The Chronicle LEVIN. WEDNESDAY, JUNE 28, 1916. THE CURRENCY.

Horowhenua Chronicle, 28 June 1916, Page 2

The Chronicle LEVIN. WEDNESDAY, JUNE 28, 1916. THE CURRENCY.

'I luit the melting down or reducing of gold by chemicals is an offence against statute law is not gen orally known, but the fact remlains. In New Zealand the law has been so for many years, and lately the lew of the Commonwealth oif Australia has been brought into line. An interesting note on tke matter appears in the latest issue of The New Zealand Trade Review, which journal "remarks thiat recently it was announced in the local papers that the Federal Government of Australia had issued a proclamation prohibiting jewellers from melting down sovereings for making jewellery. It comes as somewhat of a surprise that this practice was applalrentiy allowed there before, ob it has been illegal-here for some years past. We douM, however, if very much notice is taken of the prohibition here, as there is a tremendous leakage of coin in New Zealand. as will he seen from the figulres giving the imports and exports of coin from 1881 to 1915 inclusive, end the average amounts Held by the banks at the end of each of the five yeairly pariods, In the thirty-five years referred to there has been an excess of impolrts over exports of £10, G13,896, while the banks' holdings have only increased by JL t.02-j,037. the holdings at the beginning of 1881 being £1,964,325. There is therefore a leakage of £6.088,859 in the period under review, or about £174,000 per annum. Of course wo do not suggest that the - jewelietrs are responsible for all this: there a.re various forms of leakage. We understand that dentists use a certain amount, also it is well known that Chinese leaving the dominion take their capital with them in gold coin, of which probablv very littlo is shown in the Customs' returns of exports. Also residents of tlio dominion going for a trip take a certain amount" for use on the voyiige. i:\nd probably bring veu*y iittTc back with them, as in most, cases they can ofitain funds as soon as they land hero. Another point is that, with the increase in population nnd tirade in tlie period, there are larger holding;; ouitsirle the banks, but we do not thing this would account for much, as it is chiefly (silver for change, and the f;tct that «it present there is very little gold in circulation would counteiraot this to a large extent. The fact remains, therefore, that for years past there has been a continual lealdago of coin, and probably there wiV continue to be so in the future in spite of laws and regulations, as the fact of nominal ownership of the sovereign gives everyone a strong feeling thai he is morally entitled to put it to any use he feels inclined.