SILVER MONEY

Evening Post, Volume CXI, Issue 95, 23 April 1931, Page 10

SILVER MONEY

Mr. Wilkinson's proposal made in the House of Representatives that the Dominion should h«ve its own silver and, copper coinage is attractive on 'the surface, but the transition from coinage now in use. to that specially minted for New. Zealand would not be so easy to accomplish as it seems. It is true that silver is worth about 13d per ounce, and to turn a sufficient quantity of the white metal into twenty shillings of the value of a pound is unquestionably a profitable transaction in the present stale of the silver market, for the precious metal is now as plentiful as it was in Israel during Solomon's reign; but it may not always be so low in price as it is to-day. In fact a very large proportion of the troubles of China and India would disappear with ar^ improvement in price, a change In which major manufacturing industries oJ' Great Britain would participate and ultimately the New ■ Zealand supplier to the British wool 'and foodstuffs markets. As for this Dominion, there is already -in circulation a large but unascertainable amount of Australian silver and copper money, and the banks themselves no doubt are holding a considerable amount of such coins in the aggregate, but with this money there also circulates a much greater quantity of silver and copper coins minted in London, and every twenty shillings of that money is worth £1 in London; not so die Australian money, nor would the New Zealand money, at the present rates of exchange, be worth twenty shillings to the pound sterling. The appearance of so much Australian money in change given and received in New Zealand to-day to some ob-j servers signifies a "flight of capilal," but it can be controlled, and steps are being taken.to effectively'do so. When Australia first minted _ silver some objection was raised to its free circulation in New Zealand on a parity with- English money, but the agitation subsided, as it was recognised that Australian money bought as much as English in New Zealand. But ' considerable inconvenience would result in any precipitate action in this matter, and possibly loss to people ill able to bear it. If any change is lo be made it should be done gradually and in agreement with the Australian authorities. The minting of New Zealand silver and copper money is another aspect of the question, but it, too, should be given very careful thought before adoption. ,