The rapid increase in commodity prices in Shanghai during the pgst few days has created an alarming situation which is the chief topic of household discussions throughout the City. Hope is expressed by the Chinese press and residents that the authorities concerned should do something to relieve the situation before it 1s too late og the price of even Saigon rice now has surpassed the $50 mark as compared with the former price of $35 or little more when rice riots broke out in the city, The price of native rice is fastly approaching the $60 mark.
As was recently predicted, the price of-native rice per picul has increased beyond the $50 mark after the Lunar New Year, the officially fixed price of $40, which is already too high for ihe average resident, never having been followed by merchants during the past few days. The upward trend was followed just prior to the Lunar New Year but it was then thought to be the usual condition during such a period when buying activities were Aceslerated, but since the Lunar New Year day the increase of prices has taken most residents unawares since violent increases were registered overnight.
It is learned, however, that the new rice situation is more difficult to control than the situation existing some weeks ago when hoarding and control effected outside the foreign areas were mentioned as chief reasons for the trouble. This time, it is said, the increase is registered chiefly owing to the unfavourable rate of exchange which must be used for buying Saigon rice. The increase was therefore first seen in the local Saigon rice market where formerly most rice-eating people looked for relief as its price was cheaper, Prices of yellow beans, bean oil and flour have all been increased to unprecedented levels, Coal at $120 Tons Just as the price of rice has become five times bigger so is the price of coal breaking the $200 mark per ton. The action of some coal merchants is criticized since in addition to hoarding with which they are charged by the Chinese press, they also delay sending goods to customers when Ordered. This was most evident yesterday when numerous Chinese house wives complained that they did not receive coal balls (needed for cooking by practically every Chinese family) ordered the previous day. The cargo was there but the delay in sending would mean an ' additional dollar's profit. The price of a picul of coal balls on Wednesday was $5.80 as compared with about $1 during pre-war days, The price jumped to over $6 yesterday.
The problem is very complicated and no official efforts have so far been made to prevent a general increase of prices although it has been suggested that a price-fixing committee be created, A secretary of the Chinese Chamber of Commerce said yesterday that his Chamber could not do anything at the moment and that the same body had not petitioned the Shanghai Municipal Council to act on the subject. The "Central China Daily News" attributed the unprecedented increase of prices to the "unstable financial situation" resulting from the decrease of the Chinese dollar and suggested that cessation of hostilities would bring relief.
Text read from the printed page and cleaned; old type leaves the occasional error.