To the Editor of the "norna-Cuiva Dany News."
SmI think there are many of us engaged in business in Shanghai who would welcome some informa~ tion on the cause of the steady and now rapid fluctuation in exchange rates other than the specular operations of the Gold Bar market, the fluctuations are entirely at~ tributable to the cause mentioned, is it not time some steps were taker to retard the activities of this organization in Kiukiang Road by the Exchange Bankers' Association or, if the bankers be unwilling to act, to make the strongest representations to the Shanghai General Chamber of Commerce for them to negotiate with the bankers?"
Tam prepared to admit we have experienced. similar Suctuations in recent years, but looking beck on period here of twenty years, when the activities of the gold bar specu laters did not exist, oF were not felt, we were reasonably sure of sense of values, whether in taels, sterling or gold' a Tonday that sense of values does not exist and the merchant; Chinese or foreign, who is trying' to earn hia livelihood in a legitimate way baulked at every turn by clrcume stances which he cannot. possibly, perceive or guard against, The matter of gold bar speculae tion Is one which affects the trade of the whole Port, whether import x export, especially when exchange rates fluctuate as they have in re" cent months and days. There would be no necessity to write this if the speculators kept their' activities within reasonable bounds, but when the whole sense of values in trade {is being destroyed by a group of individuals whose sole objective that of personal gain by: gambling it seems -to me that, some. cheek: should be given to their operations T may be informed by bankers that the exchange market could not exist without the Gold Bar exchange years did were on a more restricted basism—certainly rates were more stable and the merchant was afforded a. reason able opportunity to live and trade, It seonis to me doubtful whether the bankers prefer sound inerehang business in preference to the larger commissions to be earned from more speculative dealings—certainly sound merchant, business was one Jeouraged in preference to gold bax speculation, there would be fewer banks. bad merchant accounts listed in the
Tt would be interesting t6 know
houses have been brought about int many failures of busines recent years solely attributable to rapid market fluctuations change, diverted by gold bar apers ators.
Tu conclusion, to think more seris ously into this matter, the operne tions of a few brokers directly affect the pockets of each individual, some most seriously, and. what harmless. and tin important fof business conditions here hi grown into that-ugly cancer midst which $s. sapping. the life blood out of-our existence, T hope tome: mere: able writer than T will take wp: the cudgels ta stop the disaster which, looms ahead for, many.of. ne:
Text read from the printed page and cleaned; old type leaves the occasional error.