B—l6

of aggregate incomes and value of production are shown in the following table of official index numbers of the volume of production, which for purposes of comparison includes also the index numbers of value of production :

Index Numbers of Value and Volume of Production (Base:1938-39 =100)

This table indicates that from 1938 to 1946 farm production increased in volume by 9 per cent, as against an increase of 40 per cent, in value; factory production showed a 36 per cent, increase in volume as compared with a 79 per cent, increase in value, and total production an increase of 48 per cent, in value and 12 per cent, in volume. It is clear from these figures that, although production has actually been increased in volume in spite of the difficulties inevitably associated with war, values have reached high levels from which they may recede. In these circumstances it is wise to take all possible steps to strengthen the national economy by greater and more efficient production and by the avoidance of courses of action that would raise costs and prices without increasing the supply of real goods and services. STAFF The staff's high standard of work has been maintained during the past year and the Board is pleased to record its appreciation of the efficient and willing services rendered.. For and on behalf of the Board of Directors : W. F. L. Ward, Governor. E. C. Fussell, Deputy Governor, 22nd June, 1948.

11

Production Farm. Factory. Total (all Groups, including Other). Year. Value. Volume. Value. Volume. Value. Volume. 1938-39 1939-40 1940-41 1941-42 1942-43 1943-44 1944-45 1945-46 100 105 120 119 120 122 143 140 100 102 116 111 108 105 114 109 100 110 122 135 148 162 168 179 100 110 114 117 122 129 132 136 100 106 118 120 125 129 144 148 100 105 112 110 109 107 113 112