Otago Witness Illustrations.

Otago Witness, Issue 2813, 12 February 1908, Page 43

Otago Witness Illustrations.

— Guy, photo.

AUSTRALIAN SILVER COINAGE.

It is assumed (writes the Economist) that the existing silver coins current in Australia are to be collected and sent away at their face value, and that an Australian coinage is to be substituted. Exaggerated notions prevail as to the gain to be made by the Commonwealth, estimates running to as

high as a million sterling, an absurd extreme. Unfortunately at the Colonial Conference the Chancellor of the Exchequer took the figures relating to the supply of silver by the London Mint to Australia for the last five years only ; while he omitted to refer to two very important qualifications — viz., that a portion of the new silver coin sent to Australia is reshipped to New Zealand, and that another portion drifts away from Australia as small change in the pockets of travellere. There is another

consideration — viz., that a eood deal of the silver now current was sent from London many years ago, when the market value of silver was much higher than it is now, and the seigniorage less. So old and worn is this portion that the Australian mints will not accept it as coin. The Commonwealth wants simply to shunt the silver coin at present current and supplied at a varying seigniorage from year to year, for the purpose of making a profit. Perhaps the most equitable plan would be for the London

Mint to take the coin back merely at its I bullion value. Under any circumstances, | however, a special Australian silver coinage would have to be quite distinct, and allowed legal tender within Australia only. Otherwise the Commonwealth Government might aim at supplying the Empire with all the silver it requires. As regards the direct shipments of silver coin to Australia, the last report of the comptroller of the mint states the total for the 35 years, 1872-1906, at £3.085,145, a part of which has been cent

to New Zealand, while the amount of worn coin withdrawn is £584,053. It is impossible to arrive exactly at the reshipmenta, but the Customs returns show £22,921 for 1906 and £13,213 for 1905. Should the Commonwealth succeed in its design to get the Imperial Government to take back silver coins at their face value, and to replace them at bullion value, it may be regarded as certain that New Zealand will press fbtf the same concession, and, moreover, refuse legal tender to Australian-marked coin.