Why isn't the half-dollar circulated?
Don O'Brien
In talking to my mother, she remembers that back in the 40's and 50's
half-dollars were regularly given out in change. My question is why aren't
they now? If you buy something and get .75 change-why don't they give you a
half-dollar and a quarter instead of three quarters?
I think many people feel that the Kennedy Half is some sort of "special"
coin, I've never had trouble using one-but I usually get the feeling that
the clerk is going to take the coin and save it-as if it had some
collectible value (more collectible than any other coins in the drawer).
I've also talked to people at work, who are under the same impression-they
look really disappointed when I tell them that all those half-dollars they
have are only worth .50.
Maybe we need to replace Kennedy with something less emotional-so that
people will not think they are something they should keep rather than spend.
Don O'Brien
MoneyLA
I think the half lost popularity because over time, consumers did not want to
carry bulk in their pockets. in fact, consumers fail to carry coins at all,
leaving them at home to collect in drawers, jars and between sofa cushions.
The half is just too large and too bulky, which is why the SBA was designed to
be small-- in the hopes it would circulate (but didnt-- and that's another
story). So I doubt even a smaller half dollar coin would help it circulate.
And why do we prefer quarters over half dollars? Because laundry machines and
phone booths take quarters, and not halves. Cheers.
Quadriga
The mythos behind the Kennedy Half Dollar, as I see it:
Why do people HOARD them? I think it has a lot to do with the fact that
the Kennedy Half was the last circulating coin to contain silver.
Remember, the Kennedy half began as a 90% silver coin in 1964, and then
had its silver content cut to 40% from 1965 to 1969 (we're only talking
about regular business strikes here). At the same time, the silver was
removed ENTIRELY from dimes and quarters, and a time limit was set for
the redemption of Silver Certificates. On June 24, 1968, silver
certificates were redefined as being worth face value only, so the
government could use the silver for more important purposes (like
funding an unwinnable war in Vietnam and shooting billions of dollars at
the moon).
In any case, in 1968 and 1969, many people knew that new Kennedy halves
STILL CONTAINED SILVER, and therefore, the hoarding of Kennedy halves
continued. Kennedies became a "special" coin, since they represented
the last REAL MONEY that ever circulated freely in our country. After
the last of the silver content was removed from the Kennedy in 1971 (the
same year that the Eisenhower dollar came out), collectors had a NEW
large coin to hoard. Like the Kennedy, the Ike ALSO didn't fit into any
vending machines, so it wasn't as useful in an increasingly self-service
world. In any case, the idea of "you should save half dollars; they
still have silver in them, they're WORTH SOMETHING" continued long after
the silver was gone.
I don't think it's so much of an emotional issue as it is the
perpetuation of a myth among the public. Kind of like the idea that
two-dollar bills are worth tremendous premiums over face. Kind of like
the story that Mikey from the Life cereal commercials died by eating Pop
Rocks candy and washing them down with soda. Actually, Mikey is alive
and well, and has to play the role of Mark Twain almost every day ("The
stories about my death have been greatly exaggerated" or something like
that).
It's a vicious circle, really. Since people don't see halves in
circulation, they conclude that halves are rare. Since halves seem to
be rare, people conclude they must be valuable. Since people think
halves are valuable, they hoard them. Since people hoard them so much,
halves don't show up much in circulation. Since people don't see halves
in circulation, they conclude halves are rare, AND SO ON. Replace the
word "halves" with "$2 bills" or "SBA dollars" if you like; it's the
same vicious circle.
I suggest we all go to the bank, get as many Kennedy halves, Susie Bs,
and two-dollar bills as we can, and SPEND THEM INCESSANTLY. Not just on
July 3 - 6, but EVERY SINGLE DAY. It's always good for a laugh,
especially with young cashiers who may never have seen these pieces in
circulation. #:>
Any other thoughts on this issue?
Kevin Colosa ANA #181192
Quadriga Ancients
http://homepages.together.net/~trolhaus/quadrigaancients.html
Steve Okonski
Don O'Brien wrote:
>
> In talking to my mother, she remembers that back in the 40's and 50's
> half-dollars were regularly given out in change. My question is why aren't
> they now? If you buy something and get .75 change-why don't they give you a
> half-dollar and a quarter instead of three quarters?
