A DECIMAL COINAGE

Evening Star, Issue 16626, 8 January 1918, Page 4

A DECIMAL COINAGE

KEEPING THE SOVEREIGN AS THE UNIT. The Decimal Association, wo are informed (lays the London ‘ Sunday Observer ’), are about to ask tbo Association of Bankers and the Associations of Chambers of Commerce to meet thorn in order Jo put forward a Rill in Parliament to decimalise the coinage. The advantages of a decimal coinage arc now generally admitted. Some of the proposals of tire association were explained to a representative of the ‘ ol> server’ by Mr Theodore M'Kenna, who since the death of Sir Richard Burhidge has accepted the post of temporary chairman. “ The association,” ho paid, “ have been for a 'long time trying to educate the public not merely to the advantages of a. decimal system,” but as to which is the best system, because there are very conflicting views indeed as to which shall he adopted.

There are two practical systems. The first is that of keeping the sovereign and dividing it into one thousand parts or mils. _ This system necessitates, of course, changing the face value of everything below the sixpence. The sixpence”, the = shiliing, the two shiilings. and so on arejilready decimal but below the sixpence we are suggesting frankly an alteration of the coinage value, and we suggest i ~ c

—Nickel. 5 10 mil. piece (2.4 ponce). 5 mi].' piece (1.2 ponce). 2j- mil. piece (0.6 pence). —Bronze.— 4 mil. piece (.96 pence). 2 mil. piece (.48 pence). 1 mil. piece (.24 pence). “The alternative system, which is also •strongly supported, is the dollar system—that is to say. a system which would keep the existing halfpenny as the unit, and multiply it by 100, making the dollar 4s 2cl. This system keeps both the halfpenny and the penny, and varies the coins of higher value. Logically, there is much to be said for it. hut its" great drawback is that it means altering the sovereign, and we feel strongly that our great world trade, and our great foreign lendings are better safeguarded bv keeping the sovereign. Iho Association of Bankers, who appointed some time ago a committee to inquire into the adaption of a. decimal coinage, advocate the system which keeps the sovereign. Their proposals at present vary slightly from ours, inasmuch as they suggest only four small coins—a 10, 4, 2, and 1 mil piece—whereas wo suggest six. There is another reason why we have come to the conclusion that the sovereign is really the proper basis for a decimal system. The Association of Chambers of Commerce have boon considering the question, and they have taken a general vote in favor of decimalising the sovereign. “ All previous attempts to decimalise the coinage have been met by the argument that it would ho against the interests of the working classes, the view being held that it would tend to increase prices if the face value of the smaller coins were raised. The answer to this argument is. I think, that quite the opposite effect ■would bo likely to operate. The system that is proposed provides a very "much more elastic method of meeting the present increase of prices, and therefore it would be to the benefit of the working classes. “At present, if an article which costs a penny goes up in price, it must be raised to throe halfpence, there being (for the farthing practically does not count In such circumstances)'no coin of intermediate value. But the provision of six nickel or bronze pieces gives five possible gradations of price between a figure slightly under one halfpenny and slightly oV e'r twopence, so that the newspaper, the omnibus. and tho tram fare, and other things in which, the article cannot ho reduced jn volume, or its weight adjusted, can he met, _if necessary, without an excessive rise in price. That is to the advantage of the Working classes, and not to their detriment. ' “Then you may ask why wo have included a 5 mil. piece and a 2!j mil. piece, which tho bankers have not included. A 4 mil. piece is not strictly a decimal coin, though tho bankers and we strongly suggest it as being almost identical with the present penny ; and therefore it would he possible, for example, to keep the postage stamp at 4 mils., letting the authorities lose 4 per cent., rather than provide only a 5 mil. coin, which would make-the public pay 20 per cent, more.' The 2J, mil. piece, which wo suggest, _is also not strictly a decimal coin, hut it haa been included—possibly only temporarily—in order to provide a coin which is half the 5 mil., because there is no doubt that in a great many articles in which the price has risen, and will remain high, the 5 mil. will be the proper coin for payment. This being so. it appears vise to provide a coin of half the value. “We are strenuously working, also.” Mr MTvenna. added, “ for a metric system for weights and measures; but we 'feel that the opposition to that system will become very much less when th'e public have accustomed themselves to the decimalisation of the, coinage, and therefore, for the moment, it appears to us much better to concentrate our energies on showing the public the advantages'of "■ decimal system of coinage.”