THE MONEY OF THE EMPIRE.

Timaru Herald, Volume L, Issue 4819, 16 April 1890, Page 3

THE MONEY OF THE EMPIRE.

From a report of a piipcr read beforo tbo Royal Colonial Institute on " Thn Monoy of Iho British Empiro," by Mr L. C. Probyn, we learn that thorn ia a groat varioty of curroneies in tho Einpirn.

In the United Kingdom, Ohannol Isl ind«, Australasia, Boutli African colonios, West African settlements, West Indies, except Honduras, Malta, Kalklands, St Holena, and Fiji, there is a gold standard, with £„ s. d. currency (silver taken ut 45d per oanco). The metallic monoy of the 1 above places ie the same at ours, sav<3 that Jersey and Guernsey aro each supplied with special ooppcr coins. In the West Indies British silver is gonorally unlimited legal tendor. In eomo purls of this section accounts are koptin dollars at 4a 2d. 17or Malta a special coin, ona-third of » farthing, is coined. In Great. Britain notes of the Bank of England, und of private and joint Btock banks circulate ; in Australasia and -out.li Africa, ootcs of chartered and joint stock banks ; and in tho Wosl Indies notes of the colonial and British QuiauA banks. I A euriouo foaturo of the Woßt Indian standard H that it is only nominally a gold standard, an silver dollars are in gonaral use at their full nominal value of it 2d, and gold being wndorvaluod at this rate for silver, tho gold coins have all disappeared. It ia found howovor, that this cuusoi no practical inconvenience.

In Canada and Newfoundland tliero is a gold standurd with dollar currency, tho Oanadian doltur at 43 l'3ld, lha Nowfoundlund dollar, at 4t 2d. In Uanada tboro are in ueo Dominion i. e. Stata bank, notos, aqd joint stock bank notes ; iu Newfoundland, notoo of j the latter kind. A tnarkod foaturo of tho monotary eystom of Canada is tho complote maintenance) of a gold standard, although thoro ' ie scarcely any gold in circulation, and compared with other gold standard countries, bqfc, lit tlo gold in rciorvo. In Novombor there woro Dominion dolob in cirotilatioa amounting to 16 mijlion dollars, und notcn of 09 banks to iho umount of 25 millions.' The banka mny i«Biio to thy extent of their uncallod and nnmorlgngod copitaj. Thojr notes nro not legal tender, ihat in no one cun bo Joggly rcquirod to toJw tlioui in paymonl?, but they aro redeomaWo in coin or Dominion noton at Ilio plueo wliare thoy uro payaUo. Tbo banlis aro required Lo kcop a reeorvn of uol ' leta than 40 per cvat ia corn or Dt>mia\op poivp.

These notes are full legal tender, but tho holder can claim gold for them f.t tho place where they aro rrmde payable, t-ilvri' dollars aro not legal tendor, but fractions of dollars in ] silver, ate legal tender up to ton dollars. In the courco of the diacueeion on tho paper objectioa was taken to tho author speaking of notes as money, aa they, only represented money. He replied to tho effect that notes mUBt be mouey, othorwise Canndu practically has no money at all, as very little gold is ift circulation. Gibraltar, Heligoland and Cyprus, havo a gold standard, with foreign coinage India, Ceylon and Mauritius ha7e a silver standard, with rupee currency, with notes issued by tho respective Governments. In India silver rupees and half rupees aro unlimited legal tender ; quarters and eightß only for fractions of a rupee, copper token coins, double pice.pice, half pico.aud pice— 82,64, 128 and 193 to the rupco — aro good for parts of a rupee, and exchange freely for the silver coins. Tho noto circulation is 167 million rupeos, 60 millions being covered by Government securities, the rest by coin or bullion. Tho notes aro isenod in certain " circles " and are redeemable in coin only in the circlu of isouo ; they novertholcßS circulate throughout, tho country and aro accepted onjwhcro by tho : 3 ovovmni!nt. The total of tho paper money in use- is sm^ll in proportion to the population, only about three quarters of «■ rupco por head. Afr Probyn estimates tho silver ooin actually in use in India at 420 million rupees or about 2 per head of the peoplo ; of copper coin about 35 million rupees. There is nn itmnonja amount of gold in Iniiia. During tho last ton years the net import has been about 35 millions B^erliug, and it is estimated that thoro is at least 200 millions worth iu hoards and ornaments. Gold coins form favourito ornaments. It is not uncommon to see children of comparatively poor paronta with throe or four gold coins ou their necks. British Honduras and Hong-Kong havo a silver atandard with a dollar currency, the dollar of tho formor worth 2i 11.15d ; of tho latter 8s 2.21(1. ■Labuan, tho Straits Sottlomcnta and North Borneo have a silver standard with a Mexican dollor (3s 2.21d) currency. Thus there is groat diversity not merely of systom but of details, in tho m;ney of the empirn. Tho gold standard is in Homo places expressed in pound?, in other places iu (lollure; tho Bilvor standard in some places in dollars, elsewhere in rupees. And thero aro differences in the dollars. Tho gold dollar of Canada differs from tho gold dollar of Newfoundland, and tho silver doll.Uß vary still moro Mr Probyn points out tho lesson of the possibility of maintaining a gold standard of value with very littlo gold in reserve This is illustrated by tho eneo of Canada, whore tho standard is fully maintained by stato and bank paper currencies based on only 25 por cent of gold, and with Tcry littlo gold in circulation, and by the case of the West Indies, where thero is no gold at all.