on their savings.

That is one of the theories being considered following the release of annual money supply figures, showing the amount of cash in circulation is slightly down.

Up until Christmas, $52,323,776 in notes and coins were in circulation on the Island, compared to last year's $52,511,927.

"It's just a marginal drop over the previous year,'' said deputy general manager of Bermuda Monetary Authority Mrs. Marcia Woolridge-Allwood.

"In the existing climate we expected the money supply figure to stabilise or to remain consistent with last year.'' More economic information was needed before the significance of the figure could be worked out, she said.

The BMA would be considering whether Bermudians were using credit cards more following the relaxation of regulations on which cards could be issued by banks.

But it was a general rule that increased credit card use usually led to less cash in circulation, said Mrs. Woolridge-Allwood.

"In these recessionary times, when people are perhaps having a more difficult time, they would tend to rely on credit as opposed to tapping into their savings accounts.'' In economic good times, the amount of cash in circulation usually increases.

Traditionally in Bermuda, the amount of cash in circulation goes up in the run-up to Christmas. The peak pre-Christmas total in recent years was $54.8 million in 1989, compared to $49.1 million in 1988.