LOCKING UP WEALTH
FRENCII PEOPLE HOARDING VAST QUANTITIES OF CAPIT1AL. PAPER CURRENOY INCREASES. Increasing attention is being paid, says the Paris correspondent of the Economist, to the persistent hoarding of capital by all classes in France, the swollen volume of which is causing some nervousness, both because of the artlficial inflation of the note circutation thereby and for other reasons. Evidence of hoarding on a large scale is furnished by the fact that since the end of 1926, which synchronised with ihe stablisation de fait of the franc, the total paper circulation bas risen from 52,449 million francs to 83,547 million francs at the end of 1931. Analysis of the categories of curnency shows tliat during the five years the respective quantities of small notes in circulation remained fairly constant. Five-franc notes diminishd from 923 million francs to 788 million francs. Ten-franc notes increased from 1726 million to 2116 million francs, which was obviously partially due to the diminution meanwhile from 132 million to 37 million francs of 20franc notes (which have now been retired from circulation). Fifty-franc notes increased only from 3247 million francs to. 3346 million francs, while 100-frane notes rose from 20,093 million francs to 24,600 million francs. During the same period, however, 1000-frane notes increased from 23,169 million francs to 46,262 million francs, and 500-franc notes from 3059 million francs to 6398 million francs. The increase in the total circulation, it will be noted, was, in round figures, 31,000 million francs, or as nearly as possible 60 pcr cent., whereas the increase in 1000-franc notes alone was nearly 100 per cent., The striking increase in the number of 1000 and 500-franc notes. in circulation can only be accounted for on the theory that they are being hoarded. It is believed that a large proportion of these hoarded notes are held outside France, and particularly in countries of depreciated currency.
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Rotorua Morning Post, Volume 2, Issue 263, 30 June 1932, Page 8
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313LOCKING UP WEALTH Rotorua Morning Post, Volume 2, Issue 263, 30 June 1932, Page 8
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