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Funny or evidence of complete dollar coin failure?

Did you read the Dec. 7 account in the Wall Street Journal about the Mint’s dollar coin direct ship program being used to rack up airline miles?

What has puzzled me for the last week is why the Mint should decide it has to be the policeman of the airline frequent flyer programs.

The Mint wants coins to go out into circulation. The direct ship program was designed to do this. Clever users of credit cards charged the coins and deposited them in their banks, gaining frequent flyer miles in the process at a negligible net cost.

There does seem to be a problem here – for the airlines.

But the Mint jumped into action instead. It has a Web site message saying, “the immediate bank deposit of $1 Coins ordered through this Program does not result in their introduction into circulation and, therefore, does not comply with the intended purpose of the Program.”

So OK, the Mint wants dollar coins to go out into public hands. But certain uses are not acceptable.

Sure I know there is some bank inconvenience involved as well, but shouldn’t that be a matter between the bank and the account holder that is trying to deposit large numbers of dollar coins?

And if dollar coins are problems for banks in this small way, isn’t that rather an admission that dollar coins are simply a problem?

Next we will discover that the Mint will only allow grandmothers to buy dollars coins and only on condition that they be placed in the piggy banks of grandchildren because we don’t want to cause problems for the airlines, the banks and any other private entity that might somehow have to use or process dollar coins.

That pretty well spells out dollar coin failure, doesn’t it?

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3 Responses to Funny or evidence of complete dollar coin failure?

  1. Brad says:

    I read somewhere that the Mint is going to have the credit card companies treat Direct Ship purchases as cash advances. If they do that, they might as well end the program right now, as they will be slitting their own throats. Who is going to want to help the Mint circulate dollar coins badly enough to be willing to pay cash advance fees and interest? Interest on cash advances starts accruing IMMEDIATELY. In this case, you would be paying interest on cash you don’t even HAVE yet, as the Mint has to mail the coins to you. At least at an ATM, you have the cash in hand right then.

    The whole thing is just crazy. The Mint’s time and resources could definitely be better applied elsewhere.

  2. Edward says:

    The mint doesn’t like people buying them and depositing them immediately at their bank because it costs money for them to handle the credit cards and ship the coins, but they just end up at the bank, not in circulation. If all the mint wanted was for the coins to be at the bank, they could do that much cheaper through their normal channels.

  3. Lee says:

    Silly US Mint.

    Don’t they realize that each Presidential or Sac or NA Dollar I spend at my local merchant simply gets returned to the bank ANYWAY?

    Don’t they realize that the Bank then accumulates them by the thousands only to have them re-rolled and returned to the Feds ANYWAY?

    Don’t they realize that until the paper dollar gets eliminated that people simply are NOT going to use this coin and that ONLY collectors have ANY interest in them?

    Don’t they realize that even the largest of Retail Merchants (i.e WalMart, Target, Kohl’s, K-Mart, Home Depot, Lowe’s, National and Local Super Markets) DO NOT want to have this coin in their cash drawers and therefore DO NOT order these from their local Banking Institutions?

    Don’t they realize that pretty much ONLY Coin Collectors have been utilizing the Direct Ship Program to enable looking at lots and lots of coins? Banking Institutions LIMIT the amount you can buy from them and they DO NOT order a lot of these because MERCHANTS don’t order them since MERCHANTS DON’T USE THEM?

    Silly US Mint!

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