The possibility of disturbances in the Far Enst similarly might effect the currency, but no system can guarantee a currency against such major calamities. The most hopeful point if that, with the return to a Tevel of exchange for Chinese cur~ rency thet equals the average for the five years preceding 1934, commodity prices have recovered, and, through {he stimulus to China's exports, the unfavourable balance of payments has been greatly reduced, 'A. return do the silver standard, with Its Incoesant. fluctuations and disturbances to our economy, would Indeed be a mistake too serious, to contemplate unless In the meantime silver had become widely acceptable fsa currency basis, Provided that jsttres undertaken by the Gov at the time when the new currency standard was inaugurated fare energetically carried out, namely that the National Budyet 1s balanced and Indepeiident central reserve bank created, the Chinese people will be Well on their way to. the estat) nent of a sound currency st which ig one of the first requisites of Rational economic reconstruction, ""Pinaneial conditions such as existed In China last year placed a heavy burden of anxiety on those financial institutions responsible for controlling the exceedingly dificult. situation in the money market and making effective the monetary policy ap: proved by the Government," said Mr. Soong, "It is pleasant to be able to record, not only that that there was unity of action among the principal Chinese banks, ut algo that they received the cordial assistance of the branches of the for+ ign banks established in China, With the adoption of the new cur-Feney system closer ce-operation between the banks operating in China will be more than ever necessary, and It is hoped that the experience of the past year will be a happy augury for the future."
Text read from the printed page and cleaned; old type leaves the occasional error.