Day of Weakness; Chungking Makes Statement Shanghai, July 21. (THE Chinese national dolter experienced another slump in Shanghai yesterday, opening at Sd. and closing at the nominal rate for sellers at 434d, for sterling after a day of extreme uncertainty, While the opening rate encouraged people to believe that the decline had been checked and some sort of stable rate could be maintained at that figure, during the day there developed a weakness which manifested itself in a new record with no indication that there will be any improvement today.
The exchange market opened with sellers to merchants at 5d, for sterling and 9} for US, dollars, but extreme weakness marked the interbank market. Forward rates were weak and ultimately this. weakness was reflected in. spot rates. 'There were reactions during the morning 413d. being quoted shortly' before noon, but the. afternoon revealed a trend of uninterrupted weakness, and at the close there were purely nominal sellers at 4%d. for sterling and 8% for U.S, dollars cash, and 44a, for sterling and 8% for US. dollars for July.
Faced with mounting prices and a Dig increase in commodities, there was extreme pessimism in Shanghat yesterday, 'This was. reflected Chinese banking operations in regard to northern notes which, hitherto, have not been cashed In large quanties, "A large number of foreign, Sikh' and Chinese members of the 'SMP. turned out carly. yesterday morning to prevent a huge crowd of Chinese who were waiting for the opening of the Bubbling Well branch of the Bank of Communications, from leaving the pavement and thus disturing trame. When the bani ~ordoors" opened: fee business, axe cited ery went up from the throng as they' were ordered to stand. in single file, the line reaching from the Bank's premises at 1708. Bubbling Well Rond, well beyond Hart Road.
Bank officials questioned yesterday afternoon said that they were converting North-China. bank notes at par, the maximum amount for each person being $10 and throngs con-Unued to form a long queue in front of the bank until the closing hour the afternoon. The Bubbling Well branch of the Bank of Communica tions was the only one of the Bani four local emees to convert North China notes.
Text read from the printed page and cleaned; old type leaves the occasional error.