Perhaps one of the most unexpected changes. occurred in' the matter currency with the advent of the present" month. Formerly Chinese national currency held sway in. North China. Later, the new FRB. cure veney, (Federal Reserve Bank) was introduced and the foreign exchange commenced to drop. The FRB. was not generally accepted for awhile and was quoted at 35 per cent. below national currency. Later the rate evened out and fo¥ a while there was only minor fluctuation.
The concessions struck to national currency, and the currency question was one' of the main issues in. the talks in Tokio on Tientsin. Ayreement was finally reached that both currency systems would be acceptable in the British Concession. Comparatively recently there was a difference of about per cent. between the two! currencies, with the F.RB. notes en-Joying the higher levels. This was: explained by the fat that all goods; had to come from the native city, through the Customs, or from Japa in each of which instances F-R.B. was} the only vegulat and acceptable! tender, In the British Concession, however, hatlonal currency was acceptable} without question, and a dollar was eeepted for its face value by the! British Municipal Council, On Oct. 3, the public opened the morning, papers to read the following" municipal The public ix hereby notified that from Oct. 1, 1940, the Council will require payment of all accounts due to the municipality in local dollars of the highest value atthe time payment Although it would hardly be just say that this was the sole factor causing the panic which prevailed on the market that day, it would probably be fair 10 say that it was a eon-tributing factor. At any rate, the} national currency promptly dived to 79 and the panic canised the Honkons Banking Corporation to suspend transactions in FRB. for a_ brief} while, especially as everybody: was} dislodging national. currency and no cover was available, Shop-keepers quoted their prices in FRB. notes. ind reluctantly accepted national currency at prevailing rates, Curious ili, the national' currency h all the backing that it is presumed to have behind it, continues to be quoted at about 3¥4d, while the FRB. dollar is now worth approxtmately 444d, despite its apparent tack of aelual cover.
Text read from the printed page and cleaned; old type leaves the occasional error.