No More Silver!
p. 11 · Read in the full issue
Tongan Ordinance Regulates Currency Imports.
THE Kingdom of Tonga is still strug gling with problems connected with the sharp difference in exchange value between British, Australian and New Zealand currencies.
A number of drastic steps have been taken, as described in past issues of The Pacific Islands Monthly and the latest development is a special ordinance is sued by the Government of Tonga on December 7, wherein it has been made unlawful to import silver coin exceeding £ 2 in value into the Kingdom except in accordance with the terms of a permit issued by cabinet. The ordinance pro vides that persons breaking this new law shall be liable to a fine of £500.
It was the practice of some traders, of importing considerable quantities of Australian coin, and using it for gen eral purposes in the Group (where British, Australian and New Zealand currency remained at the same value for a surprisingly long time) that caused the severe crisis in the Tongan treasury as described in a recent issue. What has been done now by special ordinance should have been done in 1931; but a number of people who have successfully "played the exchange” are very glad that action was delayed so long.