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Why Are Coupons Worth 1/100th of a Cent?

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The next time a coupon shows up in your mail, take a look at the fine print. There’s a pretty good chance it will read something to the effect of “Cash Value 1/100th of a cent.” Why in the world is that writing on there? And are 10,000 copies of this coupon really worth a whole dollar? Let’s take a look at this coupon quirk.

Putting a Stamp on Customer Loyalty

Before we can answer the coupon-value question, we need to take a peek into a seemingly unrelated footnote in the history of commerce. Let’s talk about the mostly forgotten practice of businesses handing out trading stamps with purchases.

Trading stamps first found their way into merchants’ registers in the 1890s. When customers made a purchase, stores would given them stamps that reflected how much they had spent; a common exchange rate was one stamp for every dime spent on merchandise. Once a customer had saved up enough stamps – often over a thousand – they could swap them for something from the stamp company’s catalog, like a toaster or a clock.

The trading stamps were a runaway success. Supermarkets, gas stations, and department stores would advertise that they gave away a certain brand of stamps to help lure customers in, and the customers could then lick and paste their saved stamps to get “free” merchandise. Everyone was happy, and the system flourished. At one point in the 1960s, S&H Green Stamps printed more stamps each year than the Postal Service did. The circulation of the company’s catalog topped 30 million. The big stamp makers like S&H even built brick-and-mortar “redemption center” stores around the country.

As any economist worth his cost function can tell you, though, the toasters and vacuum cleaners that customers got weren’t free at all. Merchants had to pay for the stamps they gave away, and the cost of the stamp obviously got passed along to the customer in the form of higher prices.

Even in the early days, it didn’t take long for customers to figure out that the system wasn’t quite as rosy as merchants made it out to be. By 1904 New York had enacted laws that forced stamp makers to put a cash face value on each stamp that would enable consumers to bypass catalog redemptions and get money back for their stamps. Other states followed suit.

As one might guess, the individual stamps didn’t get princely face values. A 1904 New York Times piece noted that most stamp makers were given the value of “one mill,” or 1/10th of a cent. That valuation meant that a customer with a full book of 1,000 stamps could redeem it for a dollar. The same piece noted, though, that a customer who used the stamp makers’ catalogs could probably get an item worth three or four dollars for the same number of stamps, so the cash-redemption idea never really took off with most shoppers.

What happened to trading stamps? Their popularity peaked in the 1960s when nearly 80 percent of American households saved stamps, but within a decade the craze had died. Manufacturer coupons that shaved money off of items’ prices became more popular as inducements to get shoppers into stores, and the fuel crisis of the early 1970s sapped away the stamps’ large market at gas stations.

So What Does All This Have to Do With Coupons?

At first glance, coupons and trade stamps wouldn’t seem to have all that much in common. After all, coupons lower the price of an item, while the beef with trade stamps was that they passed a hidden (and often unwanted) cost along to consumers. But some states legally lump trade stamps and coupons in together, so coupons distributed in these states have to bear some printed cash redemption value.

According to the Association of Coupon Professions, only three states require this declaration of redemption value: Indiana, Utah, and Washington. Since many coupons are designed for national distribution, though, the redemption value ends up printed on all of them. As with the old trade stamps, it doesn’t really matter how infinitesimal the stated value is as long as it’s not zero. Thus, you see coupons that are worth 1/10th, 1/20th, or 1/100th of a cent.

So Can I Round Up 20 Coupons and Get a Penny?

In theory, yes. It’s hard to find reliable, concrete examples of someone schlepping in a hundred coupons to swap them out for a penny, but the web is full of anecdotes in which people “test the fine print” by trading in a giant stack of coupons for their face value at the supermarket. In all likelihood, though, you’d need to mail the coupons to the issuing company, which is a pretty lousy financial proposition given the price of stamps.

If you’re sitting on a big pile of Shake N Bake coupons, you might as well give it a try; your supermarket will probably gladly surrender a penny to ensure you don’t make a scene.

