HC Deb 03 November 1969 vol 790 cc54-6W
Mr. Geoffrey Lloyd

asked the Chancellor of the Exchequer how many half-crowns now in circulation are estimated to be in private hands; at what rate are these coins being withdrawn through the banks; and how many half-crowns he estimates will be left in private hands when the coin ceases to be legal tender on 1st January, 1970.

Mr. William Rodgers

About 240 million are estimated to be in circulation.

It is not possible to say what proportion of this total is in private hands. On average, roughly one-third of all coins in circulation is held by the banks, but the proportion varies.

The rate of withdrawal at present is about eight million coins per week, but arrangements have been made to accelerate withdrawal towards the end of the year.

No sensible estimate can be made of the number of half-crowns that may be left in private hands after 1st January, 1970, because it cannot be known how many the public may choose to retain as keepsakes or for numismatic and similar purposes.

Mr. Geoffrey Lloyd

asked the Chancellor of the Exchequer what he estimates will be the value of the metal in the half-crown coins after they are demonetised.

Mr. William Rodgers

Most half-crowns are cupro-nickel. The metal value of these after demonetisation will depend on the market prices of copper and nickel at the time, but it may be around threepence per coin.

Mr. Geoffrey Lloyd

asked the Chancellor of the Exchequer whether, in view of the greater monetary value of the half-crown as compared with the recently demonetised farthing and halfpenny, he will postpone demonetisation for six months or longer.

Mr. William Rodgers

No useful purpose would be served by postponement. Stocks of replacement coins are available and arrangements are in hand to remind the public of the approach of the demonetisation date and to facilitate the paying in of half-crowns through the banks.

After demonetisation a coin is no longer legal tender; no one, including the banks, is obliged to accept it as money. However, the Royal Mint will be prepared to accept half-crowns from the banks at face value for a time after they have been demonetised.

Mr. Russell Johnston

asked the Chancellor of the Exchequer what representations he has received about the new 50p. piece; how many of these have been opposed to its introduction; and what reply he has given.

Mr. Taverne

By 31st October we had received 105 letters. Six of these expressed support for the new coin. Most of the rest were not opposed to a 50p. coin in principle, but favoured different specifications or designs. Only six letters reported first-hand experience of any practical difficulty in using the coin. The replies point out that the Demical Currency Boards' advice to the Government about the specification of the coin was given after extensive consultation and suggest that it is much too soon to come to any conclusions.