SOUTH AFRICA’S DECIMAL COINAGE

Press, Volume XCVIII, Issue 28926, 20 June 1959, Page 10

SOUTH AFRICA’S DECIMAL COINAGE

“Rand,”New 10 / - Unit, To

Divide Into 100 Cents

CAPE TOWN.

The “Rand”—a 10s unit to be divided into 100 cents.—will be the new monetary unit under South Africa's decimal coinage system, the Minister of Finance, Dr. T. E. Donges, announced recently. The Government has accepted in broad principle, the Decimal Coinage Commission’s recommendatiohs on compensation to owners of sterling machines which have to be converted or replaced, and to the machine companies for their services in connexion with the change-over, which will be made in 1961.

The details will be worked out by the Decimalisation Council, which will be set up to exercise such powers and perform such functions and duties in connexion with the change-over as will be prescribed by statute. South Africa’s system of decimal coinage will be introduced in 1961 without any major change in existing types of coins and probably with the existing 18,000,000-odd Reserve Bank notes overprinted with their decimal equivalent. The Director of the South African Mint, Mr J. P. Roux, said that all existing coin denominations would remain for some time after the introduction of the system to eliminate confusion as far as possible. The only change would be that all coins would have their value in cents engraved on one side and the half-crown would disappear completely. Principle Accepted The commission was appointed in 1956. As the Government then had already accepted the principle of decimal* coinage, the commission considered only the question of the most appropriate system and the practical aspects of a change to a new monetary system. The report recommended a preparatory period of two years from the date of introduction of the Commission's Coinage Decimilisation Bill in Parliament. During this period the existing coinage system would remain the only official system.

For as long as desirable all new bank notes and silver coins should resemble existing notes and coins of equivalent values. All new bank notes should display their new denominations as well as their present equivalents. All new silver coins should display their decimal values with their equivalent present values. On the new transitional coins the 6d and 3d should be designed as is and is. Adoption Of 10s Unit The commission considered various systems deciding finally that the lOs-cent system was the most appropriate. ‘‘The lOs-cent system has the big disadvantage that the pound ceases to be the monetary unit of the country. “This cannot be avoided if a decimalised system is to be introduced, since none of the decimalised pound system would be suitable,” the report stated. “But it has positive advantages. First it would not involve the use of third decimals fractional cents in bookkeeping and banking. ‘‘Second, standard two-deci-mal accounting machines would immediately become accessible to industry and trade. “Third, all existing silver coins could be retained and, finally, it would have the overriding merit that conversion of £.s.d. amounts would be simpler than under any of the other systems.” Professor’s Thesis Professor B. S. W. Wiehahn, of the University of Pretoria, has been awarded a doctorate degree for the thesis entitled “An analysis of the measurable cost to the State and certain other practical aspects of the decimalisation of South African coinage.” It was written in English so that other countries using the £.s.d. system like Australia and New Zealand, may also make use of it, if required. Commenting on the Government’s announcement to name the new 10s unit the ‘‘Rand” the “Rand Daily Mail” stated: Assuming that it is advisable to change to the decimal system of coinage, the name Rand for the new 10s unit seems to be as suitable as any that is likely to be found, and certainly it is better than most that have been suggested. “Dr. Donges is also right to leave the choice of names for thd sub-units to popular opinion. The ten-cent piece is almost certain to be called a shilling and no power on earth could divorce South Africans from their tickey (3d).

“When the change was first seriously advocated, it found favour, in principle, with many representative bodies in the business and financial world.

“The original estimates of a few millions have been frequently

COMPARATIVE VALUES New Old 2 Rand £1 1 Rand 10s SILVER 50 cents 5s 20 cents 2s Is or 10 cents (the name shilling to be retained) Is 5 cents 6d 2J cents 3d BRONZE Cent ?..•• 1.2 d i cent 1.2 of Jd i cent 1.2 of Id

revised and it is now regarded as likely that the total bill will be well over £3O million and possibly even twice as much. “It is, indeed, a hair-raising amount of money for the country to spehd at this time on what, in spite of all the high-flown arguments, is largely a political gesture.” “Die Transvaler,” inter alia said the designation ‘‘Rand” would be welcomed in all circles. The word “Rand” would also be well understood abroad, because the Witwatersrand had, since the discovery of gold in 1886, been known all over the • /orld as the Rand. The word was often used as a synonym for the extensive gold mining industry of this area. History In 1919 an act was passed for the establishment of the Pretoria branch of the Royal Mint and it was not until 1922 that the passing of the Coinage Act gave authority for gold, silver and bronze coins to be made. The proclamation came into force at the start of 1923, which is the earliest date on the Union coinage. In 1941 the Pretoria branch of the Royal Mint was proclaimed the South African Mint. The gold coins were identical with those of the Royal Mint, except for the letters “S.A.” under the dragon on the reverse. The sovereigns were minted with only one change—a slight reduction in the size of the King’s head in 1929—until 1932. The halfsovereigns were struck only in 1923, 1925 and 1926. (South Africa went off the gold standard in 1933). Gold coins were not struck again until 1952, when specimen sets only were made, and have continued to be struck in subsequent years.