New Quarter Plan Draws Key Backing

WASHINGTON — Call it quartermania.

Rep. Michael Castle’s proposal to mint quarters commemorating the 50 states is picking up steam. It won the crucial, if reluctant, support of Treasury Secretary Robert E. Rubin on Friday.

Congress still must pass legislation, but already there’s talk in Illinois of putting the Chicago Bulls’ Michael Jordan on the back of the two bits, opposite George Washington. The Chicago Tribune speculated on its front page about immortalizing the basketball hero in coin.

Whatever Wisconsin chooses, it won’t be a cow, said state Rep. Marlin Schneider.

“I think we’ve milked that for all it’s worth,” he said.

In a letter to Castle (R-Del.), Rubin said he wants a design process that “will ensure that no frivolous or inappropriate designs are adopted.” Two existing federal panels--the Citizens Commemorative Coin Advisory Committee and the Fine Arts Commission--would review designs submitted by state officials. The Treasury secretary would have the final say.

Castle, chairman of the House Banking monetary policy subcommittee, is promising to speed legislation to President Clinton’s desk as soon as Congress returns from its summer recess in September.

He proposes that the U.S. Mint issue five new quarters a year, starting in 1999. Designs commemorating states would replace the American eagle on the reverse. Washington would remain on the front. The quarters would be the same size and weight and would work in vending machines.

A study commissioned by the Treasury Department found that the government would earn between $2.6 billion and $5.1 billion because many people would save the quarters, which cost the government only a few cents to make.

Rubin already is authorized by legislation enacted last October to mint the quarters. But in a letter to Castle, he asked lawmakers to decide after sorting out the pros and cons.

“If Congress directs us to proceed with the 50-state commemorative quarter program, the Department of the Treasury stands ready to implement it,” he said.

Citing a study commissioned by his department, Rubin conceded that minting new quarters “has clear economic advantages,” that “there are no logistical or manufacturing capacity problems” and that public opinion polls show “a substantial degree of interest.”