Note Issue

Oral Answers to Questions — National Finance – in the House of Commons on 8th October 1942.

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Photo of Sir William Davison Sir William Davison , Kensington South

asked the Chancellor of the Exchequer the amount of the note issue in 1938; and how this figure compares with the note issue in the current year?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

The weekly published totals of Bank of England notes in circulation during 1938 fluctuated between £473,000,000 and £506,000,000, the weekly published average for the year being £486,000,000. The corresponding figures for 1942, up to 30th September, were: Minimum £740,000,0000, maximum £838,000,000, average £786,000,000.

Photo of Sir William Davison Sir William Davison , Kensington South

As the great increase in the note issue total between 1938 and the present time is exercising the mind of the public, can the Chancellor say whether it is due to a step towards inflation or whether he considers that part of the reason is the large amount of cash required to pay the increased wages of munition workers and others?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I would refer my hon. Friend to the recent statement I made on this matter.