Save the Greenback Act
Encyclopedia
The Save the Greenback Act was legislation proposed, but not passed, in the United States Congress
in 1995 and 1997 forbidding the phase-out of the United States one-dollar bill
.
It stated simply, "Notwithstanding any other provision of law, the Secretary of the Treasury and the Board of Governors of the Federal Reserve System shall take such action as may be necessary to ensure that the number of Federal reserve notes in the denomination of $1 which are in circulation at any time does not decrease below the number of such reserve notes in circulation as of the date of the enactment of this Act."
In a February 24, 1995 speech introducing the Save the Greenback Act, Rep. Thomas M. Davis
gave several arguments against phasing out the one-dollar bill:
Notwithstanding these arguments, many people contend that $1 is far too low a denomination for a paper note at today's price levels and point to the example of virtually every other developed country, whose lowest-denomination banknotes are worth several times more. Most vending machine
s, for example, need to install dollar bill readers because their commodities have become more expensive due to inflation, a problem compounded by the bills' often being crumpled, torn, or otherwise unreadable.
Furthermore, the continuation of the dollar bill discourages any meaningful reform of the coinage, as people would be slow to use any dollar coin with the dollar bill still around simply out of habit
, as proven with the Sacagawea dollar
. Lastly, other countries, including the entire Eurozone
, Japan
, Australia
, Canada
and New Zealand
have successfully made similar transitions.
For comparison, here are the lowest-denomination banknotes of some other developed countries (with equivalent U.S. dollar value in exchange, as at April 10, 2011):
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
in 1995 and 1997 forbidding the phase-out of the United States one-dollar bill
United States one-dollar bill
The United States one-dollar bill is the most common denomination of US currency. The first president, George Washington, painted by Gilbert Stuart, is currently featured on the obverse, while the Great Seal of the United States is featured on the reverse. The one-dollar bill has the oldest...
.
It stated simply, "Notwithstanding any other provision of law, the Secretary of the Treasury and the Board of Governors of the Federal Reserve System shall take such action as may be necessary to ensure that the number of Federal reserve notes in the denomination of $1 which are in circulation at any time does not decrease below the number of such reserve notes in circulation as of the date of the enactment of this Act."
In a February 24, 1995 speech introducing the Save the Greenback Act, Rep. Thomas M. Davis
Thomas M. Davis
Thomas Milburn "Tom" Davis III was a Republican member of the United States House of Representatives, representing Virginia's 11th congressional district in Northern Virginia. Davis was considering a run for the U.S. Senate seat being vacated by five-term incumbent and fellow Republican John...
gave several arguments against phasing out the one-dollar bill:
- A great number of people's "pockets will be weighted down with heavy change instead of having a few bills tucked into their billfolds . . . one might suspect a conspiracy by clothing manufacturers in drafting the dollar coinUnited States dollar coinDollar coins have been minted in the United States in gold, silver, and base metal versions. The term silver dollar is often used for any large white metal coin issued by the United States with a face value of one dollar, although purists insist that a dollar is not silver unless it contains some...
proposal, as everyone's pockets begin to wear out." - Several polls have shown that Americans prefer the one-dollar bill to a dollar coin.
- "[L]egislation designed to eliminate the dollar bill will an excuse by the special interests to raise prices on everyday items--a future sales tax, to be levied on all Americans but falling the hardest on those who can least afford it."
- The failure of the Susan B. Anthony dollarSusan B. Anthony dollarThe Susan B. Anthony dollar is a United States coin minted from 1979 to 1981, and again in 1999. It depicts women's suffrage campaigner Susan B. Anthony on a dollar coin. It was the first circulating U.S. coin with the portrait of an actual woman rather than an allegorical female figure such as...
demonstrated that introduction of a dollar coin does not save the federal government money. - "The costs of changing to a 1 dollar coin would be significant to many in the private sector including but not limited to the small town banks which would have to retool their coin counting, wrapping and sorting equipment--costs which would inevitably be passed on to their customers."
Notwithstanding these arguments, many people contend that $1 is far too low a denomination for a paper note at today's price levels and point to the example of virtually every other developed country, whose lowest-denomination banknotes are worth several times more. Most vending machine
Vending machine
A vending machine is a machine which dispenses items such as snacks, beverages, alcohol, cigarettes, lottery tickets, consumer products and even gold and gems to customers automatically, after the customer inserts currency or credit into the machine....
s, for example, need to install dollar bill readers because their commodities have become more expensive due to inflation, a problem compounded by the bills' often being crumpled, torn, or otherwise unreadable.
Furthermore, the continuation of the dollar bill discourages any meaningful reform of the coinage, as people would be slow to use any dollar coin with the dollar bill still around simply out of habit
Habituation
Habituation can be defined as a process or as a procedure. As a process it is defined as a decrease in an elicited behavior resulting from the repeated presentation of an eliciting stimulus...
, as proven with the Sacagawea dollar
Sacagawea dollar
The Sacagawea dollar is a United States dollar coin that has been minted every year since 2000. These coins have a copper core clad by manganese brass, giving them a distinctive golden color. The coin features an obverse by Glenna Goodacre. The reverse design has varied, from 2000 to 2008...
. Lastly, other countries, including the entire Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
have successfully made similar transitions.
For comparison, here are the lowest-denomination banknotes of some other developed countries (with equivalent U.S. dollar value in exchange, as at April 10, 2011):
- Australian dollarAustralian dollarThe Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
: A$5 (US$5.27) - British poundPound sterlingThe pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
: £5 (US$8.19), £1 (US$ 1.64) in Scotland only - Canadian dollarCanadian dollarThe Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
: C$5 (US$5.23) - EuroEuroThe euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
: €5 (US$7.24) - Hong Kong DollarHong Kong dollarThe Hong Kong dollar is the currency of the jurisdiction. It is the eighth most traded currency in the world. In English, it is normally abbreviated with the dollar sign $, or alternatively HK$ to distinguish it from other dollar-denominated currencies...
: HK$10 (US$1.29) - Japanese yenJapanese yenThe is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the euro. It is also widely used as a reserve currency after the U.S. dollar, the euro and the pound sterling...
: ¥1,000 (US$11.79) - New Zealand dollarNew Zealand dollarThe New Zealand dollar is the currency of New Zealand. It also circulates in the Cook Islands , Niue, Tokelau, and the Pitcairn Islands. It is divided into 100 cents....
: NZ$5 (US$3.91) - Swedish kronaSwedish kronaThe krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...
: 20 kr (US$3.22) - Swiss francSwiss francThe franc is the currency and legal tender of Switzerland and Liechtenstein; it is also legal tender in the Italian exclave Campione d'Italia. Although not formally legal tender in the German exclave Büsingen , it is in wide daily use there...
: SFr10 (US$11.04) - Singapore dollarSingapore dollarThe Singapore dollar or Dollar is the official currency of Singapore. It is normally abbreviated with the dollar sign $, or alternatively S$ to distinguish it from other dollar-denominated currencies...
: S$2 (US$1.59)
See also
- Save the GreenbackSave the GreenbackSave the Greenback is an organization of U.S. Bureau of Engraving and Printing employees and paper and ink suppliers opposed to phasing out the paper dollar...
- Dollar (United States coin)
- United States $1 Coin Act of 1997United States $1 Coin Act of 1997The United States $1 Coin Act of 1997 was legislation passed by the United States Congress providing for a redesigned gold colored coin with a distinctive new rim. A major purpose of the Act was to allow for the replacement of the Susan B. Anthony dollar. The stockpiles of that coin had been...
- Efforts to eliminate the penny in the United States