WELLINGTON: A clause empower-ing the Minister of Finance to arrange with the Royal Mint for the issue of a special silver and copper coinage for New Zealand forms one of the most important provisions of the Finance Bill (No. 4) which was introduced into the House of Representatives this evening.
It was revealed by Mr Coates that negotiations have already been opened with this end in view.
"Silver coinage," said Mr Coates, "is intended for internal circulation only, and in most countries there is no trouble in this respect as each has its own currency, and this is not acceptable elsewhere." In New Zealand, however, British silver coin is used, and it has been found necessary to take steps to prevent its being used for purposes for which it was never intended.
Legislation was passed in the finance Act (No. 2), 1931, authorising the issue of regulations dealing with export and import of coined silver and providing that silver dealt with in contravention to the regulations was to be forfeited.
That legislation, however, has been insufficient to stop the drift of silver from this country.
"Since the recent increase in the exchange to 25%, the position has become even more difficult, and to avoid endless trouble involved in making the prohibition effective the Government has decided to arrange for the issue of a special silver coinage for New Zealand, thus taking away the incentive to use silver as a means of evading the exchange."
The Royal Mint has already been communicated with in this connection and possible arrangements are under discussion.
It will take some months for them to be completed, to have designs prepared and dies made, and to have the coins struck off and delivered in New Zealand.
"The present clause is designed to enable the Minister of Finance to proceed with the proposal, and a complete Coinage Act will probably be brought forward next session when full information on all aspects of the matter will be available."
Under the terms of the Bill silver and bronze coins minted in accordance with this arrangement are to be legal tender in New Zealand and the Minister is empowered to purchase from the royal Mint such amounts of coins as may be necessary for the public requirements in New Zealand.
In order to tighten up the restrictions against the exportation of silver coinage from New Zealand until the dominion possesses its own issue, another clause in the bill enables the Crown to seize coinage which a person is attempting to take out of the country.
- March, 8