XN000022-1979-07-31 — Page 3

FURSDAY, JULY 31, 1979

AND REFERRING TO HIS OWN DEPARTMENT'S 50 PER CENT REDUCTION IN ELECTRICITY CONSUMPTION FOR LIGHTING FOR ITS OFFICES, MR. JORDAN WONDERED IN HOW MANY OTHER OFFICES THERE WAS UNNECESSARY LIGHTING.

+HOW MANY FIRMS HAVE LOOKED REALLY CRITICALLY AT THEIR LIGHTING?+ HE ASKED.

ACKNOWLEDGING THAT MANY COMMERCIAL AND INDUSTRIAL ESTABLISHMENTS HAD ACHIEVED CONSIDERABLE SAVINGS, PARTICULARLY BY REDUCING NON-ESSENTIAL LIGHTING AND CURTAILING AIR-CONDITIONING, MR. JORDAN SAID: +DESPITE OUR PUBLICITY CAMPAIGN WE ALL STILL SEE MANY SIGNS OF WASTE.

+THE ONUS LIES WITH ARCHITECTS, DESIGNERS, GOVERNMENT AND MANAGEMENT GENERALLY TO COME TO TERMS WITH A SITUATION WHICH WILL NOT DISAPPEAR. THE DAYS OF CHEAP ENERGY ARE GONE, AND ALL OF US FACE A PERIOD OF ADJUSTMENT WHICH WILL BE MUCH MORE PAINFUL AND LAST LONGER THAN THE PERIOD BETWEEN THE OIL SHOCK' OF 1973 AND THE ONSET OF THE PRESENT SITUATION.

+ENERGY SUPPLIES ARE GOING TO GET MORE AND MORE EXPENSIVE. SO IT'S NOT JUST A QUESTION OF SAVING OIL BECAUSE SUPPLIES ARE TIGHT NOW, BUT OF SAVING MONEY TOO, MR. JORDAN CONCLUDED.

JUNE MONEY SUPPLY STATISTICS

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THE JUNE 1979 MONEY SUPPLY STATISTICS WITH THE MONTHLY FIGURES FOR BANKS AND DEPOSIT-TAKING COMPANIES, AND THE QUARTERLY ANALYSIS OF LOANS AND ADVANCES ARE PUBLISHED TODAY (TUESDAY).

THE FIGURES SHOW THAT THE GROWTH RATE OF THE MONEY SUPPLY ROSE AGAIN, WHILE THE GROWTH RATE OF LOANS AND ADVANCES BY BANKS AND DEPOSIT-TAKING COMPANIES TOGETHER CONTINUED TO SLOW DOWN.

MONEY SUPPLY

THE MONEY SUPPLY ON ALL DEFINITIONS ROSE IN JUNE. M1 (NOTES AND COINS IN CIRCULATION OUTSIDE THE BANKS AND DEMAND DEPOSITS AT LICENSED BANKS) ROSE BY $866 MILLION (3.7 PER CENT) TO $24,303 MILLION, WHICH WAS 25.6 PER CENT ABOVE THE LEVEL AT THE END OF JUNE 1978 (A NOTICEABLY LOWER INCREASE THAN THE 27.7 PER CENT RECORDED IN MAY).

THERE WAS AN UNEXPECTEDLY SHARP INCREASE OF 4.2 PER CENT IN THE VOLUME OF DEMAND DEPOSITS DURING JUNE: THIS IS SOMEWHAT SURPRISING GIVEN THE CURRENT LEVEL OF INTEREST RATES.

*M2 (M1 PLUS TIME AND SAVINGS DEPOSITS) ROSE IN JUNE BY $2,308 MILLION (2.9 PER CENT) TO $80,928 MILLION, 22.1 PER CENT ABOVE THE LEVEL AT THE END OF JUNE 1978, WHICH IS THE LOWEST INCREASE IN THE YEAR-ON-YEAR COMPARISON FOR 16 MONTHS.

/IN THE