(modern) coin shortage 2020

[JBF]

This is modern, but I would also like to know about ancient, medieval and early modern parallels if anyone knows about them.

I would also like to know how it is in other countries.

In Denver, grocery stores and fast food outlets (and maybe others) are facing a shortage of coinage, and so are asking for exact change, or payment with plastic (credit card). I assume that they are having problems getting coinage from the bank.  I have heard that the mint is not working at capacity, but not from anyone that would particularly know.  (Denver has one of the US mints).

[Heliodromus]

Apparently it's more about circulation than production. People arn't getting out as much, and when they are they are paying with safer plastic rather than dirty money. As a result, people's change jars at home are left full and not put back into circulation.

Normally the contents of change jars end up back at the bank, then in the retailer's tills, then back to you, but now it's just sititing at home with you, so not much getting back for retailers to hand out in change and recirculate!

[Robert_Brenchley]

That's obviously a very unusual situation, which makes me wonder whether anything comparable ever happened in the ancient world, with people hoarding so much coin the supply ran short.

[n.igma]

Who wants to handle potentially COVID infected coins and notes? The virus can remain active on metal, polymer and paper surfaces for up to 72 hours. As a result, I  haven’t touched cash for six months, preferring contactless transactions. Almost entirely in the retail and hospitality sectors where I live business owners require contactless payment and refuse cash. This has been a contributor to greatly reduced community transmission of COVID.

I suspect the same applies elsewhere so that people are not hoarding cash, rather they are not using it, relying instead on card and app based payment systems. Similarly, the business owners would prefer not to have to handle cash and don’t go out of their way to facilitate its use. Thus the mint sees even less demand for coin than usual and scales back mintage.

In this case there are no ancient analogues. I suspect we are witnessing an historic accelerated shift away from cash based payment to electronically enabled payment systems in a move towards an essentially cashless society, all catalysed by COVID.

[Robert_Brenchley]

I think we have a partial analogue in the people of Eyam in Derbyshire leaving coins in bowls of vinegar in the 1660's, to avoid spreading plague to their neighbours. But I was thinking  more oc coin hoarding for whatever reason leading to a shortage of circulating coin.

[Altamura]

... I would also like to know how it is in other countries. ...

Here in Germany we read in the news about the shortage in the US, but don't have a similar problem ourselves or in other European countries  (at least as far as I know).

But since the Covid19 crisis there is also a growing tendency to pay electronically, many shops explicitely say that they are preferring this.

Regards

Altamura

[JBF]

I know of only one retail outlet that refuses cash.  Technically/legally I am not sure that if you are a retail outlet, you can refuse cash.  It is legal tender.  Unless it is going to get paid for another way.  In any case, you better post it if you are going to have such limitations.

The local grocery store will credit to your frequent shopper card, amounts under a dollar, if you don't have exact change (and they don't have any either).  I brought a full pocket full of change into the I am a spammer, the clerk was happy to buy it off of me.

Personally, I like the anonymity of cash, but not necessarily in the Corvid19 context.

[PMah]

   Sadly, most states permit stores to refuse cash as a sales/consumer law matter, but there is a trend to the contrary, because many people do not have access to banking or virtual banking.
    Federal law has no such restriction on retail sales.  The Federal Reserve says:

    " There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services. Private businesses are free to develop their own policies on whether to accept cash unless there is a state law that says otherwise.

Section 31 U.S.C. 5103, entitled "Legal tender," states: "United States coins and currency [including Federal Reserve notes and circulating notes of Federal Reserve Banks and national banks] are legal tender for all debts, public charges, taxes, and dues." This statute means that all U.S. money as identified above is a valid and legal offer of payment for debts when tendered to a creditor."  End Quote

     So, you can pay a debt or taxes with any legal tender, which I believe in the US extends retroactively to any issue at face value by the United States, ever.
   It's sorta fun to throw a worn Mercury dime into the mix now and then!
   

[Bill W4]

I suppose along this line; I tried paying with a roll of coins a few days ago and the cashier recoiled like I was giving her poison ivy or something.  I apologized and gave her paper which she accepted (same difference?).  My bank took the rolls later with no troubles.  Strange times we live in.

[JBF]

Yes, but if the perception is that you refused legal tender because of race, etc, etc.  You can get a lot of hassle whether or not it is accurate (that that was the reason).  Although large amounts of small change are not technically "legal tender."  Over 50 1 cent coins is technically not legal tender, at least from what I understand from my convenience store days.  (So, urban myths of people buying a car with millions of pennies, is probably exactly that an urban myth.).  I do wonder what would happen if you had service, and then offered to pay in cash, and then were refused.  What exactly would the police do, if they called them.  You _have_ legal tender, and it was refused?  Let's assume that "no cash" was not posted.  I am assuming that you actually do not have alternate forms of payment, not that you are doing it, to be a pain and make a point.

[PMah]

   Interesting discussion. (I am a lawyer and have served as a prosecutor, so I will probably botch this attempt to "clarify".. [insert lawyer joke here].
    I think the key commercial  points are the retail nature of the transaction and "notice of policy" .  There's no "debt" if there is a simultaneous exchange of value.  So if a person brings a can of beer to a cashier at convenience store, pennies tendered, the sale is easy to refuse and item can be reshelved.  Restaurant, meal served and eaten, then tab presented and enough pennies tendered, customer is inconsiderate but not a thief. 
    Add a clear notice, "no cash, debit or credit only", or, more commonly, "no bills over $50", most problems are avoided, but still the burden likely falls on the retailer to either accept the tender, waive payment, or refuse the transaction.    (The boss of that cashier might have said "a cash-paying customer is always right".) 
   Such signs are very common in convenience stores to avoid conflict, and many small retail shops request payment before completing an un-restockable sale or service.  Others take the risk out of tradition (restaurants) or two-way satisfaction aspects,  such as barbershops.
  In contrast, it is very  clear that a true debt or tax can be paid in any combination of legal tender. 

    So, the pay-for-car-with-pennies is really more of a stunt.  The dealer probably can refuse to hand over the keys if the contract allows.  But, if the dealer delivered the car on any portion of credit, it's probably time for a counting machine.  (Of course, any savvy dealer would call the media, accept the coins with a big smile, and get free advertising.)

  On the police aspects, it gets a bit complicated.  Larceny occurs when someone takes or keeps, but intentionally does not give.   If a customer walked out with the product AND kept the un-accepted tender, then it is likely larceny in most US states.   A customer can always walk away from a warm fresh hamburger on the counter if the cashier does not accept payment of the full price -- "sorry, I don't know how to count"  --- everyone is unhappy but honest.  If the customer walks out with a product after leaving the right amount of cash even in a "no-cash" store, I do not see a larceny, as there is no intent to wrongfully take possession, nor, I hope, any police interest.   In many places, police will not arrest for "shoplifting" while the suspect is within the store , regardless of how the item was concealed, if the suspect is carrying enough money to pay for the item.  (Some of us may remember a former Miss America from the 50s who, among many travails, was arrested in the 80s for shoplifting, but only in the parking lot after the officers confirmed she didn't have enough money.)   There can be bias in enforcement policies in some places, sadly.

[Bill W4]

My point was the cashier refused the two rolls of quarters ($20) because she was afraid of contracting coronavirus but gladly accepted a $20 paper bill.  Makes no sense to me.  I took the nickle she gave me in change.