An outstanding feature of the year was the enforcement by: the Government in the early part of Noveraber, 1995, of Its scheme of currency. reform, the withdrawal of silver dollars from' clteulation and their replace ment by legal tender notes, "The Postal Banke assisted in this' process undertaking the collection silver dollars, their exchange for legal Tender notes at post offices "where there was no branch of the Central Bank, Bank of China, or the Bank of Communications. and their transmission "and handing over to. the nearest of these three banks.
Owing to the fact that notes can moved more cheaply than silver dollars, one of the immediate effects of the currency reform measure was Of remiliance rates. by rally and a further effect n made itself evident. was the extension of a uniform currency over a greater part of the country.
The former enable the bank to pul into force 1 scheme which it had bees considering for some time of lower:
the money. order rates, which became. effective from about the middle of the year and was the main use of the Increase in the" tolas sue of domestic "money. orders during the year, and a contributors cause of the increase in C.O.D. remittanees, The latter, (the extended use of loyal tender notes), greatly facilitated the bank's accounting, particularly in the two Szechuen districts, where currency" conditions had been for a considerable period most chaotic, with depreciated local notes fluctuating heavily as compared with the Shanghat dol As the bank's results are complied and reported to the Government in national dollars, such conditions ax formerly existed in the Eastern and Western Szechuen districts had neces sitated the introuduetion. of special accounting methods In these. two disiriets, "Exchange positions were, moreover, created in domestic cur: Feney, which required constant watching and adjustment, Special! effective ana rapid stops were, how: ever, taken by the Government through the Central Bank to improve currency conditions in these two dis-Wwiets, and from April 1 last year it was ponsible to abolish this procedure and to Kkeop the accounts of these listriels in egal tender notes only.
Text read from the printed page and cleaned; old type leaves the occasional error.