Philadelphia Mints Final Penny Today

The American penny will see its final minting today, marking the end of an era for the storied coin. After 238 years in circulation, the last penny will be produced this afternoon at the U.S. Mint in Philadelphia. Key figures overseeing the event include Treasury Secretary Scott Bessent and Treasurer Brandon Beach.

Reasons for Penny’s Discontinuation

President Donald Trump announced in February that the U.S. Mint would halt penny production, primarily due to its soaring minting costs. It costs nearly four cents to produce a penny, which far exceeds its one-cent value. Once, the penny was valuable enough to purchase items like gumballs or feed parking meters. Today, it is mostly found stored in jars or left in “leave a penny, take a penny” trays.

Impact and Reactions

• The penny outlasted the half-penny by 168 years.
• It remains in circulation alongside nickels, dimes, quarters, and the less common half-dollar and dollar coins.
• Despite its cessation, the penny will continue to be legal tender.

As retailers brace for the transition, many expect complications. Some businesses aim to round prices to the nearest nickel, which could lead to increased costs for consumers. Others are urging patrons to pay with pennies to alleviate the supply shortage.

However, rounding can be problematic, particularly since several states—such as Delaware, Connecticut, Michigan, and Oregon—mandate exact change. This regulation poses unique challenges for retailers, especially those participating in federal programs like SNAP, which requires precise charges for customers using assistance benefits.

Potential Economic Consequences

Mark Weller, the director of Americans for Common Cents, notes that eliminating the penny could lead to unforeseen complications for retailers. He highlights that similar transitions in other countries, like Canada and Australia, were accompanied by clearer guidelines for businesses. Currently, in the U.S., retailers are navigating a lack of support and clarity.

• Kwik Trip, a Midwest convenience store chain, has opted to round down cash transactions to avoid charging customers extra due to the penny shortage.
• This policy may cost the company millions in lost revenue annually.

A recent study by the Federal Reserve Bank of Richmond estimated that rounding could cost consumers approximately $6 million a year. This translates to a small loss of around five cents per household across 133 million American households.

A Look Back at the Penny’s History

The penny has a storied history, first minted in 1787, six years before the establishment of the U.S. Mint. Benjamin Franklin is credited with designing the initial penny, known as the Fugio cent. The coin’s modern design debuted in 1909, coinciding with Abraham Lincoln’s centennial, making it the first U.S. coin to depict a sitting president.

While the Treasury estimates that 114 billion pennies remain in circulation, they are seldom used in daily transactions. As sentiments around the penny’s discontinuation surface, few seem to mourn its passing. Joe Ditler, a 74-year-old historian from Colorado, recalls fond memories associated with the penny but admits its use has declined significantly over the years.

Ultimately, as the final penny is minted today, reflections on its legacy and the challenges ahead for retailers and consumers mark the beginning of a new chapter in American currency.