as the Government spent the money—which certainly did not happen—the result of this system was another addition to the volume of credit, expressed in increased bank deposits or potential spending power. The effects of the use made of our banking machine for war finance on banking figures may be studied by the curious in statistical compilations.[1] Here it may be noted that the total deposits of the Bank of England which stood at £71,000,000 at the end of 1913, were £155,000,000 at the end of 1914, and £241,000,000 at the end of 1918; the figures of the total securities at the same dates being £65,000,000, £145,000,000 and £231,000,000. The other banks of the United Kingdom showed the following movements:—
| In Millions. | End 1913. | End 1918. | Increase. |
|---|---|---|---|
| Deposits | 1,033 | 1,988 | 955 |
| Cash and Money at call | 294 | 612 | 318 |
| Investments | 191 | 520 | 329 |
| Discounts and Advances | 683 | 1,025 | 342 |
Thus was the bladder of credit blown out till it was, like Falstaff and his lies, "gross as a mountain," and might have seemed to be at bursting point had it not shown powers of still greater expansion in the after-war period, whichNone
- ↑ Such as the very full and interesting British Finance 1914-21, edited by A. W. Kirkaldy. Published by Sir Isaac Pitman.
