[macfarl.^e] metallic CURRENCY OF THE BRITISH EMPIRE 49 



remint abraded coin rests upon the Eoyal Mint. The Australian Mints 

 acting as agents of the Imperial government receive worn silver coin 

 from the banks at its nominal value. The worn coin is melted by the 

 Australian Mints and shipped to London in ingots, the Imperial govern- 

 ment paying all expenses for delivery at the Eoyal Mint, London, and 

 also bearing the loss on recoinage. This arrangement does not seem to 

 have been entirely satisfactory to the Commonwealth, and its government 

 made an effort to obtain some of the profit of coining which they sup- 

 posed to be very large. In June, 1901, the House of Representatives 

 appointed a select committee " to enquire into and report upon the 

 " desirableness and expediency of the Commonwealth coining gold, silver 

 " and copper coins, and adopting a decimal system of coinage." The 

 Committee reported in April, 1903, and among other opinions, expressed 

 the following: — ''Since 1873 the seigniorage on the silver coinage has 

 " steadily increased till it now amounts to over 130 per cent on the cost 

 "of the silver. Upon silver bullion costing £733.013 purchased by the 

 "Eoyal Mint in 1900, the profit in coining was £974.519 or 133 per cent. 

 " On the bronze coin operations for the same year a profit of £119.043 

 " is shown. In the opinion of the Committee no reason exists why the 

 " Commonwealth should not receive this seigniorage on the amount of 

 "the token coinage it requires, accepting the corresponding liability ot 

 " restoring the worn coin of its currency from time to time. To secure 

 " this a special token coinage not current outside the limits of the Com- 

 " monwealth is preferable, and the opportunity should be availed of to 

 " make that coinage a decimal one." The report was adopted in June, 

 1903, by the House of Eepresentatives on the following motion: — That 

 in the opinion of the House, the necessary legislation should be intro- 

 duced to give effect to the recommendations contained in the report of a 

 Select Committee on Commonwealth coinage and currency. 



Previous to any further steps in the direction of legislation or exe- 

 cutive action, the Eeport was submitted to various authorities, chambers 

 of commerce, public bodies, and employers unions in the Commonwealth 

 for an expnession of their opinions. There were over seventy of these 

 consulted, most of whom sent replies. About one half were in favour of 

 delay or no change for the present, and the other half were for imme- 

 diately decimalising the currency. It does not appear that since Decem- 

 ber, 1904, any further action has been taken to obtain a new arrangement 

 with the authorities of the Eoyal Mint regarding silver coinage for 

 Australia. Of course many of the reasons above given for adopting pure 

 nickel as a metal for the subsidiary coins of Canada apply also to the 

 smaller coins used in Australia, England and other parts of the Empire. 



Sec. III., 1906. 4 



