TNAG-0455-FCO40-520-Minting-of-new-coins-for-Hong-Kong-1974 — Page 101

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not less than 34 millimetres diameter, or a shaped pieco. Examples of such coins already in use elsewhere, and their current costs, are as follows:-

£31,500 per million

Gambic 4/-

Malaysia $1

£31,000

11

11

Tanzania 5/-

£26,000

11

11

U.K. 50p

Guernsey 10/-

£26,000

£22,000

11

If

The size of these coins have all been dictated by a belief that to be acceptable they would need to be at least slightly larger than the lower denominations. they would be acceptable in Hong Kong, smaller pieces would have cost advantages and the advantage of leaving scope for the eventual introduction of an even higher

denomination.

The Case for a 20 cent Coin

22. As discussed in para. 5, the introduction of a 20 cent coin would reduce demand for the 10 cents by in theory two 10 cents for every 20 cents issued. Provided the cost of the 20 cents were less than double that of the 10 cents, which could easily be achieved, savings in minting costs would result. Experience however suggests that the introduction of additional denominations tends to increase the total face value in circulation. The theoretical saving would probably not be achieved in full therefore, though it may be noted that an increase in circulation benefits the issuing authority provided the cost of purchasing the coins is lower then their face

value.

23.

A 20 cents introduced into the existing system would have to be shaped to avoid

confusion with the 10 and 50 cent pieces.

Coin Operated Machines

24. Most coin operated machines naturally incorporate devices designed to ensure that they can be worked only with genuine coins. These devices may vary in sophistication from simple guages for diameter and thickness to tests for weight, hardness, nagnetism and resistivity. The full range of tests is rarely justified except for the very highest denominations.

25. Many important machines, for example telephone boxes in the United Kingdom, depend only upon diameter and thickness checks and they can therefore fairly readily be modified to cope with the kinds of coinage changes discussed in pcra. 20 (i) end (ii). However, if such machines have to be set to accept genuine coins of considerably different thicknesses scope for their misuse is inevitably increased.

26. Coin sorting machines generally take account only of diameter and therefore would not be affected by the changes discussed in porc. 20 (i) and (ii).

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