VANISHING GOLD COINS

Dominion, Volume 9, Issue 2727, 23 March 1916, Page 3

VANISHING GOLD COINS

THE DOMINION'S RESERVE. ' The- announcement made on Saturday regarding the suspension of issue of half-sovereigns ■ emphasises the fact that ever'■'. since the outbreak of war there has been a noticeable decrease in tho amount of gold in circulation (says the "Now Zealand Herald"). Onp of the reasons assigned to this shortage was that private individuals.were hoarding up every gold coin- available, but this view is stated by-the'manager of one of the' Auckland banks to be incorrect insofar as it is advanced as a full explanation of decreasing supplies. Undoubtedly a number of people are holding all tho gold they can obtain, but not in such quantities as to affect general circulation. The reason •is stated to bo that Now Zealand banks, in common' with banking institutions all the world over, are conserving largo supplies of. gold coin, and making prac-, tically all payments in' notes and silver. New Zealand's gold coin is all received from Australia, but all export from that quarter has long since ceased, and ' following the announcement made on Ihe outbreak of war that bank-notes would bo accepted as legal tender, Dominion batiks at once began to conserve their gold. 7n this way, both sovereigns and half-sovereigns have been steadily withdrawn from circulation. The amount of gold coin held in reserve by New Zealand banks at the .dose of !J!lo was approximately £0,000,000, as against £5.000,000 in 1913, representing nn increase of £1,000-000 iugatbered from the public during the war period. "There is no doubt whatever," remarked the manager of the Auckland bank referred to,, "that, as war goes on, gold coin will' become more and' more scarce. People will hare to get used to notes and silver, for -they are. certainly going to take the place of gold. There is no difficulty regarding the minting or supply of silver,- -and half-crowns will doubtless take the place of half-sovereigns to a large extent."