As we continue to be told as consumers that we’re moving more toward a cashless society, the fact that we have one denomination of cash that can’t buy anything is – well, frankly, amusing.
The fate of the lowly penny has hung in the balance before, as people debate whether it’s worth keeping or just a nuisance. Now, a Senate committee is going to discuss the pros and cons of eliminating it.
The national finance committee will hear from the Bank of Canada, the Royal Canadian Mint and the Department of Finance on the issue.
Canadians might remember that a private member’s bill was introduced in the House of Commons back in 2008 proposing to abolish it. That’s still on the table.
Let’s not get in a rush after all. We Canadians are a conservative lot. Never do by halves what you can do by quarters.
Some of our readers will remember being able to buy things, candy treats, for example, for a penny. You could get a couple of jaw-breakers for one cent well within living memory.
But those days are no more. As the mint has introduced dollar and two-dollar coins in more recent years, getting rid of the small, useless change seems not a bad idea. Pennies have little more than sentimental value.
In fact, a report a couple of years ago revealed, with the high price of copper, that it cost more to mint the penny than it was worth.
Retailers have long argued that getting rid of the one-cent piece would make business more efficient.
Some consumers, on the other hand, express the fear that prices would be rounded up to the next highest multiple of five.
That would mean an item might cost an extra couple of cents. It’s hard to see how that’s a concern, since prices will vary by that much or more from store to store.
If there’s a saving to the mint here and to businesses, let’s hope legislators don’t rule on the side of sentimentality. The penny has no practical use.
