RISE IN FIDUCIARY ISSUE
LONDON, May 16.
The Treasury’s increased resort to borrowing from banks caused clearing banks’ deposits to rise to the new alltime high level of £2,828,500,000 last month. Financial experts say the expansion of bank deposits is not necessarily a proof of inflation, but they regard the rapidly-rising trend uneasily, especially in view of the continued increase in note circulation. The Chancellor of the Exchequer, Sir Kingsley Wood, strongly refutes the suggestion that the increase in the fiduciary issue involves a danger of credit expansion. At present some money market authorities urge that the fiduciary issue should be further increased and advocate a system of staggering wage payments as a means of obviating the necessity for issuing new notes.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/ST19410520.2.7
Bibliographic details
Southland Times, Issue 24439, 20 May 1941, Page 2
Word Count
122RISE IN FIDUCIARY ISSUE Southland Times, Issue 24439, 20 May 1941, Page 2
Using This Item
Stuff Ltd is the copyright owner for the Southland Times. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.