Sponsor Scheme; Plan Still Under Study Peiping, Apr. 12. Establishment of a bank of issue in Shanghai to provide new currency for Central China w: by officials of the Bank" here today.
The new institution, while affiliated to the Peiping bank. would issue its own currency. This would not be exchangeable at par with Federal notes but would have a value of its own.
Strong opposition is voiced in some quarters to this plan on the grounds that it would result in the creation of two currencies in China.
Proponents of the scheme, however, defend the plan on the grounds that present circumstances prevent the circulation of "Federal Reserve" notes in Shanghai without serious friction and a possible devaluation of the Peiping notes. They point out that while the "Federal Reserve Bank" has so far been adhering to the rate of 1s. 2d. per dollar, thi could not be maintained in Shanghai where the dollar has fallen to the 1s. 1d, level.
Text read from the printed page and cleaned; old type leaves the occasional error.