BRITISH FINANCE

Evening Post, Volume CXXXIV, Issue 25, 29 July 1942, Page 5

BRITISH FINANCE

INCREASE IN NOTE ISSUE

(Rec. noon.)

RUGBY, July 28,

The Chancellor of the Exchequer, Sir Kingsley Wood, announced in the House of Commons that, acting in accordance with the Currency and Banknotes Act, the Treasury had authorised an increase in the fiduciary note issue by £50,000,000, bringing it up to £880,000,000. Sir Kingsley Wood said this was due to higher earnings and savings in the form of notes by workers, use of cash instead of cheques for various reasons, and matters arising from evacuation and service in the forces.

He said' that the amount raised by the issue of 2£ per cent. War Bonds up to July 25 was £506,000,000. The Chancellor of the Exchequer was asked what was the total amount loaned by the Bank of England and the joint stock banks on short term in Treasury deposit receipts and Treasury bills, and what was the annual interest charges paid. He said that the receipts outstanding on July 15 were £654,500,000. The interest payable was 1 1-8 per cent, per annum. He could not say what proportion of the total was held in any particular hands. The current rate of discount was approximately 1 per cent, per an-num..—-8.0.W.