The legislation that I have to bring before the Seanad at this moment, the Coinage Bill, 1950, is rendered desirable by the fact of the rather insecure position that prevails with regard to both the supplies of silver and the prices to which silver may go. The main effect of this measure is to allow for the issue of cupro-nickel coins of the 1/-, 2/- and 2/6 varieties in place of the silver coins of these denominations which have hitherto been issued.
The history of the token coinage in this country is contained in two Acts and one Emergency Powers Order. Before 1928—that is the date when our own token coinage was first introduced —the coins that were in circulation in this country consisted of British coins of either gold, silver or copper. The first Act we had was the Coinage Act, 1926, and it provided for the issue of Irish token coins and in the Schedule to the 1926 Act there will be found the denominations of the different coins set out—silver: 2/6, florin and shilling; nickel: 6d., 3d.; and bronze: Id. ½d. and ¼d. By an Emergency Powers Order, No. 140 of the year 1942, the Schedule was amended to enable cupro-nickel to be substituted for nickel in respect of the 6d. and the 3d. pieces. The Order lapsed when the Central Bank Act, 1942, was passed because there was a clause in the Act which replaces the Emergency Powers Order.
Under this piece of legislation there will be authorised the issue in cupro-nickel of the coins hitherto issued in silver, that is the 1/-, 2/- and 2/6. The lower denomination coinage, of course, Id., ½d. and ¼d., will still continue to be issued in bronze. The Central Bank will be authorised, at Section 10 (3), to keep in circulation silver and nickel coins issued under the 1926 Act and, of course, cupro-nickel coins issued under the Central Bank Act, 1942, but there is a later provision in this measure that, when the Bill becomes law, there will be permitted a calling in of the silver coins or any cupro-nickel coins—mainly silver coins— issued previously and their replacement by the cupro-nickel coins that are now being permitted.
This is mainly due to the fact that there is great uncertainty about the future of supplies of silver and, more particularly, uncertainty with regard to prices. The price of silver has risen considerably in the past and, although we are not at the point, or even very close to it, one could reach the point where the issue of silver coins would become unprofitable and, of course, in those circumstances, there would be great danger that the coins would be hoarded or melted down. The same considerations as regards silver supplies and prices have led to the complete replacement in the British token coinage system of silver coins by cupro-nickel. The use of the precious metals in token coinages is a rare occurrence these days. Nearly all continental countries are using base metals.
Cupro-nickel is considered to possess all the necessary qualities for satisfactory coinage. It is provided in this legislation that, to start off, the new coins will be exactly of the same design, diameter and weight as existing silver coins.
In the previous legislation and in this there is what is called a standard composition. Cupro-nickel coins ordinarily consist of 75 per cent. copper and 25 per cent. nickel. That particular composition is specified in this legislation as the standard composition. In Section 5, power is being taken to vary, by Order, the standard composition of cupro-nickel coins and there is also power being taken to issue coins of any metal or mixture of metals other than gold, silver or cupro-nickel. The second type of Order, which would make rather an important change, is the type of Order which would not become operative unless it was confirmed by resolution of the two Houses of the Oireachtas.
Section 12 is more or less a corollary to what is being pursued under this legislation. It is considered unwise or undesirable to have different legal tender limits for coins that are of the same metallic composition. It is therefore proposed, in Section 12, to remove the legal tender limit of 5/- in the case of 3d. and 6d. pieces and to make it lawful to tender these as well as the 1/-, 2/- and 2/6 for payment of debts not exceeding 40/-. After this legislation goes through, if it goes through in its present form, all cupro-nickel coins will have the same legal tender status. There is no change being made with regard to bronze coinage and, therefore, bronze coins will continue to be legal tender payment for an amount not exceeding 1/-. It appears that there have been doubts raised in respect of the early legislation as to whether British coins still circulating in this country are legal tender and it is proposed to put an end to that doubt by expressly reserving legal tender status to token coins issued either under the 1926 Act or the Emergency Powers Order or this legislation.
All token coins are issued through the Central Bank as agent of the Minister for Finance. The expenses of issue are charged against the currency reserve maintained by the Central Bank and the proceeds of issue are, of course, credited to that reserve. The proceeds of melting down of coins withdrawn from circulation and of coins held by the Central Bank and not required for issue or reissue will also be credited to the currency reserve.
The opportunity has been taken in this Bill to consolidate the law relating to Irish token coinage. Senators will find in the First Schedule a series of enactments that are being repealed. These are being repealed because similar provisions to what are contained in the repealed Acts or sections of Acts in that Schedule are to be found in this legislation. We are repeating whatever it is necessary to keep alive and repealing this dead material. The main provisions in these repealed Acts are to be found in sections of the Bill. There is one which preserves the copyright in Irish coins to the Minister for Finance, which will continue to vest the copyright in him, and the Minister for Finance has control of the publication of reproductions of Irish coins. That is prohibited unless the Minister for Finance allows it. There are also provisions relating to expenses and the disposal of the proceeds of issue—a matter to which I have already referred.