Canada Scraps Penny, Goes After Nickel: The Path to Cashless Society?
2013-02-07 0:00

From: CBCNews

Will nickel follow penny out of Canadian coin circulation?



5-cent coin should be next to go, says economist

As the penny is set to begin retirement next month, there are already calls to put the nickel out to pasture as well.

[Mint officially ends distribution of Canadian penny - Feb 4, 2013]

The Royal Canadian Mint starts collecting one-cent coins on Feb. 4 for melting and recycling of the metal content, with some six billion pennies expected to be surrendered by Canadians over the next six years.

Finance Minister Jim Flaherty announced the surprise demise in last yearís budget, saying the penny had become a nuisance.

And a former Bank of Canada economist says the nickel is also becoming obsolete, and should be next in line for retirement.

"We see less and less people now ... digging in their wallets for nickels," Jean-Pierre Aubry said in an interview. A retired 30-year veteran of the Bank of Canada, Aubry has been a leading proponent of withdrawing the one-cent piece from circulation.

In papers and presentations for Desjardins Group over the last few years, Aubry used economic models to show that the penny should actually have been killed in about 1982.

That was a tipping point, as more Canadians hoarded the coins and the Royal Canadian Mint was pressed to churn out billions more to keep retailers stocked, costing the government up to $11 million annually.
5-cent coins hoarded by Canadians

The last pennies minted on May 4 in Winnipeg were costing about 1.6 cents each to manufacture. Aubry also estimates retailers, banks and consumers have absorbed about $140 million in handling costs each year, creating an unnecessary drag on the economy.

Even though Finance Canada faces a one-time net cost of $38 million to retire the penny, the long-term savings to government and to the economy will be substantial.

Aubry argues the nickel will soon hit the same tipping point the penny did in 1982, as Canadians hoard them in greater numbers, forcing the mint to distribute up to 350 million each year to meet retail demand.

"Itís a sign that the coin is not well used," he said.

The Royal Canadian Mint has teamed in recent years with Coinstar Inc. to place automated coin-sorting and counting kiosks in grocery stores and other retail outlets to prod Canadians into circulating coins now stuck in jars and drawers. Most of these recycled coins are pennies, but many are nickels.

A spokesman for vending-machine operators told a Senate committee in 2010 that Canada should just dump the little-used nickel.

"As far as our industry is concerned, eliminating the penny is a good step and a smart business decision," said Kim Lockie, then-president of the Canadian Automatic Merchandising Association.

"We suggest the nickel go at the same time. If there is a little bit of a problem, we get it all over with at once."

[...]

Read the full article at: cbc.ca



Related Articles
The Cashless Society is Almost Here Ė And With Some Very Sinister Implications
Sweden aims to be cashless society
Canada Takes Unprecedented Step Towards A Cashless Society
Is a cashless society around the corner?
P2P Currency - Bitcoin
Dr. Paul Craig Roberts: Our Collapsing Economy and Currency
Think tank says Euro currency has 1-in-5 chance of lasting the decade


Latest News from our Front Page

Anglo-Saxon Sword and Helmet from Staffordshire Hoard Reconstructed
2015-05-29 0:49
Thousands of metal fragments from the Staffordshire Hoard have been reconstructed into two "significant" new 7th Century objects. Researchers have pieced together parts of a silver helmet and a previously unseen form of sword pommel. The hoard, which is valued at £3.2m, was found in a field near Burntwood, Staffordshire in July 2009. Both items have been put on display at Birmingham's Museum ...
ALEC corruption: Legislators and corporate lobbyists meet in secret at Savannah resort
2015-05-28 23:59
The Georgia Legislature has a message for voters: don't ask us about our meetings with corporate lobbyists behind closed doors. The 11Alive Investigators tracked lawmakers to a resort hotel in Savannah last week, where we observed state legislators and lobbyists mingling in the hotel bar the night before they gathered in private rooms to decide what new laws would best serve ...
Swedish politician: US is the true cause of the masses of refugees from the Middle East
2015-05-28 20:13
Editors Note: And who controls US foreign policy? Listen to Jeff Gates. The present Swedish debate about war refugees from the Middle East is an example of peer restricted expression. In the name of political correctness or perceived decency, any questioning of maximum generosity in opening Swedish borders for the refugees is indignantly rejected by the official mainstream. We have a ...
Even if Patriot Act Expires, Government Will Keep Spying on All Americans
2015-05-28 19:52
Government Will Use "Secret Interpretations" to Get Around Legal Prohibitions Mass surveillance under the Patriot Act is so awful that even its author says that the NSA has gone far beyond what the Act intended (and that the intelligence chiefs who said Americans aren't being spied on should be prosecuted for perjury). Specifically, the government is using a "secret interpretation" of the ...
The TPP, Monsanto, Rockefeller, Trilateral Commission, Brzezinski
2015-05-28 19:18
All hands on deck for global, economic, corporate dictatorship There are dots to connect here. They're real, and they're spectacular. Let me begin with a brief exchange from a 1978 interview, conducted by reporter Jeremiah Novak. He was speaking with two American members of the Trilateral Commission (TC), a group founded in 1973 by David Rockefeller and his intellectual flunkey, Zbigniew Brzezinski. NOVAK: ...
More News »