IN WHICH CURRENCY?

Otago Daily Times, Issue 21404, 4 August 1931, Page 7

IN WHICH CURRENCY?

BRITISH OR AUSTRALIAN PAYMENT OF COMMISSION. LONDON, July 21. Mr Justice Rowlatt gave judgment for defendants to-day in a test case in which West Australian Farmers, Limited, claimed from the King Line, Limited, commission under a charter, the question being whether this was payable in British or Australian money. The, King Line chartered the King Arthur to West Australian Farmers, Limited, under the Australian grain charter of the Chamber of Shipping to bring cargo from Australia to London. The freight was to be paid cash in sterling on unloading. Commission of 5 per cent, was payable to plaintiffs on the freight being loaded. Any sums due in Australia were payable in Australian currency. Plaintiffs sought to recover £154 17s, the difference between £674 Os Id in commission paid in Australian currency and the same amount in British currency.

Defendants pleaded that fhe customs of the trade was to pay in Australian currency. Plaintiffs contended that the commission must be one-twentieth of the sterling freight payment, such onetwentieth being converted into Australian currency and paid to the charterers.

Mr Justice Rowlatt held that the commission was a debt arising in Australia and was outside considerations of exchange. The commission was payable in Australian currency; and the freight was payable in sterling, but both must be regarded as the same coinage. The sovereign was the same coin in England as in Australia. The Australian Government’s right to call in gold coins for paper money had not altered the character of the sovereign. The shipowner must pay the charterers one shilling in Australia for every sovereign which he collected in Europe. The action therefore failed.

A stay of proceedings was granted