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accordingly.
It
In several cases, therefore, it might seem that HMG
could reasonably afford to remain detached, on the assumption that
no problems will arise in the period leading up to independence.
may be asked, hwoever, whether such dependencies should be left
without guidance to cope with a legacy that they might find difficulty
in dealing with at a later stage; and for this reason alone it seems
advisable that they should at least be made aware of the problem and
of the courses that may be open to improve their situation. This
factor, however, provides little substantial relief: several territories
with heavy coin issues, such as the Caymans, BVI and the Turks and Caicos are among the territories likely to remain independencies
longest.
9.4(8) It is also relevant to the redemption risk to consider the
risk of large scale and highly competent counterfeiting. Modern
counterfeiting methods are such that unless the original coins were
made with great expertise by a mint experienced in gold mintage,
counterfeits can be virtually indistinguishable from the genuine
product. An issuing authority which had accepted an obligation to
redeem could find itself in a very difficult position if presented with
large quantities of coin which were suspect but which could not be
proved to be counterfeit because of a lack of control over the manu-
facture of the genuine pieces. There is a somewhat similar risk
that more coins may have been minted originally than were properly
authorised.
Other Risks and Dangers
It can
9.5(1) The redemption risk is obviously the most important. also at its worst be quantitied, namely as the total face value of
all coins issued. The other disadvantages or potential disadvantages
of numismatic coin issues for both the dependencies and for HMG are
less tangible.
9.5(2)
The first applies mainly in those dependencies where there is a local currency. In principle a currency is intended for use.
It has not been brought into existence because it is attractive and
well designed, though it is preferable that it should have those
qualities. It is intended to be a convenient and durable economic
tool a means of exchange. It also has symbolic features normally
associated with sovereignty and national feelings, such as a national
flag possesses. Its acceptability exists nowadays largely as a result
of legislative action, but it also has to be earned value has to be