RECORD HEIGHT

Auckland Star, Volume LXXII, Issue 272, 17 November 1941, Page 3

RECORD HEIGHT

BRITAIN'S NOTE ISSUE

EXPERTS NOT PERTURBED

LONDON, November 15. economic mysteries of the war is United Kingdom note circulation yet ThSi V. 04 - 000 -™ st e r "nK. the highest hf,V , sh .°u'd be a matter of grave concern alarm circles say that there is no cause for ...k ead i? g financial commentators agree with this [ "pkecause. although the paper money issue JL™" unprecedented heights, there is no S? en " 01 a proportionate increase in spending. , circulation would normally be at the has mini t« e at Present, but the expansion has amounted to nearly £40.000.000 since August Among the explanations given for the increase is that national wages distribution is reaching an increasing number of people who are not bank "'?, ™ e r s ' breaking up of innumerable homes tt 2 demands of national service has compelled people to maintain additional cash reserves Mack market dealers who carrv out transactions in small cash in order to avoid detection. also tax-dodgers, have probably helped the aemana lor paper money. Well-informed circles are emphasising that the note circulation must not be misinterpreted. They s *y that it certainly should not be associated with the use of the printing press as a means of finance. The Government meets in orderly fashion throucrh the banking system its finance requirements in excess of current revenue.