So much money has been deposited with Chinese banks in Shanghai, especially since the development of the tense situation in Hongkong, causing Chinese, there to send money to Shanghai, that there is now a tendency in Chinese banking circles here to reduce the interest of current savings which constitute the greater part of Shanghai's idle money, it is reliably learned. The idle money has been blamed by the Chinese press here for speculation and manipulation in various markets here.
As a pioneer in the interest reduction movement, the Chekiang Industrial Bank, Ltd., has officially notified depositors of current savings that their interest would be reduced by one per cent. It is stated that the bank wants to increase its cash reserve so as to assure firmness in the market but that the increased expenses and the big sum of money paid out interest may darken the outlook Being unable to pay a high interest for an indefinite period, the bank has been forced to reduce the interest as from October 1 so as to reduce its financial burden, it is stated. It could not be ascertained yesterday whether or not other Chinese banks would follow the lead, but informed Chinese quarters believed that there was such a tendency.
Text read from the printed page and cleaned; old type leaves the occasional error.