I've been trying to decide whether to point this out, but I guess it is of 
interest: the 1-2-5
series increases by the same sequence of factors (2, 2, 2.5) as the 1-2.5-5 
sequence.  The only
difference is which factor you use first.

Starting with 1c, to get to the next denominations in a 1-2-5 system, we 
multiply by 2, then 2.5,
then 2, 2, 2.5, 2, 2, 2.5, etc.

Starting with 1c, to get to the next denominations in a 1-2.5-5 system, we 
multiply by 2.5, then
2, 2, 2.5, 2, 2, 2.5, etc.

The advantage for 1-2-5 is that it's more natural for decimal arithmetic, since 
each denomination
has only one nonzero digit in its decimal representation.

The other problem with the US system is that it isn't a "pure" 1-2.5-5 or 1-2-5 
system, though
lack of purity is arguably just an aesthetic concern.  A possible advantage of 
the US system is
that fewer different denominations are in common use, thus reducing the number 
of different kinds
of coins and bills that a cashier needs to stock.  A cash drawer in the US 
needs just 8 slots: 1c,
5c, 10c, 25c, $1, $5, $10, $20.  Compare to the 11 slots I assume (for example) 
a European cash
drawer would need (I have no firsthand experience; correct me if I'm wrong): 
1c, 2c, 5c, 10c, 20c,
50c, €1, €2, €5, €10, €20.  However, if reducing the number of denominations 
were a goal, I
suppose the ideal system would be more like 1c, 5c, 25c, $1, $5, $25.

--- Jon Saxton <[EMAIL PROTECTED]> wrote:

> I have lived in the USA for about 17 years and I have had plenty of time 
> to get used to the 25c coin.  However I still find the 20c coin of 
> Australia much more convenient.  (I have other issues with the design of 
> Australian coins but that is another story.)  It seems more natural to 
> make 45c by giving two 20c and a 5c rather than a 25c and two 10c.
> 
> I can't say anything about the coinage of the Netherlands but the reason 
> for the 25c coin in the USA (and most other countries in the Americas) 
> is historical.
> 
> By the beginning of the 18th century the Spanish dollar, a silver coin 
> of about 1 oz with a denomination of 8 reales, had become one of the 
> major world trading currencies.  The English phrase "pieces of eight" 
> referred to this coin.  In the mid 1820s there were even moves to make 
> the dollar the official currency of the Australian colonies but that was 
> quashed by the British government.
> 
> Although there were coins of 1, 2 and 4 reales, they were relatively 
> scarce so for want of small change it was common practice to cut the 
> Spanish dollar.  The easiest cuts were binary, and they corresponded to 
> the smaller denominations.  So one cut yielded a half dollar, two cuts 
> yielded a quarter and a third cut yielded what was known colloquially as 
> a bit.  (Hence the term "2 bits" meaning a quarter dollar.)
> 
> When the United States established its own coinage in the late 18th 
> century it used the Spanish dollar as the basic unit.  The innovation 
> was to divide the unit into tenths and hundredths but it was not so easy 
> to ignore the binary divisions.  Hence the 25c coin was struck.  As far 
> as I am aware there was never a 12.5c coin but the binary divisions 
> afflicted the stock market for 200 years.  Even today there are vestiges 
> of the reales legacy: interest rates are almost invariably quoted in 
> eighths of a percent, and so are many state sales tax rates.
> 
> The 25c coin is the anomaly in the USA and Canada.  US banknotes follow 
> the 1-2-5 pattern (although for some reason the $2 note is not in common 
> use, and Canadians have $1 and $2 coins). 
> 
> I remember seeing $25 notes somewhere - perhaps Aruba.  If I am correct 
> then that would probably be the Dutch influence.
> 
> 
> 
> Martin Vlietstra wrote:
> > I am a frequent visitor to the Netherlands.  Prior to the adoption of the 
> > Euro, I found that I
> had to take a little more care when handling the Dutch currency compared to 
> the currency of
> other countries - their series was 5c, 10c, 25c, 1G, 2.5G with 5G, 10G, 25G 
> and 50G notes.
> >
> > In contrast, the Euro was well researched in terms of ergonomics - it has 
> > 1c, 2c, 5c, 10, 20c,
> 50c, €1 and €2 coins with €5, €10, €20, €50, €100, €200 and 
> €500 notes.  The
> 1c and 2c coins are very small and two countries (Netherlands and Finland) do 
> not use them,
> otherwise the coins are well thought out - each has a different milling 
> pattern.  The notes are
> all different sizes, each 3mm higher and 6mm longer than it predecessor.  
> There is however a
> question as to whether €200 and €500 notes are needed.  
> >
> > -----Original Message-----
> > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Ziser, Jesse
> > Sent: 26 April 2008 06:12
> > To: U.S. Metric Association
> > Subject: [USMA:40800] Re: Unknown series
> >
> > --- Pat Naughtin <[EMAIL PROTECTED]> wrote:
> >
> >   
> >> On 2008/04/26, at 9:43 AM, Ziser, Jesse wrote:
> >>     
> >>> The Online Encyclopedia of Integer Sequences calls it the  
> >>> "Hyperinflation Sequence for Banknotes".
> >>> http://www.research.att.com/~njas/sequences/A051109
> >>>       
> >> That is surely a fancy name for a relatively simple series. I wonder  
> >> whether the choice of the (1, 2, 5, …) series has anything to do with  
> >> limiting how many coins or notes are given as change during a cash  
> >> transaction. I find the (1, 2, 5, …) series easy to handle for this  
> >> purpose than the (1, 5, 10, 25, 50, …) coins used in the USA, but this  
> >> may only be because I am more familiar with Australian coins.
> >>     
> >
> > I don't disagree with you.  I can see how the U.S. system of denominations 
> > might not be the
> best. 
> > I wonder whether the fact that the US was one of the first countries to use 
> > decimal currency
> means
> > we are likely to have a less refined system than others.  Incidentally, the 
> > "50" in that
> sequence
> > is very rare.  I've only seen a few half-dollar coins in my life.  The 
> > dollar coins were
> pretty
> > rare too, until they were recently reintroduced in "golden" form.
> >
> >
> >
> >       
> > ____________________________________________________________________________________
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> >
> >
> >
> >   
> 
> 



      
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