all part of "the" plan to quit using currency and going to "the chip", no credit cards, no currency, just a chip or "NO SOUP FOR YOU".  Truth or not I do not know. Just passing it along. I guess when people refuse the chip and they won't take the money, I don't know what folks with hungry children would do, but I have a really good idea!!

I would be finding another bank.