Contact: Kristin Nolt (202) 225-4165; Andrew Biggs (202) 226-0471
75 percent of individuals polled said they would save the quarters; program would financially benefit U.S. government
(Washington, DC) The Department of the Treasury today released a study that found significant public support for Domestic and International Monetary Policy Subcommittee Chairman Michael N. Castle's proposal to give the U.S. quarter a new look. The study found that of the individuals polled, 75 percent said they would be very likely or almost certain to save the quarters. "I am very pleased about the study, and hope that this positive report means that Treasury will 'green light' my proposal to give the quarter a new look," Castle said. "This proposal has many benefits; by placing a symbol of each state on one' side of the quarter, we are paying tribute to our country as a whole and commemorating each of our 50 very different states, saving the taxpayer money we otherwise would be paying on the U.S. debt and making the process of getting change more educational and a lot more fun."
Congress approved Castle's bill last Congress with an amendment that Treasury would conduct a feasibility study on the plan. The study found tremendous public support for the plan; specifically, 75 percent of those polled said there they would be "almost certain" or there was "a good possibility" that they would save the statehood quarters. In addition, 51,percent of respondents favored the program; 38 percent were indifferent; and only 11 percent responded unfavorably.
Under Castle's bill, the U.S. Mint would issue new designs for the quarter to commemorate each of our 50 states. Specifically, each state would be represented on its own quarter, which would bear a symbol or motto of a particular state on the reverse side, while the front side would be the same for all 50 coins.
The size and weight of the quarter would not change. Five state quarters would be issued each year for a period of 10 years, and they would be minted in the order the state entered the union. "These quarters will not just make history but help teach our children and all Americans about federalism and our unique heritage. Not everyone is a coin collector -- but it is my hope that this will give those Americans who are not now interested in coins a new hobby -- and excite those for whom collecting coins is already a passion. Either way, I think it will make collectors out of most of us," Castle said.
In addition, the coin program saves the government money. It costs the Mint approximately four cents to make a quarter. But quarters are sold to the Federal Reserve for 25 cents. The difference between the production costs and the face value of the coin is called "seigniorage. "Because the report found that a vast majority of people win save rather than spend the commemorative quarters, thereby taking them out of circulation, the new program is expected to produce between $ 2.6 and $ 5.1 billion in seigniorage for the Treasury. This is money that the government would otherwise have to borrow, Therefore the government will save money.
The Secretary of the Treasury has until August 1, 1997 to decide whether to move ahead with the 50 state circulating quarter proposal. If the secretary believes that the program should proceed, he can begin issuing the first new quarters by January 1, 1999.