TNAG-0717-FCO40-914-Banking-and-monetary-matters-in-the-Dependent-Territories-is-1978 — Page 95

Section

8.

RESULTS OF SURVEY.

- 2

Contractual terms; duration (8.2);

repurchase of redemptions (8.3); basis for

royalty payments (8.4); specifications (8.5);

legal tender status (8.6);

distribution:pricing (8.7);

sales and

production limits

(8.8);

distribution (8.9);

(8.10);

royalty income (8.11);

volume of issues

redemptions

(8.12);

legislation (8.13).

9.

CONCLUSIONS.

10.

Distinction in approach between US and UK

companies (9.2); uncertainty about future of

coin market (9.3);

moral obligation of

territories to redeem; lack of necessary

reserve funds;

sizeable contingent liability

for HMG (9.4); deviation from "ordinary"

coinage; unreliable source of revenue (9.5);

how redemptions might appear (9.6).

POSSIBLE COURSES OF ACTION.

Possible measures by dependencies which, singly

or in some combination, would help to remedy

past and safeguard future (10.1); aim to

minimise risk

1. Issue no more coins.

2. Issue fewer coins and/or at less frequent

intervals.

3. Return to traditional issuing practices.

4. Provide for 100% cover for all numismatic

coins.

5. Provide for substantial cover but less

than 100%.

6. Include bullion content as backing asset.

7. Renounce redeemability.

8. Remove legal tender status and demonetise.

9. Guarantees by promotional companies.

10. Tighten restrictions on redemption of coins.

11. Stop the issue of specimen coins.

12. More stringent control by HMG.

13. Commercial insurance against redemption.

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