Mint Allows Any Retailer To Distribute Sacagawea Coins

Sour grapes come in all flavors, especially when they come from the banking community to the U.S. Mint.

Maybe it's professional jealousy and maybe it's just outright stupidity, but the bankers have been complaining to the Mint because the Mint did just as they asked, by rearranging Sacagawea production schedules to keep them happy.

The American Bankers Association recently sent a nasty letter to U.S. Mint Director Philip Diehl, since Diehl allowed Wal-Mart discount department stores and General Mills cereal company to launch the Sacagawea dollar, rather than going through the traditional Federal Reserve bank pipeline first. The results, of course, were that more Sacagawea dollar coins will undoubtedly be in circulation shortly than the Susan B. Anthony dollar could muster through the Federal Reserve system in more than 20 years, but that hasn't stopped the bankers from complaining.

All the commotion did was encourage Diehl to write a letter on Feb. 2 to Rep. Ike Skelton (D-Mo.), in which Diehl outlined the fact that other retailers could join in the distribution if they want to. Skelton was concerned with the distribution as applied to the new coin. If Diehl's letter to Skelton doesn't open the floodgates for the future, nothing will. This could really leave the bankers holding the empty coin bags.

According to Diehl's letter to Skelton, "Wal-Mart Stores Inc. does not have an exclusive right to distribute the Golden (Sacagawea) Dollar in the commercial sector. Every retailer and commercial establishment has the right to carry the Golden Dollar."

Diehl also points out in the letter that the Federal Reserve banking system had asked the Mint to delay the release of the Sacagawea dollar coin until March 1, "in deference to concerns related to potential post-Y2K currency flows."

Elsewhere in the letter Diehl says, "The agreement also has awakened many other retailers and financial institutions to the convenience and public demand for the Golden Dollar, leading to a far stronger reception for the coin than would have occurred otherwise."

Since most retailers get their coins through banks, who in turn get the coins from one of the 12 Federal Reserve banks, you can see why those retailers interested in making a deal with Diehl got first dibs on the coins.

The banks did change their minds in December and asked the Mint for quicker service. This is something like trying to stop a 60 miles per hour freight train within a single city block because you decided to do so on short notice. The Mint managed to accomodate the banks anyway without derailing this freight train and the dollar coins are in the banking pipeline sooner than originally anticipated.

Although the golden color, manganese-nickel composition Sacagawea dollar coin could be a success because of the uniqueness of its color and metal composition, marketing is a big key in modern U.S. commerce regarding the success or failure of virtually any product.

Look at the failure of most modern commemorative coins to reach projected sales figures. These coins were marketed to the same old tired traditional collector markets in the same old tired traditional ways. None of them were exciting enough to grab the attention of the general press. None of them was offered as a cereal premium or at face value in change if you went to the proper store.

Diehl's open letter just about invites other retailers to look into the marketing potential of issuing new coins to the public in the future. This could get interesting.