NEW COINAGE

New Zealand Herald, Volume LXX, Issue 21533, 3 July 1933, Page 11

N EW COINAGE

COMMITTEE'S VIEWS

W ORK FOR HOYAL MINT

N 0 CHANGE IN SYSTEM hE PORT MADE TO GOVERNMENT , - teleciiaph— OWN- correspondent] "\VELLINGTON, Saturday The unanimous rcconraendation that there should be no change in tho existcoin denominations used in New g en !and is ninde by the special committee recently appointed by the Governnient, whose report was released by the acting-Prime Minister, the Rt. Hon. " J.fi, Coatcs, to-day. rphe committee mado an investiga,jon of the various decimal coinage Osteins, but decided against any change to tho present circumstances. The members of tho committeo were Messrs. A. D. Park (chairman), representing tho Treasury; A. S. Burgess, presenting the chambers of commerce; J- jK- Prethcyv representing tho ijftocinted Banks; A. Marshall, repreEfi ,, : tho Post and Telegraph Departmer>t; W- Simtn, representing the reuß- M. Sunloy, representing r j( Vvv.t,roller and /• uditor-Genernl; A. Vi»nd. rcprcsoi ting tho Numismatic Society; and ,i. L. Wise, repre- ' renting tho Depui • .nent of Industries and Commerce. Several Schemes Considered "The committee," states tho report, "has made a careful general survey of tLe possible advantages and disadvantages that would follow tho introduction of a deci mil" system of coinage in substitution for the system now in use in the Dominion, and has considered sereral decimal schemes, in particular the 'crown-cent' scheme and tho : pound-mil' scheme. Other decimal coinage schemes were also reviewed and after a careful examination the committee oame to the following conclusions: — "Apart from any other considerations, having regard to tho cos co tho community of a change-over v.uer existing conditions, tho committee does not recommend the adoption of a system of decimal coinage in the present circumstances. It has. been suggested that tho question might be revived in tho event of there being a special recoinage in the future, perhaps in 1940, when commemorative coins may bo issued to mark tho centenary of New Zealand. "The committeo accordingly considers it fitting to place on record somo of tho principal advantages and disadvantages of a decimal system of coinage, which presented themselves in a general examination of the proposed decimal coinage schemes. They are as follows: — Advantages Detailed "(1) Simplicity in calculation. As ' arithmetic i 3 based oil decimal notation it -would be most convenient in accounting for the monetary system to be on a similar basis. "(2) Increased facility in accounting, thereby saving time and increasing business efficiency and reduced liability to error in keeping accounts. "(3) Greater ease in computing accounts, as increases and decreases in wages, interest, etc., aro usually expressed in percentages, which nave a mors convenient relationship with a decimal system, of coinage than a fractional system. a "(4) Greater ease in converting a decimalcurrency into foreign currency, particularly in view of the fact that all the leading foreign countries in the world have already adopted decimal systems of coinage. "(5) Facility in exchange conversion calculations. The foreign trader has a tendency to overlook prices and quotations in a currency which he finds difficult to convert to his own. "(6) An improved price gradient. The adoption cf the pound and mil system. for instance, would provide a smaller unit of value and therefore a morß sensitive range of denominations. "(7) A more scientific method of price adjustments. Variations in price brought about by percentage increases or decreases, such as sales tax or customs duties, could bo. moro accurately passed on to the consumer than at present. Simplicity in Calculation "(8) A saving of time during education and throughout life by the elimination of the need for calculating in compound arithmetic in all calculations involving money. "(9) As the decimal system of coinage is almost universally adopted in foreign countries, its adoption in New Zealand might tend to promote foreign trade expansion. The decimal system is widely used within the Empire, and a recent South African decision would appear to indicate an increasing trend within the Empire toward that system. *■ "The disadvantages are: — "(1) Difficulty in deciding the most witable basis of decimal coinage to bo adopted to suit local conditions and all present disabilities. A decimal system based on tho retention of tho penny at 'ts present value would cause the identity of the pound to be lost, thus disturbing the Dominion's-link with storing. The adoption of the pound and mil system or crown system would not be readily acceptable owing to the impossibility of retaining tho penny at its present value, which represents tho PWo basis of innumerable commodities sold and services rendered internally. "(2) Transitional difficulties arising through old and new coins not being ei ®ctly interchangeable. (3) The cost to the community of a change-over to new or converted ac-

counting machines, stationery, tables °» charges, rates, -insurance premiums, commercial costing and price lists, etc., to gether with the extra clerical work necessary in the initial stages, would involve a substantial additional expenditure. Cost of New Appliances .I'M) The cost of new accounting mil- ® "ics and similar would nor. jj®.distributed in the Dominion, as supPles coine from overseas and not neccsw/l rom within the Empire. (5) On account of the prevailing ecowuie cmiditions the present time is ost inopportune for these additional sts to' be imposed upon the community. . • The introduction of a decimal ", la » e would be a further disturbing « Vat a time when commodity aro a state of fluctuation. D J'| Although the decimal system r n " s distinct accounting advantages, for ract ' ona ' system is more convenient ng to greater divisi- ®). liability to error in 1 ,n K with thc-deeimal system may Kvnffi Ver^ Although the existing Ciht" 11 IS ITInro ; "i v °lved, the use of ealbin'J nf ;. nii *ehincs minimises the possi».V.®* crr °r with the present system, of tv,' t> nr Ie greater volume Pre>;pn+ < l l^lnio "' s external trade at the «.r° '? ,vitll Great Britain, is us™! H|f c tional system of coinage 'Vstem' » ny . cie P !lr ture from the present +° c , olna K° and money of account ''Hp'ifv + co . m Pl'eate rather than tion transactions in this conneeothe^iL Any Vantages that would tem ar n uccr ! lo .^ roni the decimal sys*hile tli lrilll ™ ,^ec '. to some extent Jteiehf. ? J ' i! " esGri t binary system of Dd measures obtains."