CANADIAN CURRENCY

Sun (Auckland), Volume IV, Issue 1020, 10 July 1930, Page 10

CANADIAN CURRENCY

TO BE ACCEPTED AT PAR IN UNITED STATES United States paper currency for years has been accepted at par everywhere in Canada without question, but Canadians travellyig across the border found their money discounted by 10 to 20 per cent, by American merchants or tradesmen, or regarded with suspicion and refused. It was a condition keenly resented and the source of great inconvenience and annoyance to Canadians. Steps to bring about reciprocity in currency at last have been taken by the United States Federal Reserve Board. Under this plan the Federal Reserve system will absorb the cost of shipping Canadian currency from member-banks to Federal Reserve headquarters, deducting only actual exchange and insurance charges. It is anticipated that the member-banks will extend the same privilege to their customers and that gradually United States merchants, learning Canadian money is taken at or about par by thetr bankers, will drop the practice of charging a heavy discount on the funds of tourists and travellers. On the New York money market Canadian funds are quoted at what is practically par most of the time. But even in New York and border cities Canadians have experienced difficulty in securing full value for their money at other than branches of large banks, this being largely a reflection of conditions during and after the w r ar when Canadian money was at a heavy discount.