Tokyo, July 20.
Continued British support of Chinese national currency was held unlikely by Japanese banking circles hhere today who pointed that it took Jomly three months to exhaust the £10,000,000 Exchange Stabilization Fund established under joint Sino-British auspices.
This comment was evoked by the action of the Hua Hsing Commercl Bank of Shanghai in divorcing its currency from the national dolter, pegging its yuan at 0d.
"Basic economic factors" were prin" cipally blamed for the continued of the Chinese national dollar.
Japanese bankers praised the action of the Hua Hsing bank, pointing out that since its notes were designed to serve as a trading currency their stability was, a. prime requirement. This siability, they added, could be easily maintained in view of the foritn exchange reserves held by the 6a, Level Approved The choice of Gd. as the level to peg the "Hua Hsing yuan was also approved by bankers, who pointed out that a two-fold purpose was achievea by. this selection, "The first, they said, was that Shanghai's foreign trade requirements. had been served, as the Od. level was sulted to the existing price-level there.
The second, they pointed out, was the general impression created " that Hua Hsing notes were "better money"
Hsing yuan buying Nationalist dollar's: 5d.
Text read from the printed page and cleaned; old type leaves the occasional error.