Liu Hsiang is reported to have taken steps to reduce the exchange rate on Shanghai, which he found too high, and he ordered the rate to Limited to 1,300 for both near and distant deliveries, General Liu has "determined to make interdistrict remittances within the borders of Szechuan free of charge and a sum of $500,000 has been set aside for that purpose, 'Although Chungking and Chengtu are both located in the jurisdiction of the 2ist_army, their exchange Fates on Shanghai were quoted at fan average of 1800 and 1,200, respectively, during' the last few days. This is"' considered to be Unsatisfactory indication of the way' in which the money is being used By speculators. The Government is expected to intervene if this state of things continues, On December 26 the rate limita tion" was extended irom 1,300 1,350, But sellers were stil lacking, confusion reigned in the exchange fand little business was done.
New standard silver coins are to be made by the Chungking Branch of the Central Government Mint to Feplace miscellaneous snyer coins now in eirewiation. Subsialary paper holes of ten and twenty cent denonun~ tion, issued by the Central Bank, Will replace the copper coins of Tuy, '200, 400 and Suv cash denom~ Inajton, which will be withdrawn and destroyed, Wood-all Graded The Wanhsien Wood-oil Inspection 'OMmee has recently set up a new set of rules to regulate the standard for wood-all. The commodity will now be divided into three grades, and white, red and blue certiicutes, Fespectively, issued on their accoun Producers of wood-oil worse than the third grade will be liable to The export of wood-all province rohifited.
The droughts of 1993 and 1934 have resulted in a shortage in crops districts between Nelkiang, Tungehang and Lungchang, In those districts "only about ten to 40 per ent, of the crops were reaped and whole areas had no crops at all. Nelklang''s inhabitants depend on beans, wheat and corn for food in summer and antum, and on carrots, (potatoes and vegotubles in spring and winter. Drought has deprived them "of the larier crops and the price of rice is particularly high, $0 the poorer classes in the hilly regions are living on wild grasses and are suffering great privation.
In the vicinity of Chungkung drought has devastated the crops to fuel on extent that 50 per cent. of the farmers are said to have been compelled to borrow money at high rates of interest The fluctuation in exchange rates has damaged the market for Szochuan's famous pickles and it is said that stocks in Hankow and Shanghai fare very high owing to the small-ess of the business done in 1034. Several firms have suffered heavy im full settlement of all claims. Payment was duly made on Decem-
The Chungking University has completed the erection of its play-round, which Is the largest of its Kind in the province. All civil and military employees of the Government have been ordered to. wear short coats instead of long gowns. This ig one of Szechuan''s first reactions to the New Life Movement, Twenty offices have been opened in Chungking to break the opium habit, and to meet the demands of addicts who are said to be anxious get Tid of their habit in the face of the on-coming prohibition campaign.
The main body of the Red forces, according to information received here, hasbeen moving towards places in the Suiting and Hsuenhan districts, A conference was held at Hingyueehang by a Red commander famed Chen Chang-hao, and at this conference it was decided to, start fan offensive before the end of this month with the object of capturing Hsuenhan, Kaikiang and Kaihsien. Government spokesmen brand this statement as an obvious Lo design~ attract attention from the Red's real plans, Nevertheless, the Government. forces are taking' precautions to be on their guard against any attack which may be launched.
'The Reds' Organtzatio 'The Soviet Government's headquarters Is at Huehiachang, where the Reds maintain a judicial' court fand a wireless station. Under heavy escort a body of Red commanders Feeently took a trip to Loklangkou, and carefully surveyed strategic points along that river. Each village Under their control was compelled to provide them with a certain amount of food and fuel for their winter supplies. The women each district are being organized into military, labour and nursing corps. Thus all men and women in Communist area are enlisted in the ed military service and stripped of thole possessions for military suppites.
'A small part of the Shensi forces, under General Hu Chung-nan,.who has taken over control of certain parts of North Szechuan, with the Object of ce-operating in the suppress sion of the Communists, arrived here on December 25. General Hu, has also stationed a brigade at Mienehu, the trading centre of North Szechuan, in order to give Chengtu further means of protection,
Text read from the printed page and cleaned; old type leaves the occasional error.