The views of so eminent an authority as Mr, Masaji Yoshida, former manager of the Mitsui Bank, on the subject of the Hua Hsing Commercial Bank newly formed to operate in Central China must s be accepted as authoritative, and it is quite possible that much of what he says may in the end turn out to be correct. He is, however, very wide of the mark hen he says that on May 1 the "North-China Daily News" suggested that the Japanese were creating the new currency in order to make up for their failure with F.R.B. notes in North China. This ional said nothing of the sort, nor did it in any way connect the two faci though it did dilate upon the failure of the currency manipulations in the north. The view expressed in Japanese circles that the Federal Reserve Bank and the Hua Hsing Commercial Bank were two separate and distinct institutions s always been accepted, though it can also with justice be assumed that the failure of F.R.B notes pegged to the Yen is the reason why the Hua Hsing Commercial Bank notes will be apparently linked up with National currency How far that linking will prove effective only the course of time will, but surely Mr. Yoshida is being rather more than optimistic when he suggests that "should the fapi depreciate greatly as a result of the ill-will, or the financial stringency of the Chiang Kai-shek time, the new currency will automatically in popular confidence and serve the public giving evidence of its stability, but, othe: wise, the two currencies should exist side-by-side." If that means anything at all it means that the new currency is only pegged on the National currency so long as the latter remains at about its present value, Should it depreciate the former would have to stand by itself, and there is very little at present to justify the belief that it would prove itself a better medium than that which it is seeking to replace.
Text read from the printed page and cleaned; old type leaves the occasional error.