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amount.  It is stated that there are at present about 150 million RM worth of armed forces bonds
in circulation.
     From the figures given, not only are the expenditures for the armed forces considerably
higher than in the preceding year, which is explained simply by the breaking out of the war, but
expenditures for the civil budget have risen decidedly.  But in this connection it should be borne in
mind that the major portion of this increase is explained merely by a procedure in bookkeeping. 
that is, in the budget year 1938, expenditures amounting to 2.7 billion RM were paid by treasury
notes which did not have to be redeemed until in the budget year 1939.  Just as with the credit
financing of the budget years 1933 to 1937 (bonds for provision of employment and "Mefowe"
bonds), these expenditures, paid for with jewelry, etc. turned in, were not put on the books for the
budget until they were due.  For that reason, a sum of 2.7 billion RM was deducted from the civil
expenditures in the fiscal year 1938, but like amount was added to the civil expenditures for the
fiscal year 1939.  So in reality in the fiscal year 1938 the expenditures for the civil budget were
2.7 billion RM higher and in the fiscal year 1939, with 17.3 billion RM, less by the same amount
that is to be assumed from the closing figures for the two years (see Table I).