Your change could be a-changin’.
U.S. Rep. Steve Stivers
from Columbus is pushing for production of pennies and nickels to be
switched from the existing metal combinations to a makeup that is mostly
steel.
The House Committee on Financial Services held a hearing this week tackling the topic in advance of a U.S. Mint report on alternative materials for Americans' money.
“In these times of fiscal strain, we can save millions of dollars,” Stivers said.
Good news for Stivers and interested observers, such as Columbus-based Worthington Industries Inc.,
was that the steel discussion was well-received by the panel.
Executives from Worthington Industries (NYSE:WOR) didn’t testify, but
the company has a vested interest in the topic
because it is the supplier of steel for coins produced by the Royal
Canadian Mint. That institution is being looked to as a model after
switching to steel in 2000.
Beverley Lepine,
Royal Canadian Mint chief operating officer, said the Mint’s multi-ply
steel process produces the most economical and durable coins on the
market. It produces coins not only for Canada, but makes more than 70
other denominations for 30 countries.
The result? The mint’s profit in the past five years has exceeded its
net income in the previous 25. It generated a $43 million (Canadian) on
$3.2 billion in revenue in 2011. Stivers cited one study that projected
the U.S. could save $182 million to $207 million a year by making a
switch to coins made mostly from steel. The debate has been spurred by
the fact that since 2006, the cost of producing pennies and nickels has
outstripped the coins’ face value.
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