proposed coining o~l silver, - parliament of victoria · that your memorialists are apprised that...
TRANSCRIPT
1890.
VICTORIA.
PROPOSED COINING O~l SILVER,
AT THE
MELBOURNE BRANCH 0}1 THE ROYAL MIN11 ~
CORRESPONDENCE.
PRESENTED TO BOTH HOUS~;s OF PARLIAMENT BY IUS EXCELLENCY'S CO:V1MAND.
~» ~ntltorii),! : ROBT. S. BRADT, GOVERNMENT PRINTER, Mll:LBOURN:;:.
No, 208.-[ls.]-10259.
Preparation-Not given. Printing (810 copies)
APPROXIMATE COST OF' PAPER. £ s. d.
9 0 0
ABSTRACT.
Date. From whom. To whom. Subject. No. Page.
------------------------------------------------------27 Feb. ltl73 Mr. D. C. 1fcArthur, The Hon. E. Langton, Encloses a Memorial from Banks, praying
that Her Majesty may be pleased to authorize the Melbourne Branch of the Hoyal Mint to make and issue Sih-er Coin, of which a supply is nrgently required in Victoria and the neighbouring colonies
Chairman of the Treasurer -Associated Banks
28 Feb. 1873 Mr. Langton
28 Feb. 1873 Viscount Canterbury
The Right Honourable Viscount Canterbury, Governor
The Right Honourable the Earl of Kimberley, Secretary of State for the Colonies
Expre~ses concurrence in the representations set forth in the Memorial, and asks that His Excellency will urge the Imperial Government to comply with its prayer
Transmits :Nir. Langton's Memorandum, and the Memorial therein referred to
12 Aug. 1873 Mr. Langton ... The Hon.J. G. Francis, Chief Secretary
Requests that the Agent-General in London may be urged to olJtain the deiiired concession as to Sih·er. ls not aware of any impediment to the coining of Copper
13 Aug. 1873 Mr. Francis Sir James McCulloch, Asks as above, and t.hat there may be no Agent-General delay
15 Dec. 1873 The Earl of Kimberley Sir G. F. Bowen, Forwards reply of the Lords Commis-
8 Dec. 1873
18 Mar.l874
Lords Commissioners of the Treasury (per Mr. Lingen)
Governor sioners of the Treasury to the request for authority to coin Silver in Melbourne
Under-Secretary the Colonies
for Treats at length of the question of coining Silver in the Colony
The Hon. J. W. ... ... Opinion. As to the amount of Silver which is a legal tender in Victoria Stephen, Attorney
General
27 Mar. 1874 Under-Treasurer ... Private Secretary ... Returns despatch of 15th December, 1873, and requests that the Deputy-Master of the Mint may be asked to report on the several points which have to be considered before the coining of Silver can be permitted in the local Mint
1
2
3
4
5
6
7
8
8 June 1874 Col. Ward, Deputy- Sir G. F. Bowen Master of the Mint, Melbourne
... Reports as to the proposed coining of I 0 Silver at the Melbourne Mint. Considers it more advantageous to import
28 A prill87 5 "C nder-Treasurer ••. Private Secretary
14 July 1890 The Hon. D. Gillies, The Right Honourable Premier the Earl of Hopetoun,
Governor
the coin required
States that it is considered unnecessary to proceed further in the matter
The question of coining Silver in Melbourne having been mentioned in Parliament, asks that the Deputy-Master of the Mint may be requested to state his views on the subject
11
12
21 July 1890 The Earl of Hopetoun Mr. Gillies ... ... Forwards a letter from Mr. Anderson, 13 dated 18th July
18 July 1890 Mr.Anrlerson,Deputy- The Earl of Hopetoun Ma,;ter of the Royal Mint
Cannot express opinion on the policy of coining Silver here, but report.s as to its practicability
14
5
6
6
7
7
7
8
10
10
11
13
13
13
13
Sm,
CORRESPONDENCE.
