The most noteworthy feature of the local situation on Monday was the indifference with which Chinese merchants as a whole regarded the bellicose preparations of the sides.
ere was a fall in the price of the dollar. The market opened at but by afternoon the rate is down to 74.20. When it is remembered that in 1911 the dollar rose to 81 during the stormy days of the revolution, the reassuring effect of this downward movement will be readily appreciated. Even though it is known that one of the Chinese banks was selling largely with the object of preventing any very great rise, it is felt that this fall would not have been possible but for a very general feeling of confidence in the community.
Tae Forces ar Suanouat.
Since Saturday numerous movements of troops have taken place locally, showing that the commander at Shanghai was preparing to meet any move which the other side might make. On Sunday, evidently with the idea of restoring the strength of the local gar-risens, weakened by the despatch of troops to Wongdu, 500 men arrived from Sungkiang and were distributed between Lunghua and Chapei. At the same time four guns of a fairly heavy calibre were sent to Lunghua from Woosung. Another 1,000 soldiers and four guns also travelled from Woosunz to Lunghua later in the day, and probably another 500 thereafter. From these dispositions it might be assumed that a striking force was being assembled at Lunghua.
It is believed that the number of troops in the vicinity of Shanghai is about 20,000, these including not only cavalry, artillery and infantry, but likewise marines, military be police and Army Ordnance Corps. The Arsenal at Kiangnan is he-
Text read from the printed page and cleaned; old type leaves the occasional error.