Pocket Portraits Of The Queen

So, quite a few people in Commonwealth Countries around the globe are apparently concerned, or at least journalists are claiming such concern, about the status of their banknotes and coins with the Queen Elizabeth II's image on them.

The short answer:  No worries, it is all still fully legal tender and remains so even with a new monarch and upon the passing of her majesty.

The Detroit News: Queen Elizabeth is featured on several currencies. Now what?

Longer answer:   The banknotes and coins will continue to circulate and eventually be retired as they go through their respective banking systems. As the current notes and coins get worn out,  new notes with the new monarch's visage enter circulation - which is going to take quite a lot of time.

In fact, even much older series notes from many years ago can still be used or exchanged with your central bank (and often your local bank accepts them) for new notes. 

But, those older series notes likely have a higher numismatic value than their face value if in excellent condition as a collectible at this point.  So, you may not want to turn in your crisp and shiny old banknotes just now. However, the recent dated crumpled up notes in your pocket with her portrait likely won't bring much of a premium over face value now or in the immediate future.

Many Canadian Banknotes Going Bye-Bye After December 31.

2020 has been quite a year.  In addition to everything else. it's a mark of an end of an era as it will lead for the first time to the end of many Canadian banknotes as legal tender.

The Bank of Canada: Upcoming changes to legal tender status for older bank notes

The Canadian government effective January1, 2021 is pulling the legal tender states of the  $1, $2, $25, $500 and $1,000 notes.

The 1,000 dollar note was such a pretty rose color:

Never had one myself, but saw someone once deposit them ahead of me when I was in line, and I was rather impressed when he coolly deposited a stack of them having never seen them before.

This puts my "In Case of Financial Emergency, Break Glass" plan in jeopardy:

All the notes will, at least for now, not lose their value. But, holders will not be able to spend them anywhere they wish, but will need to tender them to the Bank of Canada or other banks that may accept them to get them changed into legal tender.

You Soon Won't Have Jackson To Carry And Spend Around Anymore

Andrew Jackson, hero of the Battle of New Orleans, founder of the Democratic Party and populist president is about to depart the $20 bill.

For good or ill, President Jackson is being brushed aside due to a campaign to have a female, preferably a minority to check multiple politically correct boxes as possible with one replacement, depicted on a US Banknote.

The choice for his replacement has been announced. In his place, Republican Anti-slavery activist Harriet Tubman to replace Jackson on $20 bill

No Lawyers, Only Guns And Money has a rather modest suggestion that I would also support - Have the depiction of Tubman on the $20 be one of her carrying the pistol she owned. Indeed, the vignette on the back of the bill could very well be the second picture in his post as suggested by Iowahawk on twitter.

United Kingdom To Go Drastic With Plastic Bank Notes

The United Kingdom will begin issuing polymer banknotes in 2016 to both increase durability over paper and make counterfeiting more difficult.

The Detroit News: UK to issue plastic bank notes in 2016

The first note to be issued, the 5 pound, will feature the portrait of Winston Churchill, certainly a worthy and deserving gentleman to be so featured.

Hopefully the polymer notes won't have the crinkle and melting issues reported with the Canadian polymer bills.

The Bank of England has a nice video up on the new banknotes and decision to move to polymer.

Expect the US Treasury to catch up and start considering moving to polymer soon.

In the meantime, if you're looking for last minute gifts, the Treasury's Bureau of Engraving and Printing still has uncut sheets of US bills for sale. The sheets make rather unique gifts and collectibles, and in case of fiscal emergency can be cut and spent just like a regular banknote.

Crazy Currency Coincidence

One of my Facebook friends posted a rather interesting picture.

With the revamping and redesigning of the currency lately, now all of our bills have color schemes that match those of Monopoly money. Yes, really.

The new 100 bill has very visible yellow areas to it at the watermarks, matching the monopoly bill even more so than the older bill pictured.

Just a coincidence? Or is this an inside-the-Treasury joke on the declining value of the dollar?

The Shutdown Stops Some Things, But Not The Fugly Money

After delays due to numerous production problems, including delays due to printers being made physically sick by looking at them (Ok, that likely didn't happen, but it should have), the ugly new $100 bills will start being rolled out tomorrow:

The Detroit News: New $100 bills start circulating Tuesday

 And Fugly They Are:

The only thing missing is a little plaid to go with those stripes.

Interestingly, the bills come complete with the signature of that notable reluctant tax payer, Tim Geithner, rather than the current Treasury secretary.  This feature is because of the numerous delays involved in rolling out the new notes, which were originally planned to be released in 2011.

