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BANK OF ENGLAND

FIDUCIARY ISSUE RAISED

(Red. 12.15 p.m.)" LONDON, May 1. The fiduciary issue has been increased from £630,000,000 to £680,000,000.— U.P. A.

The fiduciary issue of the. Bank of England by authorisation of the Treasury was increased from £580,000,000 to £630,000,000 on June 12 last year. This action was attributed in part. to combined influences on the note issue, of a serious emergency increasing prices, and to arrangements made for the decentralisation of the system of currency issue in the event of such an emergency. Movements of population from evacuated areas immobilised some currency, and the war situation, as it was then, caused a larger amount of currency to be held by people as a precaution against sudden emergencies. The opinion was expressed by "The Economist" at that time that "to increase the fiduciary issue by as much as £50,000,000 should meet the situation for a long time ahead." That was in June. 1940; but it has been found necessary, in May, 1941, to increase the issue by yet another £50,000,000.

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https://paperspast.natlib.govt.nz/newspapers/EP19410502.2.58

Bibliographic details

Evening Post, Volume CXXXI, Issue 102, 2 May 1941, Page 8

Word Count
173

BANK OF ENGLAND Evening Post, Volume CXXXI, Issue 102, 2 May 1941, Page 8

BANK OF ENGLAND Evening Post, Volume CXXXI, Issue 102, 2 May 1941, Page 8