NEW COINAGE

Waipukurau Press, Volume XXVIII, Issue 63, 8 March 1933, Page 2

NEW COINAGE

For New Zealand SILVER AND COPPER FOR INTERNAL CIRCULATION (Per Press Association) WELLINGTON, Last Night. A clause empowering the Minister of Finance to arrange with the Royal Mint for the issue of special silver and copper coinage for New Zealand forms one of the most important piovisions of the Finance Bill (No. 4). “Silver coinage,’’ said the Rt. Hon. J. G. Coates, “is intended for internal circulation only, and in most countries there is no trouble in this respect as each country has its own currency and this is not acceptable elsewhere. In New Zealand, however, the British silver coin is used, and it has been found necessary ’o take steps to prevent its being used for purposes for which it was never intended. “Legislation was passed in the Finance Act No. 2 (1931) authorising the issue of regulations dealing with export and import coined silver and providing that silver dealt with in contravention to the regulations was to be forfeited. That legislation, however, has been insufficient to stop the drift of silver from this country. Since the recent increase in exchange to 25 per cent the position has become even more difficult, and to avoid the endless trouble involved in making prohibition effective the Government has 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. Arrangements Under Discussion “The Royal Mint has already been communicated with in this connection, and possible arrangements are under discussion. It will take some months for them to he completed, to have designs prepared and dies, etc. made and" have coins struck off and delivered in New Zealand. The present clause is designed to enable the Minister of Finance to proceed with the proposal, and a complete

Coinage Act will probably be brought forward next session, when full information on all aspects' of the matter will be available.’’ Under the terms of the bill, silver and bronze coins minted in accordance with this arrangement are to be legal tender in New Zealand, and the Minister is empowered to purchase from the Royal Mint such of coins as may be necessary for public requirements in New Zealand. The cost of coins and of carriage to New Zealand may be paid out of the public account. Export Restrictions In order to further tighten up the re> tiictions against the exportation of silver coinage from New Zealand until the Dominion possesses its own issue, another clause in the. bill enables the Crown to seize coinage which a person is attempting to take out of the country.