All denominations of U.S. currency are composed of 75% cotton and 25% linen — which mean that the cost of making those notes has skyrocketed, due to the skyrocketing price of cotton.
In Feb. 2001, cotton cost $60.44 a pound. In March 2011 the price had jumped to $149.44 a pound.
In 2010 the cost of making one bill was 50% more than it had been in 2008. In 2008, it cost 6.4 cents a note, a tiny bit more than it did in 2007, according to the U.S. Bureau of Engraving and Printing. In 2010, the cost of making one note jumped to 9.6 cent. And it will be higher this year.
Multiply that increase by the 6.4 billion new currency notes that were printed last year, and you’re talking serious money. In 2008 printing cash cost 6.4 cents per bill — even though the cost of the cotton represents “less than half the total cost” of the notes, according to the U.S. Government Accountability Office.
The price of raw cotton is at a 140-year high, and looks set to continue rising. In March, the GAO called for replacing the $1 paper bill with a $1 coin, saying that the coins are more durable and does not need to be replaced as often. The GAO said switching to $1 coins could potentially save the government some $5.5 billion over 30 years.
Phil Robertson, Editor
