Chungking, Jan. 6.
The decision of the Wang Ching-wel regime regarding the establishment today of offices of the Central Reserve Bank in Shanghai and king simultaneously is @ measure to meet the big deficit in the Nanking budget, says the "Sao Tang Pao," organ of the Chinese Army in Chungking, In an editorial, A special despatch to the Chinese daily reports that the monthly expenditure of the Nanking regime now {otals $16,000,000, but that the month ly reventie Teaches only $4,000,000 to $6,000,000.
While the capital of the new bank said to be $100,000,000, the newspaper claims that no mention is made {in regard to what currency the new [bank's capital will be in.
With the establishment of the Central Reserve Bank. itis pointed out that Nanking aims, in the first place, to absorb Chinese National Currency in the occupied areas for the purchase of foreign exchange; 321 secondly, to eliminate the circulation of National Currency by enforcing the use of the new notes as legal tender; thirdly to force merchants in. the occupied areas to buy. and sell foreign exchange through the new dank by control of the exports from these areas.
The new bank Is said to be similar in ils organization and functions to the Central Bank of Chungking, while even the notes are said to be almost Identical in design with those issued by the latter bank, with the exception of bearing different signatures.
The "Sao Tang Pao" predicts dark future for the new note issue, since the Japanese Military, the
$000,000,000 worth of military yen Paper states, have already issued! and the Hua Hsing Bank has only been allowed to" issue $5,000,000 worth of notes for fear of competing. with the Japanese military yen—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.