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"TREASURY DEPOSITS"
(By Telegraph—Press Association—Copyright.l LONDON, July 5.
The Chancellor of the Exchequer (Sir Kingsley Wood) has announced a new arrangement with English clearing banks and the Scottish banks in order to facilitate the financing of the war. The Treasury will take deposits from banks at rates to be fixed from time to time, and for a period of six months. Banks are entitled to call for their money earlier if they require it. It is understood that the arrangement is already working, banks this week advancing a fairly substantial sum in the form of the "Treasury deposits" at interest of 1 1-8 per cent. annually.
The main idea is to promote a smooth,- flexible • working money market and obyiate sudden fluctuations in the weekly issue of Treasury bills.
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Bibliographic details
Evening Post, Volume CXXX, Issue 6, 6 July 1940, Page 14
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131FOR FLEXIBILITY Evening Post, Volume CXXX, Issue 6, 6 July 1940, Page 14
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