NEW AUSTRALIAN MONEY.

Hokitika Guardian, 8 May 1920, Page 1

NEW AUSTRALIAN MONEY.

NICKEL COINS AND FIVE SHILLING NOTES.

SYDNEY, April 28

A os note, a shilling in whicff the silver contents \Vili be greatly reduced, and a square penny and hall-penny (or maybe a coin of the value of IJd) of nickel will shortly be added to the Australian currency.

The new shilling will differ so little ; in appearance from the present shilling • that only the experts will tell the differ- ( ence. At present, as everyone knows, the silver in British silver coinage is worth more than the face value of the coins, and the latter cannot be minted now excejit at a loss. The trouble in ' reducing the silver in the coin has been j to get a mixture that would “ring 1 true,” that was essential in order to j prevent the circulation of counterfeits. ( to the circulation of which the change j over to a baser coinage would give a j unique opportunity. It- is stated that j this difficulty has now been overcome. | The Australian Mint, in this regard, is only following the example of Britain, where cheaper shillings are already being minted. The 5s note, of course is designed to ease the demand for silver. It looks now as if silver will never come back to the rate which permitted the old coinage; but the authorities do not wish to use too much of the new alloy in case silver should slump. So more paper money is to be produced. The 10s note was a novelty four years ago; now we have the ss; one wonders what next.

The nickel coins are to meet a demand arising from the post-war economic confusion. The phenomenal dislocation of values lias put the penny almost out of court. Here in Australia about the only tiling that a penny will buy now is a cheque form. The three things which we used to buy with the handy coin—newspapers, stamps and tram fares—are now at ltd. This lias caused an enormous increase in the

handling of small money, and a demand for halfpence which for years could not’ ho met. The issue of nickel coins will overcome that difficulty. The proposal to make them square in shape, with rounded corners, so that they will not be confused with silver coins, lias met with much criticism. Bank tellers particularly object, arguing that the square shape will he hard to handle. Those who have noticed the facility with which tellers stack and roll in paper the big masses of coin will appreciate the objection.