How one Georgia county is adapting as the Federal Reserve halts penny orders

WASHINGTON COUNTY, Georgia — The Federal Reserve has stopped allowing banks to order pennies, forcing businesses across Washington County to adjust how they handle cash transactions.

The Treasury Department halted penny production Nov. 12, leaving banks, restaurants and local government offices managing their remaining coin supplies on their own.

At George D. Warthen Bank, teller Alice Mathews said the Federal Reserve told them at the start of the year they could no longer order or deposit pennies. The bank responded by stocking up.

“We began stockpiling a lot of pennies — in fact, we had so many pennies in here that another bank that we do have relations with needed pennies,” Mathews said.

The Federal Reserve has since reversed course and now allows banks to deposit pennies again, though Mathews said her bank has chosen not to. She said more customers have been coming in to cash out old coin jars since the change took effect.

“We have seen an increased volume of customers bringing in their coin savings and cashing it in,” Mathews said.

Mathews said the bank holds more than enough pennies to serve customers and does not expect a shortage.

“We have a tip jar that people keep putting pennies in — I don’t think I’ll ever run out of pennies,” she said.

Rose Holton and her business partner Robert Fisher opened Scoot’s Cafe and Ice Cream Emporium in May. Holton said Citizens Bank of the South called last week to tell her penny orders would end.

“Just wanted to let you know this will be the last week you’ll be able to order pennies from the bank — and like I said, I haven’t really gotten pennies and change from the bank in a couple months anyway. That’s not really going to affect us,” Holton said.

Holton said the shift away from cash concerns her more than the penny shortage itself. Most of her customers pay with cards, and she has looked at rounding prices to the nearest nickel and building sales tax into her pricing to reduce the need for penny change.

The City of Sandersville announced this week it can no longer obtain pennies from the bank. Officials said customers paying bills in cash will have their totals rounded up, but the city will credit any overpayment to their account.

The American Bankers Association estimates 250 billion pennies remain in circulation nationwide — meaning the coins are far from gone, just no longer being made.