The production of pennies has been ceased by the U.S. Mint in a bid to cut costs and due to the decreasing relevance of the one-cent coin that could previously purchase small items like snacks or candies. The last pennies were minted at the Philadelphia facility, where the country has been producing its smallest denomination coins since 1793, a year following the passing of the Coinage Act by Congress. U.S. Treasurer Brandon Beach announced that the final pennies would be auctioned off, emphasizing the savings of $56 million for taxpayers.
Although pennies will still remain legal tender, no new ones will be minted, aligning with a similar decision made by Canada 13 years ago when they discontinued penny production. The last coin to be phased out in the U.S. was the half-cent back in 1857, according to Beach.
U.S. President Donald Trump played a significant role in the decision to end penny production as costs escalated to nearly four cents per coin, rendering the one-cent valuation largely outdated. While billions of pennies are currently in circulation, their necessity in modern financial transactions is minimal.
Despite the depreciation in value and usage, many Americans hold a sentimental attachment to pennies, viewing them as lucky charms or enjoyable items to collect. Concerns were raised by retailers as production neared its end, with some taking measures like rounding prices down to avoid issues with change. Banks started rationing penny supplies, highlighting the paradoxical situation of addressing a surplus of coins.
In 1793, a penny could buy everyday items like biscuits, candles, or sweets. Today, these coins often end up stored away in jars or drawers, serving more as collectibles than as practical currency. Collectors and historians value pennies as a significant historical record tracing back over two centuries, preserving cultural and political symbols engraved on the coins.
The decision to discontinue penny production marks a transition in the U.S. currency system, reflecting changing consumer habits and economic realities, while also preserving the historical significance of the coin.