The Other Side of the Reported Exchange Trials Of Tourists

Northern Advocate, 29 December 1938, Page 6

The Other Side of the Reported Exchange Trials Of Tourists

“MUCH ADO ABOUT NOTHING,” IS THE OPINION OF AN AUSTRALIAN NOW DOMICILED IN NORTHLAND. CONCERNING THE REPORTS OF DIFFICULTY EXPERIENCED BY TRAVELLERS IN EXCHANGING NEW ZEALAND CURRENCY IN AUSTRALIA.

Several trips between Australia and New Zealand have been made by this particular Northlander. and he has not yet had any difficulty over money matters. When passing between the two countries ho has used the banks as his exchange agency. This, he said, was the regular practice of all travellers. New Zealand money had been transferred into Commonwealth notes with as much ease as Australian notes had been transferred into New Zealand notes in the Dominion.

Whether or not a New Zealand currency note would be cashed in an Australian ban is a decision apparently in the hands of the Australian banks.

Reports have recently come to hand concerning alleged inability to exchange New Zealand currency into Australian in Australia. This was particularly borne out in Russell during the week-end. when it was stated that tourists on the cruise liner Orford were cautious of exchanging their money into New Zealand values owing to the uncertainty of being able to retransfer it on leaving the Dominion. Usual Exchange Practice. In the past the customary procedure has been for tourists to exchange their j money' into the currency of the counI try to which they are going. Various methods have been used to bring this about, one of the most common being the granting of letters of credit from banks, or the issuing of drafts from I local banks on overseas branches of I the same or allied banks.

Other tourists have adopted other means. For example, at Colombo and Aden, the professional money-changers are always at the landing place, and, when the ships come in, they exchange the tourists’ money for local tender, retaining, of course, the commission as their profit on the deal. Position Not Clear. A person possessing New Zealand notes in Australia today may or may not be able to cash them, is the opinion of one bank manager in Whangarei. Whatever attitude the business world may adopt may not necessarily be the same attitude as the banks officially adopt. Thus, if a man goes to a Sydney draper and offers a Dominion fivepound note for a new felt hat, and the draper refuses to accept such a note, this refusal does not necessarily mean that the banks have closed down on New Zealand currency. To make the position more clear, let us consider a business man in Whangarei. He is, let us say, a bookseller. A man comes in, buys a book and puts down an Australian note in payment. Most probably the business man is not accustomed to dealing in Australian notes and has no idea of their value, and will immediately question their validity. The customer will most likely be asked to go the bank and exchange jthe note for a New Zealand bank note, without which the purchase of the book cannot bo made. An Illustration.

This ts precisely what appears to have been done in Australia. New Zealanders have gone to Australian business houses (not banks) and have tendered New Zealand currency. The Australian business men have apparently refused, insisting on Australian currency. An altogether different position arises regarding exchanging notes at banks, however. Local banks have no official advice in this matter, and cannot say whether or not a New Zealand note will be accepted in an Australian bank. Such matters evidently depend entirely on Australian banks’ attitude towards New Zealand finance, and local banks are not in a position to advise. “What Must I Do!?” What, then, must a person do if ho wishes to travel overseas, let us say, to Australia? Firstly, permission to take money with him must be obtained from the Government if the amount is over a certain limit. Every bank has license forms on hand, and they must be completed by the would-be traveller. When permission is granted, the general thing is for the local bank to forward a letter of credit for the amount specified in t?ie permit.

People wishing to live in Australia may find themselves in a different category, however. They may go over to the Commonwealth, but they may not be able to transfer their New Zealand securities.

Interest payments on these, would no doubt, be made in Australia without difficulty, although actual transfer of securities would depend on the attitude of the Government and'the manner in which it treated the application by the intending Australian settler. Licenses Needed, Beyond the necessity for obtaining a money-transfer license, little official information can be obtained from banks regarding the recognition of New Zealand finance in Australia. Ho who takes a wad of New Zealand notes to the Commonwealth must take chances on Australia's attitude to the “foreign" notes. Although numerous instances of the turning down of money have been quoted recently, at least one Whangarei business man had a similar experience as long as 18 months ago. In June of last year he was in Australia and tried three times to change a New Zealand ten shilling note. He came

back with the impression that a traveller was very foolish to carry a wad of one country’s notes into another country. An incidental occurrence on this particular visitor's trip was the refusal of Australians to accept New Zealand half-crowns owing to the half-crown not being legal tender in the Commonwealth.