The Archive · 1941

Enforce Blockade

Merchants' Accounts to Be Watched; Dealing with Japanese Banned

All Chinese banks are reported by the "Shing Sheng News Agency" to have received an order from the Ministry of Finance at Chungking requiring them to help their Government in enforcing economic blockade regulations against the Japanese, The banks have been promised rewards and if they sustain losses as a result of their obedience, the Government will see that they are made good.

'A review of the regulations reveals that all those having bank accounts hereafter will have to be careful if they are engaged in activities that may be considered as detrimental to Chungking's interest. Those who suddenly withdraw and deposit big sums of money are required to be under special supervision by the banks concerned, Merchants applying for loans from banks will have to mention specifically in writing that they are not engaged in dealing in Japanese goods or secretly transporting enemy goods, They have also to state that they will be willing to receive severe punishments if they violate the rule, As already there are numerous merchants in Shanghai dealing in Japanese goods, it remains to be seen how the banks will react towards the new order from Chungking, Those mortgaging goods with banks in exchange for cash must also prove that their goods are not of enemy origin, and to do so they have to furnish certificates given by Chambers of Commerce in their respective districts, The banks are required to report those secretly engaged in deal-g in enemy goods or violating the blockade regulations in a different way. The banks are told to watch persons not engaged in trade but who have important financial relations with business firms, They should also pay attention to those who remit or receive big sums of money betwee n or from coastal districts and the interior, Representatives will be sent by the Joint Office of the Four Government Banks to investigate commercial banks in connection with the new order,

Text read from the printed page and cleaned; old type leaves the occasional error.

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