North China will be completely absorbed into the "yen bloc" March 11 when currency control will be enforced simultaneously with the replacement of old banknotes by Federal Reserve Banknotes, the "Tairiku Shimpo" predicted yesterday.
The degree of influence to be exerred on Central China by the circulation of the new legal tender will be determined by the total volume of circulation and the extent to the circulation sphere of the Reserve Bank notes, the paper said.
As only Federal Reserve Banknotes are going to be used for exchange and trade in North China the aid currency's value will be weakened, the paper said. The Shanghai exchange markets, however, will not be much affected, for they have long anticipated the currency question in the north, according to the daily.
The Federal Reserve Bank notes Will be stabilized at 1s. 2d. through the yen, which will mean the complete inclusion of North China in the yen bloc, the Japanese daily stated.
Text read from the printed page and cleaned; old type leaves the occasional error.