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by another body.
This course would be likely to increase their
expenses and therefore tend to reduce royalties.
(10) Tighter restrictions on the redemption of coins. In a recent
note on the redemption of coins prepared by Paramount Coin Corporation to answer points raised by the Financial Secretary of the Turks and Caicos Islands, their main recommendation was
to introduce tight controls. Paramount's proposal is quoted
in full:
"Place limits on redemption. We would recommend a policy that
would recognise redemption for collectors and discourage
redemption by exchange dealers. This can be done by placing limits on the number of coins that can be redeemed at any one
time. This is a policy that already exists in most countries.
Generally, there are restrictions on the redemption of coinage
and it is based on a given amount of dollars that can be redeemed at any one time. It would seem reasonable to adopt a
policy that numismatic coins were issued for collectors.
Therefore, a limit could be established equal to the limit of
the original offer to collectors. For example, if the limit
was for five coins at the time of issue then redemption could be limited to the same quantity. If you want to restrict
redemption to a further extent, the policy established could be that the coins must be presented in person as in the Cayman Islands. We have no other evidence for this limitation.7
This would eliminate exchange dealers sending their coins to
one of the banks for redemption. As a matter of information,
the USSR is currently planning one of the largest numismatic
programs in history in conjunction with the 1980 Olympics.
They are planning to permit the coins to be imported into the
USSR for redemption purposes but there will be a strict limit on the quantity that can be redeemed by any one person. Also the coins must be presented in the USSR for redemption. I
mention this simply to illustrate that there is precedent for this policy.
While past experience in all of the countries clearly indicate
little or no redemption requests, this would be a safeguard
against massive redemption.
But they
Such methods might indeed deter "casual" redemptions.
certainly conflict with existing legislation which usually empowers
the issuing authority (where a local currency exists) to stipulate