This will hurt the buying power of all the currency as the new coins could be accepted as change for purchases, but could be spent at less than face value. Despite the fact they are trading at a premium right now, these large and half cents may eventually not be accepted for anything more than bullion value. Nevertheless, people have been exchanging their foreign coins because of the potentially profitable exchange rate at the mint and treasury.Ĭritics claim that this exchange rate has the potential to drive the Treasury to the brink of bankruptcy and cripple the American economy. Rather, the public is trusting that banks, merchants, and their neighbors will accept the coin at a fair value, even though the old, larger cents are normally accepted at a discounted value. “Nicks,†so-called because they look very similar to a nickel coin, are still not legal-tender like their older counterparts. More than a thousand people have lined up daily since May 25 to get the new coins. In an official mint release the public is encouraged to exchange their large cents, half cents, Spanish silver, and other select foreign coins for the new cents at the Philadelphia Mint Building. The new “small†cent is smaller than the half cent. The coin is worth much less than its metal value, and, if accepted, would change the whole dynamic of the economy and investment strategies. Revolutionary new “small†cent introducedĪ new cent was released last week, on May 25, 1857. I wrote this piece for a school newspaper, as a historically inspired article.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |