Whatever Happened to Penny Candy: Money: Coins and Paper

Whatever Happened to Penny Candy? by Richard J. Maybury

Money: Coins and Paper

Coin Banknotes Money

There is so much talk about money and inflation and recession in the world lately.  These important topics affect our daily lives yet it seems that few people actually know how they work, including myself.  So with a vague idea that inflation isn’t directly driven by what we’re being told in the news, I decided to learn more.  What Ever Happened To Penny Candy by Richard J. Maybury is a simple yet highly educational book on economics that will assist you in your career, business, investments and money strategy.  It will also give you tools so you don’t have to blindly rely on what others tell you.  Forewarned is forearmed.   I’ll be posting chapter by chapter and the first is: Money: Coins and Paper.

Place a penny, nickel, dime, quarter, half-dollar, and dollar bill (US) in front of you.  The penny and nickel, you wlll see, have no grooves, whereas the others do.  These grooves play a part in inflation and recession and we’ll later learn why.

If you look at the “reeded” coins, you’ll notice that there is a layer of copper sandwiched between a metal made of zinc and nickel.  These are called clad coins because these metals are “clad” together.  Before 1965, these coins were not clad and made entirely of fine silver, or silver that’s 90 percent pure.  The other 10% was a non-precious metal base which made the coin hard.  All the dimes, quarters and half-dollars you have now are all pre-1965 which is a result of inflation and recession.  In fact, the coins you have now are not really coins.  A coin was a disk of precious metal but because our “coins” no longer contain any, they are really tokens.

When you look at the dollar bill, you’ll notice that above Washington’s picture, it says: “Federal Reserve Note“.  Years ago, this said: “Silver Certificate“.  To the left of Washington it says: “This note is legal tender for all debts public and private.”  Remember the words “legal tender” because he will return to them later.

Silver Certificate Dollar Bill

So everything we’ve discussed here is directly related to inflation and recession.  He’ll first examine inflation and then move to recession, covering many different subjects and tying them together at the end.

                                                           Chapter 2: Tansaafl, the Romans, and Us ⇒


2 thoughts on “Whatever Happened to Penny Candy: Money: Coins and Paper

  1. I am interested in the coins with grooves. Some time ago I visited a doctor for migraines and he made me shut my eyes and add up a handful of coins he handed me. I am not sure what it was meant to prove (he was very mysterious) but I guess some people can’t assess the different sizes and contours.

    I work on a children’s savings account program that helps families plan for their children’s future and we sometimes donate math-type picture books to the classrooms. This sounds like something I should investigate.


    • Welcome, Constance!

      I had no idea that some people can’t assess the sizes and contours. That’s so interesting. I just tried it and I can.

      This book is amazing to teach children about economics. It’s written in letter form to a child so it’s very engaging and the explanations are simple and excellent. He also has other books. Here’s a link I found if you want to check them out: https://www.bluestockingpress.com/uncle-eric-books.htm I’d like to read Whatever Happened to Justice? next.

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