This came up here a few months ago. The general conclusion was the issuance of 40%
silver halves from 1965-1970 encouraged people to hold rather than spend the
coins, and that broke their habitual use in commerce.
theco...@webtv.net
I was looking for some scissors and scotch tape in various "junk
drawers" and ran across 27 Kennedy halves my wife had been stashing away
over the years. She thought they were going to be valuable someday. I
plucked out six 40% silvers and went out and bought a few nice cigars
with the rest. Do you belive that, a coin collectors' wife hoarding
common cupro-nickel coins. I wonder what else she's got around here.
(No, she is not getting the 40% silvers back either!)
<> <> <> <> <> <> <> <> <> <> <> <> <> <>
<<<<<<<< theco...@webv.net >>>>>>>>
<> <> <> <> <> <> <> <> <> <> <> <> <> <>
Karen Peterson
Quadriga wrote:
>
> Don O'Brien wrote:
> >
> > In talking to my mother, she remembers that back in the 40's and 50's
> > half-dollars were regularly given out in change. My question is why aren't
> > they now? If you buy something and get .75 change-why don't they give you a
> > half-dollar and a quarter instead of three quarters?
bank, and after I've looked at them for die varieties, I spend them. Get
lots of comments, my answer is they are only worth face value.
Karen Peterson
SDDCA VP
LCS, ANA, WIN, FUN
Neal Bartlett
Don O'Brien wrote:
>
> In talking to my mother, she remembers that back in the 40's and 50's
> half-dollars were regularly given out in change. My question is why aren't
> they now? If you buy something and get .75 change-why don't they give you a
> half-dollar and a quarter instead of three quarters?
When I used to be a bank teller, I would routinely slip a half in
whenever someone needed say .85 in change. More often than not, they
would accept it without even looking. Once in a while, the person would
look at me strange, and as for two quarters. If nothing else, it was
ammusing!
-neal
#135
Quadriga
Karen Peterson wrote:
(regarding the spending of Kennedy Halves)
> I do this all the time. I make it a habit to ask for these coins at my
> bank, and after I've looked at them for die varieties, I spend them. Get
> lots of comments, my answer is they are only worth face value.
>
> Karen Peterson
> SDDCA VP
> LCS, ANA, WIN, FUN
I just got five 40% silver Kennedies at a local bank this Friday. This
is not an uncommon occurence. You see, there's ANOTHER "Kennedy Mythos"
floating around, which I call THE KENNEDY COUNTER-MYTHOS. That is, to
wit, that Kennedy halves dated after 1964 are WORTH ONLY FACE VALUE, and
therefore should NOT be hoarded, but rather, turned in to your local
bank for spending "money" (i.e. paper notes). Enough folks know about
the 1964 "silver cutoff date" to hold the '64s, but not as many people
know about the 1965 through 1969 forty-percenters. I get quite a few
40% silver Kennedies every month, just by asking for whatever the bank
has on hand in halves.
You'd be surprised how many of them are still out there.
Happy hunting, everyone...
TomDeLorey
><HTML><PRE>Subject: Why isn't the half-dollar circulated?
>From: "Don O'Brien" <DZ...@PRODIGY.NET>
>Date: Sun, Jun 14, 1998 02:36 EDT
>Message-id: <6lvr1i$dnia$1...@newssvr04-int.news.prodigy.com>
>
> In talking to my mother, she remembers that back in the 40's and 50's
>half-dollars were regularly given out in change. My question is why aren't
>they now? If you buy something and get .75 change-why don't they give you a
>half-dollar and a quarter instead of three quarters?
>coin, I've never had trouble using one-but I usually get the feeling that
>the clerk is going to take the coin and save it-as if it had some
>collectible value (more collectible than any other coins in the drawer).
>I've also talked to people at work, who are under the same impression-they
>look really disappointed when I tell them that all those half-dollars they
>have are only worth .50.
> Maybe we need to replace Kennedy with something less emotional-so that
>people will not think they are something they should keep rather than spend.
>
>Don O'Brien
>
>
You might wish to see my article on this topic in the current issue of COINage
Magazine.
