48 ROYAL SOCIETY OF CANADA 



The present seems a very convenient time for endeavouring to put 

 an end to the anomaly of having two ratios oo-esistent in the British 

 Empire, and from a Canadian point of view there is much to be said in 

 favour of adopting the Indian ratio in the new Mint, This change 

 would tend to lappreciate the value of silver, and bring the intrinsic 

 value of the coins considerably closer to their face value. In the United 

 Kingdom and its Colonies the difference between the real and nominal 

 value of the coins is too great. For instance a 50 cent piece in Canada 

 contains silver to the value of about 23 cents. The inducements to 

 counterfeiters are very tempting and the difficulty of detectirg counterfeit 

 coins made of the same fineness as standard silver is very .great. Indeed 

 there can be no certainty that all the silver coin now in circulation is 

 genuine. On this point Mr. Probyn (Proceedings of the Eoyal Colonial 

 Institute; Vol. XXI, p. 133) says: — "It is however possible to fix the 

 ' nominal gold rate of silver too high. Thus an inducement to the 

 ' fabrication of illicit coins of precisely the same intrinsic value is held 

 out; coins which it must be very difficult to distinguish from lawful 

 coins, and this state of things has been brought about in England 

 ' owing to the fall of the gold price of silver. We have lately seen 

 ' reports in the press of the manufacture of illicit good silver coins, in 

 one instance it being stated that, to avoid detection, the manu- 

 ' facture was being carried on on the high seas ; and in other countries 

 " as well, where the profit is not so great though the opportunity of 

 ' getting the coins into circulation is better, we hear of the same thing. 

 ' It appears therefore probable that, if the gold price of silver remains 

 ' as at present, the law will have to be amended, in view to the nominal 

 ' gold rate of silver in our currency silver being lowered, and the silver 

 ' coins being made more valuable." From this quotation it is evident 

 that ]f there are no " illicit good " silver coins circulating in Canada, the 

 people are indebted, not to the wisdom of their rulers, but to the vigi- 

 lance of their detective organizations. Such vigilance does not appear 

 to exist or to be effective in the United States, where there are said to 

 b3 hrge quantities of the pure counterfeits in circulation. It is of 

 course quite possible that a great deal of the American silver circulating: 

 in Canada may be of the same ilKcit description. It has to be con- 

 sidered that Mr. Probyn's paper was written in 1890 when the price of 

 standard silver was about 45 pence. The danger referred to is of course 

 much greater now that the price is about two shillings and sixpence. 



The branch Mints in Australia manufacture only gold sovereigns 

 for use there and largely for export to other parts of the' world. The 

 silver currency is all coined in London, and the Commonwealth authori- 

 ties pay for it at the face value, but the obligation to purchase and 



