THE DEATH GRIP OF INFLATION

From 1942 Britain took goods and services against
her LO.U.s and gave us cartloads of currency notes*
This sent up prices sky-high and produced a false
sense of wealth. The inflation spiral which has been
at work can be shown at a glance by the following
table:

Period

Notes in
circulation

Sterling
securities.

If July If Aug.

1924 1939

prices are prices are

Rupee taken at taken at
securities. 100 Calcutta 100.

index of Economic

vihole sale Adviser's

prices* Index.

(In Crores of rupees)

208.9
78.3
37.4
115
126*

241.6
130.0
48.6
119
115

308.5
165.5
75.6
144
137

560,6
388.3
126.1
238
185

677.6
501.5
127.7 272
(March) 214

1181.5
11.35
57.8

(1943)
307

(1945

Jan.)
299

1939-40
1940-41
1941-42

1944 Dec.

1945 Apr.
1-2-1946

Balance held abroad Rs. 547.3 crores.
The real volume of notes in circulation is not
1181.5 but about 250 crores more representing one
rupee notes and coins issued on the liability of the
Government of India. The total of currency in cir-
culation, therefore, is roughly 1,450 crores,
* (Last 7 months of 1939-40.)
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