G.F. 323
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36.
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coins by the introduction of a 3 unit denomination, but never with success. Similarly 2 and 12 unit coins have rarely proved successful.
In many
currencies of course the lowest coin is 5 or 10,
or even 100, but the principles of the ideal
sequence are unaffected.
The omission of a '2' in theory more than trebles the number of 1 unit coins needed, but if a coinage contains a large number of denominations they often
do not all circulate effectively. It is difficult to generalise but experience seems to suggest that five or six denominations may in practice represent
an optimum."
Referance was made in paragraph 29 to the fact that the use of a 25 cent coin would on many occasions be coupled with that of a 5 cent coin. We consider, however, that owing to inflation the 5 cent coin will, in time, probably cease to circulate in significant numbers and accordingly the number of purchase and change units of multiples of 5 would show a gradual reduction. For this reason we feel that a 20 cent coin would have advantage over a 25 cent coin.
37.
Referring again to the table in paragraph 32, it will be seen that 4 organisations, including the Royal Mint and certain members of the Exchange Banks' Association, were in favour of introducing a $5 coin to replace the note of this denomination. In this connection, the following comments of Senior Staff of the Cash Department of The Hongkong and Shanghai Banking Corporation, are of interest :-
"The average life of a $5 note is between 8 to 10
months whilst that for coins can be 15 years or
more. There are, at present, in circulation $1 coins dated 1960 in good condition.
The time taken to sort and count $5 notes into useful and dirty (for destruction) will be eliminated as counting will be by coin counting machine. The
smaller and thinner than the present $1; this
size:
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