HC Deb 11 March 1920 vol 126 cc1674-7

As amended (in the Standing Committee), considered.

Motion made, and Question proposed, "That the Bill be now read the Third time."

Mr. A. WILLIAMS

I think there can be no doubt that, so far as this country is concerned, this is a very good Bill We cannot go on having small change which is really worth more than its nominal value, and I do not think there is any real danger in reducing the shilling to the standard of value indicated in the Bill. It will still be a fairly costly coin to make, and I do not think there will be any serious danger of its being forged by putting genuine, but unauthorised, shillings on the market. It is clear that if the intrinsic value of the coinage was reduced so very low that there was a profit of 2s. 5d. in making the Government half-crown, enterprising forgers would make half-crowns quite as good as the Government half-crowns and put them on the market. But the margin of safety in this Bill is quite enough for all purposes, so far as this country is concerned, and, of course, in this country silver is only token coinage, and the fact that it is not legal tender for more than 40s. is a complete safeguard. The £ sterling is the standard, and these coins are only small change for the necessary convenience of business. But when you come to our possessions across the seas, it is very doubtful whether this Bill does not open up the way to considerable danger. A question was put the other day with regard to East Africa. These new shillings and half-crowns, so much lower in intrinsic value than those which have been circulated hitherto, are to be put in circulation, I understand, in West Africa. In East Africa new rupees of very much lower intrinsic value than the Indian rupee which has circulated there hitherto is to be put into circulation. But we are told the position is safeguarded because they are only to be token money exchangeable for sterling at a fixed rate. If all proper precautions are taken to see that they can easily be exchanged on the spot, that would be safe enough. Of course, if the exchange can only be made by sending to London or something of that sort there might be considerable danger, but if you have token silver there which is exchangeable into sterling there is no danger.

I want to have some assurance with regard to West Africa, because I do not think the position has been made at all clear. These silver coins are going to circulate in West Africa, and there they will also have West African silver shillings, two-shilling pieces, half-crowns, and so on, practically the same as ours, except that they will have the words "West Africa" upon them. I want to know, are these silver coins in West Africa token money or standard money? My impression is that silver there is standard money, and circulates at its intrinsic value. If that is so, the cutting down of the weight of silver in the coins to not much more than half of that which is in the coins circulating there now is a dangerous proceeding, because it is certainly debasing the standard of value, and must inevitably put up prices there. When the shilling has only five-pennyworth of silver in it, it is certainly not going to circulate at the same rate as when it had a shilling's worth of silver in it, because out there it is unlimited tender. Whether there is any other standard by which it can be corrected, whether it is connected in any way out there with the £ sterling, I do not know. I ask the hon. Gentleman to give us this information and to take all necessary precautions to see that the standard of value in West Africa is not debased by the introduction of this new silver coinage here, because if it is debased it will lead to a complete upset of the exchanges, and all the prices in that part of the world, and will certainly effect very great hardship upon various classes there and make some rich and some poor, in the same way that the great upset of prices which has taken place in the last two or three years has done in this country. Therefore I ask for an assurance that every care will be taken not to use these coins so as to debase the standard of value in West Africa or any other part of our Empire where they are unlimited tender.

The FINANCIAL SECRETARY to the TREASURY (Mr. Baldwin)

This matter was discussed at some length in Committee, when I had not the advantage of being present. This is not a subject which has been closely under my own attention, but it has received all through the most careful personal attention of the Chancellor of the Exchequer. If my hon. Friend bears in mind the assurance my right hon. Friend gave on the Committee stage, I am quite sure he need feel no alarm. I referred to his words while my hon. Friend was speaking, and he may feel every confidence that nothing in this Bill will cause such deplorable effects in West Africa as he anticipated. The Chancellor of the Exchequer pointed out that, so far as West Africa is concerned, our coinage here is entirely subsidiary, and it is only on occasions when they are actually short of coinage that they draw on this country to come to their assistance. The hon. Member may feel quite confident that if any of the consequences of which he is apprehensive are likely to result they would, of course, avoid drawing on this country if it might lead to those results. I can give him an assurance on behalf of my right hon. Friend most freely that the results of this Bill, which he acknowledges most frankly are desirable and beneficial to this country, shall not be allowed to do anything detrimental to the existing coinage in West Africa.

Question put, and agreed to.

Bill read the Third time, and passed.