(I.)
Bank of Australasia, Superintendent's Office, Melbourne, 27th February, 1873.
THE HoNOURABLE THE TREASURER oF VICTORIA.
On the part of the several banking institutions established in Melbourne, I have the honour to enclose a Memorial to His Excellency Viscount Canterbury, praying that Her M}~jesty the Queen may be pleased to extend to the Deputy-Master of the Melbourne Mint the necessary powers and authority to issue Silver Coin, a supply of which is urgently required hoth in Victoria and the neighbouring colonies.
I have the honour to be, Sir, Your obedient servant,
D. C. McARTHUR.
To His Excellency John Henry Thomas Manners-Sutton, Viscount Canterbury, K C.B., Governor-in- Chief and Vice-Admiral of Victoria.
The Memorial of the undersigned representatives of the several companies and corporations carrying on the business of bankers in the colony of Victoria respectfully showeth-
1. That great inconvenience is entailed upon the public by the scarcity of silver coin for the ordinary purposes of commerce within this and the neigh houring colonies.
2. That your Memorialists are apprised that Her Majesty's -:\lint in England have, for many months past, been unable to execute an order for so comparatively small an amount as Five thousand pounds' worth of silver coin, which they have been asked to furnish for exportation to Australia.
3. That your Memorialists are therefore unable to obtain any adequate quantity of such coin from the United Kingdom, in consequence of the inability of Her Majesty's Mint to supply their requirements.
4. That the branch ofHAr Majesty's Mint already established in Melbourne under Her Majesty's authority for the purpose of coining gold m::ty, with great advantage to the public, and without detriment to the prerogative of the Crown, be also employed in coining sih'er, which is found ia consider;lble quantities in this and the neighbouring coloniea.
6
Your Memorialists, therefore, humbly pray that Your Excellency will be pleased to petition Her Majesty to extend to the Deputy-Master of the Royal Mint established in Melbourne the necessary powers and authority to make and issue silver coin, under such conditions and regulations as Her Majesty may be pleased to enact.
MEMO.
And your Memorialists will ever pray.
Dated at Melbourne this twenty-fifth day of February, 1873.
D. C. McARTHUR, Superintendent of the Bank of Australasia. J. MATHESON, General Manager of the Bank of Victoria. JoHN McMuLLEN, General Manag·er of the Union Bank of Australia. EnwiN BRETT, General Manager of the London Chartered Bank of
Australia. HENRY B. STEELE, Acting .Manager of the Bank of New South vVales. F. G. SMITH, Manager of the National Bank of Australasia. vV. GREENLAW, General Manager of the Colonial Bank of Australasia. A. W. ANDERSON, Manager of the Oriental Bank Corporation. G. vVALKEH) Manager of the English, Scottish, and Australian Chartered
Bank. H. G. TuRNER, General Manager of the Commercial Bank of Australia
Limited.
(II.) The Treasury,
Melbourne, 28th February, 1873.
Referring to the Memorial from the several hanking institutions in Melbourne, praying that Her Majesty the Queen might be moved to extend the privileges of coining silver to the Melbourne branch of the Royal .Mint, which -was forwarded from this office, throngh His Excellency's private secretary yesterday, the Treasurer desires to acquaint His Excellency that he entirely concurs in the representations contained in the 5Iemorial referred to.
The inconveniences pointed out hy the representatives of the banks signing the Memorinl are so constant and so severely felt in the colony, that .Mr. Langton considers it to be very desirable that the prayer of the Memorialists should he complied with, and he begs therefore that the Governor will urge the matter upon the consideration of the Right Honourable the Secretary of State with a view to secure the privilege asked for.
Ihs ExcELLENCY THE GOVERNOR.
(IlL)
EDWARD LANGTON, Treasurer.
Government House, MY LORD, Melbourne, :28th February, 1870.
