II 112th CONGRESS 1st Session S. 1624 IN THE SENATE OF THE UNITED STATES September 23, 2011 Mr. Brown of Massachusetts (for himself and Mr. Kerry) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To provide for the economical production of various United States coins.

1.

Short title

This Act may be cited as the Currency Efficiency Act of 2011.

2.

Findings

Congress finds that— (1)the United States simultaneously produces several versions of the $1 coins, in addition to the $1 banknote; (2)such duplication does not render a benefit to the Nation; (3)75 percent of Presidential $1 coin payments are deposits to banks; (4)banks have redeposited more than 40 percent of issued Presidential $1 coins to the Federal Reserve banks; (5)the Federal Reserve banks now store over $1,000,000,000 in excess $1 coins; (6)the Board of Governors of the Federal Reserve System does not believe that demand for $1 coins will improve; (7)several original supporters of the Presidential $1 coin program now express concerns about its results; (8)the American people have demonstrated by their actions a preference for paper currency over coinage in the $1 denomination; (9)the United States faces a fiscal crisis, where expending funds to produce, store, and guard unwanted currency is indefensible; (10)it is appropriate to provide for the reform and economical continuance of the production of $1 coins by the Federal Government.

3.

Suspension of $1 presidential coin program during surplus

Section 5112(n)(8) of title 31, United States Code, is amended by adding on the end the following: The Secretary shall suspend issuance of coins under this subsection during any period for which the Secretary determines that the surplus supply of $1 coins exceeds the reasonable circulation needs for one year..

4.

Restriction on overproduction of $1 coins

Section 5112 of title 31, United States Code, is amended by adding at the end the following new subsection: (w)

Restriction on overproduction of $1 coins

Notwithstanding any other provision of this section, no $1 coin may be minted or issued under this section during any period in which the number of $1 coins issued, but not in circulation, is more than 10 percent of the number of $1 coins in circulation. .

5.

Presidential spouse coins not affected

Section 5112(o)(5)(C) of title 31, United States Code, is amended by adding at the end the following: The suspension or termination of the presidential coin program under subsection (n)(8) shall not affect the minting or issuance of coins under this subsection in chronological order according to the service of each such President..

6.

Removal of unmixed supplies requirement

Section 5112(p)(3)(D) of title 31, United States Code, is amended by striking ensuring that and all that follows through (ii) circulating coins and inserting the following: ensuring that circulating coins.

7.

Resolution of coin surpluses at Federal reserve banks

The Board of Governors of the Federal Reserve System shall determine an inventory level of $1 coins required among their member banks to meet reasonable circulation needs. The Board shall, after such determination, adjust its inventories of $1 coins to that level through methods which minimize the need for further storage expenditures. Surpluses of $1 coins which can be most efficiently eliminated through destruction shall be deemed to consist of obsolete and worn coins withdrawn from circulation under section 5120(a) of title 31, United States Code.