TNAG-0717-FCO40-914-Banking-and-monetary-matters-in-the-Dependent-Territories-is-1978 — Page 121

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8.10(4) Where figures are available, Table 3 shows the relationship

between numismatic coins and "ordinary" notes and coins in circulation.

Estimates for 1977 are available for only 5 territories. These alone

have planned issues in excess of US$10 mn. As this figure excludes

not only two territories (BVI and the Cayman Islands) which have

regularly issued large numbers of coins, but also the Solomon Islands

where the introduction of their own currency is certain to result in

sizeable numismatic sales, the final figure for 1977 could be well in

excess of US$20 mn. The 1977 issues have undoubtedly been boosted by

the Queen's Silver Jubilee and it seems unlikely that such a rate could

be maintained on a regular basis. However, it is probable that the

trend will continue through 1978 as programmes are commissioned to

celebrate the Coronation Jubilee. The Cayman Islands are implementing

proposals for a US$3.65 mn. issue and there are also plans for an

extensive programme by the Turks and Caicos Islands. We do not know

the intentions of other dependencies, but if issues are on the same

scale as in 1977 the aggregate face value of dependencies' numismatic

coins outstanding by the end of 1978 may be around US$70 mn-US$ 75 mn.

Royalty Income

8.11 (1) In this section, royalty receipts for any year have been assumed to correspond to the programmed issue for that year. Although

actual payments may lag from one year to the next and coin issues

agreed during, and dated for, a particular year may not be completed

until well into the following year, the method of matching a year's

receipts against the same year's programme (as specified under the

contract) should not produce serious discrepancies.

8.11(2) Not surprisingly, those territories that have issued the most

coins have received the largest royalty payments (see Table 4).

This,

however, is only at the cost of very sizeable issues and does not

represent the most advantageous percentage return. A comparison of

royalties as a percentage of the face value of the issues (Table 5)

indicates that, in those cases where territories have contracted with a

US promotional company, the percentage return is almost invariably

poorer than that offered by agreements with the Royal Mint.

attraction of the US companies is undoubtedly their preparedness to

mint, and their ability to sell to the market, a very large number of

coins per programme (see Section 8.10).

are between 14% and 18% of face value.

Italcambio provides for royalty payments of 25% and 22% of face value

for proof and specimen coins, respectively, but the Monetary Authority's

The

Actual payments by US companies Bermuda's 1977 contract with