- 8.
promotional companies involved with the dependencies. It has been
compiled primarily from published sources but also from correspondence, etc., outside the immediate context of this survey. No attempt has been made to contact any of the companies (except the Royal Mint) as
this might have provoked an unwelcome reaction.
5.4
The advantages of this development for the issuing country
are evident. The sale of numismatic coins provides for some small
states a substantial proportion of revenue in the shape of royalties
without, at first sight, any risk (cf. postage stamp sales in
Leichtenstein, Monaco, Pitcairn, etc.) Nor is any substantial cost
or work involved: in most cases the promotional company undertakes
to bear all the cost of minting, transport, marketing, etc. (see
Section 8.4). As the coins are usually sold at a premium above face
value to overseas customers the risk of adding to the local money
supply is considered minimal. The attraction has been especially
strong for the UK dependencies, several of which have to rely
extensively on budgetary and development aid from HMG.
5.5
The attraction has not, of course, been one-sided. The
promotional companies have been quick to appreciate the sales potential
of "colonial" coins. Subject to the approval of the Secretary of
State and of the Palace, UK dependencies may issue coins bearing the Queen's effigy, although we are aware that at one time the Lord
Chamberlain's Office expressed concern that the Crown should not be
exploited for commercial purposes by private mints. This feature clearly appeals to a substantial proportion of the US market. The British Monarchy retains a strong sentimental value which can be exploited commercially, and the visible reminder of the links with the Crown may also inspire confidence in the coinage of otherwise little-
known territories. These links are made much of in the advertising literature See Annex 6 (4) and (5)7 and it is, perhaps, significant
that, out of the 25 countries that contracted with Paramount in the year to June 1976, fourteen were Commonwealth countries, many of which
continue to use the Queen's effigy on their coinage.
5.6
In many respects the dependencies seem to offer an easy target for the company salesmen. The local administrations frequently lack the time and expertise to assess the implications of issuing
numismatic coins and (especially, doubtless, when pressed for a quick reply) are prepared to put considerable confidence in their advice. Not surprisingly, the strongest inducements are the prospective royalty