Comments on: You Learn Something New Every Day – Fractional Currency http://countingoncurrency.com/wp/2010/04/14/you-learn-something-new-every-day-%e2%80%93-fractional-currency/ a resource for cash supply chain management professionals Mon, 12 Sep 2011 11:34:18 +0000 hourly 1 http://wordpress.org/?v= By: DanL http://countingoncurrency.com/wp/2010/04/14/you-learn-something-new-every-day-%e2%80%93-fractional-currency/comment-page-1/#comment-224 DanL Wed, 14 Apr 2010 17:43:01 +0000 http://countingoncurrency.com/wp/?p=2644#comment-224 I wish Pawn Stars wasn't so darn slow moving. Otherwise I'd be more diligent about watching. After a few episodes it resembles nothing so much as that other show about making Choppers (it probably is produced by the same people). I wish Pawn Stars wasn’t so darn slow moving. Otherwise I’d be more diligent about watching. After a few episodes it resembles nothing so much as that other show about making Choppers (it probably is produced by the same people).

]]> By: DanL http://countingoncurrency.com/wp/2010/04/14/you-learn-something-new-every-day-%e2%80%93-fractional-currency/comment-page-1/#comment-223 DanL Wed, 14 Apr 2010 17:33:49 +0000 http://countingoncurrency.com/wp/?p=2644#comment-223 Small change was almost always a problem in countries under the gold standard (or some other specie standard, like gold & silver or gold & copper). And was only resolved, more-or-less successfully, once the world adopted fiat money, that is to say, like US money today, "backed by the full faith & credit" of the United States. In the pre-modern era, like in 18th century England, small change might be made of gold but could be tiny little round coins smaller than the toenail on your baby toe. And still be worth say, $20, in today's purchasing power. For a period between around 1780 & 1820, British button manufacturers made metal coins (not "legal tender") that could be accumulated to get one of the real gold ones. In the US (and in the English colonies in America), it is well known that small change could be made by chopping recognized coins into pieces (hence, the "piece of eight," the Spanish dollar chopped into 8 pie slices). So the fractional currency of the US Civil War era is not so unique. Small change was almost always a problem in countries under the gold standard (or some other specie standard, like gold & silver or gold & copper). And was only resolved, more-or-less successfully, once the world adopted fiat money, that is to say, like US money today, “backed by the full faith & credit” of the United States. In the pre-modern era, like in 18th century England, small change might be made of gold but could be tiny little round coins smaller than the toenail on your baby toe. And still be worth say, $20, in today’s purchasing power. For a period between around 1780 & 1820, British button manufacturers made metal coins (not “legal tender”) that could be accumulated to get one of the real gold ones. In the US (and in the English colonies in America), it is well known that small change could be made by chopping recognized coins into pieces (hence, the “piece of eight,” the Spanish dollar chopped into 8 pie slices). So the fractional currency of the US Civil War era is not so unique.

]]> By: msnow613 http://countingoncurrency.com/wp/2010/04/14/you-learn-something-new-every-day-%e2%80%93-fractional-currency/comment-page-1/#comment-222 msnow613 Wed, 14 Apr 2010 13:59:37 +0000 http://countingoncurrency.com/wp/?p=2644#comment-222 I saw the same episode of "Pawn Stars". I understand that in Iraq and Afganistan our miliatary and civilian forces use cardboard slugs instead of coin. Seems to have solved a logistical problem for the folks supporting that infrastructure. In a meeting just yesterday I heard a rep from a leading branch/currency automation vendor refer to coin as a low value propisition. That struck me as ironic. It is true that the asset value is low compared to our paper currency. However, my experience has been that the handling of coin consumes more resources. A conversion to paper is not a bad idea, but it would have to be combined with a consolidation to fewer increments. We probably cannot make a business case for $.01, $.05 or $.10, but $.25 and up might work. I saw the same episode of “Pawn Stars”. I understand that in Iraq and Afganistan our miliatary and civilian forces use cardboard slugs instead of coin. Seems to have solved a logistical problem for the folks supporting that infrastructure.

In a meeting just yesterday I heard a rep from a leading branch/currency automation vendor refer to coin as a low value propisition. That struck me as ironic. It is true that the asset value is low compared to our paper currency. However, my experience has been that the handling of coin consumes more resources.

A conversion to paper is not a bad idea, but it would have to be combined with a consolidation to fewer increments. We probably cannot make a business case for $.01, $.05 or $.10, but $.25 and up might work.

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