The United States is minting its last pennies. U.S. Treasury Secretary Brandon Beach presided over the minting ceremony of the final batch of pennies on Wednesday at the Philadelphia Mint, after President Donald Trump ordered an end to coin production earlier this year.
“As we bid farewell today to the continued production of our copper coins, I want to make absolutely clear that the penny remains legal tender. We have more than 300 billion coins still in circulation and we encourage the public to continue using them,” Beach said in a prepared speech at the Mint.
“We are not throwing away a penny,” he stressed. “We have just stopped its production, but it will still be valid as currency, and you can still use it in stores and commercial establishments.”
Some retailers expressed concern that the demonetisation would create confusion in stores, as some establishments began rounding up or down the value of cash purchases, given the apparent scarcity of the coin.
“There are thousands of retail outlets across the country already unable to obtain pennies, leaving merchants to deal with the complexities that arise with coin scarcity,” said Austin Jensen of the Retail Industry Leaders Association.
“Retailers need government guidance and legislative action in Congress,” he added in a statement.
The retail industry wants Congress to authorize price rounding up or down, overcoming state and local laws and Food Assistance Program rules that currently prohibit the practice.
Beach explained that the cost of producing the coin has increased in recent years while demand has declined sharply, and that by ending minting, the Treasury Department would save $56 million annually in manufacturing costs.
He also highlighted the historical significance of the decision, noting that the last time the United States stopped issuing the coin was in 1857, 168 years ago, when the country removed the half-cent coin from circulation.
“It’s symbolic that the penny bears the face of Abraham Lincoln,” said Derek Thorer, who serves as Deputy Secretary of the Treasury. “As an employee, Lincoln was meticulous in every transaction, which is something that inspires people like me who study and practice accounting.”
Beach reported that the last batch of pennies intended for circulation were minted in June. The coins minted Wednesday will be auctioned off, with proceeds going to the U.S. Mint’s General Operations Fund and transferred to the Treasury Department’s General Fund at the end of the year, according to Christy McNally, acting director of the Mint.
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