In consequence, the foreign banks not unnaturally regard the new currency very coldly and have so far refused to deal in it. The Chinese market which has an age-long experience in doubtful currencies—a much wider experience than have the Japanese thémselves—has been quick to react to these hesitations of the foreign banks. Under the compulsion of foreign bayonets neither Chinese banks nor business men dare refuse to accept the new note:
Nevertheless they are already standing at a discount in private, against the old notes, while the small shops and traders are gradually raising their prices. The cost of living is already affected and is likely to rise itself. And, in long run, that the might have a vi weakening effect on the Yen exchange itself There is, however, a further and more immediate reason why the bank is not likely to sell foreign exchange against the new currency. As long as they refuse to do so, and if the new currency becomes the only available money in these parts, then, obviously all dealings in foreign exchange will come to a standstill, and therewith foreign imports be made impossible. This will correspondingly benefit Japanese trade. For the currency being convertible at par to the yen, Chinese merchants will be forced willy-nilly to supply their requirements by the purchase of Japanese goods only.
It is, therefore, not surprising that foreign business and banking circles in North China regard the outlook for the future with the greatest alarm.
Traffic Regulations We had a much-needed "traffic week" here recently. "Much-needed," because the traffic control in Peiping has greatly deteriorated during the last eight months. Also, there has been an enormous increase in the motor traffic since the Japanese have come here.
The regulations for the control of trafic were, as usual, a mixture of sensible and foolish measures. For the first time in its history the citizens of Peiping who have hitherto been in the habitofcrossing the street at an angle or even of strolling unconcerned ly down the middle of it, were forced io cross only at specially marked places. "The slow-moving traffic was made to keep strictly to the side of the road, while rickshaws plying for hire which usually stroll up and down the main roads blocking the trafic were made to wait in side lanes, On the other hand, quite unneces: sary measures were enforced. Pede: irians were ordered to walk in one direction only on one side of the street, no matter how wide the streets or their pavements were.
Text read from the printed page and cleaned; old type leaves the occasional error.