BANK OF ENGLAND.

Hokitika Guardian, 29 January 1929, Page 5

BANK OF ENGLAND.

SECRETS REVEALED

■‘LONDON, November 30

The Bank of England yesterday issued a document which will go down in history. It marked the commencement of another chapter in the'' story of post-war finance. Numberless similar statements will be published, but this was the first since the “ Old Lady of Threadneedle Street ” took charge of the whole of the nation’s currency.

The bank is now responsible lor the entire issue of notes, which on Wednesday last amounted to £419,088,945. Of these £200,000,000 are backed Insecurities and silver coin in accordance with the provisions o>f the Currency and Bank Notes Act, a figure which will only he expanded under exceptional circumstances.

The balance of £159,088,945 is represented by gold coin and bullion. Of the total issue of notes £307,001, 148 is in circulation; that is to say, in the note eases of the public or in the vaults of the joint stock and otbei hanks.

The remainder is held by the Bank of England, and, with £757,041 of till money, constitutes what is "known as the “ reserve,” the size of which will often sway the international monetary situation.

Moved, perhaps, by the majestic volume of money which has been placed in her keeping, the “ Old Lady" has decided to let us into some hitherto closely guarded secrets. We arc now told, for the first time, the amount of cash which the other hanks kdep at Threadneedle Street, partly for the purpose of clearing our cheques and other instruments of credit. This Is .£(52,379,409, and, in addition, there is £37.185,203 deposited by other customers. . We also learn the amount of discounts and advances—£l3,oßo,293— as distinct from her own securities—£2o,2l4,Bss. AH these things arc of deep interest to the “ Money Market” and others who keep a watchful eye on the financial situation, and are much concerned if “a change in the hank rate” looms in view.