THE RIGHT TO COIN SILVER.

North Otago Times, Volume XXXV, Issue 7265, 13 October 1891, Page 3

THE RIGHT TO COIN SILVER.

When the Imperial Government conceded first to Sydney and then to Melbourne the right to coin sovereigns, the concession, instead of costing the mother country anything, was a financial benefit to her The British sovereign is intrinsically worth, all the world over, the amount which it representa itself to be value for. The inevitable consequence of this is pecuniary loss ; the metal of which the sovereign is made is worth LI sterling ; the cost ot coining it is so much dead loss. The Australian branches of the Royal Mint have the gold ready to hand for coming, but they also lose, and lose heavily, on their coining operations. The Melbourne Mint costs Victoria annually about L5000 in hard cash, and will continue to do so as long at present conditions remain unchanged. But why should they remain as at present? Silver coinage is highly profitable ; the ounce of coined British silver represents 5s, while bar silver is worth only 3s lOd per oz in London Australia ia now one of the great silver producing countries, of the world, and yet ■he hu to export pure metal, and to import her silver coinage, losing heavily on the transaction. The Imperial Mint pays its expenses out of silver coining, while the Australian branches suffer an undiluted lots from their sovereign output. We use a good deal of silver coin in Australia. Victori* alone imports enough to secure the Imperial Mint an annual profit of LI 1,000, And moreover her people have a good deal of trouble with defaced and worn coin, which must be sent to England before it can be realised upon. The remedy is simple, and the Premier intends to propose it and secure the support of New South Wales, which is equally interested in the mintage question, for his request to the Imperial Government that Australian Mints be allowed to coin silver as well as gold. There can be no rational or equitable objection to the innovation, which would , make the Melbourne Mint a profitable instead of a losing concerq, changing an annual loss of L5000 on its operations into a net profit of L6000, as well as greatly conveniencing the mercantile community. Due precautions should, of course, bo taken against »he over-issue of Australian silver, and to secure the Imperial Mint fiom any responsibility in connection with worn, light, and defaced coinage from our mints. Though the Imperial Government would lose something by the innovation, the equity and reasonableness of the proposals are sufficient assurance that they will not, having previously conceded all the principle involved by granting pei mission to the colonies to coin their own gold, demur to the authorisation of silver coinage also.— Melbourne Leader.