Pennies to us … Cents to you
By Dale Klingbeil
(Editor’s Note: This is a longer version that Dale Klingbeil submitted, which, due to space constraints, we were not able to place in the hard copy of the Sentinel.)
Maybe even common sense. This should be part of the DOGE movement for common sense savings and the future of “cents”.
I have some experience with manufacturing and metal forming operations. I am not a tool maker. I am however an engineer. I have purchased tooling for metal stamping/forming machines around the world.
I have seen many high-volume operations. I have stood on the platforms of some of the largest presses in the United States. In other countries I would stand on the second floor to be on the same level and the bed of the press. This same press would be another 2 stories above me as well.
As I have watched the Denver Mint operations video online, it is obvious that the machines and systems that produce “cents” are very dated. The numbers of cents processed per day does not calculate with the output denoted in the video.
My office used to be on the other side of the wall of a press that ran consistently at over 800 strokes per minute. I am familiar with the rhythm. In one part of the video the notation is that the striking process runs at 750 per minute. This, by sound seems to be closer to my remembrance of 800 per minute. The statement at the lead of the video provides information stating that the press runs at 14,000 per minute. If you listen to the cycles and the rhythm this is a huge difference and seems to be miscalculated. I could believe 1,400 cycles per minute, or if the total output was 14,000. This is a huge difference and should be easily discerned by investigation.
The point of this writing is to bring to light the production of the penny. Clearly changes have been made over the years in its production. From investigation, it has been stated that a major modification was made in 1982. The composition of the materials. The material was changed from a high composition of copper to a high composition of zinc. The understood composition is 97.5% zinc with a copper coating. The price of copper has escalated in recent years and will likely continue to escalate. This material was reduced to its current level of less than 2.5%. It is difficult to learn exactly the process for the processing of this base material. I would seem that this material if rolled into a sheet and coiled for processing onto the stamping presses. The video shows a 9,000 Lb. coil being loaded onto a decoiler. By hand almost. The video shows a person feeding the lead edge of the material into the press to begin the process. Again, hand labor.
During the early 1940’s the penny was produced for a short period of time with steel being its major material. After WWII the penny returned to a copper material as we have come to know it.
Pennies at that time were popular in vending machines and steel vs. copper material causes issues as well. Today, you would be looking for a long time to find a current vending machine that would take a penny. Weight and magnetism are issues, and current materials should be available to accomplish either or both. Elon Musk likes stainless steel. It is very likely that a stainless steel-based material could be used in this application. Stainless steel is far less expensive than copper. Zinc is heavy and has properties that allow it to be more formable than stainless steel. However, much improvement and advancements have been made in tooling and processing.
In this processing the current system used an annealing process to stress relieve the blank, (the name for the round shaped part) before it is “upset” to form a rim around the blank. Again, this process may be eliminated with the use of more current materials and/or processing. Annealing is another process of high energy utilization. If removed, it could result in another cost savings measure.
The rate the design is stamped in the blank to finish-form the coin, is stated to run at 750 per minute. A group of machines complete this feature. As the video shows, a certain amount of scrap is produced with this process as each machine has a scrap bin sitting next to it. Waste again.
The coins are washed during the process and treated so they do not tarnish over their life in circulation.
The coins are conveyorized and counted on their way to the bagging stations. The finished coin is stored in containers fully loaded at some 2000 Lbs. Again, it does appear from this video that these containers are hand loaded onto the warehouse floor in stacks of four-high.
This may seem a lot overboard for an explanation, of a penny/cent coin production. The idea of eliminating the penny from our monetary system may seem like a simple reduction. But the mathematical fact is that the number 1 is an integral part of our monetary system. Mathematicians are most interested in what happens between the number, zero and one. If you eliminate 1 then the next is 2 and that is a 200% jump in value. It may not seem like a lot until you do it a few trillion times. Think about this in a store that does use coins. Who gets the difference between 1 and 2? That is a 200% jump. My guess is that the customer will be on the short end of that. And of course, our government will be watching to learn how this 200% increase is accounted for. Again, for calculation purposes, you are to divide a summary by two how does a computer figure this. 7 divided by 2 is 3.5. Round up to 4. This is a cost increase. When you calculate percentages, the numbers become more difficult for the computer. 33,666 divided by 3 equals…11,222 but if the total is 33,668 and it is divided by 3, then the result is 11,222.6666666666666666666
If the computer is asked to pay this amount in three installments, then which one is going to be rounded up or down? And again, who gets the extra penny?
This may seem absurd, but you get the idea.
Denver Mint produces all of the penny/cent coins and distributes them west of the Mississippi. Philadelphia produces penny/cent coins also. I addition Philadelphia has ample time to produce coins for foreign countries. As the videos show both Philadelphia and San Fransico produce commemorative coins as well. The additional funds produced from the commemorative coins has driven San Francisco to be exclusive in this production.
Peak production volume is stated to have been 15.4 billion coins in the Denver Mint in year 2000. The information on the video does not state how many coins of each; cents, nickels, dimes, quarters or others were produced.
“Last year, the Mint issued over three billion pennies, according to its annual report, at a loss of about $85.3 million.” Since the volume has dropped drastically, the logic would be to streamline the manufacturing of this coin. One facility and improved processing and materials will bring this cost within range of acceptable cost for the historic and basic necessity of the US currency system.
Bottom line, Mark Amodei has proposed that the penny/cent minting be reviewed. The legislation that he proposed is:
“Coin Metal Modification Authorization and cost savings Act.”
Introduced in House (04/25/2023)
Representatives Mark Amodei (NV-02), Josh Gottheimer (NJ-05), and Rich McCormick (GA-7) released the following statements after reintroducing the Coin Metal Modification Authorization and Cost Savings Act of 2025
Coin Metal Modification Authorization and Cost Savings Act of 2023
A BILL 118H2817]
To amend title 31, United States Code, to save Federal funds by authorizing changes to the composition of circulating coins, and for other purposes.
The “Schuler” presses that are currently being used could be faster and more efficient. An idea of using rotary presses could be investigated. The streamlining of the processing is certainly an avenue for cost savings. The improved materials and automation of the production line is a great opportunity to reduce waste and cost. I have personally watched different metals being stamped/pressed into one part. With the use of “AI” the inspection and transfer to packaging has huge cost savings available. By the way, why would we update two factories in the USA to support a reduced penny/cent usage as electronics become more in play. Penny forever… Maybe, just to the future, but not forever!!!
This bill needs support and promotion.