USE OF TERM “STERLING"

Taranaki Daily News, 26 August 1931, Page 5

USE OF TERM “STERLING"

DISCONTINUANCE BY BANKS.

OMISSION FROM LONDON DRAFTS.

The deletion of the word “sterling” on documents describing New Zealand money is a practice thati has . been adopted by the banks in the Dominion, in line with the procedure, being followed in Australia in connection with Australian money. Some banks are deleting the word “sterling” in the case even of cheques and drafts drawn on London, although in this case the term really applies. The word ’“sterling" is properly applied only to English money, but its use in the past as a description of New Zealand and Australian money was not of any moment, since ft state practically of parity existed. Now that the position is different it is feared that the use of the word might give rise to misunderstandings, and its discontinuance in New Zealand was decided upon as an. outcome of the Australian position.