TNAG-0455-FCO40-520-Minting-of-new-coins-for-Hong-Kong-1974 — Page 79

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This was the experience in Britain when the twelve-

sided threepenny piece was introduced in 1937, and more

recently it has been the experience of France with their

5 franc coin. You may accordingly find it necessary to

withhold supplies of 10 cent and $1 coins in order to force

20 cent and $2 pieces into use. Again in theory the

introduction of new coins should not significantly affect

the total face value of all coin and notes in circulation,

and if forced into use the new 20 cent and $2 pieces should

therefore displace the equivalent face value of 10 cent and

$1 coins. I realise only too well how unhelpful all this is, but I think you can in fact only make a subjective

judgment of the initial demand, pitching this on the

high side because of the likelihood that any surplus

will quickly be absorbed as the coins win acceptance.

My own guess would be around 40 millions of each

denomination."

We feel that the Mint may have underestimated the demand, particularly

at the Chinese New Year, which will arise simply because these are new

denominations of coins. We consider that 70 million 20 cent coins and

30 million $2 coins should be ordered initially.

78.

We expect that the introduction of the $2 piece will reduce

the number of $1 coins required by approximately two-thirds but we do

not think it is possible at this time to make an estimate of the number

of new $1 coins that will be required in August, 1976. We suggest that

this be left until the Treasury are able to assess the impact of the $2

coin on the demand for #1 coins.

79.

The new 50 cent and $5 pieces are replacing existing units

the circulation of which should not be affected by the new range of

coins we have recommended.

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Proof Sets

80.

Coin collecting is now a very popular hobby and we understand

that there are some 12 million collectors in the U.S.A. alone. Useful

profits may be earned by issuing proof sets on an annual basis and in

addition through the advertising of these sets tourist interest in Hong

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