Notwithstanding the confusion caused by the war, the Chinese currency has displayed a remarkable stability throughout the period. Imports have fallen more rapidly than exports, creating a favourable trade balance, a condition unusual for China. Moreover, large relief remittances from foreign sympathizers and Chinese abroad, coupled with increasing sėles of silver by the Chinese Government to the United States Treasury, have given further support to the yuan, while limitations on deposit withdrawals have prevented any serious flight of domestic capital overseas.
A development of importance to foreign economic interests wis the announcement this year of plans for he establishment March 1 in North China of a new central bank under Japanese auspices, its currency to be legal tender thipughout North China ¿nd other Japanese occupied areas, The paid up capital of the new bank is to be yuan 50 millions. of which half is to be subscribed by existing Chinese banks and the balance to be supplied by the Government and Japanese interests, The new currency will have the effect of further broadening the yen bloc, and presumably exchange dealings, heretofore free in these areas, will be subject to license and control, as in Japen.
Importance of Foreign Investments In conclusion, a brief reference is in order to the importance of foreign capital investments in China, latest comprehensive figures for which are those of Prof. C. F. Romer, who put the total in 1931 at approximate 3% billion dollars, distributed as indicated in the following table:
Gvocrapuica, Disrenutioy oP Forricy
INVESTMENTS IN CHINA
Text read from the printed page and cleaned; old type leaves the occasional error.