Feb. 10.
Reports of sensational victories for Chinese troops against the Japanese in Shanghai are doing. neb to restore the confidence of the people here, who are now eon vineed that extension of Japanese military operations against Nanking, unlikely, The Chinese newspaper contain daily colourful accounts of battles in which "Chinese soldiers fare more than holding their own Oficial ule Ietins confirm these reports, and increase the enthusiasm of the people.
'The situation in Nanking, as a consequence, is much easier. All hanks have' reopened this morning, and while some people are with: drawing their deposits, no crisis i now anticipated. The bank-note situation also is much improved.
Beenuso of the successes of the 16th Route Army in Shanghai, and the fact the Japanese are making little progress in spite of large reinforcements from Japan, the people here generally believe now that the Japanese are' not likely to extend hele Invasion to Nanking—United
Text read from the printed page and cleaned; old type leaves the occasional error.