TRADING-BANK NOTES

New Zealand Herald, Volume LXXI, Issue 21968, 27 November 1934, Page 10

TRADING-BANK NOTES

STILL MANY OUTSTANDING replacement of silver * . OLD COIN DISAPPEARING The general opinion of the banks in Auckland is that-there is still a considerable number of old trading-bank notes outstanding. It is stated that it is impossible to make an accurate estimate of the number, as it is not known how many notes have been accidentally destroyed over a period of years. The old notes, together with the English and Australian silver coins, are reported to be flowing into the banks gradually, although in constantly diminishing quantities.

Since August 1, when the first Reservo Bank notes were issued, the trading banks have been stoadily withdrawing the old notes from circulation and cancelling them. At thq present time the Reserve Bank notes are issued in denominations t)f 10s, £1 and £5, but it was stated yesterday that in a short time it is expected that £SO notes will bo available. It was several months before the issue of Reserve Bank notes, however, that a start was made with the withdrawal of the English and Australian silver coins, which have been replaced with New Zealand's own coinage. All the old coins that have been received by the banks have been forwarded to the Royal Mint. "We are still receiving trading-bank, notes, numbering about 5 per cent of what we get in day by day," said an officer in one bank yesterday. "They will gradually decrease, however, although it is difficult to say how long it will be before they disappear. AVe have no record of the number that have been destroyed by fire or on the sea. Although many must have been destroyed, we are obliged to pay a tax on them, just as if they were in circulation.

"There are not many English and Australian silver coins about now, although the latter exceed the former," he added.

The experience of another bank is that whereas it was receiving thousands of old notes a day a few months ago, it is now getting only about 10. "We consider there is still a considerable number of our notes outstanding, particularly those of the larger denominations," remarked an officer in another bank "The silver coins are coming in slowly, and it now takes us several months io collect a few thousand pounds." One bank reported that it was receiving about £4OO of old notes a week, the majority being of the 10s and £1 denominations. English and Australian silver was now becoming rare.