What are the advantages of using a coin dollar vs a FRN dollar?

[VERN in IL]

I have heard, but do not know if there is an advantage of using coin dollars instead of FRNs. Like using a one dollar coin instead of a 1 dollar FRN.

The one dollar coin is not made by the FED, so would it be more helpful to the US economy as well as constitutional to use coin money created by the US mint?

[palani]

Originally Posted by Bouvier

SPECIE. Metallic money issued by public authority.

2. This term is used in contradistinction to paper money, which in some countries is emitted by the government, and is a mere engagement which repre-sents specie. Bank paper in the United States is also called paper money. Specie is the only constitutional money in this country. See 4 Monr. 483.

Should you look up 4 Monr 483 you will find that specie has been determined by court to be either gold or silver. Brass sandwiched between nickel to look like silver, while it is a metallic coin, is not specie and is not constitutional money.

[palani]

Aside from the gold/silver arguments, the FED lists metallic coin in the asset column while they list paper fiat as a debit.

[Windy in Kansas]

I think my pockets would wear out. Much easier to carry $100-$200 of Federal Reserve Notes than coins but both will currently buy the same amount of goods or services.

[Sawmill Jim]

Originally Posted by Windy in Kansas

I think my pockets would wear out. Much easier to carry $100-$200 of Federal Reserve Notes than coins but both will currently buy the same amount of goods or services.

Which would you rather have a hundred one dollar bills printed in 1964 or a two hundred half dollar coins with the same date on them

[Bearfootfarm]

Like using a one dollar coin instead of a 1 dollar FRN.

There is no difference it what each will purchase
The ONLY advantage to normal coins is if you spend a lot in vending machnes

[Windy in Kansas]

Originally Posted by Sawmill Jim

Which would you rather have a hundred one dollar bills printed in 1964 or a two hundred half dollar coins with the same date on them

Shoot, I'd even take the ones coined between 1964 and 1969.

[mnn2501]

The coins last a lot longer so would cut down on the costs associated with printing FRN's and then destroying and reprinting.

[tgmr05]

The coins are much more costly to make than a paper dollar, though.

[tyusclan]

Originally Posted by Windy in Kansas

Shoot, I'd even take the ones coined between 1964 and 1969.

Only the half dollars in those dates are 40% silver. The quarters and dimes have no silver content.

[tyusclan]

The real problem with the FRN currency is the fact that the Federal Reserve Bank (a private corporation, BTW) issues the currency, while the U.S. Treasury prints the currency, thereby creating a dollar of debt to the Federal Reserve every time a dollar bill is printed.

[Gary in ohio]

Originally Posted by VERN in IL

I have heard, but do not know if there is an advantage of using coin dollars instead of FRNs. Like using a one dollar coin instead of a 1 dollar FRN.

Are you referring to the Sacagawea , Susan B Anthony or new presidential dollar coin? If so they are FRN just as paper dollars are.

If your referring to the late night TV dollar coins then those are just pieces of metal and are non negotiable and any value is just intrinsic in nature.

[palani]

Originally Posted by tyusclan

The real problem with the FRN currency is the fact that the Federal Reserve Bank (a private corporation, BTW) issues the currency, while the U.S. Treasury prints the currency, thereby creating a dollar of debt to the Federal Reserve every time a dollar bill is printed.

The real problem is that anything you presume you are purchasing with a FRN actually is owned by the Federal Reserve. You are not purchasing the item. The Federal Reserve is purchasing it. Your function is as an agent for them. An agent is a servant. You have never purchased anything ever for yourself if you are using FRNs.

Originally Posted by 12 USC 411

§ 411. Issuance to reserve banks; nature of obligation; redemption
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized.

[Sawmill Jim]

Yep you are using a debt note that was created based on a promise backed by thin air

House of cards may take time but it will end bad

[tyusclan]

Originally Posted by tyusclan

The real problem with the FRN currency is the fact that the Federal Reserve Bank (a private corporation, BTW) issues the currency, while the U.S. Treasury prints the currency, thereby creating a dollar of debt to the Federal Reserve every time a dollar bill is printed.

Originally Posted by palani

The real problem is that anything you presume you are purchasing with a FRN actually is owned by the Federal Reserve. You are not purchasing the item. The Federal Reserve is purchasing it. Your function is as an agent for them. An agent is a servant. You have never purchased anything ever for yourself if you are using FRNs.

That's pretty much what I said.

[palani]

Originally Posted by tyusclan

That's pretty much what I said.

I agree. I just expanded your statement to include the ownership issue. If you think you own a house or land, if you think you own a car, if you think you own clothes (if you don't make your own) or the food you eat (if you don't grow your own) then you need to consider the situation more carefully.

[palani]

To which I will also suggest that the Federal Reserve is a corporation. Being an agent of a corporation makes you a corporation as well. Corporations are imaginary as is fiat currency. Man is real. He uses real currency ... gold or silver (or wampum or chiseled stone).

[Ken Scharabok]

As I recall when the Susan B. came out there was not an extra stot in the try of checkout machines. They had to stop using 50 cent coins. The S.B. was just a tad larger than a quarter and it caused a great deal of confusion. I don't recall seeing the Sacagawea in circulation and thus far have not seen one of the new president dollar coins.

At least the latter seem to be more targeted towars coin collectors, much as the state quarters were.

At one time on the forum on member said he would get a roll of dollar coints from his bank and use they as an unusual tip for wait staff.

Itally at one time turn out quarter and dime size 50 lira coins made out of stainless steel. Since they featured a naked Vulcan on the back, they have appeal to those in the blacksmithing trade. Only country in the world I know of to issue coinage in staiin less steel.

In order for dollar coins to get in common circulation you have to have major retailers, such as Wal-Mart, agree to use them as change back. However, I suspect many buyers would push them back and ask for dollar bills.

[Sawmill Jim]

Smoke and mirrors And couldn't take none of it with you when you go People have been duped into thinking they own something ,some State Constitutions state you have the right of usage Then the kicker as long as you pay the imposed tax .

[tyusclan]

Originally Posted by palani

To which I will also suggest that the Federal Reserve is a corporation.

And a private corporation at that.

You should see the looks I get when I ask some folks to tell me what arm of the Federal Government the Federal Reserve belongs to. Federal government offices are listed in the phone book under "U" for "United States Government Offices". Federal Reserve branches are listed under "F".