I have the honour to forward a Memorandum signed by the Honourable the Treasurer, covering a Memorial fi·om the several banking institutions in Melbourne, praying that Her Majesty the Queen may be moved to extend the privilege of coining silver to the Melbourne branch of the Royal .Jlint.
THE RIGHT HoNOURABLE THE EARL OF KrMBEHLEY, &c., &c., &c.
I have, &c., CANTERBURY.
7
(IV.) The Treasury,
Melbourne, 12th August, 1873.
MEMORANDUM Fon THE HoNOURABLE THE CHmF SECHETARY.
In reference to that passage in Mr. Michie's private letter received by last mail, in which he says that there was no strong objection at the Colonial Office to conceding the privilege of coining silver at the Melbourne Mint, I heg to request that you will ur~:e the Agent-General to secure the concession without further delav. The want of sil~er coin i',~ very great, and seems to he increasing·. Fifty thousand pound;;' ( £50,000) worth have heeu imported by the hanks, and Twelve thousand pounds' ( £12,000) worth by the Government, and I have received within the last few days a request from the banks that the Government would import Fifty thousand pounds' ( £50,000) worth more. Silver is to be had in large quautities in these colonies, the machinery and staff of the Mint are not half employed, and the concession would be a ~Teat public convenience. I am not aware of any impediment to the coinage of copper also for Victorian use as well as for the other colonies.
(V.)
Sm,
EDWARD LANGTON,
Treasurer.
Chief Secretary's Office, Melbourne, 13th August, 1873.
In reference to the question of issuing silver and copper coin from 1\Ielhourne Mint, I have now to request that you vvill endeavour to procure the coneessiou without further delay.
The· want of silver coin is very great, and seems to be increasing. Fifty thousands pounds' (£50,000) worth have been imported by the banks, and Twelve thousand pounds' (£12,000) worth by the Government, and I have received within the last few days a request from the banks that the Government would import Fifty thousand pounds' (£50,000) worth more. Silver is to be had in large quantities in these colonies, the maehi11ery and staff of the Mint are not half employed, and the concession would be a great public convenience. I am not aware of any impediment to the coinage of copper at the Mint for the other colonies as well as for Victoria.
I have &e., J. G. FRANCIS.
TnE AGENT-GENERAL FOR VICTORIA, LoNDOX.
(VI.)
Sm, Downing-street, 15th December, 1873.
I duly received your predecessor's despateh, No. 36, of the 28th February last, enclosing a .Memorial from the banking institutions of Melbourne, in which it is prayed that the privilege of coining silver may be extended to the Melbourne Mint.
I caused the :Memorial to be forwarded to the Lords Commissioners of the Treasury, with the expression of my hope that their Lordships vwuld accede to the request of the colony; and I now transmit to you a copy of their reply.-(8th December, 1873.)
I request that you will communicate this letter to your :Ministers for their consideration.
I have the honour to be, Sir,
GovERKOR Sm G. F. BowEN, G.C.J\f.G., &c., &c., &c.
Your most obedient servant, KnmERLEY.
8
(VII.)
MR. LrNGEN To THE UNDER-SECRETARY OF STATE FOR THE CoLONIES.
Sm, Treasury Chambers, December 8, 1873.
The Lords Commissioners of Her Majesty's Treasury have had before them the letter dated 4th June last, in ·which the Secretary of State asks them to again take into consideration the application of the bankers of Melbourne, praying that tlw branch of the Hoyal 2\1int at Melbourne may he empowered to coin silver. Lord Kimberley points out that the Government of Victoria strongly supports that request, and adds his hope that this board will aceede to it.
The question is beset with difiiculties, and my Lords had trusted that the explanation offered by the Deputy-~faster of the Mint would remove the apprehension of the bankers tlw.t it might not be pussible to comply promptly with their requirements.
