Such was the situation when in July the first signs of a serious conflict were seen. In August, when the fighting broke out at Shanghai and bombs fell in the business centre of the Settlement, it was necessary to take steps to prevent a panic, so n strictions were placed om the withdrawal of deposits th the Chinese banks. "These measures were supplemented by what is known as the wei-wah or blocked currency system, which permitted the constituents of the Chinese banks to transfer funds from one blocked account to another by means of wei-wah cheques or orders, This proved effective in preventing any large-scale panic flight from the currency though it was subjected to pressure for some time. Gradually the demand for foreign currencies declined appreciably end
Text read from the printed page and cleaned; old type leaves the occasional error.