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The E-Sylum:  Volume 10, Number 27, July 8, 2007, Article 24

ABOLITION OF CANADIAN CENT PROPOSED

Dick Johnson writes: "Canada is getting serious about abolishing the
cent denomination. Last week the national bank issued a statement
endorsing its demise. This week a member of parliament, Pat Martin,
is drafting a bill to accomplish just that. The $30 million is the
amount the Canadian Mint would save annually by abolishing the penny,
says a study by the Library of Parliament, whose facts Mr. Martin is
using to bolster his argument that the penny should no longer "nickel
and dime Canadians."

"Canada is not facing the problem, as does the United States, that of
the U.S. cents costing more for its metal composition than its face
value, since Canadian cents are made of steel. The Royal Canadian Mint
manufactures steel cents for 0.7 cents each, which means a penny is
still actually worth something, but not much. The problem with pennies
is that Canadians lose them, throw them away or store them in buckets
by the millions. Last year the mint stamped out 815 million pennies. At
2.35 grams each, they are in weight as they are in value -- pretty much
nothing. But together, they weigh almost two million kilograms. Moving
all those coins from the mint to banks alone costs about $33 million.

"By abolishing the cent Canadians would have to do some rounding off.
Not all prices, just the final tally. An editorial in the Winnipeg Free
Press noted this has already been done in Australia, New Zealand, France
and Spain. We could add Finland to that list."

To read the Winnipeg Free Press editorial, see:
Full Story

  Wayne Homren, Editor

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