SILVER COINAGE

Dominion, Volume 24, Issue 226, 20 June 1931, Page 6

SILVER COINAGE

Australian Currency in

New Zealand

DOOR CLOSED NOW Rises during the last five or six months in the exchange rate between New Zealand and Australia, which stands now at £ll9/7/6 to £lOO against the. Commonwealth, have .caused the Increase, iff Australian currency which many people Are noticing at present in the Dominion. Australian silver coinage has found its way here in the pockets of visitors wishing to avoid the effect of the adverse rate, but the increase is due more largely, perhaps, to people who were operating with profit before regulations to prevent it were gazetted. fAn order-in-council published on April 2, designed to frustrate operation on exchange rates or undue transfer of currency, both between New Zealand and Australia and New Zealand and Great Britain, prohibited the iriiportatiori and exportation bf silver coinage without the consent of the Minister of Customs. About that time the practice was becoming common and coinage from Australia was entering New Zealand,; it is believed, in fairly considerable' sums. “It is quite evident that the thing would have become wholesale,” said a Public Servant yesterday. “We'got in just in time.” Banks and Government departments know of cases, some quite surprising, rirhere operations on the New ZealandAustralian exchange rate were conducted. The currency which was brought into New Zealand from Australia in two certain operations and put into circulation here totalled, it is, said, £l2OO. Other cases of operation are also thought to have taken place. Prior to April 2, this was apparently quite legal, and with the high adverse rate against Australia some money could be made at the game. Plenty of Silver. A city businessman who has two shops in the city recounted to “The Dominion” yesterday an experience which brought him into contact with the position not long ago. He was in one of his establishments about the middle of the day, and a man entered the shop and asked him “how he was off for silver.” As it happened the silver was quite welcome, and the man put down a handful of coins.on the counter, saying; “Here's two pounds’ worth.” He was given two banknotes in exchange. After he had left thb shop, it was found that the money was entirely in Australian florins. Less than-a quarter of an hour later, the businessman happened to be at his other shop, and was surprised to find the same man come in and ask the same question whether silver was wanted. The offer, however, was not accepted. The shopkeeper naturally concluded that the man had been making a round of the city and disposing of what was possibly a large amount of Australian coinage. ■Before the regulation was made, travellers from Australia were bringing oyer large amounts of Australian currency for their needs in Now Zealand; otherwise, if they had sent a draft through a. bank, the exchange would have been against them. Now, however, although some of the travellers consider they should be .entitled to . bring over all the money they require to use in New Zealand, they are not allowed to do so. Each case is judged o n its. merits, and a visitor is allowed ■a reasonable amount. Similarly, the British-New Zealand rate might be exploited, and so the' exportation of silver is prohibited. A traveller is allowed to take with him a reasonable amount for his requirements on the trip. 1 Plenty Still Here. It was the opinion yesterday of a responsible bank officer that a good deal of Australian coinage must have been brought over before the regulation was enforced. The banks at present treat the coinage in the same way as Imperial coinage. Exchange is waived where from the circumstances the banks are sure that the Australian coinage was accepted by bona fide customers in their ordinary course of business. With the enforcement of the regulation, the amount of Australian coinage in the country is no longer increasing. , „ Cases have occurred since April Z where people have been prevented by the Government from bringing in considerable sums in currency. There is power for such sums to be impounded, or the coinage can be prevented from coming into the country. This last course has been adopted on occasions since, the prohibition was enforced. Silver in excess of What is considered a reasonable amount is liable to seizure.