We may have a steel penny soon
Our beleaguered one-cent piece is finally getting some attention in Congress, the Chicago Tribune reports. A House subcommittee held a hearing Tuesday on the Coin Modernization and Taxpayer Savings Act, which would let the Treasury secretary change the composition of any coin that costs more to make than it’s worth. When I wrote about the issue last year, the Mint was spending 1.6 cents to make each penny. Now it’s up to 1.7 cents. If this bill becomes law, the Tribune reports,
you could be plucking steel pennies off the street before year’s end.
Of course, rising steel prices (and the Mint’s rising labor costs) could make that no more than a short-term fix. Here’s a better idea: Let’s get rid of the penny altogether. The Mint is planning four special designs for 2009, the 100th anniversary of the first Lincoln cent and the bicentennial of Abraham Lincoln’s birth. It’s the perfect time to give ol’ Abe a respecful retirement.
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
I’d hate to see Abe go, especially since I think his disappearance might cause a one-time boost in prices as merchants round-up all sales. Of course, the effect on inflation would be very small.
I think we’ve seen a steel penny before. During World War II, a copper shortage caused the mint to switch to steel for a year. If memory serves, it was 1943.
The steel pennies held up very well over time, although they turned a bit blueish.
By the way, I really enjoy your blog.