Financial conditions since the start of the "present hostilities. were. reviewed at the closing session of the! conference by Dr, 4 H.. Kung, President of the Executive, Yuen and; 'Minister of Finance, Dr. Kung declared that outside the war areas, where withdrawal of deposits became evident when warfare threatened, deposits in banks in the Interior had increased, especially in Hankow and in the' provinces of Kwangtung, Szechuen and Hunan, although many banks had ceased to tive interest on current deposits or had reduced the rate.
Furthermore, Dr, Kung continued, while many banks had removed their Mees when areas were evacuated by the Chinese army, few of them had closed their doors since the war began, and those small local. banks which had found it necessary to suspend operations owing to bad business had all been able to Pay their depositors.
Despite the war, he went on, there had been a continuous demand for Chinese vcurreney notes in the interior, The amount of remittances had shown a great increase since the yoginning of the war, especially from threatened areas to Szechuen, Hunan, Yunnan and Kwangtung, One of the gravest problems before them, Dr. Kung went on, was to alleviate the plight of the farmers who not only lacked capital but had been hard hit by the falling prices of farm products and by transportation dimeulties resulting from the war. He urged credits to farmers and the raising of the prices of farm products,—Router.
Hankow, June 2.
the rumour that the bankers' con ference here may abolish or curtail the present allotments of foreign ex. change was dented" today in "ofMlal ireless here. This subject, they explained, was not even being discussed, Changes in the foreign exchange allotment system are, however, urged by the Chinese, press, as well as by Chinese econoniie experts.
Some newspapers suggest that pileations for foreign exchange should received not. through private foreign banks but direct by the Central Bank, or by the four Government 'Danks. (the Central Bank, the Bank of China, the Bank of Communications, and the Farmers' Bank).
Such a practice, they contend. would enable the' Government to Tue Executive Yuan, at a recent meeting, decided on a reorganization of the Hope! Provincial Government, stales a dispatch to the "Hwa Mei Chen Pao." The Yuan, according to the dispatch, appointed Generals Lu Chung-lin, Ku Chung-hsin and Chang Yin.wu and Messrs, Chen Kuo-liang, Wang Cheng-tseng, Li Hsin, Wang Teh-chieh, Ting Shu-mu and Li Hsin= tsun to be members of the new provincial administration. General Lu Chung-lin will serve concurrently Chairman of the Provincial Government, while General Ku Chunghisiu and "Messrs., Chen Kuo-liang, Wang Cheng-tseng and Li Hsin will become commissioners of civil affairs, Jfnanee, education and reconstruction, respectively.
Over the to China Polo Shilese ifendrimen, ts swxnd ober the side of she freighter Grey of four ambulances worth $10000, contributed by New York's
Hake Castle for shipment to China.
With the ambulances went a $15,000 ESnslgnment of drugs and supplies for talien rolley sent by the American, RENE Of rs og for Metical Ald tg Chine Hankow Air Battle Hankow, May 31. desperate air battle, the first to be staged over Hankow since the terra combat between Chinese and Japanese planes just over a month ago, took place this morning, in the course of which, according' to me dependent reports, fourteen out of 34 'Japanese planes were shot down by' Chinese aircraft.
Chinese Aviation Headquarters announced that fifteen Japanese planes were shor down, twelve at Hankow, and three at Hukow, about ten miles east of Kiukiang.
Aviation Headquarters gave the number of planes taking part in the engagement as 84 Japanese, and 60) Chinese.
Just as the Japanese planes drew near to the north-western suburbs of the eily, according to Chinese reports, Chinese alreratt, which were patrol~ ing high above' the city waiting for the Falders, swooped down like hawks fon the Japanese formation, 'A. furious, aerial engagement followed at a high altitude, the' reports stated, three groups of Chinese and nese aircraft taking part in the and death struggle staged against fa background of clear blue sky.
The opposing planes circled round and round each. other, their wings occasionally flashing in the brilliant Sunlight, each machine plainly visible forthe, hundreds breathlessly watching the engagement from below.
Two Smoking? Wrecks Early in, the battle, two columns dense, black smoke could be seen ising from the ground some distance from the city. They were believed to come from the wrecks of aeroplanes which crashed during the en-
One phot came down in his parachute, which feated slowly towards the earth, and. two, Chinese planes landed at the Haikow aerodrome during the fight, either because thole pilots" were wounded, or because their machines were" disabled Japanese machine-gun bullets.
Gradually the Japanese aircraft Grew further and further away, while the Chinese planes were seen return-to their bases, squadron after squad-Ton roaring back over the city, many still cruising above Hankow on the Took out for further Japanese raiding planes, and the remainder landing at the Hankow aerodrome, 'A desperate engagement took place cover the north-western suburbs when Ghinese aircraft, intercepted the Japanese planes. The air raid alarm was sounded at 11.30 am, when the Japanese planes could be seen fying straight for Hankow.
'The recent terrific bombings: of Canton, Hsuchowfu, Chengchow and Kaifeng, in which' the—residential areas were among those to suffer. also had their effect in producing an lectrieal atmosphere among the Hankow populace.
Text read from the printed page and cleaned; old type leaves the occasional error.