SILVER RECOINAGE

Evening Star, Issue 21823, 12 September 1934, Page 7

SILVER RECOINAGE

MEMBER CLAIMS NEW ZEALAND LOST A MILLION MINISTER DECLARES AUDITOR-GENERAL WRONG [Erom Our Parliamentary Reporter.] WELLINGTON, September 11. « Basing his opinion on the AuditorGeneral’s criticism of New Zealand’s bargain with the Imperial Mint on the recoinage of our silver, Mr Wilkinson (Egmont) declared in the House that the Government had lost a million sterling by a desperately bad bargain. The retort of the Minister of Finance was that the Auditor-General was “ up a tree.” There were some other lively exchanges between the speaker and Mr Coates. When Mx Wilkinson mentioned his estimate of the loss 'through the arrangement as £1,000,000, Mr Coates at once interjected “that is incorrect.” Air Wilkinson requested the production of the correspondence between the New Zealand Government and the Imperial Alint on the recoinage question. “ Only too pleased,” retorted the Minister of Finance. The Auditor-Gen-eral is up a tree, and does not know what ho is talking about.” (Laughter.) _“ And,” concluded Air Coates, “he will say so.” The member for Egmont remarked that all ho had so far were the facts disclosed by the Auditor-General, who contrasted the arrangement made with South Africa, which got the face value of its silver coinage, and the arrangement made by New Zealand, which got only its bullion value. As coins could be made at a cost in bullion of 4s in the £, when New Zealand had paid 20s, the nature of the bargain could be understood. Wo had collected the Australian coins in New Zealand and melted them down, and Australia had got the profit, though these coins were not legal tender, and our own silver was not legal tender in Australia.

Air Coates: Does the hon. gentleman say that the Australian silver circulating here is illegal tender? Air Wilkinson: If the hon. gentleman goes to Australia and circulates New Zealand half-crowns he will be either arrested and fined or gaoled, or both. Air Coates: Either would be a change. (Laughter.) Mr Wilkinson: I would not wish the hon. gentleman a fate such as that. We could not afford to lose him at the moment.

Air Harris: Our Government Imported the Australian silver. Mr Wilkinson replied that this was because English silver was being exported in such volume that Australian had to bo obtained to fill the gap.. About £500,000 worth was imported. Some arrangement should have been made to return it when finished with. Why was a New Zealand offer of recoinage refused when it offered a profit of £275,000. Air Coates: The alloy. > Mr Wilkinson replied £hat the statement had been made that only the English mint could turn out the right alloy, but he disputed it. As for the Coining, it was a mere process jof stamping. “Itis as easy making coins as making a jam tin,” declared this critical member.