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New Zealand Herald, Volume XXIX, Issue 8986, 17 September 1892, Page 4

The regular and steady fall in the value of silver has had a very; serious effect on India and all other; countries with a currency on a silver basis. -While the Canadians have enjoyed the privilege of issuing their own silver currency^ the Australasian Colonies have been content 4 to draw' their , supplies from

V'*-' ' ■ nfe -J' ■'. ''■-■■■-■-;•■" S '.•:''."■» ,■ ■-. England. - Now, 1 however, .... the ... Aug. tralasian are claiming a share of the profits arisinsr from the coinage of silver used by them, and the banking institutions of the Canadian Dominion are refusing to accept at pa value the silver coins issued by the United States Mint.- Up to the present time the" interchange of silver coin between Canada and the United States has been of an arbitrary character While the intrinsic value of the dollarj half-dollar, and dime are practically the same in each country,-traveller! crossing the borders are reminded continually- that there is very little reciprocity on the part of the Americans. Anyone tendering Canadian silver on railways, hotels, or in payment for goods, in the United States, will be met with the same look that might be expected if tendering counterfeit coin. On the other hand, the Canadians have » hitherto accepted the silver currency I of the United States as readily as their own legal coin. Owing to the lowprice of silver, on which a large profit is made by the Mint, there is a commercial advantage gained by its acceptance at par value by any other country, and the circulation of American silver coins to the amount of five million dollars in the Canadian Dominion means a considerable profit by 'the United States Mint. At the present time there "are over one hundred and fifty million silver dollars stored in the vaults of the Treasury at Washington, and the large annual production of silver makes this a prominent question in American politics. The action of the Canadian banks will tend to restrict the circulation of American silver coin, and should increase the distribution of their own legal currency, and, as a natural result, increase the profits of the Canadian Mint. It would be observed from a cable message published a few days ago, that the Agent-General for New Zealand is claiming a share of the profit if leave is given, to co ; silver in Victoria. The profit to the Mint in London for coining silver for circulation in these colonies must be considerable. It is estimated that during the six years ending with 1890, the profit accruing to the London Mint on silver coin issued for circulation in Victoria alone, amounted to £66,000. The nominal value of worn silver coin forwarded to the London Mint from Victoria, has averaged only £690 per annum. The question of profit becomes plain when it is stated that the silver coinage is issued at a nominal value of 5s 6d per ounce, whereas the real value at present is only 3s 2d. In the year 1889, the profit accruing to the Chancellor of the Exchequer from the coinage of silver for the Empire, amounted to £800,000.