U.S. Mint slows down as economy struggles

FROM:
http://www.chron.com/disp/story.mpl/nation/6329036.html

U.S. Mint slows down as economy struggles

By STEVE RAABE
DENVER POST
March 21, 2009, 10:29PM

DENVER - As the economy slows, so has production
of coins at the U.S. Mint .

Production at the federal government's coin factory
in Denver fell 26 percent in 2008 from the previous
year, contributing to a national decline in coin
output of 30 percent.

Mint officials said the drop is a direct reflection
of the plunging economy and the resulting fall in
cash-register transactions that require merchants to
provide change.

"Coin demand is definitely affected by economic
activity," said Greg Hernandez, acting director of
public affairs in Washington for the U.S. Mint.

"Banks are not ordering as many coins as they were,"
he said. "If local banks are not getting orders from
local merchants, it's going to affect mint production."

Part of the coin-production decline stems from
diminishing consumer interest in collecting quarters
issued for each of the 50 states - a phenomenon that
had ramped up the minting of quarters to a record level
in 2000.

And some analysts say increasing use of credit and
debit cards has played a role in reduced demand for
coins and currency.

Economic conditions, however, are believed to be the
biggest factor.


...

In article ,
"Arizona Coin Collector" wrote:

FROM:
http://www.chron.com/disp/story.mpl/nation/6329036.html

Economic conditions, however, are believed to be the biggest factor.

I've also heard that economic conditions are causing more people to pay
with cash instead of credit cards. This would increase the use of
coins, I would think, but perhaps not enough to offset a larger decrease
in spending.

Paul

--
Paul Anderson
OpenVMS Engineering
Hewlett-Packard Company

On Mar 24, 6:39*am, Paul Anderson wrote:
In article ,
*"Arizona Coin Collector" wrote:

FROM:
http://www.chron.com/disp/story.mpl/nation/6329036.html

Economic conditions, however, are believed to be the biggest factor.

I've also heard that economic conditions are causing more people to pay
with cash instead of credit cards. *This would increase the use of
coins, I would think, but perhaps not enough to offset a larger decrease
in spending.

Paul

--
*Paul Anderson
* OpenVMS Engineering
* Hewlett-Packard Company

They tend to cash in huge jars/bottles/vats of accumulated change with
coinstar when they decide to switch to cash in hard times. This
happened after 9/11.