London, June 7.
Far Eastern bankers, interviewed by Reuter today. had no information to explain the sudden drop in the Chinese National dollar in Shanghai.
Some quarters expressed the opi: ion that the action of the Anglo-Chinese Stabilization Fund Committee in allowing the dollar to decline from its recent level may have been intended to bring about a more even balance between imports and exports.
It was also suggested that the exchange control considered the previous rate—eight pence farthing in terms of sterling—too high, and desired to allow the dollar to find its own level at a lower value.
The drop in the dollar, it was stated, may also be intended to undercut the Japanese-sponsored Hua Hsing Commercial Bank's attempts to "collar" export bills in-the Shanghai area.
One widely held view in the City this morning was that the exchange control deliberately dropped the rate with a view to squeezing out spe-curators.
It was pointed out that this manceuvre, though never publicly ack-knowledged, was not infrequently practised by control banks generally—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.