TNAG-0717-FCO40-914-Banking-and-monetary-matters-in-the-Dependent-Territories-is-1978 — Page 138

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given to acquire it. Unlike a stamp it can be used again and again and has to endure rough handling. Some of these qualities are summed up in the words "integrity" and "reputation". It is traditional,

moreover, that there should, from time to time, be special coin issues, often in precious metal, to commemorate special occasions. But in the past this category constituted only a small part of a total

circulation, and no special legislative provisions had to be made to

accommodate it.

They often

9.5(3) Numismatic coins in the volume and style now appearing in several dependencies have become something very different. out-number by far the coins issued for ordinary circulation and they are mostly disposed of outside the country of issue. They have tended to become very different from ordinary coins. Some are in

very large denominations, quite impracticable for actual use. There

may be some danger that such coins will become a sort of joke, like

excessive stamp issues. This, undesirable in itself, will also tend to weaken the market for them, and will reflect adversely on "ordinary"

coins.

9.5(4) This point is linked to the further danger that the dependencies' use of Royal effigies, etc., has exploited their status

as dependencies and their connection with the Crown to an excessive

degree. Up to a point they may be justified in making money out of

this connection. But the regular, even annual issues, the search

for artificial occasions to commemorate, and the often undignified

advertising material are hardly desirable see Annex 6(5).

J

9.5(5) The success of coin issues so far may have tempted some dependencies into placing undue reliance on a single source of revenue.

To some extent they can obviously be excused: several of them have

very few resources, so that the revenue from coin issues is welcome

and indeed very helpful both to them and to HMG (whose own financing

burden is in some cases relieved by them), To obtain this revenue

they have to do little more than sign a contract, obtain the FCO's

consent and lend their name. But the very ease of this process may have discouraged them from looking for other sources of revenue. This one has been successful so far, but it can hardly be considered

permanently reliable.

9.5(6) Parallel to this is the point that the exclusive link with a

single promotional company for a period of years tends to make the

dependency over-reliant on one company whose interests are not the same