SILVER SCARCITY.

Auckland Star, Volume LXIV, Issue 134, 9 June 1933, Page 5

SILVER SCARCITY.

AUSTRALIAN COINS.

SUPPLY FOR NEW ZEALAND.

COMPARISON OF VALUES.

To tide New Zealand over a period of shortage of silver coin for the ordinary requirements of retail business, the Commonwealth Bank/ of Australia, through the Federal Treasury, will ehip [£50,000 worth of various silver coins to the Dominion, reported the Melbourne 'Herald" on May 29. The Australian shilling contains 92J jper cent of silver, and the English only 50 per cent, but each coin is only a token, and not "real money'' at all. The silver value of the Australian shilling is about 2£d, and that of the English shilling even less, yet the purchasing value of the .English shilling is about 1/3 by comparison with the Australian shilling. . When the rate of exchange was at par in New Zealand and Great Britain, but varied from 25 to 30 per cent in Australia, enterprising Australians collected a U the English coinage they could and disposed of it in New Zealand at a premium varying from 25 to 30 per cent. English coinage, which waa the ordinary currency of New Zealand, waa brought back to Australia, and a further profit 25 per cent or more was made. The Dominion Government passed legislation prohibiting the export of silver, but thisdid not wholly stop the practice, people leaving the Dominion considering themselves entitled to carry as much "loose change" as they wished. New Zealand has since placed herself °n a rate of exchange similar to that ruling in Australia. Yet English silver jwas still the silver coinage of New Zealand,' and traffickers made a profit of 25 per cent by sending English coins back to England. To overcome this practice, the Dominion has arranged with the Royal Mint of England to supply a .special New Zealand coinage corresponding to that of the Commonwealth coinage. In the meantime, Austraiia jias arranged to fill the 'breach.