SECRETS OF THE MINT.

Ashburton Guardian, Volume XLVII, Issue 10903, 28 April 1927, Page 3

SECRETS OF THE MINT.

A GOLDLESS GOLD STANDARD. Many interesting facts regarding the work of the. Royal Mint are recorded by the Deputy Master and 'Comptroller in his fifty-sixth annual report. This deals with the year 1925, in which the Chancellor of the Exchequer announced in his Budget statement the Government's decision to revert to the gold standard, and the Master of the Mint comments on the working of the goldgold standard without gold currency. The total number of coins struck at the Mint in 1925 was 16,775,657, which was considerably below the figure for the previous year of 223*043,355. The figures include,- in addition to Imperial coins, a total for the colonlies of 84,000,000 and of 186,000,000 for foreign countries. Another matter to winch reference is made is the production, by private firms, of cheap medals and such mementoes, ill-conceived in design and of the crudeste workmanship. The Master- records that for the sake of economy a Government Department ordered from a firm of commercial stationers a njew seal of inferior craftsmanship. A forma! protest against this "philistinism" was made to the Department. From the point of view of the Mint event of 1925 was the decision to revert to the gold standard, and the Master sayis the report "must obviously be prefaced by some mention of it." He proceeds:—"The popular notion that the momentous decision to return to the gold standard must necessarily involve the return to internal circulation of the golden sovereign of more spacious days received a rude shock. Such a step was quite unnecessary for the purpose of the gold standard, and would be an unwarrantable extravagance in which our present financial position would not allow us to indulge. The changes thus (by the Gold Standard Act, 1925) effected in currency conditions, some of which, such as the right of free coinage of gold at the Mint, were of great antiquity, appear momentous; but conr sideration will show that they were essential if the double object of the gold standard without gold coins was to be attained, and in practice they have proved entirely effective. Our gold reserves, although sufficient to justify the return to the gold standard, are not enough to make possible the substitution of gold for'notes in circulation. As the Chancellor of the Exchequer expressed it, there were two hundred and fifty million good reasons against such a course. A vast quantity of bullion would be needed, and this would mean a heavy and altogether unwarrantable expense, which would pro tanto diminish our national wealth and! credit. The State has already borne a charge of £1,000,000 for the wear and tear of our gold coinage since it undertook the duty of re placement as a recognised policy."