MONEY.

Dominion, Volume 2, Issue 583, 11 August 1909, Page 5

MONEY.

NEW AUSTRALIAN COINACE. HOW IT WILL AFFECT NEW ZEALAND. (l)y TcleeraDh.—Spcolal Oorreapondont.i Chrlstohuroh, August 9. . The proposed change in the Commonwealth coinage has a particular interest for New Zealand, and some curiosity 'is felt as to what effect the changes, if adopted, will hare in New 1 Zealand. The Federal proposal includes the substitution of nickel for bronze coins, and the possible withdrawal of the half-crown. The possibility of inconvenience being caused in New Zealand by the changes contemplated was discussed to-day by a "Press" reporter with several bank, managers. "

The first gentleman approached said that if the changes had affected the gold currency the result would have been highly unsatisfactory. . As, however, it was not proposed to make silver an international legal tender in settlements it was purely a matter of internal convenience, and he did not see how New Zealand .would be affected adversely. The small Australian coins were bound to drift to New Zealand, the way. of their entrance being in the pockets of visitors from.the Commonwealth., These would no doubt be accepted by New Zealand tradesmen, who would rather take them, as they used to take tokens, than let business go by. There would hardly be any probability of the banks refusing these coins, as' at the most it would only mean the expense of shipping thorn to Australia and getting their equivalent in gold. As to "the free and unlimited' interchange of coins with Australia that was a matter for the Goverhment, but he could not imagine that being agreed to unless New Zealand participated ■in.the profits of the minting. The abolition of the half-crown woulfl' not be viewed favourably' in New Zealand. The experience of bankers was that this' coin was very considerably in demand, more so than the florin. The obvious objection to the substitution of. nickel coin 1 for the bronze coin was that it would be too like the small silver.coins. •

Another bank-.manager said that the interchange of coins would be a very, good thing, and it practically existed now. He was very "glad ,to see that nickel was going to be coined instead of bronze, but' he 1 thought that, legislative authority would have to be secured before nickel would be accepted as tender in lieu of bronze. Tho prospect - of. New Zealand banks being able to draw on Australia .for small change pleased him. During re'eent. years tho bankers had experienced the greatest difficulty in getting supplies of small coins. That difficulty would be obviated-if it were opon to them to cable ■to Australia for. silver, and get their small change here a week later. However, ho did not . think-.that New Zealand should officially acccpt the. interchange of small .. coins without getting a share of the minting profits.

• The proposal ;of■ the -Federal Government to substitute nickel for bronze coinage will be causing some consternation. among the owners of penny-in-the-slot machines. One bank manager said an enormous amount of money went through these,contrivances. . The adoption of a light medium-like nickel would make petty swindling much easier, as round tin discs could be made to act on the mechanism without difficulty. The proprietors of .the machines would also have to instal much more delicate balancers to suit the light coin, and this would mean that.the machinery would be more likely to go out of order. A SUGGESTION. (By Telegraph-Special Correspondent.) ' . ' Auckland, August 10. Jhe "Herald'.' suggests that.New Zealand should .mint a silver Coinage. Apropos of tho : Commonwealth proposal, the paper says: Tho Australian Government has arranged with the Imperial authorities for'the issue of an Australian silver coinage, of which th'o large profits, less cost of minting, will go Ito the Commonwealth, .'.it-has been officially stated in the Federal Parliament that part of this coinage is expected to circulate in New Zealand, as it certainly will if this. Dominion dofrs liot-'secure a comago of its own under a similar agreement'..with the.lmperial Mint. It is preposterous.rto' suggest that the Federal Govornment should make a profit of over 25 per cent".' upon every. Australian shilling that finds it way across the Tasman Sea.