£29,000,000 Goes Up In Smoke

Chronicle (Levin), 20 October 1949, Page 5

£29,000,000 Goes Up In Smoke

WELLINGTON, Oct. 19. New Zealand paper curreney to the amount of £29,681,000 was deliberately destroyed by the Reserve Bank during 3 948. This sum represented the faee value of soiled and mutilated notes that had come to the end Of their useful service and were withdfawn from circulation. "•■•Pufging bf' th'O nb'te issue goes on all tlie time. Tellefs are instructed to put on one side for cancellation any note that is defaced or obviously unsaf e for further traffic in and . out of handbags, wallets, and other places where notes usually repose. The rejected notes are tied up in bundles, after being carefully checked, and consigned to the Reserve JBank 's private incinerator,' 'and after further ehecking and under proper supervision they are tossed into the furnace — so much scrap paper. In the meantime, their place in the country 's note circulation is taken by crisp and clean notes that quickly lose their> crispness and eleannes as they pass smartly — much too smartlj — from hand to hand. However, the special tough paper of which the bank-note is made wears well with normal use. For instance, the 10s note, which has the shortest life of them all, circulates for an average period of 330 days before it is eremated. The £1 note has an average life of 395 days, while the £5 note is good for 665 days. Silver Coinage The replacement of the country 's silver coinage with tokens made from a cupro-nickel alloy continues slowly. Silver coins as they are coi lected at the banks are set aside anc! .delivered to the Reserve Bank, which replaces them with an equivalent number of new coins. So far tbe amount of silver coinage withdrawn is about £868,000. As there were silver coins to the value of £3,342,000 in circulation at the enfl of last year, the task of complete replacement looks like taking some time yet.