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being considered. In this way he was left at 

 liberty for the Currency Commission, and accepted 

 Lord Randolph's suggestion. 



The following correspondence between them 

 has reference principally to the unsatisfactory 

 condition of the gold coinage : 



Confidential. 



Treasury Chambers, Whitehall, S.W., 

 December lQth, 1886. 



Dear Sir John Lubbock — 



" Becoinage of light Gold " 



I have given much attention to this matter during the 

 recess and venture to trouble you confidentially with 

 the rough outline of a scheme I am prepared to recom- 

 mend to Parliament in the event of its securing the 

 favourable consideration of the banking community. 



My object has been to recoin the light gold, and 

 maintain the coinage permanently on a sound basis 

 without cost to the taxpayer or loss to the " last holder." 

 This I provide for by the abolition of the half-sovereign, 

 and by a small and limited issue of one pound notes. I 

 enclose a summarized calculation of cost and profit. I 

 also contemplate using the surplus profit of £45,000 per 

 annum accruing from the operation for the purpose of 

 abolishing the duty on silver plate and paying the 

 drawback. 



Your opinions on this question as the leader of the 

 London Banking interest will be most valuable to me, 

 and I do not shrink from troubling you, for I know the 

 question has for long greatly interested you. — Believe 

 me to be, yours very truly, 



Randolph S. Churchill. 



The plan is : 



1. To recall the half-sovereign. 



It is estimated that there are £20,000,000 of half- 

 sovereigns in circulation, which are light to the extent of 

 about £220,000. These half-sovereigns would therefore 

 produce as bullion £19,780,000. 



The removal of a fractional coin such as the half- 

 sovereign must be expected to cause a certain demand 

 for silver. Experience can only show the extent of that 



