Established in 1854 on East 7th street, Manhattan, just neighbouring the legendary Cooper Union, McSorley’s Old Ale House is an enduring relic of a bygone era. Maintained by the Maher family, it upholds the ethos of its founders, viz., no silent sports broadcasts on television, no recorded music by Taylor – Swift or James – and no cards accepted at the bar, a daring act in the modern age. If it met the standards of historical figures like former customer Boss Tweed and John Lennon, it’s safe to say it continues to charm the contemporary crowd. Thus, McSorley’s stands out notably for embracing a cash-only policy.
Almost a decade had passed since I last visited. On a recent trip, I subconsciously extended my card to the bartender adorned with an apron, only to be met with an amused stare. He said jovially, McSorley’s only deals in cash. To break that profound rule by tendering a bank card could be seen as violating their enduring caution, “Be Good or Be Gone.” I shudder to consider the reaction to an offer of payment by a watch.
In light of their steadfast adherence to old-world charm, they have graciously installed an ATM nearby. Certainly a saving grace for newbies unacquainted with their policies, or for those who inadvertently forget them. World Economic Forum data suggests that in 2015, only about 24% of residents in the United States went a week without using cash. Seven years later, in 2022, the number had swelled to 41%. This augments the sinking number of ATMs across the country.
What this paints is a clear picture of the spiralling disappearance of the once-pervasive dollar bills from everyday life. The same trend can be seen across Europe and Ireland. One can’t help but marvel at the swift regression of the dollar bills – often referred to as “the Benjamin” or the Andrew Jackson-adorned $20 bill which served as vibrant elements of the 20th-century American lives- from commonplace businesses.
It’s been quite a while since American pubs were adorned with dollars on a bustling afternoon or evening. It was commonplace for customers to leave their money next to their glasses, entrusting bartenders with cashier duties as they were served. Tidy piles of tip notes scattered across the counter reflected flourishing times. Such a system, although inefficient, was rather charming due to its trust-based approach. The hospitality sector was traditionally dominated by cash transactions, where serving staff’s earnings heavily relied on tips. However, gratuities have become digitalised and traceable, replacing the old-fashioned practice of cash appreciation being tucked away or pooled.
My month-long stay in the United States was marked by the absence of physical cash transactions. The only occasion someone was noted to pay using dollars and cents culminated in growing impatience from the queuing customers and the cashier as the individual counted his spare change. It seemed a rather outdated procedure.
There are numerous, frequently stated reasons driving the sudden yet subtle shift towards digital payments. The advantages are manifold: expedience, improved hygiene, reduced inconvenience, and a solution to numerous problems posed by coins and paper. Eight years have elapsed since Kenneth Rogoff’s ‘The Curse of Cash’ was published, suggesting that the eradication of paper currency, or at least high-value notes, could alleviate a host of societal problems, ranging from tax avoidance to terrorism.
Indeed, the substantial drop in physical dollar transactions resulted in the New York Senate enacting a law which forbids food service and retail businesses from declining to accept dollars and cents. The only workaround was to setup a “reverse” ATM, an apparatus that accepts cash and dispenses an instant debit card for usage within the shop. Consequently, reverse debit cards are increasingly popular in the United States. Payment methods are becoming continuously trendier as digital options emerge, including payment by phone, watch and in certain cases, simply by presenting your palm over the scanner, aligned through a partnership between a grocery chain and a well-known ecommerce behemoth.
“Why do people still prefer to carry cash when they purchase items with their cards?”
The disappearing dollar’s secondary effects are arguably most devastating for the most vulnerable individuals. A record number of 653,000 individuals experienced homelessness in the US in 2023. It has been ninety years since Bing Crosby’s iconic song Brother, Can You Spare A Dime?, a symbolic anthem of the great depression, echoed through Broadway. However, with the number of individuals sparing dollars, or even dimes rapidly dwindling, the city street’s oldest adage seems to be losing its worth.