FALSE COINS

Otago Daily Times, Issue 21736, 30 August 1932, Page 10

FALSE COINS

BIG PLOT ALLEGED TRAFFIC FROM CHINA THREE ARRESTS IN 1 SYDNEY. (From Our Own Correspondent.) SYDNEY, August 18. Behind the arrest in Sydney last Tuesday of three Chinese lies a police claitp to the discovery of a plot to circulate counterfeit Australian coins on a large scale. It i s alleged that the bad coins originated in China, and that they have been so perfectly modelled that the ponce have found it necessary to call scientists and other experts to their assistance. Many of the coins had to be assayed before the banks could be certain that they were spurious. The appearance,- ring, hardness, and response to the acid test were the same as with genuine coins, and all that remained,was to submit the pieces to a long chemical process in specially prepared laboratories. It was then shown that the suspected coins varied 3 per cent, from the standard contest of silver. Long inquiries by the detectives showed, that the coins, which were mostly shillings, had been imported from Hongkong., ,The police were faced with the initial difficulty that Australian coins, especially those of lower denominations, were cheap in Chiua, and that anyone wishing to traffic in them could make about 8 per cent, by bringing them to Australia. Police view »' this traffic with suspicion, especially when they learned that on one occasion a man' brought 9000 shilling pieces to Australia among "his. luggage. The counterfeit coins were so widely distributed that one of the detectives engaged in the inquiries actually received one in his pay envelope. . The first warning of the passing of the coins was received from the teller of a city bank, who became suspicious- of a number of shillings tendered among "a large sum banked by a Chinese " customer. The coin rang true, and passed various other tests, and several bank officials were inclined to scoff at the teller. It was agreed, however, that the doubted coins should be sent to Melbourne for special tests. Elaborate chemical tests had to be made before it could be said with any degree of certainty that the coins were spurious. It was then discovered that there was a difference of 3 per cent, from the silver content of genuine coins. Events moved quickly after that. Other banks were warned, and three of them reported that they had received coins similar to those which had been proved spurious. Detectives were at once detailed to watch three Chinese who had paid large sums iuto the four banks concerned. It wag found that bad coins were invariably paid in with good ones, the ratio being about 40 per cent, bad coins. On one occasion, according to the detectives, one of the suspects was seen to change two £lO notes into shillings and florins. Later he visited another bank and deposited some Of the good silver as well as some spurious coins. The men were followed night and day for almost three wee°ks, and on Tuesday, when a Chinese arrived at a city bank for the purpose of paying in £2O in silver he was intercepted by two detectives and taken to police headquarters. There he was closely questioned. Soon after detectives rushed to the offices of an importing firm and arrested two more Chinese. When the men appeared before the magistrate it was stated by their counsel that the defence would be that the coins were not spurious.