I am posting my findings in case someone else has an issue with this.
I am used to the normal FTP - where you have the options for binary/ascii mode. (ASCII mode removes the \r for text file transferring from Windows to Linux)
The SFTP - has no such option as ASCII mode.
(When you do a help for commands available, there is no listing for ascii/binary)
SFTP in putty doesn't have this option.
I could find nothing in the RFC 4254 (SSH) about binary / ascii. The only mention of ASCII is for sending the commands to the server in ASCII mode.
The best answer I found was the man page for ssh: ...is used to reliably transfer binary data ...
This library does works just fine transferring files in binary as per the ssh man page.