Nickel by Mond Nickel Company
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Wed Oct 30, 2019 2:24 pmby coppernickel
Nickel coinage of the world
Mond Nickel Company
London 1917
Nickel Coinage.
NICKEL may be classed among the Metals which have come into general use only during modern times, though alloys containing Copper, Nickel and Zinc were undoubtedly known to, and manufactured by, the Chinese—by them called Pakfong— in very early times, and coins composed of Nickel and Copper were struck by the Bactrians before the Christian era. The known workable deposits of Nickel in the World are few in number. By far the largest are the deposits in the Province of Ontario, in Canada, and in the French Island Colony of New Caledonia, in the Pacific. The Ontario deposits are far more extensive than those of New Caledonia, for while the Ontario deposits are measured in terms of millions of tons, those of New Caledonia are reckoned in a few hundreds of thousands. It has, in fact, been computed that 80 per cent. of the World's present output of Nickel is derived from Ontario. The Mond Nickel Company owns 29,000 acres of mining properties in this Province, containing some of the richest mines on the field. The ore derived therefrom is reduced to Bessemer Matte in their Smelting Works at Coniston, in the Province, which is shipped to the Company's Works at Clydach, in South Wales, and is there refined by the unique process invented in 1889 by Dr. Ludwig Mond, F.R.S. The uses of Nickel are many and diverse, ranging from its indispensability in the manufacture of various munitions of war to its use. in the form of Nickel Salts, as a catalyst in the preparation of Soap and Margarine. The greatest use made of Nickel is in Nickel-Steel. It has been estimated that fully 50 per cent. of the total Nickel production of the world is put to this purpose. Although ordinary Nickel Steels contain less than 5 per cent. of Nickel, the effect of the amalgamation is not only to give far greater tensile strength and ductility to the material, but to render it more resistant to wear and tear and to corrosion. The great tensile strength of Nickel Steel makes it especially suitable for the strain-bearing parts of bridges, for it enables designers to reduce the weight of material employed without sacrificing strength. It is also largely used for crankshafts, and being light but strong, and resistant to shock, it is employed for an infinity of purposes in connection with machinery. Not least among the manifold uses for which this clean, hard, lustrous metal is pre-eminently suitable is that of currency coinage of low value, Nickel being the one metal which completely fulfils all the requirements of small currency, and it is with a view to illustrating the use of Nickel in this connection that the present pamphlet is issued. The subject of coinage is one of great importance and of special interest at the present time, when the introduction of new uniform coinage throughout the British Empire has been strongly advocated. The Report of the Dominions Royal Commission, issued in 1917, emphasizes the fact that a considerable body of serious opinion in the various British Dominions is in favor of such a course, in regard to which the Commissioners state: "We have studied the discussion on the subject of currency and coinage laws at the Imperial Conference of 1911, and have also heard evidence from the representatives of the Decimal Association and witnesses in the Dominions as to the desirability of introducing metrical weights and a new style of coinage based on the decimal system. The general advantages of these systems are recognized; the complications of the present arrangements, both in the United Kingdom and in several of the Dominions, are such that very few would undertake to defend their principles We are of opinion that the termination of the war will bring with it an unequalled opportunity for securing this much-needed reform, and we recommend that your Majesty's Government and the Governments of the Oversea Dominions should then co-operate to establish throughout the British Empire a uniform coinage based on the decimal system.—(Final Report of the Royal Commission on the Natural Resources, Trade and Legislation of Certain Portions of His Majesty's Dominions. (Cd. 8462) 1917, p. 158, pars. 711 and 713).
Such a reform as is implied in this official report is one which has been long overdue, and the numerous advantages which would inevitably proceed from its introduction are of such a nature as ultimately to outweigh entirely any disadvantages arising in the early period of its inception. Coinage on the decimal basis has been in use for some time past in various parts of the British Empire, including Canada, Newfoundland, Egypt, the Straits Settlements and adjacent possessions, Ceylon, British East Africa and Uganda, and many other of our smaller possessions.
TOKEN COINAGE.