My Lords, however, understand the Colonial Government to suggest that the privilege of coining silver on it:-; own a<~count should be conceded. The wishes of the Government are entitled to the most respectful attentiou, and in again giving their careful consideration to the subject, my Lords will at once declare, that they have no desire to insist on the colony eontinning to depend upon the Royal Mint in London for all supplies of silver coin which it may from time to time require. But they would be unable to consent to any arrangement whereby silver coin that ·would circulate in the United Kingdom, and would, when ·worn, have to he withdrawn at its expense, should be issued from any but the Hoyal :Mint. If, then, the privilege of coining silver were granted to the colony, it would be necessary that the coin so issued should be distinct in character from the silver coinage of the r;nited Kingdom. Other arrangements would have to be made, tu whi(~h further allusion need not be made at the present stage ; but my Lords may remark that it would be necessary to make known such arrangements to the other colouies.
My Lords, however, while stating their readiness to meet, as far as possible, the views of the Colonial Government, are most anxious that the difficulties of the ease should not be passed over, and they would call the attention of the Secretary of State to tlte following considerations:-
Gold is the single standard of value in the United Kingdom, and in certain colonies using the same system of coinage, and it follows that silver is only required for the purposes of a subsidiary and token coin. The nominal exceeds the intrinsic value of a token coin ; there is, in consequence, a profit on the issue of token coinage, and misehief must ensue if due precaution be not taken to counteraet the temptation arising thence to over-issue. This object is attained in the United Kingdom by restriction on the amount for which the silver is legal tender ; by the reservation in the hands of the Government of the power of issue, and by the requirement that persons obtaining silver eoin from the Mint must pay for it at the rate of One pound sterling for every Twenty shillings, a price considerably in excess of the intrinsic value of the coin.
Further, in praetiee the Hoyal Mint supplies silver coin not to all comers, hut only to certain recognised bodies or authorities, who are in a position to ascertain the real wants of the public. Thus silver is issued in the l!nited Kingdom only through the Bank of England, the Bank of Ireland, and certain appointed Scotch hanks, while the colonial demands are received only through the Colonial Government.
As, therefore, the Imperial Government, to which alone profit accrues, does not issue on its own initiative, and tl1e price paid by the public effectually prevents any demand except for the legitimate requirements of a subordinate circulation, an effective check is obtained.
This cheek can be maintained uuder present_ arrangements ·without difficulty, since the Imperial Government alone is responsible for the management of the silver coinage. On the one hand it issues the coin, and on the other it withdraws it when worn, paying for it the full nominal value which it has borne in circulation.
My Lords describe thus minutely the peculiarities of a token coinage, because it is essential that they should be recognised and understood by those who deal with the subjeet. A hove a11, it must he borne in mind that the privilege of issuing implies the duty of withdra·wing tokens at their full nominal value, and the question now under discussion is, on this point especially, complicated.
9
. As far as gold coin is concerned, it is of no consequence whether it be issued from the Mint in the United Kingdom or from a branch Mint in the colony, for it possesses its full nominal value, and the holder, not the State, abides the loss arising out of wear and tear. In the case of silver coinage, however, the State is responsible for ~wear and tear, and hear the loss consequent ou withdrawal.
Further, my Lords trust that the Seeretary of State will not overlook the temptation to over-issue tokens, if they can he circulated outside the limits of the issuing State. An example of this concurrent circulation may be found in the large numbers of French bronze coin passing from hand to hand in England; and instances are not wanth1g in Europe in which, notwithstanding the efforts made by the Governments interested, tokens of one country are freely accepted in other countries where they are not legally current. It will he evident that the introduction of tokens the produce of foreign mints, without limit, into a State deprives that State of effective control over its tokeu currency, and may be the occasion of pecuniary loss and of conflicts of opinion between the parties interested.
Prudence dictates that sueh conflicts should be foreseen and guarded against before a line of policy likely to engender them is adopted, rather than they should be fought out as they arise, in circumstances probably not favorable to conciliation.
