New Currency
p. 28 · Read in the full issue
Perforated Coins Introduced in New Guinea
■\rEW GUINEA’S new currency became -Ll legal tender on Monday, December 2.
English and Australian shillings, sixpences, threepences and pennies remain legal tender; but they will not be circulated.
They will, it is presumed, be taken in by the banks whenever possible, and the new coins issued in their place.
The new coins, which have been issued generally, are: One shilling, silver alloy, perforated.
Sixpence, cupro-nickel, perforated.
Threepence, cupro-nickel, perforated.
Penny, bronze, perforated.
Bank notes will circulate in the Territory in the same way as formerly. There seems to be some doubt about florins. The new coinage does not include the handy two shilling piece, so presumably the Australian florin will circulate as heretofore.
The idea behind the innovation is good; but the natives never could be induced to use Anglo-Australian sixpences, three pences and pennies, and it remains to be seen whether they will accept them now, when they can thread them on a string and hang them around their necks.
Hitherto, most native exchange has been carried out with shillings (called “marks” —a survival of the German time) and sticks of trade tobacco, which have a cur rency value of a fraction of a penny.
The effect of this has not been in favour of the native. He buys very many things which are priced at less than one shilling, although he has only shillings to spend: and the Administration says that often, in the “change” adjustment, the native has been unfairly treated. The introduction of the smaller coins is designed to assist and protect the native: but a great deal of persuasion and patience, and perhaps some force, will be needed to induce the more remote tribes to accept and use the new currency.
The primitive natives do not require much money. But all must pay to the government the head-tax of 10/- per
annum; and, in order to get this, they will work and trade, and painfully accumulate the necessary number of “marks.” No one will envy the district officers and tax gatherers their task of introducing and ex plaining the new currency.
Recruiters —those who go out among the primitive tribes and induce the men, by gifts and promises of money and foods to sign on as labourers —will meet many diffi culties. It is not easy at the best of times to tempt natives into labour contracts with “marks,” which they understand and desire.
How, then, are they going to fare when they offer the new, perforated coins to those suspicious Stone-Age gentlemen?
The Administration has bought this coinage at very much less than its face value; and, issuing it at the same price as the money it is withdrawing from circula tion, it will make a substantial profit. One estimate shows a profit of £2OOO per annum.
Probably, it will be much more than that, as the Administration will get the benefit of all the coin that is lost, hoarded and otherwise withdrawn from circulation.