THE FEDERAL COINAGE

Otago Daily Times, Issue 14800, 6 April 1910, Page 5

THE FEDERAL COINAGE

NOT NEGOTIABLE IN NEW ZEALAND. ATTITUDE OF THE BANKS. (Per United Press Association.) • WELLINGTON, April 5. With reference to the decision of the banks not to accept the new silver coinage of Australia, the position is one of nego-. tiation between the New Zealand Government and the banks.

At the moment it appears to be the banking opinion that as an enormous profit will accrue to the Commonwealth through the new silver coinage New Zealand, which has no share in the profit on it, should not circulate it. The profit on the coinage belongs theoretically to the King, but actually to the Government. On thb Commonwealth coinage the Commonwealth Government makes about 4jd in every Is. New Zealand has to j.jy Is for every shilling of the British coinage, and the profit goes to the British Government. The time has come, it is held in some quarters, that if Australia is to have her own silver coinage'the Dominion of New Zealand should have hers, or if the Commonwealth silver is to circulate hero then it should be i effected at a profit to this country, and arrangements with New Zealand should be made by the Commonwealth Government to that end. So far as can be ascertained, tliere is no desire, at least in New Zealand banking circles, to change the design-of the Imperial coinage circulating in this country and no wish to substitute the head of a Maori rangitfra for that of Edward Rex VII or the Roval coat of arms for a kiwi couchant. Even supposing arrangements are made between tho Government of the Commonwealth I and that of New Zealand for the latter to participate in the profits arising out of'the new coinage, it will tako some time before legislative action to give effect to it can bo-carried out, and in the meanwhile the Commonwealth silver will have no more than a sentimental or numismatic interest for New Zealand-era. Visitors or travellers returning from Australia will no doubt find it very awkward if they come here with pockets full of the new silver, for it will have no more chance of becoming current here than French francs or German marks, for if tire banks wiU not take it the traders will not take it cither. There must shortly be a, lot of new silver money in circulation in Australia. There is to arrive in all £200,000 worth of the new money in the following sums:-£50,000 in shillings (already in Australia), £100,000 in florins, £25,000 in sixpences, and £25,000 in threepenny pieces. Silver withdrawn from the Australian banks to a corresponding amount will be forwarded to the British Government. The schedule to the Common•wealth Coinage Bill shows that the hew silver coins have to be thirtv-seveii-fortieths fine silver and Hirce-fortieths alloy. The Commonwealth Treasurer ma.y cause to be made bronze or nickel coins as well as silver and gold. Hitherto the New Zealand banks havo drawn then- supplies of silver from Austraha for convenience and to save expens« and have returned the worn silver to London, via Australia; but New Zealand has been ignored altogether in tho matter of tho new silver coinage bv the Comroonwalth, which Km assumed that it would secure the profit on the circulation m the Dominion; tame the trouble