It appears to rny Lords that the attention of the Colonial Government should be drawn to these facts, and that it should he invited to consider the following points, which. must be decided before a colony could he permitted to undertake its own coin-age, nz. :-
1. The terms upon which, and the limitations under which, the branch of Roval Mint at Melbourne should coin silver.
J
2. The principle upon which silver coin of the Hoyal Mint in London, circulating in Victoria, and i-iilver coin of the branch of the Royal Mint in Melbourne, circulating in the United Kingdom, is to be ~withdrawn.
3. The principle upon which silver coin, the produce of either Mint, circulating in other colonies is to he withdrawn.
The Secretary of State will perceiYe at once, thnt if one branch Mint be permitted to coin silver, a like privilege will inevitnhly be sought by and must he conceded to other branch Mints, and it will therefore he necessary to decide-
4. The principle upon which silver coin the produce of other branch Mints is to circulate and be withdrawn (say coin of the Sydney Mint current in Victoria).
5. The conditions under which silver token coins are tender in the colony; if these do not correspond with the conditions enforced in the United Kingdom, the law must be amended. In other words, it must be definitely laid down that silver is only legal tender to the amount of forty shillings.
It is obvious that any proposal for allowing a colony to coin tokens cannot be entertained until agreement on these points has been arrived at by all the colonies interested.
In submitting these considerations to the Secretary of State, my Lords must call his special attention to a difficulty which ~will arise in adjusting the incidence of the cost of the withdrawal.
"\Vhen a coin has been a long time in circulation the distinctive "Mint mark" stamped upon it becomes ohliterated, and no means would exist of identifying· the issues of the several 1\i[ints. This difficulty might be to a great extent removed by the adoption of a different design for each Mint; but it will he remembered that that arrangem(mt was not favombly received iu the ease of the gold coinage.
My Lords have now stated the difficulties which occur to them in devising a scheme, permitting several communities to isssue on their own account the same token coinag·e. But in stating tlwse difficulties) they wish it to he understood that they have only one object in view, namely, to meet the requirements of British communities in the most simple, praetieal, and economical 'neth:HI for all concerned. They are, ahove all, anxious to prevent the possibility of qm':-.:ti:):JS arising hereafter, which may lea(l to disagreement between the Imperial Govemm<'nt and the colonies, or between the colonies themselves.
10
They would wish it to he carefully considered by those interested in this question whether, when different communities use the same token coinage, it is not better for all parties concerned that one of them should act as agent for the rest.
It is clear that if the coin is to have general circulation the Imperial Government is alone qualifieJ to undertake that duty of agent, and to he responsible for the issue and withdrawal of the coin; but it would be quite feasible, my Lords believe, to make arrangements for the coinage of silver tokens on account of the Imperial Government at the bmncb Mints; and my Lords would desire to be informed whether, in the opinion of the Secretary for State, the object sought by the Colonial Government might not thus be practically attained, in a manner agreeable to the sense and wishes of that Government.
~I y Lords need not remark that, in making theRe suggestions, they put aside all question of the profit which at present accrues to them. The amount of silver issued to the colonies has hitherto been comparatively small, and the profit has not been, therefore, of large amount; but whatever the amount, my LorJs would not allow it to stand in the way of an arrangement beneficial to the empire.
These remarks will apply to the representation made by the Government of New Zealand, inasmuch as they apply to all token coinage; and with regard to paragraph 1 of the Agent-General's lettet· to the Colonial Office, of 4th June, the Secretary of State -will be glad to learn that the :Mint in this country is ready to supply any amount of bronze coinage which may be necessary for circulation in the colony, and for which Dr . .Featherstone may be authorized to apply.
I am~ &c.,
THE UNDER SECRETARY OF STATE FOR THE CoLONIES. R. R. ,V. LINGEN.
(VIII.)
OPINION OF THE HoNOURABLE J. ,V. STEPHEN, ATTOHNEY-GENERAL.
