IN the letter "Sterling values" (Letters March 18), the writer repeats the mistaken idea that Scottish bank notes are legal tender in England.

Under the Currency and Bank Notes Act 1954, not only are Scottish notes not legal tender in England - they are not even legal tender in Scotland!

The term "legal tender" must not be confused with "common usage". The definition of "legal tender" is something that is acceptable in payment of a debt.

Under the 1954 Act the only legal tender in Scotland is: Bank of England bank notes of a face value of less than £5 or quantities of coin with certain restrictions. With the withdrawal of the Bank of England £1, the only legal tender now valid in Scotland is £1, £2 or £5 coins to any amount; 20p & 50p coins up to £10; 10p & 5p up to £5 and 1p & 2p up to 20p. Gold coins of the realm are also legal tender at face value.

In England "legal tender" is Bank of England notes to any amount plus the same restrictions on coin as for Scotland. Thus if one attempts to pay a tax or fine of £50 with only 5p and 10p coins, this can be refused as not being legal tender.

Although Scottish bank notes are not legal tender in England, neither are they illegal. Anyone may accept them at face value in payment of a debt, but it is only at the option of the creditor.

Gordon Fraser

Sowood