A very large portion of all the existing monetary systems of the world necessarily takes the form of token currency (i.e., subsidiary coinage, or representative money), the value of which is fixed by law at a conventional rate considerably in excess of its intrinsic value. Credit currencies of conventional value are fully justified by practical considerations. If the nominal value of token coins were equal to their intrinsic value, it would be necessary to mint inconveniently small coins —coins easily lost, incapable of withstanding wear, and, therefore, prone to rapid depreciation, and a prohibitive loss of interest on cost price would be the consequent result. On the other hand, should the intrinsic value exceed the nominal value, circumstances might conceivably arise which would offer a strong incentive to individuals to withdraw such coins for the purposes of export or melting down. The only serious consideration that can be urged against a currency of conventional value is the inducement which it offers to counterfeiters, owing to the difference between its intrinsic and nominal value; but this disadvantage may be reduced to a negligible minimum by adopting the following means: Firstly, by selecting a metal for token currency which, owing to its hardness, would place great technical difficulties in the way of counterfeiters; and Secondly, by selecting such a design for the coin as would require rare skill, delicacy, and minuteness in execution. The manufacture of authentic coins combining these qualities would necessitate the employment of such complex and perfect machinery, involving so large a capital outlay and plant of such considerable dimensions, as to make it almost impracticable to carry on the illicit manufacture of the coins.
SELECTION OF SUITABLE METAL.
Practical utility being the prime desideratum of credit currency, it is necessary that the metal, or alloy, adopted for the manufacture of subsidiary coinage should be selected from the standpoint of all-round usefulness rather than that of intrinsic value. In order to meet adequately the demands to be made upon it, the metal must comply with the following major requirements: It must be comparatively inexpensive, and yet of pleasing appearance, and must be peculiarly resistant to oxidization; it must be easy to melt, roll, blank and strike; it must be sensitive to the impression of the die, durable in use, and difficult to counterfeit. Formerly Copper or Bronze were most frequently used for subsidiary coinage of low value in nearly all countries. They are cheap and easy to work, but very liable to corrosion and are too soft.
Nickel Silver
This alloy of Nickel, Copper and Zinc has been used for coins in various States of South America. Although better than Copper and Bronze, it oxidizes too readily and soon loses its bright appearance. Nickel Silver, with an addition of pure Silver, was tried by the Swiss Government, but the coins made of this alloy soon became yellowish and unsightly, and Switzerland has since adopted pure Nickel for its coinage. Small Copper coins coated with Silver have been used in many countries, but the Silver coating soon disappeared, and the appearance of the coins became so paltry, and dirt adhered to them to such a degree, that many countries in which they were in use discarded them altogether.
Aluminum
Aluminum coins have proved a great failure. In 1906 the British Government decided to introduce subsidiary coinages of Aluminum for circulation in Nigeria, British East Africa and Uganda. The coins, which were of small denominations, comprised 1/10th-penny pieces for Nigeria, and cents and half-cents for British East Africa and Uganda. In 1907 over 1.25 million pieces were coined for Nigeria, and about 7 million for British East Africa and Uganda. In 1908 over 81 million pieces were coined for Nigeria, and about 31 million for British East Africa and Uganda, The total number of these Aluminum coins thus circulated in the three Protectorates during the two years was 20,336,000 pieces, of a nominal value of £10,850. These coinages only survived two years. Even during this short period, the coins became very badly corroded and, in general, proved themselves to be entirely un- suited to a tropical climate. The whole of these Aluminum currencies was, therefore, with- drawn by an Order of 1910, and was replaced by Nickel-Bronze coins in the following year. Similarly unsatisfactory results attended the prolonged researches of French experts as to the suitability of Aluminum. On August 27th, 1909, M. Cochery, the Minister of Finance, appointed a Commission of experts under the presidency of M. Voille, to enquire into the advantages and disadvantages of Aluminum as a medium for currency- The Commission closed its enquiry in 1910, having arrived at the following conclusions :— "Neither pure Aluminum nor any form of Aluminum slightly alloyed gives a resistance to shocks and friction superior to that offered by Silver. The resistance of pure Aluminum is insufficient for small coinage and none of the alloys offers resistance to the prolonged action of the usual chemical agents."