Formerly in England a legal tender could be made to any amount in silver. It was first limited to 40s. by the Act 5G Geo. III., cap. 68, sec. 12, passed after the settlement of New South Wales. In New South vVales Spanish dollars would appear to have been the ordinary currency at that time (see 5 Geo. IV., No. 1, Catla{.{han, p. 39G). I do not thinkthat 56 Geo. III., above cited, became law in these colonies by virtue of n Geo. IV., cap. 83, as I do not think it was applicable. It is evidently a local .Act, intended for the United Kingdom of Great Britain and Ireland, and probably at the epoch of 9 Geo. IV. could not have been practically observed in New South 'Vales. On the whole, though the point is not perhaps absolutely free from douht, there having been no decision upon it in the Supreme Court so far as I am aware, I think there is no limit in this colony to the amount of silver which is a legal tender.
(IX.)
SIR,
J. ,V. STEPHEN,
18/3/74.
The Treasury, Melbourne, 27th March, 187 4.
I am directed to return the accompanying despatch (15th December, 1873, No. 94) from the Right Honourable the Secretary of State, relative to the coinage of silver at the Melbourne Mint.
vVith reference to Mr. Lingen's letter, enclosed in the despatch in question, I am to express the desire of the Treasurer that Colonel Ward may be asked to report generally on the several matters with which Mr. Lingen's letter deals, and
11
especially upon those points which have, it is stated, to he considered before the coinage of silver can he permitted in the local Mint, viz. :-
1. The terms upon which, and the limitations under wltieh, the branch of the Royal Mint at Melbourne should coin silver.
2. The principle upon which :·iilver coin of the Hoyal Mint in London circulating in Victoria, all<l silver coin of the branch of the Royal Mint in Melbourne circulating in the United Kingdom, is to be withdrawn.
3. The principle upon which silver coin, the produce of either "Mint, circulating in other colonies, is to he withdrawn.
4. The principle upon which silver coin, the produce of other branch Mints (e.g., Sydney), is to circulate and be ·withdrawn.
5. The conditions under which silver token coinage should be issued. I have the honour to he, ~ir,
Your most obedient servant, E. s. SYMONDS,
THE PRIVATE SECRETARY. Under-Treasurer.
(X.) Sm, Melbourne, 8th June, 1874.
I have now the honour to submit for Your Excellency's consideration my report in reference to the proposed coinage of silver at this Mint, which Mr. Langton, by Mr. Symonds' letter to your private secretary of the 27th March last, desired that your Excellency might obtain.
I may observe that my report has been withhold, in the hope that I should be able to receive from the associated banks in this colony, through their chairman, some definite statement or opinion as to the local demand for silver coin.
The enclosed copy of correspondence will show that this hope has not been realized.
The Treasury letter of 8th December lnst, enclosed in the Secretary of State's despatch, No. 94, of 1.5th of the same month, in stating the principles on which the silver circulation of the e nited Kingdom is based, appears clearly to indicate that the issue of silver coin of the same dcsig'n and currennT fi·om any of the branches of the Hoyal Mint·must be controlled hy tl~e same principles, i.e.- V
1. The quantity of silver coin or tokens which may he issued in any colony must be limited to the legitimate requirements of the local circulation.
2. Those who receive the profit on the first issue of silver tokens must untlertalw the duty and cost of withdrawing them, when worn out, from eireulation at their full nominal Yalue .
. From the best information I am able to obtain, it would appear that to place and. maintain the silver circulation of this colony in an efficient condition it would be amply sufficient to import and issue silver tokens this year to the value of £50,000, and in every subsequent year of the value of £30,000.
The quantity of silver produeed in this country, adued to that which is imported in the course of trade, appears barely sufficient to supply the ·wants of the local jeweller and the chemist. If the whole were available for coining, the quantity would be insignificant and altogether inadequate. If silver is to be coined here, it must be imported from London or from India, and the cost and charges attending the importation would he the same as those incident to the importation of an equal weight of coin.