Tom DeLorey
PFDJR
>You see, there's ANOTHER "Kennedy Mythos"
>floating around, which I call THE KENNEDY COUNTER-MYTHOS. That is, to
>wit, that Kennedy halves dated after 1964 are WORTH ONLY FACE VALUE, and
>therefore should NOT be hoarded, but rather, turned in to your local
>bank for spending "money"
At Friday's closing price of $5.10 per troy ounce for silver, a 40% silver
Kennedy would contain $0.75 worth of silver.
If the general public were aware of this you would never see the 65-70 era
Kennedy's in circulation.
Phil DeMayo
can...@my-dejanews.com
In article <6lvr1i$dnia$1...@newssvr04-int.news.prodigy.com>,
"Don O'Brien" <DZ...@PRODIGY.NET> wrote:
>
> In talking to my mother, she remembers that back in the 40's and 50's
> half-dollars were regularly given out in change. My question is why aren't
> they now? If you buy something and get .75 change-why don't they give you a
> half-dollar and a quarter instead of three quarters?
> I think many people feel that the Kennedy Half is some sort of "special"
> coin, I've never had trouble using one-but I usually get the feeling that
> the clerk is going to take the coin and save it-as if it had some
> collectible value (more collectible than any other coins in the drawer).
> I've also talked to people at work, who are under the same impression-they
> look really disappointed when I tell them that all those half-dollars they
> have are only worth .50.
> Maybe we need to replace Kennedy with something less emotional-so that
> people will not think they are something they should keep rather than spend.
>
> Don O'Brien
>
>
We give out halves regularly as change, and you are quite right about the
illusion of extra value. We have had customers buy all the halves out of a
cashiers drawer... kinda odd since they are readily available at most banks.
We use about two bags ($500) a month and the local banks DON'T get them back
in that volume. Same with $2 bills. We give out $200 a day of them and still
have to special order them from the fed because they are not being
recirculated. Somebody, or a lot of somebodies, has a huge stockpile of two's
and halves.
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Michael Schmidt
I think the real problem was that circumstances caused ALL the halves to
leave circulation. In the fifties and early sixties I believe they did
circulate. Then Kennedy was assasinated and I truly believe that people
all over the world did hoard the 64 issues because of Kennedy (1964
halves brought a substantial premium overseas in the first year or so
after they came out.) The franklin halves continued to circulate for a
while but then the rising price of silver resulted in hoarding of all
halves 64 and earlier, as it became known that the half was the only
coin that still had silver in it, Gresham's law took over and the 40%
issues disappeared. By the time the copper nickel issues came out the
half had not really circulated for almost 6 years. During that time
vending machines became much more prevelent, but since the half was not
circulating, the machines were not adapted for them. After only four
years yet another popular hoarding coin came out, the Bicentennial
half. By the time the 1977's came out halves had not activley
circulated for 13 years and nothing was set up to accept them. People
are creatures of habit and once they get into a habit they are loathe to
change. So today the half doesn't circulate because it hasn't
circulated, and since it doesn't show up that often, it tends to be
saved as something special when it does. This creates one more hurdle
for it to overcome.
Michael Schmidt
--
EAC #1947 CM #500 CTCC #101
Publisher of The Score
Paul Anderson
> We give out halves regularly as change, and you are quite right about the
> illusion of extra value.
> We use about two bags ($500) a month and the local banks DON'T get them back
> in that volume. Same with $2 bills. We give out $200 a day of them and still
> have to special order them from the fed because they are not being
> recirculated.
You circulate halves and twos from a store? Where are you? Boy, we need
more stores like yours. Since the average person loves these
denominations and many think they're valuable, it seems to me a store
could get some more business if they're known for giving out these coins
and bills in change.
Paul
Infoservks
>... kinda odd since they are readily available at most banks.
I think this has changed recently. Most banks don't have rolls of halves. I
typically visit five or six to find them. Yesterday, I deposited a roll of
halves at a major bank in downtown DC which I use regularly. The teller was
quite pleased to get them -- they're usually unhappy since no one asks for
them. She explained that recently, they've had a lot of requests for halves
and SBA rolls. Maybe rcc is having an effect!
Ken