TNAG-0717-FCO40-914-Banking-and-monetary-matters-in-the-Dependent-Territories-is-1978 — Page 102

9

payments, and the companies most likely to offer the largest absolute

return (regardless of other considerations) are those with well-

established outlets in the United States. In order to sustain a high level of return the territories are encouraged to sanction regular (at least annual) issues. The financial implications are discussed in

Section 8.10, but one practical result is that many "pseudo-commemorative"

coins recalling subjects only remotely connected with the issuing

territory come onto the market.

Use of precious metals

5.7

Silver and gold have traditionally been used in the manufacture of coinage. However, the modern revival in the use of

gold for coins, now limited almost entirely to numismatic issues, was

boosted by the Congressional Act of 14th August 1974 (effective

January 1975) which removed the restrictions on US citizens holding

gold. Hitherto supply to the US market had been mainly restricted

to proof and specimen coins struck in base metal or silver; but, with

the re-emergence of gold as a commodity available to US citizens,

it has become usual to issue high denomination numismatic coins which

have no counterpart in normal commercial use. Although it is a vital

feature of any agreement between an issuing authority and a promotional

company that such coins are declared to be legal tender, there is still

a tendency in numismatic circles to dub them "non-coins".

In an

attempt to give them a semblance of normality, the issuing authority is frequently required under its contract with the promotional company to put into everyday circulation a limited number (usually 50) of such

coins. This practice appears to be, so far, acceptable to collectors

as long as the coins are struck in traditional precious metals (gold and silver), but diversification by some countries into platinum, perhaps to overcome restrictions on gold still in force in many

countries, seems not to have been received so favourably. None of the territories included within the survey has yet taken this step.

There is, however, to judge from Press comment, some dissatisfaction

among collectors with the present trend even in gold and silver coins.

Many would classify as "non-coins" any precious metal, or even base metal, proof issues that are not matched by base metal coins in everyday

circulation.

5.8

A more recent development with possible implications for the

dependencies has occurred in Jamaica. The Bank of Jamaica in

conjunction with Paramount has recently issued what is claimed to be