5 -
under the Exchange Fund Guarantee scheme);
and to a
later decision not to invest in securities vhile interest rutes were high and rising and while it was difficult. due to the economic and political situation, to predict security price movements, Other income totalling £5.15 million (1972: £805.190) was made up as
follows:
U.K, und U.S. Treasury Bills
278,379.61
Call deposits
Time deposits
491,654.14 4.380.282.22
£5,150,315.97
(ii) Income from Exchange Fund Guer ntee Schene The scheme came to an end on the 24th September 1973 in accordance with paragraph 4(8) of a letter from the FiniYY--- cial Secretary to the Chairman of the Exchange Banks' Association dated 23th Jamury 1369.
AS
Exchange margins on debt certificates. recorded in last year's report the sterling positions of the participating banks were ruled off as at the close of business on 6th July 1972 and in consequence no income was produced under this heading in 1973.
Interest (mainly 3/32% P.š.) on sterling deposit receipts. Income declined by £242,739.72 from £451,402,66 in 1972. This decline resulted from a gradual reduction in the value of sterling deposits between 1st Jamaary 1973 and 24th September 1973 and also because the interest earning period was only months, compared with a full year in 1974. The reduction in the value of sterling deposits resulted from the standby and diversification facility provided to the note issuing banks. This facility
vas provided for the purpose of enabling the note issuing banks to correct any imbalance in the locul foreign exchange market and to assist them in bringing the value of their sterling deposit receipts more into line with the underlying