Peiping is taking a long time to settle down again. "Conditions in the old capital are neither markedly bac nor are they very good; but they have quite decidedly not' returned to normal, Everything is in a state of stagnation or, better still, of expectant waiting: waiting, that is, to see what has the Japanese are going to do with North China when they have con Jquered it, which they expect to ac-Jcomplish in a few weeks time. North China, be it noted, includes, accord {ing to Japanese ideas, all the territory feast and north of the Yellow River. Whether, however, the Japanese will be content with this vast area oF: whether, to put it more exactly, they will be able to restrict themselves 10 this limited objective, is a question that only. future events" and the attitude of the rest of China can decide.
Anyhow Peiping remains in a state Jot suspended "animation. The only appearance of bustle and animation fs Tent to its streets by the columns of Japanese troops constantly march Ing through; by parties of their! soldiers out for a stroll on a few hours leave, and by staff ears dashing. through the lly. These Japanese troops have been behaving very well on the whole, though the shopping and sight-seeing parties are occasion lly Inclined to be high-handed, when ut of sight of their officers.
Trade at a Standstilt Trade is completely at a standstill, as most of the local industries, such as carpets, modern curios, lacquer~ ware and cloisonne are closed down, Jor at least only working half time. Is partly due to Eick of capital and ready money, and partly to the fact that many of the skilled workmen have left to return to their homes in. the country, The currency question, too, is causing employers of labour great difficulties, as there is a great [shortage of Central" Government banknotes and other.-good currency. Considerable hoarding of these bani notes is going on privately; the local Danks are now all under some kind supervision by Japanese gendarmes and are only allowed to pay out Jquite small sums; while Japanese soldiers and residents are forcing yen notes on the market, generally at their own rates which are naturally not at all in favour of the Chinese shopkeeper.
Most of the wealthy Chinese have Jong.ago left these parts, and under The two pictures below show present conditions nobody is prepared {o spend money in the development) of the country, though doubtless quite prepared to participate in the bene-
Text read from the printed page and cleaned; old type leaves the occasional error.