BANK OF ENGLAND

Evening Post, Volume CXXXIV, Issue 28, 1 August 1942, Page 7

BANK OF ENGLAND

NOTES AND FIDUCIARY ISSUE

(By Telegraph—Press Association—CppyriuW.)

LONDON, July 30

The Bank of- England return -for-.-the week. ended July 30 is • given in the following table, with the return in millions of pounds;— . . .. . Last week. This week. : .. . £•, £•• (million*.) (millions.) issue Department— . .::. Notes;issued— ..- „„„••• elt , , In circulation 315,3 824.1 In banking department . 14.9 56.1 Govt. debt ........... ■ 11.0 IJ.O Other securities ....... 1.8. ,i.» Other Govt. securities ... 816.2 866,2 Fiduciary, issue , 830.0 . 880.0 ■ . Gold coin and bullion . .; 0.2 . , 0.2 Silver coin .......,..; 1.0, . .1.0.,. Banking Department—.. ... ;...'.','. 'Capital .............. 1H l*f Best 3.4 ,3.4 ... Deposits— . . «7 Banked ■".'!!!'!vl!!!!i •a27J 136.9 . Other, accounts ........ 49.9 . 47.8 . •;■ Government securities -.. 166.2 ■ 118.9 ■ Discounts, advances .. 5.9 7.1 Other, securities ....... 21.2 28.0 Notes and coin 16.2 fl-f. , Proportion, p.c. ...... 8.48 29.6Z Bank-rate 2 per cent, (reduced from 3 per cent.. October 26, 1939.) Notes -In . circulation as at' July 16, 1942; £812,600,000; and at July 30, 1941, £658,400,000; the fiduciary issue at that date being £680,000,000. ■ The fiduciary issue was raised on Tuesday last by £50,000,000 .to £880,000,000. For i September 14, 1938, it was £200,000,000, and the notes-in circulation. atHhat, time amounted to £47.8,600,000.. By September 13, 1939, following the outbreak of war, the fiduciary.issue had been increased to £580,000,000 and. the note circulation as; at September; 13, 1939. was returned at £353,500,000. •', As the increase in the note circulation' progressed in order to meet growing demands^ for currency, so it was anticipated by rises, in the fiduciary Issue until the colossal sum of -'£880,000,000 was reached this week by a further addition of £50,000,000. The explanation given by the Chancellor of the Exchequer, Sir Kingsley Wood, for the latest increase; in the fiduciary issue was higher earnings and savings in the fprm ofv bank-notes, by workers, the use of cash instead of cheques for various reasons, and matters arising out of evacuation and ser.vlce in the forces. ■■■.;. The fiduciary limitiis the amount of banknotes that may be issued without the backing of, gold. . . • . ■• . : : ■ . • - -.