It appears more reasonable, therefore, as a matter of economy, to import annually the small quantity of silver coin necessary to maintain the local circulation in an efficient state than to import bullion, for the coinage of which the colony must incur an outlay iu machinery and appliances and an annual expenditure iu labour.
A small profit would, no doubt, he seeured in the first issue of coin, hut this would probably be absorbed by the cost attending its ·withdrawal when ·worn out. It appears, howeyer, needless to consider the financial result of such a proceeding until a way has been found to satisfy the requirements that coin issued at the profit of the colony must be withdrawn, when wom out, at its cost. I am unahle to suggest any way satisfactory to myself by which this requirement might he fulfilled. The silver coin of the United Kingdom is of the character of a bank note. It is but a symbol of
12
value received, which the is•mer is bound to redeem in due course at the value it represents. When the impression on it has been obliterated it has become of the character of a bank note without record on the face of it of the corporation responsible for its redemption. If silYcr coin is to be issued by several independent authorities, the difficulties attending its redemption would be similar to those attending the redemption of the bank notes issued by several corporations, and from which all distinctive marks had been obliterated.
M)T opinion on the general question, as well as on the five points specially submitted for my report, may, therefore, be stated as follows:-
The manufacture at this, or at any of the branches of the Royal Mint in Australia, of silver tokens of the design and currency of those now in circulation in the British dominions will produce no advantageous result. The only condition under which, with due regard for the interests of the British Empire, it should be permitted is that it slmll he on account of the Imperial Government, and subject to such limitations as to issue and renewal as they may pre~;cribe. It would be better to import in a coined state the silver re(1nired to maintain the local circulation in an efficient condition.
The letter of the lTnder-Trea'Jurer to the Private Secretary, No. 2068, dated 27th March last, and its enclosures, are herewith returned.
I have the honour to be, Sir, Your obedient servant,
Hrs ExcELLENCY Sm GEOHGE FRRGusoN BoWEN, G.C.M.G., GovERNOR OF V ICTORI.A.
[ENCLOSURE. J
E. -vv. w .ARD.
MY DEAR :McARTHUR, Hoyal Mint, .Melbourne, 8th April, 187 4. Would you kindly give us your opinion, with any information you may possess,
on the following points:-1. As to the nominal value of the silver coin now circulating in Victoria. 2. As to the value of such coin that will probably be required to be
coined or imported here annually to maintain the silver currency in an efficient state.
I require this information for official use, so I apply to you, as Chairman of the Associated Banks in the Colony, and therefore best qualified to give it.
Yours faithfully, D. c. McAHTHUR, EsQ. E. vV. w .ARD.
[ENCLOSUHE.]
Bank of Australasia, Superintendent's Office, MY DEAH Sm, Melbourne, 1st June, 187 4.
I have endeavoured to obtain from the representatives of the banks in Melbourne the information sought in your letter of the 8th April, relative to the amount of silver coin in circulation in this colony, and also the amount that will be required to be coined annually to maintain that currency in an efficient state; but I regret that the replies I have received do not furnish any reliable data upon which I should feel justified in expressing an opinion upon the points named.
Yours faithfully, D. C. McARTHUR,
To CoLONEL W A.RD, MASTEH OE' THE VICTORIAN MrNT. Superintendent.
Refer to the Honourable the Trea~nrer.-G. F. B. Referred accordingly.-IIENRY D . .PrTT, Private Secretary, 9/6/74.
13
(XI.)
Returned hv direction of the Honourable the Treasurer to the Private Secretary. It has not been de~med necessary to proceed further with this matter at present.-
E. s. SYMONDS, 28/4/75.
(XII.)
MEMORANDUM IWR His ExcELLENCY THE GovERNOR.
Premier's Office, Melbourne, 14th July, 1890.
The Premier presents his duty to Your Excellency, and has the honour to state that the question of the desirability of silver being coined at the Melbourne branch of the Royal Mint has been mentioned recently in the Legislative Assembly.