Cupro-Nickel
Cupro-Nickel, an alloy of Copper and Nickel, was first tried by the United States and Belgium. The compositions of these alloys which were tested varied from 90 per cent of Copper and 10 per cent of Nickel to 50 per cent of each of the two metals, and the results in the United States and Belgium, and subsequently in Germany and other countries, led to the conclusion that an alloy of Copper and Nickel, consisting of 75 per cent. Copper and 25 per cent Nickel, is the most suitable for currency purposes. The coins are of pleasing appearance and the cost of manufacture is not excessive. They offer great resistance to oxidization, and they are sufficiently hard to withstand any but slight attrition due to wear and tear in circulation.
Pure Nickel
With a view to obtaining a coinage which would alike be secure against the efforts of counterfeiters, and, owing to its qualities, could be retained for a long period in circulation, the Swiss Government employed pure Nickel in 1881 for the manufacture of the 20 centimes piece. The new coins rapidly proved a success, and Nickel currency was subsequently introduced by various other countries, including Austria-Hungary, Denmark, France, Germany, Italy, Montenegro, Mexico, Turkey, and Siam.
Nickel provides a cleaner and more resistant coinage than that minted from Copper or Bronze and is moreover superior in appearance. There is undoubtedly no coin of low currency value which looks so well. Nickel is characterized by great brilliance and takes the impress of the die with a distinctness unapproachable by any other metal less costly than Silver. It has the essential qualities of hardness and permanence, and the coins are light in weight and do not become oxidized. The hardness of the metal offers an almost insuperable obstacle to unauthorized coiners. It requires expensive plant and machinery to prepare discs of pure Nickel, and this, combined with great technical difficulties, render it in the highest degree improbable that any potential counterfeiter would involve himself in risks out of all proportion to the profits he might expect to derive. Nickel coins are magnetic, whereas Nickel-Copper coins are not. The genuineness of Nickel coins is, therefore, open to a ready means of testing. One of the principal considerations which induced Italy to effect a change from Copper-Nickel to pure Nickel coinage was the very large number of counterfeit Copper-Nickel coins found to be in circulation. The alloy of Copper-Nickel, which was legalized in Italy in 1894, was replaced by pure Nickel in 1902. The hardness of pure Nickel ensures the durability of the coinage. This has been clearly demonstrated in that the Swiss pieces of 20 centimes, which have been in circulation for over 30 years, show practically no deterioration through wear and tear. The wear of coins in circulation is a very important consideration and was referred to in a Memorandum appended to the Annual Report of the Deputy Master and Controller of the Royal Mint," London. (Forty-fifth Report, 1914, p. 54): "The good wearing qualities of Copper- Nickel alloys," says this authority, "are no doubt to be attributed to the fact that they form homogenous solid solutions. A pure Metal, such as Nickel, offers still more resistance to chemical attack There is little doubt that the rapid loss of weight of a new coin is due to abrasion, but when the rough edges have been removed in the course of the first few months of circulation, it is well known that a change in the condition takes place and chemical action may prove to be of the first importance in the succeeding years."
The cost of the metal for making the blanks, and of striking the coins, is slightly more for Nickel than for Cupro-Nickel, but the advantages of using pure Nickel go far to offset the difference in initial expense. It will be apparent from the above considerations that the substitution of pure Nickel in place of Cupro-Nickel or Bronze for purposes of subsidiary coinage has been so successful that we should no longer hesitate to adopt Nickel coinage.
WORLD'S NICKEL CURRENCY.
