Enquiries in Shanghai indicated that the Federated Reserve Bank in Peiping is issuing new notes of own and withdrawing those of the Banks authorized to issue them by the National Government. The amount of such currency in northern China under Japanese control is not at present known. It is feared that as these notes accumulate—they are chiefly those of the Central Bank of China—they will filter down to this port to be used for the purchase of foreign currencies, There has been some criticism of the scheme as set out in the mandate on the score that control is too remote from Shanghai, and that it will be possible to engage in exchange transactions only once a week, the banks being unable to enter into any commitments until they know exactly what the Central Bank of China is willing to let them have.
The volume of business done yesterday was so small that there was practically no reaction. Banks were quoting to sell only to meet the requirements of their own constituents. A little business was, therefore, done at 1/2% and 29% for near delivery. No forward business was done at all. It is expected, however, that in a lew days the community will be able io adjust itself to the rulings of the mandate,
Text read from the printed page and cleaned; old type leaves the occasional error.