At Tungkuan, before one proceeds' across the Sian plain to the ety of: the Tangs, there is a very severe Customs office, so one may guess why Imported goods are dear in west China when they have to pass at least Ave Customs, besides pay the exactions of various factions and partisans, on the road.
"The final and most troublesome was at Sian gate, where only the great face of the hospital won the day. The duties are so high that the goods of some merchants have been unmovable for many months. To this cause must be added the effect of the exchange rate of, the Chinese dollar, the tremendous cost. of transportation, and the rising standard of living due to influx. of the educated and wealthy from. the eastern seaboard. "As to wheat, cotton and coal, despite their abundance, hoarding for military and domestic Purposes has been the great-gsf cause of the high cost of fiving With regard to the living costs in Shensi of foreigners—coal per ton, Wheat flour per cattle, meat, vexed fables, rape-all, fruit, egos, milk, cotton and Chinese tea, in 1037 the basis rate or unit was $87. February 1940 it had advanced to $443 'oF five times more. In December 1940 the figure was $1414, Lo, sixteen times more than before the war, On the other hand, the exchange on sterling 1s only four times more.
Kerosene $30 per Gallon Kerosene cost $150 for five gallons' and Chienmen cigarettes a dollar apiece. One of the biggest items, coal, will be cheaper soon since the rally way made of material brought from the old Pinghan will connect Sian with the mines in northern Shensi, thus cutting out the prohibitive cost of animal transport and crossing of rivers. This ease of transport plus Government control of stocks will also bring down the cost of wheat and cotton, Moreover due to expansion of dustry, ease of communteations, propitious "weather and conscription, there is plenty of work for everyone even the refugee problem "has, nearly solved itself. So that the gen~ eral atmosphere (specially since the cessation of bombing of the northwest) is one of contented confidence, And the quiet stalemated China is {taking stoot: of the forees which have been forged in the slow nds of resentment and national pride,
Text read from the printed page and cleaned; old type leaves the occasional error.