For decades, there has been a consensus across political lines that the penny has become obsolete. Despite numerous attempts by lawmakers from both major parties to phase it out, these efforts have faltered due to a lack of urgency and interest. In February, President Donald Trump instructed the U.S. Treasury to halt the production of coins whose costs exceed their face value. Once the current stock of raw materials is depleted, manufacturing will cease. Although the direct savings for taxpayers are minimal, economists estimate that the broader economic benefits could reach up to $1 billion annually through streamlined transactions and resource optimization.
A Legacy That Stretches Back to the Founding Era
In 1792, Congress enacted the Coinage Act, establishing the U.S. Mint in Philadelphia and introducing the nation's first circulating coin—a large copper piece known as the cent. Over time, rising material costs necessitated changes in size and composition, leading to today’s zinc-based penny with a thin copper coating. Early designs featured Lady Liberty, flying eagles, and Indian heads, reflecting Americans' aversion to royal imagery. It wasn’t until 1909 that Abraham Lincoln’s profile appeared on the coin, commemorating his centennial birth year.
Penny production involves intricate processes starting with pure zinc sheets being flattened, plated with copper, and stamped into blanks. These undergo further treatment before reaching mint facilities in Philadelphia and Denver. Interestingly, all new pennies originate in Greeneville, Tennessee, where Artazn produces billions of planchets annually.
As the penny fades from circulation, banks offer various services to exchange old coins, though fees may apply unless opting for gift cards. Collectors might find value in certain rare editions, while most pennies will eventually return to the mint for recycling.
From a journalistic perspective, the phasing out of the penny symbolizes an inevitable evolution in how we conduct commerce. As digital payment methods dominate, physical currency faces increasing obsolescence. This transition underscores the importance of adapting traditions to modern needs without losing sight of historical significance. While the penny may no longer serve its original purpose, its legacy remains etched in America’s financial history.