DRIFT OF SILVER.

Star (Christchurch), Volume XLIV, Issue 708, 8 March 1933, Page 5

DRIFT OF SILVER.

Flow of Money from the Dominion. SPECIAL ISSUE OF COINS. (“ Star ” Parliamentary Reporter.) WELLINGTON, March 8. The Finance Bill introduced in the House last night provides for the issue | °f special silver and bronze coins for ! New Zealand, mainly with the object of checking the outward flow of token money. The measure empowers the Minister of Finance to ar- ; range with the Royal Mint for the | issue of silver coinage which is intend!?d for internal circulation only. In j most countries there is no trouble in | this respect, as each has its own ! currency which is not acceptable in | other countries. In New Zealand, however, British silver coin is used, | and it has been found necessary by i the Treasury to take steps to prevent its being utilised for purposes for which it was never intended. Mr Coates informed the House that | legislation had been insufficient to ; stop the drift of silver from New Zea- ! land. Since the recent increase in exj change the position had become even more difficult, and to avoid endless trouble in making the prohibition effective the Government had decided to arrange for the issue of special silver coinage for New Zealand, thus taking away the incentive to use silver as a means of evading exchange. Mr Coates said the Government was forced to adopt its own silver coinage. (Hear, hear.) Mr Lee (Grey Lynn) : Why not print five shilling notes? Mr Coates: That’s an open question. In Kenya they work on shillings.