LOSS TO TREASURY

Evening Post, Volume CXX, Issue 9, 10 July 1935, Page 18

LOSS TO TREASURY

A COMMERCIAL PRACTICE

(Special to tho "Evening Post.") PALMERSTON N, This Day. It was mentioned at yesterday's meeting of the' Palmerston North Chamber of Commerce that . the Treasury was hundreds of pounds the worse off through the practice of companies and firms of regarding endorsed cheques as sufficient proof of receipt of money by the one to whom the amount was paid. This did away with the necessity for receipts bearing two-penny stamps, while postage was also lost on the letter that would have conveyed the receipt back to the firm. Dairy companies, for instance, all operated that way, farmers not being asked for receipts on cheques received for milk and cream supplied.

A solicitor member of the chamber also informed the meeting that auditors accepted the endorsed cheques as proof of receipt of payment by tlie payees.

These facts were mentioned when the chamber was discussing' a letter from a traders' welfare association urging that steps be taken to approach the Government for a reduction of the stamp duty on'cheques frqhv2d to Id. The increase to 2d, it was explained, was a- measure brought in following the war and.might.well be rescinded.

The request is being forwarded to the Associated Chambers for consideration. ' ■ ..■■■.