New dollar coin faces circulation problems

Although the dollar coin is making another attempt to add to the change in retailers’ cash registers, Michigan retailers have yet to see much of the new George Washington dollar coin in their stores since its debut on February 15.

“Only one dollar coin has come into my store from a customer, and I tried to get rid of it as fast as possible,” said Jim Berlage, owner of Bridge Street Book Shop in Charlevoix.

The gold-color coin, the first of four presidential $1 coins scheduled for release this year, features Washington on the front. The back shows the Statue of Liberty and, for the first time, $1 as a symbol and not spelled out.

Instead of having a ribbed edge like other coins, this one boasts “In God We Trust” etched into the side of the coin along with the year of minting. Four presidential coins are scheduled for release each year until 2016. Each coin will have its own unique design.

Many retailers say they don’t expect the coin to stick around.

“Just like the other dollar coins that have come out, these will die off very quickly,” said Alice Foster-Stocum, manager of Michigania in Lansing.

Pat Heller, owner of Liberty Coins in Lansing, says people prefer to use paper money.

“As long as there is still paper money, the dollar will not be successful as a circulating coin,” said Heller.

The U.S. Treasury hopes that is not the case. The presidential program is similar in design to the recent 50 State Quarters Program, in hopes of generating similar success. But a major difference in the circulation of the coins is that the quarter was already established as a common circulating coin, while the dollar is not.

The government has a motive for pushing the circulation of the dollar coins. If the coins can eventually replace paper money, the government will save hundreds of millions of dollars annually. Coins last longer, so replacements are made less frequently than paper money.

A series of defects was discovered recently in the dollar coins. An unknown number made it past multiple inspection processes and out to the public without any inscription along the edges. There was no “In God We Trust” or year of production on the coin.

An even larger error was found when some coins were distributed without a face. The front and back were completely blank.

So far, no defective coins have been found in Michigan.

Those in possession of the faceless, defective coins have put them on eBay, where one has sold for as much as $405.

Although the defects have attracted some attention to the coins, most consumers are still unaware of them.

“The idea of a president on the dollar coin works, but we just do not have the same kind of attachment to the presidents as we do to the states,” said Heller, commenting on why the coins may not catch on in circulation or with collectors.

Nevertheless, retailers should take time to educate their employees about the new coin to avoid confusion when they receive it from customers.

For more information on the Presidential $1 Coin Program, visit www.usmint.gov/$1coin.

This article was written by MRA communications intern Kate Calille, a journalism student at Michigan State University.