On pennies

February 2nd, 2013 by

The BBC has an article on whether or not the UK may end up withdrawing the penny as too small.

What the article apparently has forgotten, when carefully noting the examples of Canada, Australia, Brazil and New Zealand, is that the UK has withdrawn currency for being too small – the halfpenny circulated until the end of 1984 (you still found a couple in the backs of drawers when I was small). (It’s not the only coin to have been withdrawn in living memory; the pre-decimal farthing was withdrawn in 1960 as too small.)

It’s informative to look at how little something had to be worth to be withdrawn then. Using RPI, in 1960, 1/4d was worth £0.0196 (2011 values). In 1984, 1/2p was worth £0.0131 (ditto). The penny is worth substantially less than either earlier coin was at the time of its withdrawal…

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