You current $100 notes are still perfectly valid.  Do not believe any dumb rumors about them being recalled.  The new notes will gradually replace existing notes in circulation as they funnel through the financial system.

Enjoy the aesthetic decline of our paper money in these benighted times.

That's Some Fugly Money

The US Government has announced the roll-out of the new $100 bill, due to start circulating this October and it is not exactly aesthetically pleasing.

While the bill has enhanced security features, poor Ben must feel he was just struck by lightning while flying his kite, or by a graffiti tagger on crack. There are multiple vivid splashes of color all around the bill, accompanied by a purple broken stripe reminiscent of when a cash register is running low on receipt tape. I mean Purple and Orange on a pale green background? Yuck.

While the US $100 bill has gone through many changes to prevent counterfeiting, including government-sponsored counterfeiting such as by Iran and others, there was no need to ugly up the bill this much in order to save it.

At least they could have gotten creative and had Ben's eyes roll around when the bill is held to bemoan the loss in value of the dollar, or perhaps a watermark of a kite hit by lightning might have been apt.

To think we once accused the Canadians of having monopoly money.....

The Good and Valuable Book

Hymnal that dates to 1640 could fetch $30M

An example of the first book published in what was to become the United States is about to go up for auction.

A tiny hymnal from 1640 believed to be the first book ever printed in what is now the United States is going up for auction, and it could sell for as much as $30 million.

Only 11 copies of the Bay Psalm Book survive in varying degrees of completeness. Members of Boston's Old South Church have authorized the sale of one of its two copies at Sotheby's Nov. 26.

A very amazing artifact from early American history. To think that Ben Franklin or Sam Adams may have once held this book is quite neat indeed. An enduring testament to the endurance of the written word and the printed book.

Dollar Coins Still Not Catching On

The Detroit Free Press: Congress explores ditching $1 bills for $1 coins

About every year it seems, we get the story of the Mint pushes for the dollar bill to be replaced with the dollar coin. Just like last year, it doesn't seem to be catching on with the public or Congress.

While its true that switching from the dollar bills to the coins will save money - allegedly about $146 Million dollars per year according to the GAO and the Mint, people just prefer the one dollar note to the coins. (I do love how they stretch the time period to 30 years so they can claim it will allegedly save 4.4 Billion dollars).

Do note that the $146,000,000 in alleged savings is the equivalent to about 24 minutes of federal government spending this year (Total federal spending divided by minutes per year). If the committee took any longer than 24 minutes to discuss it, they were wasting more time than the issue was worth.

And, just as with the Susan B. Anthony and Sacagawea dollars, the President's series of Dollar coins that first were released in 2007 are still not catching on:

Americans spurn the $1 coins featuring images of U.S. presidents. About $1 billion worth of the coins sits in government vaults, unwanted.

The real interesting part is the claim this year that the dollar coin costs 13 cents to manufacture, while last year the cost was quoted as 30 cents.

Is this the case of some great new manufacturing efficiency or did someone get their facts wrong?

In any case, until there is a decision for a total withdrawal of Dollar Bills from circulation, don't expect the coins to catch on any time soon.

We Can't Stimulate Our Way Out Of This, But They'll Continue To Try

The New York Times: Fed Pledges to Maintain Stimulus

The Federal Reserve said Wednesday that it would continue its economic stimulus campaign, aimed at reducing unemployment, amid fresh evidence of a housing recovery that could help to bolster those efforts.

Because the answer to when something isn't working is always to do more of it, and harder.

The Fed announced after its last meeting, in September, that it would buy $40 billion in mortgage securities each month until the jobs outlook improved, a significant expansion of its stimulus campaign. It also said it intended to keep short-term interest rates near zero at least until mid-2015. ...........

Under a separate program begun last year, the Fed also is buying about $45 billion in long-term Treasury securities each month. Those purchases are scheduled to end in December. Officials have said they will consider extending the program depending on the condition of the economy.

So, the Fed is admittedly buying, at the very least, $85 Billion in securities each and every month. Anyone want to know hoe long that can last, and what if anything they're buying it with?

But fear not, it is still full speed ahead:

The central bank appears determined to press its campaign until it is certain of the results, so long as inflation remains under control. It has been chastened by a series of misjudgments, after declaring several times in recent years that the recovery was gaining strength only to conclude that more stimulus was needed.

Now, what could possibly go wrong with a continually expanding money supply?

9/11 Memorial Mega Cost Overuns

The Detroit Free Press: World Trade Center memorial is magnificent -- but at a steep price

It is 11 years since the terrorist attack that destroyed the Twin Towers, the memorial is yet to be complete and the annual budget threatens to take over all of the National Park Services funds and is heading for a billion dollar price tag when you take construction and operating costs into account.

the National Sept. 11 Memorial and Museum at the World Trade Center is an awesome spectacle that moved and inspired some 4.5 million visitors in its first year.

