face-value (13. 546)

A pair of back-to-back podcasts had an interesting that addressed the subject of minting money from different angles and both touching on seigniorage from Planet Money and 99% Invisible presented an interesting correspondence. First the Indicator episode explored the pros and cons of introducing a commemorative two-hundred fifty dollar bill for the upcoming US birthday celebration, which notwithstanding actual and potential hurdles over decorum and legality, would be a boom for criminal activity, money laundering and tax avoidance—the EU got rid of its largest denominated five-hundred euro bill, nicknamed the bin Laden and favoured by smugglers and traffickers for its portability. Most other governments have followed suit and there is even pressure to remove the current largest American note, the one-hundred dollar bill by the same reasoning, though the argument that the US treasury cites for keeping it is that the some twenty billion outstanding, through seignorage, a promissory note redeemable and fungible at any time, the positive return or carry for issuing money, represents a two trillion dollar, interest-free loan for the US, as long as they stay in circulation, particularly internationally—or stored in a vault, or in the next example, lost in the couch cushions, mellowing in a change jar or held as collectors’ items. As 99% Invisible reports, though public reaction to the debasing of American coinage from 1964 to 1965 was frictionless acceptance of face-value despite that specie had been removed and replaced with a slug clad with a shiny coating, the price of metal meant minting incurred more demurrage, depreciation, and so inspired by the commemorative issues, like the Kennedy half-dollar or the 1976 bicentennial quarters, the mint got permission, not wholly out of civic pride, in 1999 to produce twenty-five cent pieces honouring each state—and eventually Washington, DC and the territories over a ten year period, the government earning a profit for each that went coin that went into a collection, the mint itself only absorbing the fractional production costs.