FROM THE OFFICE OF PUBLIC AFFAIRS

I am pleased to be here today, along with the Director of the U.S. Mint, to talk about your legislative proposal authorizing a redesigned one-dollar coin. The legislation provides that the new coin would not be issued until the remaining stock ofSusan B. Anthony coins is depleted. I look forward to working with you on this issue, aswell as many other coin and currency issues.

The production, integrity, use and security of our money is central toTreasury’s mission and responsibilities. As the Assistant Secretary for Managementand Chief Financial Officer, I work with other Treasury policy officials and offices inadvising the Secretary on matters having a direct or indirect impact on our use of money.Treasury’s Strategic Plan has, among its objectives, the goal of strengthening oversight and coordination efforts for coin and currency policy formulation.

With respect to the cost and production of our currency and coins, myoffice and the Office of the U.S. Treasurer have responsibility for oversight of the BEPand the Mint. My office promotes the efficiency and effectiveness of the production of ourcoinage and currency through its oversight of the Mint andBEP, as with other Treasury bureaus, in the areas of strategic planning, organizationalimprovement, budget, procurement, human resources, security, property management,information systems, and financial management.

Treasury is currently faced with a decision regarding future production ofa dollar coin to meet ongoing demand. At the current draw down rate, the Mint stockpile ofSusan B. Anthony (SBAs) dollar coins is expected to be entirely depleted in approximately30 months. Although the public continues to prefer paper currency to coinage, use ofone-dollar coins by vending machine operators and some metropolitan transit authoritieshas increased. When the SBAs are depleted, we can meet demand by either producing moreSBAs or a new dollar coin.

Treasury supports the development and production of a new, gold-coloreddollar coin to replace the silver-colored SBA. The Susan B. Anthony coin has beenunpopular in part because it is difficult to distinguish from the quarter. Consequently,we want to work with Congress to approve a new dollar coin design, and ensure that theMint has sufficient time to produce a new one-dollar coin. It would take the Mint anestimated 30 months to research and test alloys, produce and place a new dollar coin intocirculation.

Your bill, the "United States $1 Coin Act of 1997," wouldprovide Treasury the necessary authority to develop and produce a one-dollar coin which ismore distinguishable from other denominations. Treasury supports the intent of the bill,as introduced. We urge Congress to pass legislation that will enable Treasury to continueto meet demand for dollar coins, without resuming production of the SBAs.

Conclusion

I would like to thank the Subcommittee and you, Mr. Chairman, for thisopportunity to appear before you today. I look forward to working with you in the future.Now I would be pleased to respond to any questions you may have.