POLITICS

Buddy, can you spare a payroll card?
New law another sign that we are moving toward a coinless economy

It seems like every few years the federal government announces a new version of a coin or an attempt to move consumers from the ubiquitous dollar bill to a dollar coin.

Who can forget the infamous Sacagawea dollar coin that was so close in size and texture to a quarter that people refused to deal with it because they feared losing money on normal, everyday transactions. Now we're dealing with the president series of $1 coins, which is also not having much success.

One can only wonder how many millions of dollars in taxpayer money has been spent over the years creating — and, ultimately, destroying — new coins.

Still, there seems to be this need on the part of the feds to continue to waste money creating new kinds of hard currency and coins.

This waste is particularly disheartening when taken in the context of the move toward electronic cash transferring.

With the use of debit and credit cards, one can envision a time when currency will no longer be necessary. Every transaction will involve the electronic movement of credits and debits to and from banks or lending institutions.

Even here in little old New Hampshire things are moving in that direction.

Last session the Legislature passed — and Gov. John Lynch signed — a bill that allows employers to issue automated payroll cards to their workers.

Instead of being paid in cash or by check, employees would receive a card that would represent their paychecks and allow them to either withdraw all or some of those funds from local banks or pay bills without ever touching a bill or coin.

The legislation does not require employers to use this means of payment, it simply allows them to chose this method if it makes sense for their operations. The employee must also agree to this method of payment.

The bill took effect in September and while we haven't heard of any local firms using payroll cards, it is certainly a sign of things to come.

The ability to pay bills automatically through your bank or online when necessary, will eventually preclude the need to carry around a stack of bills, pocket full of coins or even a checkbook.

If we can recognize the future here in the hinterlands of northern New England, it is virtually impossible to understand why the federal government is wasting so much time and money making our bills counterfeit-proof and our coins different.

It is obvious that with the huge economic problems facing this country, that money can be used much more efficiently.

Shir Haberman is the business and political writer at the Portsmouth Herald. He can be reached at shaberman@seacoastonline.com