RECORD NOTE ISSUE.

Auckland Star, Volume LXV, Issue 307, 28 December 1934, Page 4

RECORD NOTE ISSUE.

BANK OF ENGLAND. HEAVY KECENT INCREASE. MORE SPENDING THIS YEAR. The note issue for the Bank of { ] England as shown in the table below, j constituted a record. . - The cable, dated December 27, reads: — s The Bank of England returns for the week ended December 21), 11s compared ■frith those for the week ended December j l'J arc as follows: — I Note circulation ... 40n.1W.0C0 j« Notes' in' reserve''.'. 1 , Government (l-posfts !>S'S.OOO WO Mife'asa&i; (Hher securities ... 18,246,000 10,430,t<W , proportion of re- A serve to liabilities uo.lo • j - Short Loans and Bills. ' Short loans, H per'cent, compare with \ 31 3*2 per cent last week, and three j months' bills, 10.32 per cent compare , with 11.32 per cent last week. The Bank of England discount rate, is 2 per cent, to which it was reduced from 2'. per cent, on June 30, 19.52. In the third week of November the note circulation of the Bank of bug and was £378,875,000, wluch there has been an increase f j in only six weeks. The effect ,f t.».aj ,ati be appreciated when it is refilled that notes change hands many Lime*. The value of the extra, millions tcpiesents but a small fraction of the ext a. purchasing power which is pkicecl at tli disposal of the public. The note circulation of the Bank o , during the whole,of this year faa» beui above the level of 1933. Assuming that an extra. 10,000,000 notes changed »and. once a week, the additional power for a year would be at lea t .€450,000,000, and it is probable that + 1 ev would change hands at a greater rate during such times as the Christmas rush of business. Vot only is the circulation of notes "'•cater, but there has also been a substantial increase of cheques. The re anus of the London bankers' clearing house 0! i November IS showed that the , passed through in ten and a half nionUis of this year amounted to £3.1,641 ,000,000,1 an increase over the correspondii ii nil res of last year of not less than £2,093,000,000-