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Big Questions
What's the Difference Between Vanilla and French Vanilla Ice Cream?
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iStock

While you’re browsing the ice cream aisle, you may find yourself wondering, “What’s so French about French vanilla?” The name may sound a little fancier than just plain ol’ “vanilla,” but it has nothing to do with the origin of the vanilla itself. (Vanilla is a tropical plant that grows near the equator.)

The difference comes down to eggs, as The Kitchn explains. You may have already noticed that French vanilla ice cream tends to have a slightly yellow coloring, while plain vanilla ice cream is more white. That’s because the base of French vanilla ice cream has egg yolks added to it.

The eggs give French vanilla ice cream both a smoother consistency and that subtle yellow color. The taste is a little richer and a little more complex than a regular vanilla, which is made with just milk and cream and is sometimes called “Philadelphia-style vanilla” ice cream.

In an interview with NPR’s All Things Considered in 2010—when Baskin-Robbins decided to eliminate French Vanilla from its ice cream lineup—ice cream industry consultant Bruce Tharp noted that French vanilla ice cream may date back to at least colonial times, when Thomas Jefferson and George Washington both used ice cream recipes that included egg yolks.

Jefferson likely acquired his taste for ice cream during the time he spent in France, and served it to his White House guests several times. His family’s ice cream recipe—which calls for six egg yolks per quart of cream—seems to have originated with his French butler.

But everyone already knew to trust the French with their dairy products, right?

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

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Big Questions
How Many Rings Does Saturn Have?
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NASA/JPL-Caltech/Space Science Institute

Of all the planets surrounded by rings, Saturn is the most famous. These planetary rings are massive enough that Galileo was able to see them using a simple telescope way back in 1610, though it wasn't until half a century later that another scientist was able to figure out what the "arms" Galileo saw actually were. NASA has since called them "the most recognized characteristic of any world in our solar system."

So how many rings does Saturn have, anyway? If you can see them from your backyard, there must be a lot, right?

Scientists don't know for sure exactly how many rings Saturn has. There are eight main, named ring groups that stretch across 175,000 miles, but there are far more than eight rings. These systems are named with letters of the alphabet, in order of their discovery. (Astronomers have known about ring groups A, B, and C since the 17th century, while others are newer discoveries. (The most recent was just discovered in 2009.)

The rings we can see in images of the planet—even high-resolution images—aren't single rings, per se, but are in fact comprised of thousands of smaller ringlets and can differ a lot in appearance, showing irregular ripples, kinks, and spokes. The chunky particles of ice that make up Saturn's rings vary in size from as small as a speck of dust to as large as a mountain.

While the gaps between Saturn's rings are small, the 26-mile-wide Keeler Gap is large enough to contain multiple moons, albeit very small ones. The largest ring system—the one discovered in 2009—starts 3.7 million miles away from Saturn itself and its material extends another 7.4 million miles out, though it's nearly invisible without the help of an infrared camera.

Researchers are still discovering new rings as well as new insights into the features of Saturn's already-known ring systems. In the early 1980s, NASA's Voyager missions took the first high-resolution images of Saturn and its rings, revealing previously unknown kinks in one of the narrower rings, known as the F ring. In 1997, NASA sent the Cassini orbiter to continue the space agency's study of the ringed planet, leading to the discovery of new rings, so faint that they remained unknown until Cassini's arrival in 2006. Before Cassini is sent to burn up in Saturn's atmosphere in September 2017, it's taking 22 dives through the space between the planet and its rings, bringing back new, up-close revelations about the ring system before the spacecraft dives to its death.

Though it's certainly possible to see Saturn's rings without any fancy equipment, using a low-end telescope at your house, that doesn't mean you always can. It depends on the way the planet is tilted; if you're looking at the rings edge-on, they may look like a flat line or, depending on the magnification, you might not be able to see them at all. However, 2017 happens to be a good year to see the sixth planet, so you're in luck.

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

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