TNAG-0717-FCO40-914-Banking-and-monetary-matters-in-the-Dependent-Territories-is-1978 — Page 142

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view of the undoubted benefits derived from the association with the

Crown.

10.1(6) In outlining possible courses, no attempt is made to examine in detail the extent to which each course, or combination of courses, could be applied to individual dependencies.

(1) Issue no more numismatic coins. An obvious but extreme course, if taken absolutely and not as a temporary measure pending decisions about a modified policy or pending the expiry of

existing exclusive contracts. But in one or more cases it

might be agreed that the risk already taken by the issuing authority and/or by HMG was unacceptable, that no way can be found to mitigate it, and that it should not be increased.

(2) Issue fewer coins and/or at less frequent intervals. This is

less extreme and might be regarded as generally desirable, both to reduce various unacceptable features of issues hitherto

(such as the exploitation of the Royal connection), to avoid

increasing the redemption risk at the rate shown hitherto, and

perhaps also, more positively, to enhance the scarcity and thus the value of a territory's coins. On the other hand, it would

probably reduce the revenues from this source. The size of

recent issues (Table 3) may be contrasted with earlier "colonial" issues, eg, the Rhodesia and Nyasaland proof sets

The

of 1932 and 1955 and the Rhodes Crown of 1953 which were limited

to 496 sets, 2,000 sets and 1,500 proofs, respectively. present day value of these coins is enhanced both by their historical interest and by their scarcity.

(3) Return to "traditional" issuing practices.

This would mean, by

a process of self-denial, confining coin issues primarily to

mark occasions that are genuinely special. This would achieve

much the same objective as course (2).

(4) Provide for 100% cover for all numismatic coins issued. A

complete safeguard against loss resulting from massive

redemptions can be provided only by the maintenance of a fund providing 100% backing. This course would inspire the greatest confidence; and it would, incidentally, provide a hidden

reserve for the issuing authority on the assumption that

wholesale redemptions remain unlikely. In all the territories

with their own domestic currencies there is already legal provision for such funds, at least as regards the currency