Peiping is taking a long time to settle down again. Conditions in the old capital are neither markedly bac nor are they very good; but they have quite decidedly not returned to normal. Everything is in a state of stagnation or, better still, of expectant waiting; waiting, that is, to see what the Japanese are going to do with North China when they have conquered it, which they expect to accomplish in a few weeks time, North China, be it noted, includes, according to Japanese ideas, all the territory east and north of the Yellow River. Whether, however, the Japanese will be content with this vast area or whether, to put it more exactly, they will be able to restrict themselves to this limited objective, is a question that only future events and the attitude of the rest of China can decide.
Anyhow Peiping remains in a state of suspended animation. The only appearance of bustle and animation is lent to its streets by the columns of Japanese troops constantly marching through; by parties of their soldiers out for a stroll on a few hours leave, and by staff cars dashing through the city, These Japanese troops have been behaving very well on the whole, though the shopping and sight-seeing parties are occasionally inclined to be high-handed, when out of sight of their officers.
Trade at a Standstill Trade is completely at a standstill, as most of the local industries, such as carpets, modern curios, lacquer-ware and cloisonne are closed down, or at least only working half time. is partly due to lack of capital and ready money, and partly to the fact that many of the skilled workmen have left to return to their homes in the country. The currency question, too, is causing employers of labour great difficulties, as there is a great shortage of Central Government banknotes and other good currency. Considerable hoarding of these banknotes is going on privately; the local banks are now all under some kind of supervision by Japanese gendarmes and are only allowed to pay out quite small sums; while Japanese soldiers and residents are forcing yen notes on the market, generally at their own rates which are naturally not at all in favour of the Chinese shopkeeper.
Most of the wealthy Chinese have long ago left these parts, and under present conditions nobody is prepared to spend money in the development of the country, though doubtless quite prepared to participate in the benefits.
Text read from the printed page and cleaned; old type leaves the occasional error.