Guess what? Dollar bills are made of cotton

CNN Money ^ | Mar 8, 2011 | Parija Kavilanz,

[KeyLargo]

Guess what? Dollar bills are made of cotton

The record run-up in cotton prices is making it more expensive to make T-shirts, socks and -- get this -- even dollar bills.

By Parija Kavilanz, senior writerMarch 8, 2011: 9:26 AM ET

NEW YORK (CNNMoney) -- Sure, packs of T-shirts and socks are getting expensive because of skyrocketing cotton prices. Guess what else is made of cotton? The dollar bill in your wallet.

In 2010, the cost of making one note jumped 50% from what it cost the government in 2008.

The government produced 6.4 billion new currency notes last year. Each one cost 9.6 cents to produce, including the cost of paper and printing.

In 2008, it only cost 6.4 cents a note, a tiny bit more than it did in 2007, according to the U.S. Bureau of Engraving and Printing.

With the price of raw cotton at a 140-year high, things could get worse.

[Wooly]

Paper currency has been made with rag based paper since I can remember so no news here. But this may help you, those pens that stores use to see if your 20 dollar bills are real are not worth anything and may detect a real bill as a fake. You see they are filled with an iodine based liquid and the detection is based upon the ideal that copier paper has starch in it which will turn purple in the presence of iodine. A rag based real dollar bill has no starch on it and will not cause a color change from the pen mark. However the problem here is that a real dollar bill can be contaminated with starch from many sources leading to a false positive.

[null and void]

It’s time once again to trot out my currency and coinage reform proposal.

and once again time for me to challenge you on it.

1-2-5-10, lather, rinse, repeat...

[C210N]

Abandoning coinage could use the bend over test: If the general population finds that coin on the street, would they pick it up?

This knocks out the penny, but retains everything else... [ymmv]

[Vigilanteman]

I do . . . just for fun.

In fact, I order $250 worth of dollar coins every month or two just for such small cash purchases.

About the only reason I write checks anymore is to pay the kid who mows the lawn or move small sums of money between accounts.

[upcountryhorseman]

Mabe they are worth more than the “paper” they are printed on.

[AFreeBird]

Got a 2009 Series $20. Youngest $50 I’ve seen is 2006. But I don’t get to see many of those.

[AFreeBird]

Yea, who knows, with the price of cotton going up, a dollar might actually be worth a dollar.

[bmwcyle]

post #16

[PENANCE]

A penny weighs 2.5 grams. A Nickel(coin) weighs 5 grams.
The Nickel has just recently become more expensive to produce than it is worth. This became true for the penny in 1982. At that time, the content of a penny was changed from 95% copper (5% Zn) to 3% copper and 97% zinc, because of the COST OF COPPER. What I find strange is that prior to 1982, Nickels(coins) were composed of 25% nickel(metal) and 75% copper, and after 1982 (until today) they remained composed of 25% nickel, and 75% copper. Go figure.

[AFreeBird]

At present, I have 22 singles in the money clip. It’s a heck of a lot easier, lighter, and quieter to carry, than 22 dollar coins would be.

At present, I have 3 pennies, two nickels, a dime, and one silver dollar.

The dollar coin isn’t for spending. Just for twirling through the fingers.

[Ancesthntr]

“$1000 gold coin (1 oz)
$500 gold coin (1/2 oz)
$100 gold coin (1/10 oz)
$20 silver coin (1 oz)
$10 silver coin (1/2 oz)
$2 silver coin (1/10 oz)
$1 copper or base metal coin (1/2 oz)
$0.50 copper or base metal coin (1/4 oz)
$0.10 copper or base metal coin (1/10 oz)”

I offer here and now to buy all of the gold and silver that you can mint at those prices you’ve published. FYI, Gold is now about $1,428/oz. and Silver about $35.80 - and they’re both down a little on the day.

[Atlas Sneezed]

Not sure you conveyed your challenge.

