In three previous issues of this Bulletin, a note entitled "The Financial Surplus of the Private Sector" has analysed the financial situation of the private sector and the flow of funds between it and three other sectors-the public sector, the banking sector and overseas. The purpose of this kind of systematic analysis of financial statistics is to bring out the implications of the available information both about flows of capital funds between the main sectors of the economy and about the associated changes in the assets and liabilities of each sector. It may be used either, as in the present article, to illuminate recent history or as a framework for discussion of possible future monetary conditions. The way in which the figures have hitherto been presented was, however, less useful than might have been hoped, because the private sector contained indistinguishably such varied components as private individuals, industrial and commercial companies, and financial institutions other than banks; so that financing such as that undertaken by the building societies, or through the market in new issues of company securities, did not appear, being wholly or mainly within the private sector. To sub-divide the private sector would therefore be a desirable step forward in the analysis of financial flows. It has always been the intention to do so as soon as practicable.