Congressman Michael Castle, chairman of the House subcommittee on coinage, introduced legislation Oct. 8 that would authorize production of a gold-colored coin for use in circulation. The coin would carry a portrait of the Statue of Liberty, although the exact design would be left to the U.S. Mint.

Production of Anthony dollars was halted in 1981,after just three years, because of widespread public dissatisfaction with the coins. Among other things, people complained that they were confusing the "Susie" with the 25-cent piece because the mini-dollar was only slightly larger and had the same metallic content (copper-nickel clad metal bonded to a core of pure copper) and the same silvery appearance. Castle believes the confusion can be averted by giving the new dollar coin a gold appearance, much like that of Canada's Loon dollar.

The Mint produced nearly 900 million Anthony dollars from 1979 to 1981. Most of them languished in government vaults for years -- but recently, the stockpile has been dwindling because the coins are being accepted in U.S. Postal Service machines and by some metropolitan transit authorities.

The remaining inventory is expected to be gone within a few years -- and at that point, the Mint might be forced to resume production of Anthony dollars unless Congress acts to authorize a new dollar in the meantime.

Castle's legislation would not require the government to stop producing $1 bills. Critics contend that unless that step is taken, a new dollar coin cannot succeed. The Treasury, however, fears a public backlash and officially opposes withdrawal of paper dollars, at least at the present time. Castle has suggested that the question should be studied by a commission, and that the new coin should be authorized in the meantime and put into production so it will be ready when the matter is settled.