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Entries in Mint (2)

Thursday
Jul142011

US Mint: Wasting Money by Making Money

DC Productions/Thinkstock(BALTIMORE) -- The U.S. Mint in Philadelphia is a big, noisy, busy operation, capable of minting nearly 2 million presidential dollar coins daily. But most of those coins go into storage, never seeing the light of day. Costing 32 cents apiece to produce, these manganese brass dollars have proven unpopular with a public that prefers paper.

ABC News went to one such storage facility, the Federal Reserve in Baltimore, where the coins are in plastics bags and cardboard boxes, stacked one on top of another, creating several aisles of presidential coinage worth millions of dollars.

In their most recent annual report to Congress, the Federal Reserve says the coins are piling up so quickly they will need to spend $650,000 to build a new vault in Dallas to hold them. Shipping the coins to the new secure facility will cost an additional $3 million.

Passed by Congress in 2005, the Presidential $1 Coin Act ordered the mint to make millions of coins to honor every dead president, but not even Sen. Jack Reed, D-R.I., one of the co-sponsors of the original bill, uses the legal tender.

"Do you use these things? Do you have any of these things in your pocket?" Reed was asked by ABC News' Jonathan Karl while holding the dollar coins. "I don't I tell you, but I like everyone else repeatedly use nickels, dimes, quarters. In fact I have a little jar in my car for the traffic meters."

Reed and other senators sent a letter this week to Fed Chairman Ben Bernanke and Mint Acting Director Richard Peterson asking for help in improving the program while eliminating waste of taxpayer resources.

Meanwhile, the coins keep coming off the production lines, already more than a billion made and counting. The Fed's report estimates that they could have more than $2 billion in excess $1 coins by the time the program is expected to end five years from now.

Copyright 2011 ABC News Radio

Monday
Dec062010

Gov't Has Spent About $120 Million on Bills It May Not Be Able to Use

Photo Courtesy - Getty Images(NEW YORK) -- More than 1.1 billion new $100 bills that were set to be released next year have been quarantined in vaults across the country because of a creasing problem.

A person familiar with the matter told CNBC that the bills, produced for about 12 cents each, are the most costly ever made. It appears that the government has spent about $120 million to produce bills it can't use.

In October, the Federal Reserve identified a problem with printing the bills, which have new security measures to prevent counterfeiting. The magnitude of the problem was unclear at the time.

Sources tell ABC News that an initial quality check on a small sample of the new bills by the Bureau of Engraving and Printing determined that "more than half" the new bills were fine and could be distributed. But you don't have to be a Fed economist to realize what that means -- up to 49.9 percent of the bills could be defective.

At this point, the Bureau of Engraving and Printing has yet to determine the cause of the printing errors, according to sources investigating the matter. It could be the paper (supplied by Crane & Co.) or might be the BEP's presses.

Copyright 2010 ABC News Radio







ABC News Radio