MANUFACTURE QUESTION

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

MANUFACTURE QUESTION

DISPARITY IN ESTIMATES

NEW ZEALAND AND LONDON

DIFFERENCE OF £IBO,OOO

[ia telegraph OWN* correspondent] i ' WELLINGTON', Snturdny The special committee set up to report to the Government on the new Dominion coinage went closely into the question of the manufacture of coin, and after the fullest examination of All aspects came to the definite conclusion that tho question under review was effectually answered by a comparison of the local manufacturers' estimates of cost with the ofTcr of the Royal Mint.

Iho report states: "The best estimate obtainable in New Zealand for the recoinago of tho existing supplies of silver involved minting charges of approximately £210,000, whereas tho Royal Mint is prepared to carry out tho contract free of charge, except the cost of dies and artists' fees, estimated at £GOO, and freight approximating £30,000, a net difference in cost of approximately £IBO,OOO. Replacing Imperial Coin "In respect of Imperial coin at present in circulation, tho .'Royal Mint has always admitted liability to replace it when it became worn, and this may have been a factor in the offer received from tho Mint to undertake tho recoinago free of charge, and may account in part for tho disparity in the costs quoted. "The price quoted for manufacturing charges for future supplies from tho Royal Mint were substantially lower than any such estimate obtained in the Dominion. It was also ascertained that, as a large part of the necessary minting machinery would have to bo im--ported and erected before production could ho commenced in New Zealand, it wouid be at least six months before the coins could be produced locally. On the other hand, the lloyal Mint is prepared to commence delivery immediately upon receipt of the approved designs for the new coins. Minting Dif&culties

"Furthermore, a definite statement from the Royal Mint to the effect that no other mint has been s.uccessful in producing a satisfactory cuaternary alloy of which the present British coins are composed, and of which it is desirable that the New Zealand coin should be made, led the committeo to the conclusion that there is at least a doubt as to whether tho manufacture could be successfully carried, out in New Zealand. The major portion of the present coinage is that minted from a ternary alloy consisting of 925 parts of silver to 75 parts of other metal, so that the whole of the existing issue will not be required to produce sufficient silver for recoinage into a quaternary alloy. As it is understood that redemption at face value is out of the question, tho only means of disposal of this surplus old coin is to melt it down and sell the bullion.

"It has been estimated by the Royal Mint, on tho basis of tho present price of silver, that the sale of this bullion will not only cover all recoinage costs, but also will return to the New Zealand Government a net: profit of £182,000. Owing to the relatively higher manufacturing costs which would be incurred should the recoinage he carried out in New Zealand this result would not be possible in the case of the contract being given in the Dominion. Bronze Issue Considered "The committee has considered also tho question of the bronze coinage now in circulation in tho Dominion. In the committee's opinion the recoinago of this is not of urgency. When this work is undertaken the committee recommends that artists in New Zealand bo given an opportunity to prepare proposed designs. We aro given to understand that the offer of the Royal Mint to have prepared suitable draft designs with the Royal effigy on one side and the New Zealand arms and typical Maori designs on the reverses, and have these designs revised by an expert committee of artists in London, was accepted by the Government. Copies of these draft designs have not yet come to hand and arrangements ha-ve been made for a cabled description to be forwarded to New Zealand as soon as possible. In view of the urgency of the matter it is evident that approval of designs will have to be left largely in the hands of the Government's representatives in London, acting in conjunction with such New Zealand artists or other expert advisers as may be available there, but before approval is finally given it is suggested that a cabled description of the designs, when received, be submitted for opinion to leading representatives of the New Zealand Numismatic Society and tho Now Zealand Associations of Artists' Societies."