The first legal enactment in regard to Nickel Coinage is that of Switzerland, 7 May 1850, and the Swiss Government were the first to use coins of pure Nickel, which, as stated, they issued in 1881. The use of Nickel for coins appears, however, to have been first suggested in the United States, and under an Act of 21 February 1857, Nickel-Bronze one cent coins containing 12 per cent. of Nickel, were issued in that country concurrently with Copper coins, but were afterwards abandoned. They remained in circulation for seven years. The definitive adoption of a Copper-Nickel currency in the United States took place in 1866. Belgium adopted a Nickel coinage as early as 1861, when coins of 20, 10 and 5 centimes were issued in the alloyed metal. The latest official figures for the Nickel and Nickel-Bronze coinages of the world are those down to the end of 1912. The number of pure Nickel coins issued to the close of 1912 exceeded 909,000,000, of which about 13,250,000 Italian 25 centesimi pieces were withdrawn at the end of that year, the number of pure Nickel coins in circulation at the end of 1912 being 895,920,035. The issue of Nickel-Bronze coins through- out the world to the end of 1912 exceeded 4,543,000,000, of which about 407,000,000 had been withdrawn in Belgium, Germany, Italy and Korea. The balance in circulation at the end of that year was 4,136,851,348 (vide Forty-fourth Annual Report of the Mint, 1913. pp. 90-91). In Austria-Hungary, where progress in the working of Nickel was made at an early date, this metal in the pure state was coined and issued regularly from 1892 onwards. In France, pure Nickel was adopted, for 25 centimes only, in 1903. Ten years later, however, a law, signed on August 5, 1913, provided for the withdrawal of these coins and of the Bronze currency, and for replacing them gradually during the ensuing ten years with coins, all of pure 'Nickel.’
A Decree of July 10, 1914, determined the design of the new Nickel coins conformably to the models executed by Monsieur E. Lindauer. In Germany between 1873 and 1916 Nickel coins had been issued to the value of about 120 million marks, inclusive of withdrawals to the value of about 2.5 million marks.
In the British Empire, the first Nickel coinage was that for Jamaica, in 1869, comprising pence, half-pence and farthings of 20 per cent. Nickel and 80 per cent. Copper alloyed. Up to the end of 1906 Jamaica remained the only British Colony employing Nickel currency, about 8 million pieces having been struck up to that time. From that time forward the advantages derived from introducing a Nickel coinage became more generally recognized: for by the end of 1910 about 166 million Nickel-Bronze coins had been issued within the British Empire, whilst only two years later, at the close of 1912, the number had risen to more than 326 million.
To date, 1917, pure Nickel coinage has been introduced into the following countries, Switzerland, Austria, Italy, France, Serbia, Montenegro, Mexico, Turkey, and Siam.
A law passed by the Argentine Legislature in 1879 authorized the issue of five-cent and two-cent, coins, containing 15 per cent, nickel and 85 per cent, copper, but no such coins appear to have been issued. The coins here recorded are issued under the law of 1881.
The Italian coins of pure nickel (25 centesimi) and of nickel bronze (20 centesimi) are in course of withdrawal.
The Jamaica coins struck between 1869 and 1906 contained 20 per cent, nickel and 80 per cent, copper.
Korean coins of 5 cash have been demonetized and are in course of withdrawal.
United States: Under an Act of 21st February 1857, nickel-bronze cents (containing 12 per cent, nickel and 88 per cent, copper) were issued in the United States concurrently with those of copper. The issue was discontinued in 1864.
Value of Nickel Coinage
An ounce of Standard Silver, i.e., 925 parts of Silver to 75 parts of Copper, is converted by the Mint into 5'6 in Silver coins, whatever may be the market value of Silver bullion. So long therefore as the present price of Silver is maintained there is left but a narrow margin between the intrinsic and the nominal values of our Silver coins. If coins representing the value of 3d. were made of pure Nickel instead of Silver—such as the French Nickel 25 centimes piece, not only should we have a far more convenient coin to handle, but the gain which would accrue to the State would be set against the high cost at present incurred in issuing Silver coins. Assuming that a British nickel coin to represent the value of 3d. were of the same weight as a 1915 French 25 centimes piece, the cost of the Nickel contained in 1,000,000 pieces would be £1,016, whereas the cost of the Silver at 5;- an ounce (troy) contained in 1,000,000 of the current threepenny bits is £11,362.
Since the Report of the Commission was published the cost of the three metals under notice has risen—Silver by no less than 100 per cent., Nickel from £171 to (205 per ton, and Copper from £69 to £110 per ton.
Conclusion
The general advantages of a new style of coinage based on the decimal system decimalization the desirability of introducing metrical weights. Nickel being the one metal which completely fulfils all the requirements of small currency.
We are of opinion that the termination of the war will bring with it an unequalled opportunity for securing this much-needed reform, and we recommend that your Majesty's Government and the Governments of the Oversea Dominions should then co-operate to establish throughout the British Empire a uniform coinage based on the decimal system.