GOLD COINS

New Zealand Herald, Volume LXXI, Issue 21899, 7 September 1934, Page 13

GOLD COINS

ALLEGED DEALING APPEAL AGAINST FINE LEGAL POINTS ARGUED [by TELEGRAPH —PRESS ASSOCIATION! WELLINGTON, Thursday The Supreme Court was engaged today in hearing two appeals from decisions given by Mr. E. Page, S.M., the parties being Henry Edwin Campin, informant, and Harold Harding Morris, Limited, defendant. It was alleged that on December 6, 1933, at Wellington, defendant committed an offence against the Board of Trade regulations by unlawfully carrying on the business of a gold coin dealer, not being the holder of a licence to do so. The magistrate convicted defendant and fined him £SO and costs. Against that decision defendant appealed. In a statement of the case the magistrate said the evidence showed that, on November 9, 193.'3, a police: officer in plain clothes went to the premises of defendant and asked Morris if he bought sovereigns. Morris replied, "We are not supposed to, you know." The constable put one sovereign on the table and Morris gave him 30s for it. The police officer made several subsequent calls and disposed of gold coins. Grounds ol Appeal Mr. Levi said defendant appealed on the grounds that there was no such business a gold coin dealer, as defined by the regulations, and that the regulations were ultra vires. Ho contended that sovereigns were still currency and still legal tender. Every sovereign was worth at least 255, and if a person gave 30s for a sovereign that did. not make it a purchase of the sovereign. Mr. Justice Ostler: Since the war, since we have been off the gold standard, the price of gold has been steadily rising. It is now over £7 an ounce. Sovereigns have been withdrawn from circulation in New Zealand foj; years, as everyone knows. The intrinsic value of a sovereign is over 30s at the present moment, and there have been a number of people, goldsmiths and others, who have been buying sovereigns to melt down and make a profit on them. Am I to ignore all that and shut my eyes? Mr. Levi: I say it is not a trade if a person changes notes for a sovereign. That is not buying a sovereign. His Honor: I should say an ordinary person would say it was. Gourt Reserves Judgment Mr. Evans Scott contended that in this case defendant was a gold coin dealer and committed a breach of the regulations. Mr. Levi said the use of a sovereign as currency could not make it a trade or business within the meaning of the Board of Trade Act. The melting down of coins was quite a different thing. His Honor: That has always been illegal. Mr. Levi: Yes, that is so. Manufacturers are in a very difficult position. His Honor: They might buy secondhand jewellery. After hearing further argument the Court reserved judgment. The other appeal was from the conviction of Harold Harding Morris, Limited, for carrying on business as a second-hand dealer without a licence. The question was whether the purchase of second-hand jewellery for the purpose of making it into gold ingots for export made. the purchaser a % secondhand dealer within the Second-hand Dealers Act, 1908. Judgment was reserved.