Over 355 million Andrew Jackson, Martin Van Buren, William Henry Harrison, and John Tyler Presidential $1 Coins were distributed by the Federal Reserve Banks in the last accounting period, according to their annual report to Congress released earlier this year.
However, the Reserve indicates the amount is low compared to what they have on hand, and what is returned by banks.
As first reported by Paul Gilkes in the latest issue of Coin World, the Reserve Banks are accumulating a tremendous stockpile of the golden coins. In fact, the Board of Governors of the Federal Reserve System made the following statement:
"Current supplies represent enough $1 coins for the Reserve Banks to meet transactional demand for $1 coins for about ten years."
This buildup represents a 900% plus increase in inventory over what the Banks held at the introduction of the Presidential Dollars to the system. According to Fed records, 67 million dollar coins were in their control at the start of 2007. By the end of May of this year, an astonishing 691 million dollars were being held in limbo.
Quarterly $1 Coin Inventories, US Mint Orders, Receipts, & Payments (in Millions)
RECEIPTS FROM CIRCULATION
PAYMENTS TO CIRCULATION
ENDING INVENTORY [1+2+3-4]
"The Reserve Banks hold the residual coins as inventory at their offices and off-site coin terminals," states the Reserve.
Depository Institution $1 Coin Ordering Patterns
|Presidential $1 Coin||Depository Institution Orders($ Millions)||Depository Institution Orders within First Three Weeks of Order Period ($ Millions)||% of Total|
|John Q. Adams||96||83||86|
|Martin Van Buren||93||80||86|
|William H. Harrison||87||77||88|
It lists the fact that depository institutions (local banks) have been re-depositing large amounts of the dollar coins back into the Federal Reserve system indicating consumers are not accepting their wide-spread use.
The report adds that in meetings with industry officials, a feeling was conveyed that the "Presidential $1 Coin Program has successfully met their needs, but that transactional demand for $1 coins has not increased since the start of the program" and that "most meeting participants did not believe that demand would increase significantly for future coin releases, with the possible exception of the coins commemorating the most popular former Presidents."
The Board of Governors of the Federal Reserve System is required to submit this analysis annually to Congress pursuant to section 104 of the Presidential $1 Coin Act of 2005 (Public Law 109-145). The Board attempts to identify the obstacles to a smooth circulation of $1 coins by consulting with applicable industries and then relay any recommendations they may have for legislative action that may improve the US dollar coin program.
The Reserve did find that some depository institutions would like a change made to the current ordering period in place for the coins. Institutions are allowed to order coins two weeks before their release as long as they do not issue them to the public, allowing time to receive inventory. An increase to three weeks would allow remote locations sufficient time to make their orders. Conversely, most indicated that the post-release introductory period could be reduced one week from the current four weeks to three.
Without making a specific recommendation, the report compared the US system of managing commemorative coin inventories with that of several other countries. It states that in the Eurosystem, commemoratives are focused on only the 2-euro coins with limited mintages placed on them. In Canada, a limited issuance period is used along with a simultaneous issuance of non-commemorative coins. Finally, some central banks do not allow a return of commemorative issues from depository institutions eliminating a stockpile concern for those central banks.
The only recommendation made was a "concern" placed by the Board indicating that the current quantitative requirement in place on the Native American Dollars (to be 20% off all dollar coins struck) should be addressed. It feels that to require such a mandate without a regard for their demand is not conducive to an efficient system.
Whether anything will come from the latest information is not yet known. Obviously, some changes should be adopted to prevent a continual increase in the stockpile of dollar coins.