Loonies and Toonies - Canadian Dollar Coins
Tuesday July 22, 2008
I have just returned from a wonderful 10-day trip to Nova Scotia and the Canadian outback, and as a dedicated numismatist, I couldn't help but observe the way that the Canadian populace dealt with their money, particularly their coins. Canada has pretty much the same denominations that the U.S. has: Cents (that don't buy much, and which nobody picks up off the ground just like in the U.S.,) Nickels, Dimes, Quarters, Dollars (called "Loonies" because the standard design depicts the bird called a Loon,) and Two-Dollar bi-metallic coins (called "Toonies," apparently named in honor of the One Dollar coin of which Canadians are very fond.) The various Canadian coins are all the same sizes as their U.S. counterparts although they are made of very different metals.
The Canadian Penny has been made from copper-plated steel since 2000. The circulating Canadian Nickel, Dime, and Quarter are all currently made from nickel-plated steel, although the Dime was made of pure nickel from 1968 to 2000. Like the U.S., Canada has a Half Dollar denomination that very rarely circulates, and which is only struck for Mint sets currently. The Canadian Dollar coin is very nearly the same size and color as its U.S. counterpart, but again made from very different metals. The One Dollar "Loonie" is 11-sided and made from an alloy the Royal Canadian Mint calls "aureate" (bronze-plated nickel.) As noted before, the Two Dollar "Toonie" is bi-metallic, having an outer ring of pure nickel, with a center made of a primarily copper alloy.
The Loonies and Toonies circulate in Canada as if things had always been this way. If I spent 89 cents and handed over a $5 note, I was as likely to get 2 Toonies, as I was 1 Toonie and 2 Loonies in my change, although I never got 4 Loonies. I noticed that most Canadian cash drawers don't have enough slots for all the coins (one of the big complaints we hear from U.S. Dollar coin skeptics is, "where will cashiers store the coins since there's no room in the cash drawers?") Canadian cashiers merely toss the Loonies and Toonies together in the same compartment, as they are easy to distinguish from each other, being of different sizes and colors. If Canada ever does away with its Penny, an issue that is as thorny for Canadians as it is for Americans, I suppose cashiers would use the empty coin spot to separate the $1 and $2 coins.
So, how did the Canadians succeed in getting these Dollar coins to circulate? Simple, they merely stopped producing the $1 banknote and it was a done deal. There was very little controversy or complaining; the government simply took action and people adjusted as needs must. Why Americans can't seem to take a similar step is a curious statement about our society. Even as we continue to hem and haw, the Canadians I asked said they'd be happy to see a $5 coin, too. Once they started using the higher-value coins, the Canadians I spoke to immediately saw the benefits and actually consider the paper $5 to be a nuisance now!
Another interesting observation during my Canadian trip was how U.S. currency circulates side by side with Canadian specie in many places, especially in transit centers and border cities. The Canadian and U.S. Dollars are about equal in value these days, and most Canadian merchants were taking U.S. Dollars at par value to Canadian Dollars for smaller purchases, although for a larger purchase I made, the merchant checked the Web for the latest exchange rate and did an exact calculation (but didn't charge any percentage for the transaction.) When purchases were made with U.S. Dollars, Canadian change was always given, with the Dollar notes being stashed under the change drawer. The merchants I asked said they didn't usually take U.S. pocket change unless it was all someone had, and they didn't mix it with their Canadian coinage. Since Canadian Dollars are worth more than U.S. Dollars these days, I was a little surprised not to see merchants trying to dump U.S. currency off on people who spent U.S. currency. (As of this writing, the Canadian Dollar is worth about 99 U.S. Cents.)
My single, most enduring impression of executing commerce in Canadian money was the ease with which the Loonies and Toonies changed hands. Indeed, it was a hassle to dig out my wallet to extract a $5 bill when it turned out that I didn't have a couple of Toonies in my pocket!
Have you visited Canada recently, or are you a Canadian who has visited the U.S.? Are the Loonies and Toonies easier or harder to use than paper money? Share your experiences with the different forms of Dollar currency in the Comments below.
