It is so as to prevent their falling under any circumstances to a discount it should endeavour to do so by keeping the supply as early as possible in line with the demand to prevent any premium becoming attached to them. The inhabitants of a community will always demand a certain supply of the new coinage on which they legitimately expect to reap a certain profit when it is issued. And when it endeavours to enhance that profit by limiting the supply or any other consideration than that of the demand for it, it runs the risk of causing considerable mischief; and this, it appears, your predecessor has fallen into when he allowed the issue to be dependent on the rate of exchange.
MINUTE.
Mr. Bramston.
Mr. Malcolm.
Mr. Meade.
Mr. Herbert.
Mr. Lowther.
Lord Carnarvon.
108 of the 26th inst. The notification that tenders would be called for appears to have been done on a sound principle. I hope that this principle has been sufficiently appreciated by the Officers of your Department, and I instruct you to ensure that there are clear instructions that no subsidiary coins representing parts of a dollar be issued under any circumstances except in exchange for dollars of the same nominal value, and on condition that the Bank or other party receiving them undertakes not to dispose of them at a profit.