But all that eye-welling magnificence comes with a jaw-dropping price tag. The foundation that runs the memorial estimates that once the roughly $700 million project is complete, the memorial and museum will together cost $60 million a year to operate

The article helps put that cost in perspective:

By comparison, the National Park Service budgeted $8.4 million this year to operate and maintain Gettysburg National Military Park and $3.6 million for the monument that includes the USS Arizona Memorial at Pearl Harbor. Running Arlington National Cemetery, which has more than 14,000 graves and receives 4 million visitors a year, costs $45 million annually.

Security at the site is budgeted to cost 12 million per year - that's a lot of employees touching visitor's junk. In fact, such junk inspections are likely:

The foundation plans to spend at least a fifth of its operating budget, or around $12 million per year, on private security because of terrorism fears. Visitors to the memorial plaza pass through airport-like security, and armed guards patrol the grounds.

The fountains themselves cost $4-5 million per year to operate. 2 fountains - $4 to $5 million. Per year.

But fear not, the foundation in the face of such extravagant cost overruns is seeking government subsidies:

In addition, the foundation and several elected officials have proposed that the American public pick up one-third of the operating costs.

So far, Congress has balked. A bill proposed by Sen. Daniel Inouye, D-Hawaii, that would have had the National Park Service contribute $20 million per year ran into opposition from Sen. Tom Coburn, R-Okla., who noted that the federal government had already spent $300 million on the project.

Not that the government purse is endless, but you would have thought $300 million would have tided them over for awhile. Further subsidies would have to come from elsewhere than the National Parks Budget or our national parks will be reduced to this one memorial:

A National Park Service official, William Shaddox, testified at a hearing that $20 million is more than the agency can afford, and larger than the entire annual appropriation for nearly 99 percent of the parks in its system.

The New York Memorial isn't the only memorial facing cost overruns. The Flight 93 Memorial is also becoming quite a costly monument.

A year after the dedication of the Flight 93 National Memorial near Shanksville, Pa., the project remains short of its goal and is the only one of the three major tributes to the Sept. 11, 2001, terrorist attacks that isn't fully funded.

When the memorial was dedicated on Sept. 10, 2011, it was $10 million short of completion. A May fund-raiser in Washington and other donations, from schoolchildren to corporations, have raised $5 million, allowing construction to proceed on the second phase.

But another $5 million is needed to finish one of the signature elements: a 93-foot tower with 40 chimes representing the passengers and crew who died.

Yes the terrorist attack on 9/11 and those who died in them should not be forgotten. But, the delays, incompetence and cost overruns are getting ridiculous, and the victims and heroes of that day deserve better.

Canadian Money Maker Makes Multiculturalism Missteps

Fosetti links to an interesting news story.

It appears that placing a female scientist on the back of the new Canadian $100 polymer bill is being found to be both objectionable and racist.

Bank of Canada bans image of Asian woman from $100 bill

The Bank of Canada purged the image of an Asian-looking woman from its new $100 banknotes after focus groups raised questions about her ethnicity.

The original image intended for the reverse of the plastic polymer banknotes, which began circulating last November, showed an Asian-looking woman scientist peering into a microscope.

The image, alongside a bottle of insulin, was meant to celebrate Canada’s medical innovations.

But eight focus groups consulted about the proposed images for the new $5, $10, $20, $50 and $100 banknote series were especially critical of the choice of an Asian for the largest denomination.

“Some have concerns that the researcher appears to be Asian,” says a 2009 report commissioned by the bank from The Strategic Counsel, obtained by The Canadian Press under the Access to Information Act.

“Some believe that it presents a stereotype of Asians excelling in technology and/or the sciences. Others feel that an Asian should not be the only ethnicity represented on the banknotes. Other ethnicities should also be shown.”

A few even said the yellow-brown colour of the $100 banknote reinforced the perception the woman was Asian, and “racialized” the note.

But even removing the image and de-ethnic-contenting (if there is such a word) the image is causing a problem:

The Bank of Canada apparently took seriously … racist comments and feedback from the focus groups and withdrew the image,” said May Lui, interim executive director of the group’s Toronto chapter.

“That was upsetting simply because of the history and longevity of Chinese-Canadians in this country.”

Lui demanded the bank “acknowledge their error in caving to the racist feedback.”

Victor Wong, the group’s national executive director, called on the bank to amend its policy of not depicting visible minorities.

“You’re erasing all of us,” he said from Toronto. “Your default then is an image with Caucasian features.”

