Federal Zone" and "Bandit Zone" Defined Gradual Extension of Yen Bloc Foreseen Peiping, Mar, CERTAIN amount of cent yn that has been reigning here since the introduction yesterday of the new rules with regard to the circulation of Federal Reserve Banknotes in North Chi was cleared up today when it was announced definitely that the towns of Peiping, Tientsin, Tsingtao and Chefoo were included in the "Federal Zone."
Anyone found carrying the old Chinese National currency in these towns, as well as in the other towns of the "Federal Zone," is liable toa fine and the confiscation of their property.
Besides Peiping, Tientsin, Tsingtao and Chefoo, there are seven other towns in the "Federal Zone"—Tsinan, Taiyuan, Shihchiachwang, Tangshan, Shanhaikwan, Linfeng and Sinhsiang.
'The rest of the areas in North China are considered "Bandit Zones," land in. these Chinese National cur~ Feney motes will continue to be allowed to circulate, although offcial-Ty. at-a discount against F.R.B, notes, is earned on good' authority, though this cannot be confirmed ofelally, thut various of the Japanese Chambers of Commerce in North China cabled to Tokyo on Thursday urging the Japanese Government to postpone enforcement of their new Currency measures for at least four months. These representations, would appear, were unavailing: Reuter, specially designated North China products, Mr. Wang added.
These new trade and exchange rogulations effective today will. main: {ain the value of the F.R-B. notes at 1s 2d, which, together with an equalization of trade balances, will stabilize the exchange rate of the new legal tender in North China, Wang continued.
The value of F-R.B. notes at present in elreulation was given by him as $200,000,000.—Domei, "New Order in Asia"
Text read from the printed page and cleaned; old type leaves the occasional error.