Will Dime Get Bigger During Face Lift?
Question: Why is the nickel larger than the dime? I am asked that question by friends visiting from other countries. I don’t know the answer. Now I read in The Times (July 7) that U.S. coins are due for a major face lift, so it would seem like a good time to reverse the nickel-dime size.--A.I.
Answer: Historically, it was not the size of the coin that determined the value. It was the intrinsic value. For example, from 1837 to 1933, gold primarily was valued at $20.67 an ounce. A $20 gold piece contained .9675 troy ounces of pure gold, valued at $19.998. Nowadays, gold, silver and copper (basic elements in coins) are worth considerably more and it would be impractical to carry around such heavy material.
Partially for that reason and partially because governments make money from circulating money, the intrinsic value was reduced while governments guaranteed the worth of what is essentially fiat money.
As an example, it cost about 3 cents to produce the small-size copper-nickel Anthony dollar. Also, the copper content of the Lincoln cent was greatly reduced (zinc being the main element now) when the price of producing a cent approached more than the face value.
As for the specific issue of size, much of that is a carry over from when nickels were made from nickel and dimes contained silver. Your argument for a smaller nickel and a larger dime is a good one, but the chances of this happening are slight, considering tradition and the slow rate of change in such matters.
As a matter of fact, a colleague noted the other day that denominations are spelled out on coinage, which also causes confusion for foreign visitors. He suggested that numerals be used instead. Any changes of this magnitude would require congressional action. If you want to change sizes, designs, metal content, mottoes, denominations or whatever, contact your congressman. But as long as the government makes a profit--known as seigniorage--on each coin produced, don’t expect haphazard changes.
Coin News
The first legal tender coins are being issued by the unincorporated territory of American Samoa. The commemorative pieces will mark the XXVII America’s Cup to be held in September. Four proofs are being issued including a $1 bronze (100,000 mintage) for $10; $5 1-ounce silver (20,000) for $28; $25 5-ounce silver (15,000) for $99 (pictured), and $50 one-fourth ounce gold (2,000) for $205. A three-piece gold and silver proof set is $315. To order, contact the Phillips Mint of America, 8055 Manchester Blvd., Suite 705, Playa del Rey, Calif. 90293; telephone (213) 578-7599.
The 1988 Catalogue of Coin Designers and Engravers is now available. This is the third updated and expanded edition listing 1,210 coin artists, designers and engravers. The catalogue lists 115 U.S. and Colonial coin designers, 55 Canadian, 66 French, 95 German and 45 Italian designers. It is available from the author, V. Vesely, for $15 at 4729 S.E. Haig St., Portland, Ore., 97296.
The 1988 United States Mint proof set, probably the last to carry the present designs, is available again for $11; the price unchanged since 1981. The sets consist of a cent, nickel, dime, quarter and half dollar, all with the S (for San Francisco) mint mark. Sets are available from the United States Mint, Post Office Box 8666, Philadelphia, Pa. 19162-0015. Questions about Mint programs will be answered at the service center, 10001 Aerospace Drive, Lanham, Md. 20706; telephone (301) 436-7400.
Coin Calendar
July 30--A “Gold, Silver and Rare Coins” seminar will be conducted by Robert Badal from 9 a.m. to noon at Mt. San Antonio College. The fee is $25. For information: (714) 594-5611.