The situation, as described by a passenger who arrived. in Shanghai on Wednesday by the 1-C. 8. Kung Wo from Yangtze ports, is indeed pitiful, but has one redeeming feature. Tt proves beyond a shadow of doubt that Chinese politfeal and military factions care incapable, cat the "present time, of organizing themselves into 'a competent governing body and scarrying out the administration of an: area formerly efficiently and suc-difficult tovobtain. Fresh vegetables are ins earce as the "proverbial "hen's teeth" anil the mention of the possession of silver cause one's hearers to glanee- anxiously.around, easing eavesdroppers. 'The government is non-existent, a few minor officials remain endeavouring 17 secure the little remaining silver i exchange for 'Central China bank oto, fncetioualyenown as "Keren One of Jardines' godowns -has been occupied by Chinese troops for some two or three weeks and the: municipal council is practically in 'a state of -bankruptey. Chinese coolies lounge on the once immuculate Bund and the municipal) police function in an apparent state of somnolence. Indeed, it is probe able that their meagre wages goon not be forthcoming. The Chinese members of the municipal council have vanished.and the government of 8. A. D, Sis virtually in the air, The Chinese compradore stores! are almost out of stocks and are not replenishing them. "Members of the larger firms are obtaining pro: visions from here, but other for-coigners who have remained in the port find it extremely dificult modities and s0 business automatic. lly ceased. The Nationalist govern-[ment would only receive silver in payment of taxes, but met their liabilities with "Kerensky Thus, all the silver came into the hands of the Nationalists and a depreciated paper currency was circculnted. Chinese leaving banks were searched and if found to have silver, they were conveyed to the Gentral bank and notes given them in exchange for their sycee. This} situation does not obtain now, as the Chinese have no silver to draw. The position is, therefore, appalling land merchants can seo no Way out) of the impossible situation created by the mal-administration of the formerly prosperous port.
The cleanliness of Hankow was [formerly a matter to remark upon but now the Public Works Department of the council can be said to: be almost non-existent. Necessary repairs to roads are not being effected and the condition of the town is going from bad to worse. The British councillors have done their utmost to ce-operate in the administrating of the area but with the financial tragedy brought about} by the grab-all attitude of the politicians and militarists,—their plight can better be imagined than explained, 'The L-ES. Kungwo was conveyed by TLBLS. Ladybird from Hankow to Chinkiang and then proceeded lone to Shanghai. 'The ship was) not fired on at any point during the trip. Passengers told a representa tive of the "North-China Daily' News" yesterday, that Southera soldiers were seen crossing'the river to Pukow and Pukow has lizer vacated by the Northerners. A Bucknall liner was seen Business is at a standstill, For instance: Hankow was formerly Narge exporter of -hides. "Foreign. merchants were -able for a ti spay for cargo in'Kerenskys, Nationalist government—foreing Chinese dealers to accept this -currency. 'Than the foreign merchants paid dealers by.chequo on the Shanghai banks. This worked for 'a time but dealers were unable to} 'Dung the money hack into Hankow' to purchase further export com-cabiria may not be exposed to the gun fire from "the banks of -the \tiver and every precaution is taken for the protection of passengers.
All -passengers were -unanimous regarding.the appalling financial situation and in the "absence of money or credit, both of which are non-existent in Hankow, it is diffi cult to imagine what will eventually, happen to the former groat port.
LEGATION 'RAID SEQUEL,
Text read from the printed page and cleaned; old type leaves the occasional error.