COST OF CLEAN MONEY

Evening Post, Volume CVI, Issue 48, 25 August 1923, Page 14

COST OF CLEAN MONEY

HOW THE STATE HANDLES ITS

COINAGE.

The cost of keeping our coinage in a serviceable condition is borne by the State, and all coins are withdrawn from circulation when they become so' worn as to render immediate recognition in any wajr". difficult. Coins so withdrawn. Writes' E-. J. Martin hi 'the "Daily Mail," are paid for at' their face Value, hut .this" is not the case with'coins' that have/been wilfully, lightened or,; mutilated; \These are paid for only-; at their -market''value as old -metal. There is considerable variation in the amount of * coin withdrawn each year. In "1919'(n0 later'figures are available) silver coin' of the nominal value of £142,279 was .withdrawn. The loss in value on. this was £12,680 5s 9d. This loss is not very serious, in view of the fact that in.the.same year the profit on minting new silver was £1,104,323 0s sd. Worn bronze was first withdrawn in 1908. There were:then so many' old coppers in circulation that for some years the amount called in was over £20,000 per, annum. Of late years the amount, has sunk, to under £2000: The cost of replacing the coppers is, naturally, not very great. In 1919 this amounted to only £30 9s. 3d on a withdrawal of £1203, while the 'profit on the new bronze was £404,165. : ' '\

When gold circulated, the expense of keeping the currency up to standard was considerable. * The Order-in-Council authorising the Mint to call in light coins and substitute new ones at public expense was issued in 1892. From that date v until 1917 gold to the value of £76,775,000 was' withdrawn. The deficiency in weight represented a value of £982,929. This is,'equal to a loss of a little over_ twopence in each coin called in. This item of expenditure, of course, does not now-occur, but we have instead the cost of printing new Treasury notes and of administering their issue. , Treasury note 3 are withdrawn from circulation when they become dirty and new ones are printed in their stead. The amount withdrawn weekly is somewhere about £5,000,Q00. The standard of cleanliness maintained with 'regard to our paper money;; is much higher than that .of.many foreign countries.. _It is not possible to state the real cost of the currency note issue. There, is, of course, tlie actual cost of paper, printing, and-administration. Against this must be set the fact that the State has the 'nl^ eJ? tilsely"ft<^"0* interest of" nearly £290,000,000 (the amount of Treasury notes'at present in. circulation). But as a. result of inflation there has b^en'a rise of"'prices which' has affected the ppekete of everybody, so the ques-tion-is one on which could be written many volumes of highly controversial matter. '