Mr. Yoshida's statement redhe mew Huis Hsing Bank is somewhat peculiar, 'A. joint Investment (whatever that means) of private Banks in a new Bank Naving been granted the privilege' of note issue. This Bank [will offer its own currency. What is offered is not currency but Bank notes [which are not guaranteed, Without going into all the details Jof Air. Yoshidla's lengthy statement, a few general remarks may be appropriate. Currency is fundamentally system of valuation for the purpose Jor comparing and measuring the respective value of merchandise and service to facilitate their exchange That such a system should be kept as stable as possible to avoid confusion Jand hardship is obvious.
Stability can only be secured by authority' assuming the responsibility keep the value stable in proportion to currencies of more or less standard value such as Sterling, U.S.A. Dollars. Jetc. That the value of these euro Fencies—formerly kept stable by Jmonctary convention—has been re-Jduced during and after the workd Jwar was no fault of the system but due to the abuse of the system by reckless spending, resulting in partial tation The new Bank's primary function is to circulate its own notes. The now defunct Amercan-Oriental Bank also circulated its own bank-notes Mr. Yoshida makes a number of statements and comparisons which are somewhat. misleading. and contradic. tory. He also mixes up political actors with economic problems. is playing with words wher speaking lof the exchange rate. bette ability, market vs lue, fluctuation and variations the foreign exchange "At the present time, 1 who feels wholly. con the future of fapi" A little further Jon he says: "Its "the new Bank's? notes aim at retaining the same value Ws. of this state-'The new eutrency based upon Spt therefore! not Katshek regime Mr. Yoshida ignores the fact that the few arse note-issuing Chinese Banks have bee Jauthorized to issue notes by' the Nae tional Government and that the re sources of the State form practically the base of these notex because they Jare accepted money by stand.
Everybody. with must be opposed to this 1 private banking combination. have' gone into a kind of holiday it is for lack for business "Bank can tion. sie therefore, of grave sryone in China, not currency, Mr. tie absence ut confidence 4s fairly universal with ant to unsecured development of commerce ant res normal. cond opt what and appropriate measures for the pro motion of trade and industry "The ablishment of a new Bank pri additional tonk-notes not of neither logical nor appropriate.
Teyingg to defend what is undefenis a thankless job!
As a banker with a well-establish-led "reputation "Ar. Yoshida "would probably have preferred not to write the article published in the "North-
Text read from the printed page and cleaned; old type leaves the occasional error.