NEW SILVER COINS.

Taranaki Herald, Volume LXVIII, Issue 16918, 16 December 1920, Page 3

NEW SILVER COINS.

TO CONTAIN LESS SILVER, IN CIRCULATION IN BRITAIN. (By Telegraph—Own Correspondent.) WELLINGTON Dec. 14. ■ A-brief cablegram last week announced that the new “nickel” coinage would be put into circulation in Great Britain this week and old silver coinage would at the same time be withdrawn from circulation. The Dominion maintains the same currency as tho United Kingdom, and" will in due timo, just so soon presumably as the new coins can ho brought to the Dominion, make tho same change in tho coinage. The reason for the change lies in tho fact that for some time past the public has, to put it paradoxically, been receiving more than a shilling’s worth of silver in tho shilling. An ounce of silver “which used to cost less than 30d was converted by the mint into 5s 6d worth of coin. The profit made on this and tho bronze coinage paid tho working expenses of tho mint and also compensated for the loss on gold: coinage and the re-minting of .worn coins. Bronze coins wero made at the rate of £448 worth of pennies from a ton of copper, costing before the war £55, now about £75. If people had a pennyworth of bronze in every penny they would need a barrow lor small change. During the war the price of silver rose to 80d an ounce, so that there was considerable loss on the silver coinage.- Britain therefore amended her coinage so that coins should contain half silver and half alloy instead of 925 silver and 75 of alloy, " By proclamation last September Now Zealand made the amendment applicable to the Dominion. This may he referred, to as a “war increase,” but its effect will not bo felt by the man in the street. ' Economists, of course, debate the ef* feet of such alterations in the currency but the possessor of a new shilling will he able to exchange it for as much in goods us if it -were one of the old coins. AVere it the practice to sell coins for the metal they contain, there would bo a difference, but such dealingto be prentable to tho buyer would mean that he must use the metal for other than currency purposes and that is illegal. Section 48 of tho Finance Act last session made it an offence punishable by a fine of £lO to melt down or break up any gold or silver current in New "Zealand, nor may" the coin he exported without permission.