period of anniversaries from August to 13, the Shanghai Municipal Police responded to test calls in every part of the Settlement on the night of August 3. Here are some of the scenes as police search parties sown New Chinese Notes Cause Mystery Shanghai, Aug. 7.
Judging from Chinese reports, un-teas Chungking will soon enlighten the Chinese community in Shanghai regard to the Reuter report that the Chinese Government has placed an order for 1,000,000,000 bank notes with printing firms in London anxiety. may continue to exist here. The anxiety has caused prices of Government bonds to drop, further "stringney" in the foreign exchange market fand a renewed dash for gold.
As was previously reported, local Chinese banking circles had received no information on the big order of notes placed in London but it was suggested that they might be used to replace the old and worn notes or to be used for buying foreign exchange exclusively. Other Chinese circles speculated on the intentions Chungking making many suggestions Including inflation.
It was said that the new notes might be used for readjusting the money market after the hostilities. Another quarter stated that the recent withdrawal of many provincial and private bank notes from the market caused Chungking to print new notes, It was also suggested that the Government had given the right of note-issuing to the Central Bank of [China alone and so this bank has placed such a big order for new notes.
Chinese Bewildered No doubt about the stability of the position of the legal tender notes was expressed, however, it being asserted that they' are supported by cash reserve bigger than that which is provided in other countries. The note Issue (up to June of this year) ws said to amount to $2,526,929,300. This fabulously big sum, however, can be. well covered by the 1,000,000,000 new notes being printed jin Bogland it they are of various denominations, it was pointed out.
Anyway the Chinese are bewildered expecting changes in the money market. Despite the fact that prices of Chinese Government bonds in London did not experience big changes they. registered sharp decreases in Shanghai on August 5 ranging from 7050 cents to. more than $1. Foreign banks were reported to be reluctant to supply foreign exchange owing to the anxiety. The rice of the 10-ounce gold bar once Slmost broke the $3,900 mark while before the circulation of the report fluctuated around $3,000, preparation for precautionary measures to be enforced during the into action, stopping all cers entering the Seitiemend from forth of the Creek and searching all passers-by, Taxes Payable in Hwa Hsing Notes Shanghai, Aug. 4.
The Reformed Government at Nanking has issued orders to provincial and municipal. authorities under its control requiring them to collect all tax money In Hwa Hsing Commercial Bank notes which are quoted at about two pence higher than the Chinese legal' tender notes, it was reliably learnt locally yesterday. The new order took effect on August 1+ and Mayor Fu Hsiao-en, of the Greater Shanghai Municipal Government has received such an order which, how-fever, will be fully carried out iti Chinese areas here commencing August 14.
"The Mayor stated that the order came suddenly and in order to give some time to the people to prepare carrying it out he had changed. the ate to August 14. So on and after August 14 all income of all subordin" ate organizations under the new city government will have to be received Hwa Hsing notes. In other words, those people who are required to pay taxes including regist fines to Greater Shat will pay more than 20 per cent more than they did in the past as the new notes are quoted at about two pence higher than the Chinese dollar (by the Japanese) in respect to foreign exchange.
Tin carrying out the order in occupied areas, the Japanese and new Chinese authorities will therefore no doubt obtain more Chinese Government bank notes the elreulation of which Chungking has taken pains to limit especially in Shanghai where the Japanese are reported to be trying their best to obtain the Chinese notes which they would converse into foreign exchange. It is interest ing to note whether oF not Chungking may yet use another new financial war tactics as a counter policy.
The new order will seriously affect many Chinese and foreign merchants in Shanghai who have business connections with the occupied interior if Nanking's order is also to be carried out by the Consolidated Tax Bureau In Kiukiang Road. A check with the bureau, however, revealed that off dally they had received no informa. tion about the order and that there fore there would be no change in the payment of the ta Tearnt that the tax. bures pendent of the new Nanking regime and therefore is not affected by the order. Previous reports revealed that the Customs Administration here had not received any information on the matter.
Text read from the printed page and cleaned; old type leaves the occasional error.