SUPPLY OF SILVER

Northern Advocate, 21 July 1933, Page 2

SUPPLY OF SILVER

AUSTRALIAN CONSIGNMENTS. NEARLY ALL FLORINS. (Special to “Northern Advocate.”) A UCKLA NP, 'i’h u rad ay. Brand-new Australian florins to the approximate value of £2.1,000 reached Auckland by the Wangauella to tide the local banks over the shortage of silver coin for the ordinary requirements of retail trade until the arrival from Great Britain, towards the end of the year, of New Zealand’s specially minted coinage. This is the second shipment of the product, of the Commonwealth Mint to he imported by the Dominion, the other consignment of £21,000 worth of silver coins having been landed in Wellington recently. Both cargoes consist almost exclusively of florins. The Melbourne Mint does not mint half-crown pieces, which have been scarce for some time in Auckland, and there is reported to be a surplus rather than a shortage of shillings in the citv.

The new coins, which presumably will go into immediate circulation, will have no value from an exchange trafficking point of view. As indicated, the total order for the New Zealand banks was for £IO,OOO worth of Australian silver, and the divided shipments were arranged by the Commonwealth Bank of Australia, through the Federal Treasury.

Exchange trafficking in New Zealand silver coins produced the shortage which necessitated the shipment of £IO,OOO worth of Australian florins to New Zealand. Under legislation and regulation the importation of silver to the Dominion (as well as the exportation of it) is prohibited, except with the consent of the Minister of Finance. In the present case, and to tide the Dominion banks over the shortage until New Zealand receives the coinage of her own design from the Royal Mint, the regulations were suspended, and the banks were given authority by the Government to import the coins to the value stat ed.

\ reliable forecast as to the date on which New Zealand will be in receipt of the first bags of what may bo called ‘ ‘ real ” Now Zealand silver coins is not possible. The Government has not yet approved the design for them, but it is anticipated that a selection will be 4nade at an early date. Subsequent procedure will not be of a protracted nature. The machinery of the TJoyal Mint is ready, and it can reasonably be assumed that the first of the coins will be in circulation in New Zeaalnd before the rush of Christmas shopping sets in. Profit-taking. The value of New Zealand’s own coinage will be the restriction of its use to the ‘lt will not bo acceptable outside the country; and

therefore will offer no -attraction to traffickers. When the rate of exchange was at par in New Zealand and Great Britain, but-varied from 25 per cent ,to 30 per cent in the Commonwealth, enterprising Australians collected all the English coinage they could and disposed of it in New Zealand at a premium varying from 25 per cent to 30 per cent. English coinage, which is the ordinary silver currency in New Zealand, was taken back to Australia, and a further profit made. The New Zealand Government passed legislation prohibiting the export of silver but it did not stop the practice. With the exchange rate, New Zealand on London, increased to 21 percent, arid English silver still the silvercoinage of the Dominion, traffickers made a profit of 25 per cent by sending the coins back to England either through Australia or other countries. Owing to the extraordinary increase in the “trade” in recent months, the utmost, vigilance has been exercised by the police and the Customs Department in the searching of all outwardbound oversea steamers; and by this means the illegal exportation of a considerable amount of silver has been nipped in the bud. At the same time, there is a feeling in the circles which discuss these questions, that the really effective method of bringing the practice to an end is the passage by Great Britain of legislation preventing the importation of silver into the United Kingdom. On the other hand, the same result is expected from the arrangement the Government has made with the Royal Mint to supply a special New Zealand coinage corresponding to that of the Commonwealth coinage. In the meantime the Melbourne Miht has filled the btekclb