Alleging that Chinese Government banks in Shanghai have been secretly buying coppers (including 1-capi pieces from the local market and transporting them to Chungking for use in the manufacture of firearms, Mayor Fu Hsiao-en of the Greater Shanghai Municipal Government has forwarded official letters to the Consular Body and authorities of both. foreign settlements requesting them to suppress the smuggling of coppers, according to the Shun Pao" which published the text of the letters yesterday At the outset Mayor Fu pointed out that coppers are a necessary medium of exchange specially among small merchants and hawkers. The present shortage of coppers is blamed for the confusion in the monetary market and as a result manipulators have seized the chance to make a profit by increasing prices of commodities, By refusing to pay changes on the pretext of copper shortage they have increased prices and consequently also the burden of the people is greater.
While it is admitted that traitorous merchants have been collecting coppers in large quantities in order to make profit, the Chinese Government banks are chiefly blamed for the shortage, it being alleged that offering high prices they have been buying the coppers and secretly transporting them to Chungking, The mayor emphasizes that the question s therefore also of military importance. He then asks foreign authorities here to ce-operate with him in taking effective measures to prevent manipulation and smuggling.
It will be recalled that previous Chinese reports alleged that Japanese firearms manufacturers hat been collecting coppers and serap iron here and that in doing so the: were assisted by traitorous mer. chants. Mayor Fu's letters, therefore, constitute a counter-charge. It will also be recalled that to settle the copper shortage problem in Shanghai during the Lunar New Year period last year large quantities of coppers were actually sent here for circulation through the Central Bank of China, but recent reports stated that the bank would not do so again because the coppers it sent here last time had quickly disappeared from the market a result of smuggling by Japanese and traitorous Chinese merchants. state Secretary Cordell Hull declared today.
Stocks laid aside as a result of deals carried out by virtue of the new accord therefore would not affect world prices and would not hinder international commercial changes—Havas,
Text read from the printed page and cleaned; old type leaves the occasional error.