|[April 17, 2012]
Cummins Allison Urges Government and Industry Coordination on Coin Production Issues
MT. PROSPECT, Ill. --(Business Wire)--
Allison, the leading innovator and provider of coin,
and check handling solutions, testified at a hearing today before
the U.S. House of Representatives' Committee on Financial Services
Subcommittee on Domestic Monetary Policy and Technology. The hearing was
called to identify and address issues associated with potential
cost-saving efficiencies related to the design, production,
manufacturing and circulation of American coins.
Cummins Allison Executive Vice President of Engineering, John Blake, testifies before the U.S. House of Representatives' Committee on Financial Services Subcommittee on Domestic Monetary Policy and Technology (Photo: Business Wire)
Appearing today in behalf of Cummins Allison was John Blake, executive
vice president of engineering. According to Mr. Blake, "Cummins Allison
was honored to offer its recommendations to Congress on this timely
topic. We support Congressional efforts to identify innovative ways to
reduce coin production costs. As an intellectual property-driven
engineering and manufacturing
company that has worked closely with the financial industry for more
than 125 years, we are uniquely positioned to understand the challenges
related to cost reduction efforts and the importance of simultaneously
maintaining coin quality."
Mr. Blake made several key points during his testimony:
Global Currency Changes - The U.S. is not alone in evaluating
currency changes. Other countries have made changes to their coins.
For example, last week the Canadian Central Bank announced changes to
the Canadian $1 and $2 coins. The changes were to the material and
appearance only, not size, and the implementation has been relatively
smooth. One significant reason for this seamless transition is the
Canadian Mint consulted very closely with industry and other
stakeholders to ensure their decisions were as compatible as possible.
Congress And The Treasury Department Should Proceed Cautiously -
To alter the size, design or content of a coin without comprehensive
consultation and coordination with our industry and others could be
disastrous for the American economy. In fact, a poorly conceived or
implemented change could impact the worldwide integrity and value of
American currency; disrupt public confidence and commerce; and cost
the American government many, many times more than what might be saved
as a result of the initial cost saving alteration.
Counterfeiting Issues Need Consideration - Coins manufactured
from more common metals are easier to counterfeit. The integrity of
the American monetary system is critical and any new coin, regardless
of value, must have an appropriate level of counterfeit deterrent
technology. The penny, like the larger denomination coins, should be
as free as possible from the threat of counterfeiting.
Retrofitting Can Be Costly - Machinery manufactured by Cummins
Allison and others can accommodate and process coins of like value
that contain varied metallurgical properties. It is much more
difficult and expensive, however, to alter or retrofit machinery to
accommodate new or changed coins with a different diameter or
thickness. Changes to diameter or thickness may require significant,
expensive changes to current equipment, or the outright replacement of
equipment. If coin design or content changes are orchestrated
hurriedly or without regard for current equipment and the many
stakeholders, the currently reliable U.S. coin circulation
infrastructure could be adversely impacted or fail altogether.
Doug Mennie, president of Cummins Allison added, "We strongly encourage
the development of a government and industry task force to carefully
review options and alternatives from conception through circulation.
This will help assure that all technical, scientific, commercial and
public issues are thoroughly addressed early on and at every stage of
the process. When introducing a new or altered coin, the transition must
be nearly seamless for the coin circulation system and the public. All
stakeholders such as the banking, vending, armored carriers and retail
industries, as well as currency processors, government agencies and
others must collectively work to fully raise and address issues that are
vital to each and every component of the coin circulation system."
About Cummins Allison
Cummins Allison is a global leader in developing technologies which
count, sort and authenticate currency. The U.S.-based company has a
125-year heritage of leadership in technology and product innovation and
currently serves the majority of financial institutions worldwide, as
well as leading organizations in retail, casinos, law enforcement and
government. The company holds more than 350 U.S. patents and has ongoing
research and development (R&D) investments double the industry average.
Cummins Allison is headquartered near Chicago, IL with R&D centers near
San Diego, CA (News - Alert) and Philadelphia, PA and wholly owned subsidiaries in
Canada, the United Kingdom, Ireland, Germany and France. The company
also has an extensive sales and service network with more than 50
offices in North America and is represented in over 70 countries. For
more information, visit cumminsallison.com.
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