By Associated Press

4/4/08 - Rep. Denis Guyer wants to get rid of some of the coins in the MBTA’s subway system, and he admits its not just pocket change he’s worried about. The Dalton Democrat also lives in the same town as Crane & Co., the exclusive supplier of paper stock used to make dollar bills and other U.S. currency, and he’d like to preserve some jobs.

Guyer has filed legislation that would require the T to return paper money whenever a rider would get back $5 or more in change.

The lawmaker said the dollar coins fill up a pocket needlessly and coins made from mined elements are more environmentally damaging than paper currency made of cotton and recycled materials. Crane & Co. also employs 1,000 people in his central Massachusetts district.

"I’m not going to apologize for fighting for jobs in my district. I think that’s one of the reasons people elect me to office. At the same time, the dollar coin has been wildly unpopular and the federal government and their friends in the mining industry keep fighting for the coin," Guyer said.

MBTA General Manager Daniel Grabauskas called the bill a "solution in search of a problem."

He said 55 percent of all T transactions are by credit or debit card, and most of the rest are for passes or multiple-ride tickets. He also noted that the 2005 Presidential Coin Act required transit agencies to use coins to make change.

"I just have to be honest and tell you that we were the smart ones. Other transit properties in the country are retrofitting their machines to dispense dollar coins as required by the presidential act. We were able to build it into our purchase of the machines because it had passed by then," Grabauskas said.

An industry trade group has also said using dollar coins is more cost-effective than returning dollar bills.

In 2004 testimony before Congress, the American Public Transportation Association said one transit system estimated it spent $10.11 to process $1,000 worth of one dollar bills, versus $1.22 to process the same amount of dollar coins.

"The difference is that handling paper currency is much more labor intensive," said the testimony from the industry trade group. "Coin processing is more efficient due to the use of technology and the availability of counting machines. In addition, the processing of coins by fareboxes and vending machines is faster than bill processing. Since the Federal Reserve requires that paper currency be "faced" when stacked, meaning that all dollar bills must be stacked with the portrait of George Washington facing the same direction, transit agencies must stack and face all bills by hand."

Guyer said he has heard complaints from riders who encounter scenarios such as getting 18 one-dollar coins back when they use a $20 bill to pay for a subway ride. The MBTA’s cash fare is $1.75.

He said a combination of federal policy and industry lobbying has supported dollar coin usage.

"Every scheme the Mint has come forward with to spare the coin has failed. The American public loves the dollar bill, they want to keep the dollar bill," Guyer said.

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