As a preliminary to considering the matter, Mr. Gillies will be obliged if Your Excellency will ask the Deputy-Master if he will be so good as to favour the Government with an expression of his views on the question.
(XIII.)
D. GILLIES, Premier.
MEMORANDUM FOR THE HoNOURABLE THE PREMIER.
Government Offices, Melbourne, 21st July, 1890.
In accordance with the request contained in the Honourable the Premier's Memorandum of the 14th July inst., the Governor begs to transmit a communication which he has received from the Deputy-Master of the }fint, in which Mr. Anderson affords an expression of his views as to the desirability of silver coinage being instituted at this branch of Her Majesty's Mint.
(XIV.)
MY LORD,
HOPETOUN.
Royal Mint, Victoria, Melbourne, 18th July, 1890.
I have the honour to acknowledge the receipt of the Premier's letter (sent by Your Lordship) of the 14th, and which asks for an expression of my views as to the desirability of silver being coined at the Melbourne branch of the Royal Mint.
In reply, I may explain that this branch of the l\Iint beiug or not being authorized to coin silver is a question of Imperial policy, which in 1873 1vas decided by the then Chancellor of the Exchequer in the negative, and I would not feel warranted in expressing any opinion upon its desirability from that point of view.
But, so fiu' as the capability of this Mint to coin silver, and its expediency solely in regard to the working of the Mint, any information I can give is heartily at the service of the Victorian Government, with the reservation that the views are partly theoretic, and might have to be modified in practice.
The machinery does its present work of coining sovereigns admirably, and with silver coins no larger than a shilling I think it would do equally well, but for the larger coins it would not.
It would, therefore, be necessary to procure a good deal of new machinery of a rather expensive kind, probably reaching, or perhaps exceeding, £3,500. ·
That, however, seems by no means an insuperable objection, and the real difficulty is in its interference with the regulation work of the Mint.
14
The establishment here is, as regards the public, on a totally different footing from the London Mint. Their sole depositor of gold is the Bank of Englnnd, and the bank and the Mint can arrange between them for a convenient time to commence a long run of gold coinage and then drop it for a long run of other work.
We, on the other hand, have an unlimited number of depositors, and are bound to take in all the gold that is brought to us and to pay th8 depositor its value on about the eighth day after, and, as the Mint has no working capital, we are obliged to turn all gold into coin as quickly as possible as the sole way of paying depositors.
I have no means of knowing when gold is coming or not coming, and we are sometimes for a week or two very slack, and at other times on high pressure.
The largest coinage we have ever done in one year has been £~,052,800, but if a full supply were to arrive regularly \Ye could easily coin £5,000,000, or even more, per annum.
There is thus a good deal of slack time which could be utilized in coinage of silver, but for its possible interference with the gold and with our responsibility to depositors, who might chance to bring in large parcels when we had just turned the establishment on to silver.
To coin silver and gold simultaneously would be most inadvisable. The arrangement with depositors is made by the Victorian Government, and
it has been suggested that they could alter it; but any regulation that delays the payment beyond the eighth day, to which depositors have been so long accustomed, would certainly give great dissatisfaction, and it is to he deprecated.
The Sydney plan might be adopted of giving the Mint a working capital with which to pay depositors before their gold was coined; but I do not recommend that, if it can he done without.
Ji~rom the above, I think Your Lordship will see that as regards the present work of the Mint, the coinage of silver is not very desirable, but it is quite possible, if the colony, for other reasons, desires it, and if the quantity were not excessive.
If authority is obtained from home, and I am allowed the expenditure for necessary new plant, no effort will be wanting on the part of the establishment here to carry out the silver coinage successfully.
I have the honour to be, my Lord, Your obedient servant,
GEORGE ANDERSON.
Hxs ExcELLENCY THE EARL OF HoPETOUN, G.C.M.G., &c., &c., &c., GovERNOR oF VICTORIA.
By Authority: RoBT. S. BRAIN, Government Printer, Melbourne.