N.Z. SILVER COIN

Grey River Argus, 10 March 1933, Page 6

N.Z. SILVER COIN

WHOLESALE EXODUS Reason for the Change WELLINGTON, March 9. Voiy large sums in silver coins have recently been exported from New Zea land, and Ihe banks* are get t ing short of silver, according to a statement made in the liousy to night by Mr Coates. The question was raised by Mr. K. Wright, who asked If very large amounts of silver were being exported, and if it was true that as much as £lO.OOO worth was sent in one can signinent. The Alinister. “That is so. As Io the amonnti, I cannot say; but very mue.u more than the amount staled has left ■qhe country.’’ Air. Mason; “Dots Australian silver take its place? The Minister: ‘‘ To some extent. The money is mostly going to Eng land. We hope to stop that by having our own coinage.’’ | The Alinister isubsqqnontly int-ro dr.ced an amendment to the Finance Bill to clean up an administrative doubt connected with th,. regulnl ions governing tlhe export of coined silver The Bill, as originally introduced, provided that coined silver attempted to be exported in contravention of the Regulations would be liable to forfeiture. In practice it has been found that the legislation, which enabled only the silver actually exported to be appropriated, has been rendered practically inoperative for the reason that, in all cases silver was seized while being attempted to be exported Accordingly the legislation was administered on that basis, and the pre sent amendment gave the legislation :i resirosppetive effect CLAIMS FOR SEIZURES. Explaining the new provision, Air Coates said an amendment had been found necessary, because claims might be made against the Crown on account of the silver already seized. One claim was pending against the Crown. Now the matter had to be cleared up, as the law had been broken. Air Lee: “Have they broken tho law? Isn’t it only the breaking of the law that we are passing to-night?” The Alinister: “That is questionable. It is a matter of legal opinion.’’ Air Fraser: “We are entering a revolutionary phase! This is a principle in legislation.’’ ( P r Press Associa t ion ). WELLINGTON, Alarch 9 In the House Air. W. Nash (Lab, Hu''t ), asked whether it was not possible to arrange for the minting of coins in the Dominion. He referred to the clause in Finance Bill (No 4). which gives authority for arrange incuts -to be made ‘with the Royal Alint tor the issue of a special silver an t copper coinage l for th,« Dominion. Air Coates said it would be realised that Hie Im; erial coinage had always been the coiling* of New Zealand. “I think it will be realised, too,’’ he added, “that during that long period certain associations have grown up. and that arrangements and discussions shou d as a matter of courtesy take place with ;he Master of Hie Roy al Alint. to whom for years past we have Linked for guidance on such mat tors We do not think it necessary to have any alternative—not, at any rate, at this stage. Our negotiations have shown that we will experience little difficulty as far as priep is concerned. “We are bound by an undertaking with the United Kingdom to endeavour to kee i the coinage within our shores, ’ ’ said Air. Coates. “There is amp’.e evidence, despi'tp the regula tions and the (dose watch kept by the Customs Department, that silver has been leaving :tho country, and we cannot stop it. Probably I shall ask the 1 House to deal with further legislation on this point. All the regu'ations under the sun will not stop the silver leaving." Mr Coates said he could not go in t-u details, nor did he think it was necessary. He felt he was not at liberty at this stage to tell the whole stor-, which might scorn an extraordinary thing to members. It would be realised. however, that negotiations must be confidential on account of their de licate nature. He asked Ifhe House to accept his assurance that negotiations were proceedi'jig satisfactorily. Indeed, up to the moment they were encouraging. The Government did not propose to debase the New Zealand currency. CHRISTCHURCH. March' 9. Mr Nino Di Somma, of Christchurch wrote to the Minister for Finance (the Rt. Hon. ,T. G. Coates) suggesting that the Government should call in all silver coinage, esieept Australian silver coms circu’ating in the Dominion, as a means of assisting in ja-csent economic conditions. The coinage, he stated, was minted in Britian, and was reallv British coinage, therefore it would represent its full value in Eng land, and not. be depreciated by the 25 per cent, rate of exchange. t. shipped :<> London it would represent there a valuable asset to New Zealand. In the meantime the coinage would have to be replaced in New Zealand, but silver was probably never so cheap and the Dominion could profit greatly by minting its own coinage. The machinery and plant would cost about £5OOO, and the result would bo that New Zealand would make a handsome initial profit on the transhipment of Dominion coinage to England, and thereafter reap a regular profit from the mint in New Zealand. The Minister replied stating that he had noted the suggestion, and that he would give it. very careful consider ation.