1953-06-08 — Page 9

THE CHINA MAIL; MONDAY, JUNE 8, 1953.

NOTE CIRCULATION|| American

Considerable Increase In Britain

"Undesirable

Hinted

Consequences"

London

In

(FROM OUR OWN CORRESPONDENT);

London, June 7.

Some £30 million of extra currency has been needed by the British people to tide them over the Coronation neriod. This, however, is only a rough guide to the amount of spending that has been done by the public during the celebrations.

7

Credit Policy

Increasing Volume Of Criticism

The U.S.

Treasury's restric- credit policy has been tive meeting 'an increasing volume of criticism,

Some observers have suggest ed that recent actions of the

American monetary authorities indicate that they are now

beginning to recognise the jus tice of this criticism and that in is being modifled. But a Wash Ington correspondient points out that the conclusions drawn from the evidence thus far are al-

evidence, so far as it con cerns the expressed intentions | of the authorities themselves, is all the other way. They are

verlous small ways the policy

The estimate of £30 million is arrived at by a simple arithmetical process. The relevant figures are provided in the weekly Bank of Eng-together too facile. Morcover, land returns.

These show that an additional £11 million of notes went lato circulation in the week ended last Wednesday. This brought the amount of currency in the hands of the public to £1,543 million-only £7 million less than the all-time record level reached fast Christmas.

German Role In Egypt

Last week's increase, inorcover, came on top of the rises in the rurrency circulation of £8% million in the previous week and nearly £4 million in the week before that.

Coronation they, therefore, "give cause for some concern,

The poper believes it would be ["unrealistic" io attribute the whele-or even the major part- of the rise in the note issue and bank deposils to an increase in the demand for money to meet Coronation

expenses. Other influences are at work, the paper says, the chief of which probably The creation of money for financing the budget denell.

Part of this increase. is uc- enuited for by normal seasonal growth of demand for each over the Whitsun holiday. But this year

demand has been treater is ever before.

the "rise can be

*The extent Hopes for participation of Judged by the fact that the extra German industry in Egypt's try that went into circula-

lion during the four

month development projects have from early February to early been raised in Bonn follow. June last year was 12 million ing the return of the Ger-compared with 92 million this

year.

attributable to:

several technical

man technicians who went} The difference at £30 million 16 Egypt in March to study the amount the giant Assuan power dam Coronation demand.

There are scheme.

reasons, however, why this figure is only Dr Max Pruets, leader of the amount of extra spending done

a rough

guide to the delegation, which Includes repre-over the festive period on things sentatives of the biggest steel from tlecorations to bus fares. construction and electrical en- gineering ams such as Giochi Tiobau AG, Esten, the Dori- munder Union, Siemens and the AEG., har just reported his con- clusions to the State Secretary, Professor, Walter Hallsein.

BANKS WITHDRAWALS

The first is the fact that it is the banks and nut the public which withdraw currency from the Bank of England. They do

I understood that the ecording to their need for

negotiations with the Egyptian

Government

have

There are also indications that the banks have helped the ex- pansion by adopting a mather less stringent attitude to op- plications for credit from bushiess ather private

These are no doubt important considerations. But they can- mask. The fact that the nation has had a thoroughly good time. It was in no mood las! sequences of "too much money, week to worry about the con-

not

Lic."

Big Rally In Cotton Futures

was

to

ince talks.

determined to keep greuit on a Night rein.

Further Rise In Gilt-Edged On London Market

(From Our Own Correspondent)

London, June 6.

MESSAGERIES

FO. Box 63. Queen's Bldg.

M

Gutwards