G.F. 323
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This was the experience in Britain when the twelve-
sided threepenny piece was introduced in 1937, and more
recently it has been the experience of France with their
5 franc coin. You may accordingly find it necessary to
withhold supplies of 10 cent and $1 coins in order to force
20 cent and $2 pieces into use. Again in theory the
introduction of new coins should not significantly affect
the total face value of all coin and notes in circulation,
and if forced into use the new 20 cent and $2 pieces should
therefore displace the equivalent face value of 10 cent and
$1 coins. I realise only too well how unhelpful all this is, but I think you can in fact only make a subjective
judgment of the initial demand, pitching this on the
high side because of the likelihood that any surplus
will quickly be absorbed as the coins win acceptance.
My own guess would be around 40 millions of each
denomination."
We feel that the Mint may have underestimated the demand, particularly
at the Chinese New Year, which will arise simply because these are new
denominations of coins. We consider that 70 million 20 cent coins and
30 million $2 coins should be ordered initially.
78.
We expect that the introduction of the $2 piece will reduce
the number of $1 coins required by approximately two-thirds but we do
not think it is possible at this time to make an estimate of the number
of new $1 coins that will be required in August, 1976. We suggest that
this be left until the Treasury are able to assess the impact of the $2
coin on the demand for #1 coins.
79.
The new 50 cent and $5 pieces are replacing existing units
the circulation of which should not be affected by the new range of
coins we have recommended.
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Proof Sets
80.
Coin collecting is now a very popular hobby and we understand
that there are some 12 million collectors in the U.S.A. alone. Useful
profits may be earned by issuing proof sets on an annual basis and in
addition through the advertising of these sets tourist interest in Hong
CONFIDENTIAL
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