The United States Mint Presidential $1 Coin Program

The Presidential $1 Coin Act of 2005 (Act) is authorized by Public Law 109-145, signed by the President on December 22, 2005, to commemorate the service of American presidents by issuing $1 coins at a rate of four per year, in the order of their service, beginning in 2007.

The Act also requires the Secretary of the Treasury and the Board of Governors of the Federal Reserve System to take steps to ensure that an adequate supply of $1 coins is available for commerce and collectors at such places and in such quantities as are appropriate. The Act provides that the Secretary and the Board of Governors shall consult with a coin users group no less frequently than annually, to accurately gauge demand for coins and to anticipate and eliminate obstacles to the easy and efficient distribution and circulation of $1 coins as well as all other circulating coins. The Act specifies the industry groups that are to be consulted.

The new law requires both the Department of the Treasury and the Board of Governors of the Federal Reserve to implement measures to ensure that an adequate supply of $1 coins is available for commerce and collectors. The United States Mint has made significant progress in planning and preparing for the roll-out of the Presidential $1 Coins, as well as addressing the barriers to the circulation of dollar coins. Based on the United States Mint’s progress to date, it will commence production of Presidential $1 Coins on schedule and will have the capacity to mint and issue these coins in quantities sufficient to meet public demand.

To ensure a successful rollout of the $1 coin, the United States Mint is working closely with the Federal Reserve on a number of initiatives. To accurately gauge demand and ensure that the United States Mint produces an adequate supply of coin, the United States Mint, in coordination with the Federal Reserve, is completing a demand and acceptance study with respect to Presidential $1 Coins. The study includes research and analysis, as well as a detailed report indicating the potential demand levels for circulating and numismatic Presidential $1 Coins to ensure that United States Mint officials can make informed decisions regarding production volumes. A secondary objective of the study is to examine barriers to public acceptance of, and increased demand for, these coins and to provide recommendations on reducing or eliminating these barriers.

The designs for the first four Presidential $1 Coins will be unveiled in October/November 2006, and current plans are to make the President Washington $1 Coin available to the public around President’s Day, 2007. The inauguration of the Presidential $1 Coin is critical to the public awareness of this program and the United States Mint and the Federal Reserve have developed strategic and tactical plans to mitigate barriers to the circulation of the $1 coin in commerce as well as to create wide-spread awareness of the program.

For example, the United States Mint will pre-position $1 coins at Federal Reserve locations and financial institutions across the country in advance of the release date to allow commercial banks the opportunity to have coin available for customers on the release date. The United States Mint will also wrap unmixed newly issued $1 coins prior to shipping to ensure that they are distributed to financial institutions as quickly as possible in a form suitable for commerce.

The United States Mint and the Federal Reserve are reaching out to, and building relationships with, a variety of stakeholders as outlined in the Act. This includes entities that use $1 coins in daily transactions (such as retailers); coin operator/vending companies; coin dealers and collectors; and other Federal Government agencies.

Federal Agencies, Industry Leaders and Stakeholders Learn about Presidential $1 Coin

On July 12th, 2007, officials from the United States Mint and the Board of Governors of the Federal Reserve held a coin users group forum for industry leaders and stakeholders (including federal agencies). This forum provided the United States Mint and the Federal Reserve System the opportunity not only to inform agencies about the new law, but also to receive invaluable feedback and insight from them on the actions and practices that may offer the most promising results in eliminating barriers to the robust circulation of the $1 coin.

The United States Mint and the Board of Governors held its first coin users group forum on June 8, 2006 , which was followed by a coin forum at the and followed up with American Numismatic Association Annual Convention in Denver, Colorado on August 18, 2006. United States Mint officials presented a special forum there which was geared toward coin dealers and collectors.

The events on July 12, 2007, June 8, 2006 and August 18, 2006 were the first of many initiatives intended to promote, inform and educate our stakeholders about the Presidential $1 Coin Program. The United States Mint and the Federal Reserve are committed to hosting additional coin user group forums, as well as conducting more collaborative outreach initiatives with other stakeholder groups. The United States Mint welcomes the opportunity that the Act represents to produce memorable and historic $1 coins. The United States Mint and the Federal Reserve will continue to work collaboratively to continuously improve our processes and communicate with stakeholders to ensure that the Presidential $1 Coin Program is a success.

Retail Industry Learns about Presidential $1 Coin

Acknowledging the critical role the retail industry will play in circulating the Presidential $1 Coins, the United States Mint and Federal Reserve hosted a Coin Users Group Forum for retail merchants on November 8, 2006, to introduce them to the program and receive their feedback.

Representatives from the supermarket, convenience store and chain restaurant industries, among others, heard United States Mint Director Edmund C. Moy speak about the expected demand for the Presidential $1 Coins. He emphasized that the regularly changing coin designs will bring retail merchants opportunities to add to their bottom line by attracting the 140 million Americans who collect the 50 State Quarters®. United States Mint research also indicates many people will be willing to accept the $1 coin in change.

The industry representatives at the forum offered their ideas on ways the United States Mint and the Federal Reserve can work most effectively with retail merchants to promote the circulation of Presidential $1 Coins. Thanks in large part to that feedback, the United States Mint will soon make available, via a special website, free collateral materials for merchants to use in stores, restaurants and other locations. These materials will help retail associates recognize and accept the new coins and raise awareness among consumers.

The United States Mint is leading the interagency effort to remove barriers to circulation. Section 104 of the Act was codified at 31 U.S.C. § 5112(p). Paragraph (1) of subsection (p) requires all agencies and instrumentalities of the United States, the United States Postal Service, and all nonappropriated fund instrumentalities established under title 10, United States Code to take measures to ensure they are capable of accepting and dispensing $1 coins in their coin and currency operations and to display signs denoting this capability. To ensure widespread awareness of this provision, the United States Mint is sending a letter to the heads of Federal entities affected by this provision, apprising them of their obligations under the new law, and offering them assistance as needed.

The Act requires the United States Mint to work closely with consumer groups, media outlets, and schools to foster news coverage, increase public awareness, and ensure that consumers know about the availability of the coin. Plans are underway to introduce a public information and awareness campaign that encompasses a grassroots approach and to seek low-cost earned media opportunities and initiatives. The United States Mint is working closely with the Federal Reserve to develop plans that will ensure consistent communication throughout the coin supply chain as well as coin user groups, stakeholders, education organizations and institutions and federal agencies and entities.

The United States Mint sought the services of a firm to assist in developing and implementing a nationwide, integrated education and outreach campaign to help build awareness of the new Presidential $1 Coins as they are introduced to the public. This campaign will be a sustained, multi-year public information program and is expected to stimulate acceptance and robust circulation of the Presidential $1 Coin. However, it is also the sense of Congress that the coins should not be introduced with an overly expensive taxpayer-funded public relations campaign. Naturally, the United States Mint must expend some funds to cover the costs necessary to fulfill these requirements; however, every effort will be made to leverage earned media and free advertising opportunities, low or no-cost public relations initiatives, and other creative publicity and promotional methods. We intend to explore all avenues for earned media opportunities and will not purchase television advertising at this time. We intend to leverage existing advertising contracts to promote all of our numismatic products, including $1 coin products, at no additional costs.