FIVE-SHILLING NOTES

Evening Post, Volume CXXII, Issue 67, 16 September 1936, Page 13

FIVE-SHILLING NOTES

AN AUSTRALIAN PROPOSAL

(From "The Post's" Representative.)

SYDNEY, August 27,

The Federal Treasurer (Mr. Casey) will place before Cabinet a proposal for the issue of five-shilling notes. He considers that inconvenience is being caused to the public by the lack of a monetary token of a value between 2s and 10s, and he believes the issue of 5s notes will prevent the weighing down of pockets by loose silver.

Before any decision is made" by Cabinet, it is likely, that efforts "will be made to see whether1 the public would approve the issue, of 5s notes. So far the proposal has had a mixed reception.

A prominent Melbourne,banker, Mr. G. D. Healy, said it was unlikely that any objections would be raised by the trading banks. Bank of Australasia 5s notes.printed some.years ago.had.had met with no demand, and the issue had been destroyed. He pointed-out that with an increase in the note issue, the Commonwealth Bank would have to increase the gold or sterling reserve held as backing for the note issue.

The chairman of the Melbourne Chamber of Commerce, Mr. A. W. Relf, said he Would personally oppose the issue, and he thought.the public would also.

A member of the Commonwealth Bank Board declared that !5s notes would considerably reduce the profit of the note issue.

A leading economist said the 5s note issue would be expensive to operate, as there would be heavy replacements.

The director of finance of a large emporium considered it would be a good move for the community, although stores would have to carry large volumes of change. He would favour the 5s notes if they were easily distinguishable from other issues. A leading1 Melbourne bookmaker is appalled at the prospect of having to handle thousands of sSrnotes every race day. "It is bad enough now to have to handle thousands of £1 notes," he said. A leading Sydney bookmaker, however, said that 5s notes would be welcomed. Bookmakers would : not have to carry so much heavy silver change in their bags.