Australian Coins Still At Face Hue

Northern Advocate, 24 August 1948, Page 4

Australian Coins Still At Face Hue

AUCKLAND, Tue. (Sp.).—lneonveni ence and uncertainty was caused yesterday by a report that Australian coins had been depreciated by about 20 per cent of their value on account of the altered exchange rate. Many people were on the lookout for such coins and refused to accept them, and tram and bus conductors were officially instructed not to handle them.

The positions is that in the meantime at any rate the banks have authority to accept Australian coins at their face value as usual so long as they come in in reasonable amounts in the ordinary way of business. Any large amounts of such money would, however, be questioned. In the past the banks have constantly been receiving English and Australian coins on a basis of equality with New Zealand money, and this continues to be the position. Bank notes are on a different footing and an Australian £ note now exchanges at the bank for 15/9. UNPOPULAR IN WELLINGTON Some Wellington firms received advice from the banks not to accept Australian silver coinage which, because of the exchange disparity, is not worth its face value. No general instructions were issued but today anything looking like an Australian coin *was definitely unpopular, and banks and the public generally; are refusing to' accept them. One bank stated that it was buying Australian silver at the same price as the Australian pound, namely 15/9. The banks themselves are reported to be holding considerable quantities of this currency, and there is a failamount in circulation.