The Canadian Penny has been made from copper-plated steel since 2000. The circulating Canadian Nickel, Dime, and Quarter are all currently made from nickel-plated steel, although the Dime was made of pure nickel from 1968 to 2000. Like the U.S., Canada has a Half Dollar denomination that very rarely circulates, and which is only struck for Mint sets currently. The Canadian Dollar coin is very nearly the same size and color as its U.S. counterpart, but again made from very different metals. The One Dollar "Loonie" is 11-sided and made from an alloy the Royal Canadian Mint calls "aureate" (bronze-plated nickel.) As noted before, the Two Dollar "Toonie" is bi-metallic, having an outer ring of pure nickel, with a center made of a primarily copper alloy.
The Loonies and Toonies circulate in Canada as if things had always been this way. If I spent 89 cents and handed over a $5 note, I was as likely to get 2 Toonies, as I was 1 Toonie and 2 Loonies in my change, although I never got 4 Loonies. I noticed that most Canadian cash drawers don't have enough slots for all the coins (one of the big complaints we hear from U.S. Dollar coin skeptics is, "where will cashiers store the coins since there's no room in the cash drawers?") Canadian cashiers merely toss the Loonies and Toonies together in the same compartment, as they are easy to distinguish from each other, being of different sizes and colors. If Canada ever does away with its Penny, an issue that is as thorny for Canadians as it is for Americans, I suppose cashiers would use the empty coin spot to separate the $1 and $2 coins.
So, how did the Canadians succeed in getting these Dollar coins to circulate? Simple, they merely stopped producing the $1 banknote and it was a done deal. There was very little controversy or complaining; the government simply took action and people adjusted as needs must. Why Americans can't seem to take a similar step is a curious statement about our society. Even as we continue to hem and haw, the Canadians I asked said they'd be happy to see a $5 coin, too. Once they started using the higher-value coins, the Canadians I spoke to immediately saw the benefits and actually consider the paper $5 to be a nuisance now!
Another interesting observation during my Canadian trip was how U.S. currency circulates side by side with Canadian specie in many places, especially in transit centers and border cities. The Canadian and U.S. Dollars are about equal in value these days, and most Canadian merchants were taking U.S. Dollars at par value to Canadian Dollars for smaller purchases, although for a larger purchase I made, the merchant checked the Web for the latest exchange rate and did an exact calculation (but didn't charge any percentage for the transaction.) When purchases were made with U.S. Dollars, Canadian change was always given, with the Dollar notes being stashed under the change drawer. The merchants I asked said they didn't usually take U.S. pocket change unless it was all someone had, and they didn't mix it with their Canadian coinage. Since Canadian Dollars are worth more than U.S. Dollars these days, I was a little surprised not to see merchants trying to dump U.S. currency off on people who spent U.S. currency. (As of this writing, the Canadian Dollar is worth about 99 U.S. Cents.)
My single, most enduring impression of executing commerce in Canadian money was the ease with which the Loonies and Toonies changed hands. Indeed, it was a hassle to dig out my wallet to extract a $5 bill when it turned out that I didn't have a couple of Toonies in my pocket!
Have you visited Canada recently, or are you a Canadian who has visited the U.S.? Are the Loonies and Toonies easier or harder to use than paper money? Share your experiences with the different forms of Dollar currency in the Comments below.
Comments
I don’t have any experience with the Loonie or Toonie, but I used to use ¥100 and ¥500 coins (about $1 and $5) in Japan. They were especially handy in vending machines, which rarely ever needed a bill acceptor. Maybe that’s why they have so many vending machines over there.
In the European Union, they have 1E and 2E coins. Germany used to have 1 mark, 2 mark, and 5 mark coins, before they switched to the Euro. I think that the coins are heavier to carry around in my wallet, and I find it a little strange as an American to have “real” money — several dollars worth — on hand when I don’t have any bills. In general, I don’t see a big advantage or disadvantage one way or another — unless it’s putting money into an automated machine, which is much easier with coins.
I believe the US is the only “first world” nation that still uses paper for its unit currency. There may be two others that do, but they are considered “third world” nations. The US is the only one of the G8 in that regard.
