Wild Rumours Due to Business Reorganization Ove OWN Connesronnent Peking, July 30.
There is a persistent rumour here to-day that the Chinese-American Bank in Shanghai has been closed, which story is an irresponsible interpretation of the bank's agreement with five Chinese banks to improve its credit.
The facts are that the Chinese American Bank's Government loans amount to approximately six millions, which has naturally caused fan inroad on its capital. Recently, therefore it planned reorganization and invited the Banks of China, of Communications, the Continental, Kincheng and Salt Banks to participate. These banks, after careful examination of the Chinese-
American Bank's books, and making} some suggestions for reorganization, yesterday agreed to support it up to two millions, Distorted reports of this transac-_ tion gave rise to panicky rumours. a Note to the Consular Body at Tientsin, the Commissioner of Foreign Affairs for Chihli Province says that it is the intention of the Nationalist forces to make a drive fon the northeastern districts of Chihli in order to push the Fengtien forces out of the Great Wall. Foreign residents, therefore, are asked to come into the safety zone and foreign travellers are asked not to go to the war districts for the present.
Text read from the printed page and cleaned; old type leaves the occasional error.