PROSPERITY AGAIN.

Auckland Star, Volume LXVI, Issue 307, 28 December 1935, Page 4

PROSPERITY AGAIN.

MUCH FREER SPENDING,

WHAT BANK RETURNS TELL. (Received 12.30 p.m.) , LONDON, December 28. The figures given below. in the weekly Bank of England returns demonstrate the freer spending of the English public just prior to Christmas. Tiic large increase in note circulation is due to the demands for money for Christmas shopping, and the fact that the increase is so great in comparison with other years shows that the public has that much more money to spend. It is a sign of returning prosperity. A comparison with the figures for this period last year brings that sign home more forcibly. The figure for the return below was for the week ended December 20. The corresponding figure for • December 19 of last year was £405,104,000. The comparison, then, is between £424,507,000 and £405.164,000. The returns for the week ended December 20, as compared with those for the week ended December 18, are as follow.*:—

Note circulation . 424.507.000 410,403,000 Coin 201,914,000 202.020.000 Notes in reserve.. 35,5-14.000 40.557.000 Govt, deposits ... 32,140.000 30,254,000 Other deposits ... 309.355.000 117.142,000 Govt, securities . 81,855,000 82.750.000 Other securities . 21,305,000 21,353,000 Pro por ti on of reserve to liabilities 29.70 32.30 SHORT LOANS AND BILLS. Short loans, li per cent, compare with 13-10 per cent last week, and three months' bills 25-32 per cent, compare with 43-04 per cent last week. The Bank of England discount rate is 2 per cent, to which it was reduced from 2Vs per cent on June 30. 1932.