[Atlas Sneezed]

I offer here and now to buy all of the gold and silver that you can mint at those prices you’ve published.

---

You mistakenly assume that these would be convertible against current Federal Reserve Notes.

In my system, a Real Dollar(TM) would be defined as 1/1000th ounce of gold. There would be an exchange rate of FRNs against the Real Dollar.

[null and void]

Coins:

You:
$0.10 (slightly smaller than the current dime)
$0.50 (slightly smaller than the current nickel, larger than the penny)
$1.00 (slightly smaller than the current quarter dollar, larger than the nickel)
$5.00 (slightly smaller than the current half-dollar) Or it could be set at $2 to avoid overlap with a $5 note.

Me:
1¢
2¢
5¢
10¢
20¢
50¢
$1
$2
Sizes increasing monotonically with value, alternate values have reeded edges.

Currency Notes:

You:
$5 (optional)
$10
$20 (optional)
$50
$100
$500

Me:
$1
$2
$5
$10
$20
$50
$100
$200
$500
$1000
Sizes increasing monotonically with value, alternate values have 'postage stamped' edges.

You:
Our current 6 coins are replaced with 4.
Our current 7 notes are replaced with 4-6.

Me:
Our current 6 coins are replaced with 8. (Optionally no $1 and $2 coins. It's important to me the revalue the currency to make the 1¢ coin meaningful again)
Our current 7 notes are replaced with 10. (optionally no $1 and $2 notes, $200, $500, $1000 notes presupposes that the WOD no longer needs to criminalize larger value banknotes)

If you want to talk about making coins out of silver or gold, I’m even more enthusiastic:

Gold-silver-copper/base metal?

Consider a universal coin alloy similar to electrum.

In any event, we differ more in style than substance.

[Atlas Sneezed]

At present, I have 22 singles in the money clip. It’s a heck of a lot easier, lighter, and quieter to carry, than 22 dollar coins would be.

At present, I have 3 pennies, two nickels, a dime, and one silver dollar.

---

In my proposed system (not the precious metal one) you’d have maybe a $10 note, 2 $5 coins, 2 $1 coins, 2 dimes.

Or a $20, a $2 coin, and 2 dimes.

[null and void]

You mistakenly assume that these would be convertible against current Federal Reserve Notes.

As did I.

In my system, a Real Dollar(TM) would be defined as 1/1000th ounce of gold. There would be an exchange rate of FRNs against the Real Dollar.

Why not just call them what they are, ounces, (or maybe better, grams?) and float them against the common currency?

[Atlas Sneezed]

It’s important to me the revalue the currency to make the 1¢ coin meaningful again

---

When you put it that way, you are effectively doing what my proposal does (by eliminating the unmeaningful coins, and adding larger value ones).

However, if you 10x the values (to make the penny meaningful) then your large coin is worth $20, which seems excessive. And your top bill would be worth $10,000, which many might find excessive.

I also think it a mistake to have both $1 and $2 coins and bills. When you overlap, you end up with one being disused.

[Atlas Sneezed]

Why not just call them what they are, ounces, (or maybe better, grams?) and float them against the common currency?

---

Because “ounces” doesn’t translate among three metals.

[null and void]

When you put it that way, you are effectively doing what my proposal does (by eliminating the unmeaningful coins, and adding larger value ones).

It isn't exactly the same, it allows the language to keep a penny for your thoughts, my two cent's worth, and plug/wooden nickles.

However, if you 10x the values (to make the penny meaningful) then your large coin is worth $20, which seems excessive. And your top bill would be worth $10,000, which many might find excessive.

I also think it a mistake to have both $1 and $2 coins and bills. When you overlap, you end up with one being disused.

Good points.

[null and void]

Because “ounces” doesn’t translate among three metals.

It doesn't need to if they float against each other as well as against the common currency.

Also if we go to a common 'coin metal' (electrum?) it could be a single intrinsic value.