Early in August, retail prices were again sensitively "influenced by the! depreciation of the Chinese dollar on August 2. There are more items in the foreign cost of living index that fare direelly or indirectly connected with exchange rates than in the Chinese workers" index. Hence the effect more extensive. The rise would have been greater, had not curtailment in actual buying followed each price increase. Various reasons advanced for this depreciation are as follows:
The change of the official lar-sterling rate for commereia purposes from 7d. to 4%ed. on August 1 (2) Withdrawal of British troops! from China, 13) Exchange settlements for imports.
(4) Unfavourable balance of trade during the export season.
Text read from the printed page and cleaned; old type leaves the occasional error.