The Exchange Situation Questions for Mr. Kann To the Editor of the "Mobrh-CuwA Dany News"
Sin.—It was with great interest that I read the explanatory letter on exchange from Mr. Kann in today's "North-China."
The letter, however, does not seem to Supply an- answer to my two queries as to who. gets the odd $2.00 difference between Government and Banks' selling rate for sterling and where one can get a-portion, at, Government rates, for legitimate purposes, of the funds supplied by the Government for that purpose.
As I do not happen to stand in the midst of financial activities I should like to be allówéd the courtesy of your columns to ask Mr. Kanw if the following ideas I have gained from his letter are correct. naving sto "as "proved age ove:
cover for legitimate purposes is in Ao way responsible for the arbitrary Gepreclated Bank selling rate now in force, the banks having sold exchange they did not possess, apparently in excess of normal requirements, have themselves depre-Clated ihe currency to assure that they suffer po, ulilmate loss.
3. That in spite of the fact that tha' Government sells at 1/214, and the Banks at 1/0}, everybody loses, the Banks included. (If this interpretation is ore dt seems that preparigus posit Bank a ders are mea very Rat ihe public is entitled. to be. optimistic and reassured because Gla banks kusu to De comparatively freien "exchange at the official rate certain, fo. obtain a sufficiency ai
no matter what rate they may prefer to retail it to the consumer.
Text read from the printed page and cleaned; old type leaves the occasional error.