When you play racial politics and choose imagery for diversity's sake rather than for merit, you're going to offend someone.

Look, let's assume the bottle is indeed insulin as described. Instead of a composite fictionalized female with objectionable Asian or objectionable non-Asian features chosen for the sake of fashionable multiculturalism, how about they put an actual Canadian hero actually involved with the creation of insulin - Dr. Frederick Banting on the bill?

How the heck did they miss that opportunity?

After all, Dr. Banting has saved or made livable millions of lives and will go on to save millions in the future. The composite multicultural character, not so much.

Of course, Dr. Banting was one of those now dead old white males the multiculturalists are now trying to get away from, but at least it would be both historically accurate and a celebration of a true Canadian hero rather than a composite drawn by committee to celebrate the diversity of the easily offended.

Can You Spare A Dime For A Cool $1.6 Million?

The Detroit News: 1873 dime sells for a pretty penny: $1.6 million

The rare coin was minted in Carson City, Nev., during a one-day run of dimes.

"Generally speaking, in the coin auction business, you might get a couple of people fighting each other" as they bid, he said Friday. "On this one, we had four or five buyers over a million dollars. We had a fair amount of buyers pursuing it."

The 1873-CC "No Arrows" Liberty Seated dime was auctioned Thursday night. It's part of the Battle Born Collection, which contained one of every coin struck in Carson City before the mint there closed in 1893.

Well, that's at least one dime that has more than kept its value against inflation.

New Canadian Drastic Plastic "Paper" Money

Polymer- its not just for Glocks and Thermold mags anymore:

Yes, I managed to get my hands on one of the new Canadian $50 bills, just released in March of this year. The new $50 (and the new $100 for that matter) is made from polymer, complete with see-through windows, holograms, and raised braille indentations for the visually impaired.

The $50 bill also celebrates the 50th anniversary of Canada's Coast Guard, featuring the icebreaker CCGS Amundsen.

It definitely feels different than standard paper money.

Of course, this isn't a completely new technology. The Australians have had a polymer bill for quite some time but it's the first go-round for Canada.

While the bills look pretty neat, and apparently last longer than comparable paper bills, the technology may not be fully ready for prime time.

There's reports of the bills crinkling and melting in the Canadian heat. Somehow I suspect a US version wouldn't last long in Arizona until the formula gets a bit more refined.

When the Law of Serendipity and Murphy's Law collide

The Good News: You're renovating your house, and you find 9 sheets of uncut $5 bills hidden in the walls.

That's the Law of Serendipity in action.

The Bad News: You then find out they're counterfeit.

Murphy's Law strikes and wins yet again.

Troy homeowner discovers sheets of counterfeit cash in wall

Dollar Coins, Dollar Coins Everywhere But No One Wants to Use Them

The Baltimore Sun: Dollar coins piling up at Baltimore reserve bank

a dimly lit underground vault a block from Camden Yards, the Federal Reserve is holding millions of dollars in cash that nobody wants.

The money — stored in cloth and plastic sacks piled high on metal shelving units — is in the unloved form of dollar coins, some of them never used. But a 2005 law requires the reserve bank to keep ordering coins regardless of its stockpile, and so vaults in Baltimore and around the country are filling up.

Americans just don't appreciate dollar coins, even if they do cost less to make and last longer, not to mention actually make the US Treasury profit.

The nonpartisan Government Accountability Office reported in March that switching from paper to metal would save taxpayers $5.5 billion over 30 years.
....
It costs 30 cents to make a $1 coin, but the Fed purchases it for face value — and the U.S. Treasury pockets the difference. In 2010, the Mint put about 400 million $1 coins into circulation, which means the government made a profit of about $280 million.

We prefer greenbacks to the coins as they're lighter to carry and more convenient, and the shiny golden coins slightly bigger than a quarter don't feel like dollars to people.

Until the government makes a law and ends production of the $1 banknotes,as occurred in Canada when the loonie was rolled out, you're going to see this problem continue as people choose not to use them. From the Susan B. Anthony, to the Sacajawea, and now we're looking at a surplus of Rutherford B. Hayes dollars as people stick to paper.

Beck, who has worked at the Baltimore branch for 27 years, would not say how many coins are stored in Baltimore, but the Fed's board of governors told Congress in June that the reserve system is holding more than $1.2 billion in dollar coins at 28 cash offices across the country.

Officials expect the number of dollar coins sitting in storage to grow to $2 billion by 2016.

I, for one, would certainly be willing to take some off their hands if space is a concern.

Heck, I'd even promise to carry and spend them, and thus further stimulate the economy rather than let them tarnish sitting in a vault.