Change for change?
Presidents Day is Monday, February 17, and since many presidents are on our coins and President Donald Trump is proposing to get rid of pennies, here’s a look a coin history.
The cost of producing coins varies significantly depending on the denomination and the materials used. In the U.S., it costs more than the face value to circulate certain coins like the penny and nickel. According to a 2024-dated report from the United States Mint, producing a single penny costs about 3.07 cents, while a nickel costs around 13.8 cents.
A penny for your thoughts
Compared to 2023, the penny’s unit cost increased by 20.2%, now costing 3.69 cents to produce.
The nickel’s unit cost increased by 19.4%, now costing 13.78 cents to produce.
The dime’s unit cost increased by 8.7%.
The quarter’s unit cost increased by 26.2%.
The unit costs for pennies and nickels have remained higher than their face value for the 19th fiscal year in a row. Meanwhile, larger denominations, such as dimes and quarters, tend to be more cost-effective to produce relative to their face value.
Penny history
When the United States Mint was created in 1792, one of the first coins it made was the one-cent coin. The image on the first cent was of a woman with flowing hair, who stood for liberty. The coin was larger and made of pure copper, while today’s penny is made of copper and zinc.
During the colonial period, people used a mixture of coins from other countries. A popular coin was the British penny, which our cent is named after.
In 1857, Congress told the Mint to make the cent smaller and to mix the copper with nickel. People found the smaller cent easier to use. The new cents showed a flying eagle on the front and a wreath on the back.
In 1909, Abraham Lincoln became the first real person on a U.S. circulating coin. While the Lincoln portrait has remained the same since then, several different designs have been used on the reverse.
Not fond of faces
George Washington might be a bit surprised to find himself on money. In considering designs for the first U.S. coins, he and Congress rejected coin designs showing our leaders. It reminded them too much of British coins featuring their monarch. He first appeared on the quarter in 1932.
Nice chunk of change
The $20 gold coin was the highest denomination of coins in the U.S. They were minted from 1850 to 1933. Some are extremely rare and one sold at auction in 2021 for more than $18 million.
Symbols on our coins
Pyramids, eagles, goddesses and frogs are just a few of the images that have appeared on American currency since 1792. Some of these symbols are no longer used, but many of them can still be found on modern U.S. notes and coins. Our early and modern coins are full of symbolism. Many symbols have ancient Greek and Roman origins and were widely used in the 18th and 19th centuries.
Mulling mottos
In July 1776, almost immediately after signing the Declaration of Independence, John Adams, Benjamin Franklin and Thomas Jefferson were tasked with designing a seal and motto for the new nation. Adams suggested, “Choice of Hercules.” Franklin, a deist who did not believe in the divinity of Christ, proposed “Moses lifting up his Wand.” Jefferson envisioned “The Children of Israel in the Wilderness.” The three men worked in consultation with an artist, Pierre Eugène Du Simitière, who rejected all of the ideas of the three committee members. The only thing that made it out of the first committee was Simitière’s use of “E pluribus unum.” The final proposal, as accepted by Congress, was submitted on June 13, 1782, by Charles Thomson, a prominent Philadelphia merchant and secretary of the Continental Congress. He is credited with finalizing the design — unifying the ideas of the three committees, their consultants, and artists. “E pluribus unum” was adopted by an act of Congress as the motto for the seal of the United States and has been used on coins and paper money since 1795.The motto “In God We Trust” was placed on United States coins largely because of the increased religious sentiment existing during the Civil War.
The motto was used for the first time on the copper two-cent piece in 1864. It was not until a 1956 law signed by President Dwight D. Eisenhower, “In God We Trust” was made the national motto.
Sources: Smithsonian, U.S. Mint, U.S. Treasury, The Ohio State University, House of Representatives, Federal Reserve Bank of Philadelphia