SILVER SHORTAGE

New Zealand Herald, Volume LXX, Issue 21503, 29 May 1933, Page 10

SILVER SHORTAGE

SCARCITY OF HALF-CROWNS ENGLISH COINS IN DEMAND The shortage of silver and particularly of half-crowns reported from Wellington has been noted in commercial circles in Auckland for some time past. Several reasons are given to account for this. Passengers and crews of steamers leaving New Zealand are allowed to take £2 in silver and the half-crown seems to he the favourite coin they seek. Even if only the legitimate amount were taken, it would account for the withdrawal from the Dominion of a large quantity of silver over a period of months, but the temptation to run the small risk of smuggling an extra supply away is strong because it can be convened abroad into English notes on which a 25 per cent prolit can be mado when they are brought back. Another probable explanation of the shortage is hoarding. There is a belief that as English silver will have a higher exchange value than the new New Zealand coinage, there is a profit to be made by holding tho English coins. No half-crowns are issued by the Australian mint and their popularity as compared with Australian coins is easily explained by the fact that Australianminted silver currency is worth only three-quarters of its faco value in England. The demand for English halfcrowns in Australia ife necessarily reflected here. The introduction of New Zealand coinage should smooth tho whole position, but in tho meantime, while that is awaited, banks are not likely to go to the expense and risk of importing any largo quantity of silver coins to tho Dominion.

POSITION IN WELLINGTON WIDER USE OF FLORINS [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Saturday Tljo shortage of half-crowns is beginning M bo very noticeable in Wellington. Householders and tradesmen are feeling tho general scarcity, with the result that .Australian and British florins are coining more into use. There is a strong feeling in commercial circles that half-crowns, which are all from the Imperial mint, aro making their way out of tho country to Australia, England and possibly Japan. It is stated that commercial firms in Australia have been paying sums considerably in exeess of tho token value for Imperial silver coinage. A visitor in Sydney recently found during a casual purchase in a shop that a British halfcrown bought goods to the value of 2s 9d. SUPPLY FROM AUSTRALIA TOTAL OF £50,000 WORTH [BY TELEGRAPH —PRESS ASSOCIATION"I WELLINGTON, Saturday It is understood that in order to relievo the shortage of silver coinage in Now Zealand 'pending tho minting of Dominion silver coins, recourse will be had to Australia for florins and silver coin of lesser denomination. Arrangements have been made, it is believed, for importing up to £50,000 worth of Australian silver.