MINTING OF SILVER AND COPPER.

Taranaki Daily News, 22 July 1931, Page 12

MINTING OF SILVER AND COPPER.

(To the Editor).

Sir, —I have read with interest recent correspondence dealing with Mr. ’Wilkinson’s proposed Coinage Bill, It seems to me that what controversy there is, has arisen over Mr. Wilkinson’s reported statement that coinage for New Zealand can bo minted at a profit, irrespective of where the minting is carried out. It is quite true that silver and copper coins are generally said to bo “minted at a profit” in England (you can find the expression in any text-book on banking or economics), but the expression is loose enough to 1 mislead the layman. To be more precise, these token coins are “minted at a profit to the Royal mint, ’ a British Govenimtent institution, and the effect is to give the Government credit of a permanent nature. I believe that the intrinsic value of a shilling is about Id, and by the issue of token coinage through the Bank of England, the British Government obtains credit to the extent of about twothirds of the face value of coins so issued. Each coin as it becomes deteriorated must, of course, be withdrawn at its face value, but if a new coin is issued to replace it no contraction Of credit is apparent, and the credit expands as the amount of token coinage in circulation increases. There can be no question of inflation provided that the amount of coinage issued is not excessive. Under the circumstances, it appears to me that 'Mr. Wilkinson’s proposal is by no means unworthy of consideration. —I am, etc., J. W. Rowlands. Dartmoor Avenue, New Plymouth, July 21, 1931. ’