The only place I’ve seen dollar coins circulate with regularity is on the Boston subway system, where the fare was $2.00 and required exact change. Machines at the stations dispensed coins for bills, and 2 dollar coins sure was easier than 8 quarters.
When the loonie came in there was an expression on the go, “we used to have currency in Canada now we have loonacy” Of course people got used to the coins, what choice did they have? Forced down our throats by a make-believe democratic government. Coins can get pretty heavy in a pocket and they do pile up. In the US its no problem using one’s from a wallet.
PS – I still pick up pennies. 100 made a dollar last I checked.
The last time I was in Canada I brought back several Loonies and Toonies. I now teach the Coin Collecting Merti Badge for my son’s Boy Scout Troop and we spend some time talking about the cost of $1 bills. I like the Loonie and Toonie. I use a Toonie as my ball marker in golf.
I don’t think $1 coins will ever take off in the US unless they just stop making dollar bills….
I agree with Connie G.
COINS CARRY ALOT LESS GERMS THEN PAPER LOOK AT THE AVERAGE 5 DOOLAR BILL COMPARED TO THE 2 OR 1 DOLLAR COIN WHICH ONE LOOKS CLEANER
There’s this pretty amazing coin-holder that Canadians have been using for all their coins called Portsou™. It holds about 8 Presidential coins plus .25ct / .05 / .10 and pennies.
Check it out http://www.portsou.com
I have a Portsou for my presibux.
I have to say that we Americans are about as stubborn as they come. I am not just talking about dollar coins and pennies, I am talking about the Metric system and many other beneficial things that we are afraid of. For those who think that the dollar coin is a nuisance, try spending you change instead of letting it rip a hole in your pocket, and try spending the two dollar bill. They aren’t rare and are being made in ever increasing quantity with more people being interested. Thats why the loonie succeded was because of the two and the ending of the ace. I would really like to see the penny ended, prices rounded down on everything, and a new set of coins in a cheaper metal denominated as 5(optional), 10, 20, and 50 cent that are more easily handled. I also would like to see the hundred and fifty be used more widely in circulation, a dollar in 1950 is worth ten now and the twenty if anything was more common then.
I recently visited Prince Edward Island, and I must say that I didn’t have much trouble at all using CAD, after a day or two slapping a toonie down for a purchase felt pretty natural. I think the biggest monetary shock was finding out that generic ATM’s often would not take my US bankcard, making me schlep all the way to ScotiaBank to get pictures of the Queen.
I am Canadian. I would prefer to have the dollar bill back.
Problem with the loonies and toonies, the weight of them in your change purse, which still hasn’t changed to accommodate the new coin. A positive side, throw them into a piggy bank and the dollar amount accumulates very quickly, unlike small change.
It’s interesting what Cody said. The coin denominations he mentioned were exactly those of the euro. I whole-heartedly agree with everything he said except for a 20 cent coin. That seems silly. 25+25=50. I know 10 does not equal 25, but…..
I also think the 1 and 2 euro coins look alot like the toonie. Did they take the idea from us, or are bi-metallic coins more common?
PS I’m Canadian. We do pick up Pennies!!!!
I have a unique perspective as I am an American who has recently moved to Canada.
I hate the one and two dollar coins. I, like any man, have a small billfold in which I keep my money, license and credit cards. I never was good with change, I would always throw it into an empty coffee can and then take it to the bank when it was full. I find that I will come home with $20 or so in coin in my pocket. I go to fish out my house keys and, guess what?? Yup, the change goes everywhere. On the rare instance that I remember that I have them, like at a coffee shop, I end up having to take everything out of my pocket with impatient customers in line, just to get them out. They might be nice for a change purse but not in tight pocket of fitted jeans.
The real reason why America’s dollar coin has not succeeded is simply because all US coins are minted in the states and belong to the people. The dollar bill or Federal reserve note is printed at the treasury, but only with the approval of the central bank( federal reserve bank is not a federal institution and cannot mint coins under the Constitution) they also charge a 7% tax on all dollars printed, Coins cannot be taxed because they are out of the Feds hands. thats why the word Liberty appears on all coins and never on the paper currency
I need to know why the canadian nickel had 11 sides?