NEW ZEALAND COINS

Evening Post, Volume CXVI, Issue 112, 8 November 1933, Page 7

NEW ZEALAND COINS

■MACHINERY MEASURE

RETIREMENT PROBLEM

The Coinage Bill, which provides the necessary machinery for the distribution of New Zealand's new coinage, was read a second time in the House of Representatives last evening.

Moving tho second reading, the Minister of Finance (the Rt. Hon. J. G. Coates) said that tho Bill was necessary because the new coinage was almost reaching the shores of New Zealand and there might be a technical point or two not covered in the Finance Act passed last session. It was desirable that all legal and technical (points that might arise should be covered. The Bill was on tho lines of the Imperial Coinage Acts, and the idea was to with- I draw all Imperial and Australian coinage from New Zealand, the Dominion having its' own coinage entirely. Mr. F. W. Schramm (Labour, Auckland East): Will Australian coinage be legal tender? / Mr. Coates: It will be withdrawn by degrees. At tho moment we are having a little argument with our Australian friends as to the rate at which- it should be withdrawn. We will have no difficulty with tho British coins, becauso they will go automatically and foe collected by the banks. Mr. H. T. Armstrong (Labour, Christchurch East): Will members got a few samples .of the new half-crowns? (Laughter.) i . Mr. Coates: The British half-crown will buy half a crown's worth of New Zealand coinage. . ' Mr. Armstrong: I thought there, might have been a- free issue. Mr. Coates: I am afraid that with this year's Budgetary position.we cannot take the liberty. s THE DESIGNS. Mr. Coates reviewed the setting up of the Coinage Committee, and said that the committee had come to the decision that it was not practicable at this stage, and for a long time to come, to have a decimal system of coinage. As far as designs were concerned, at the moment ho was awaiting expert confirmation on the design of two coins before making an announcement. A great deal of discussion had taken place as to whether the coins should be minted in New Zealand or not, but a decision had been reached by a competent body that it was not possible for the local manufacturers' to compete with the Royal Mint. Mr. E. J. Howard (Labour, Christchurch South): Did the local people give a definite offer? . , ' Mr. Coates: They, .gave several, but their offers did not compare with the offer of the Eoyal Mint, because in actual fact the cost is nil and we will get a profit of £180,000 on- sthe first contract. ■ The rest of the coinage would not cost anything, said the Minister, who added that about £250,000 worth was to arrive in New Zealand shortly. Mr. J. A. Lee (Labour, Grey Lynn) said that the Bill provided for the minting of gold coin, and he asked whether it was tho intention to put this provision into practice. ' Mr. Armstrong: If you wear yellow spectacles you will think they are all gold coins. Mr. Leo said that if the coins had been made.in Now Zealand, the profit would have been larger. If the Government had taken up the Bill promoted /by Mr.' C. A. Wilkinson (Independent, Egmont) it would have saved itself a lot of trouble. Thanks to the Government's- exchange policy, the people of the Dominion had an interest in loading silver coin on to the British taxpayer. That might havo been the reason why the Government was slow in taking steps to prevent the export of silver. In tho design of the coins New Zealand should express her individuality, instead of copying some other part of tho world, and at the same time the coin should be made in the Dominion. Replying to an interjection, Mr, Lee said,. "There is no provision in this Bill for minting double-headers."' RETIREMENT OF COINS. Mr. Wilkinson congratulated the Government on: the steps it was taking/ to obtain its own coinage. New Zealand Was • the only Dominion, except possibly Northern Ireland, which . did not have its own minting facilities. He would like to know what arrangement had been made for the retirement of English coin, although apparently that was not causing a great deal of concern. He was afraid that New Zealand was not going to get the full, profit it was entitled to as a result of having its own coinage, and he waSf apprehensive that Mr. Coates had.entered into some foolish arrangement. Australia -had made an immense profit out of her coinage. Replying, the Minister of Finance said the Government had gone to great lengths to endeavour to arrange for the orderly retirement of English silver, but it had been found that it was not possible to make that arrangement, as Great Britain was not able to receive any'moro of her silver overseas. They had to look at the position from Great Britain's point.of view. It would,mean, that there would be a surplus of silver in Great Britain. An endeavour was being made to retire Australian coin, ■ but up to the present np satisfactory arrangement had been made. Circulation would continue in the meantime, but gradually British and Australian coin,would be collected by the banks. There was no power in the Bill for the manufacture of gold coins. inJNTew Zealand, although . that power could be taken at any time. Australian silver . coin was not legal tender' in New Zealand at present, and tho public accepted it at its own risk.

The Bill was read a second time.