New-York tribune., 1921-12-25
Chinese ( Finances
Upset by Indian
Silver Purchases
Speculation Also Factor in
Unseitling Exchange Rates
and Causing Runs ON the
Banks; Situation Worse

ana LausiNg NUNS On tle
Banks; Situation Worse
PEKING, Nov. 25.-The outstanding
feature of the situation in China at
present is the runs on the Bank of
Communication and Bank of China, in
Peking. Tientsin and Shanghai, which
started November II. In Peking these
banks suspended the redemption of
their notes in excess of $40 Mex. Il
person, but continued TO pay depositors
in silver.
PostofIices, railroads and telegraph
Offices, however, continued to accept
the notes as heretofore, and by Novem-
ber twenty-one commercial concerns
also were accepting part payments in
the notes of these banks, but there is
some question as to whether this ac-
ton was a purely voluntary effort on
the part Of private concerns toward
restoration Of confidence.
Under the military regulations
which were promptly imposed the eff
feet of the runs was minimized, and
by November 81 the tension had been
reduced, though the situation, which
still remains serious, probably will be
long drawn out and the eventual re-
suits are still doubtful.
Fluctuations in Exchange Rate
The financial situation has been
growing worse. The stock of silver of
the Shanghai banks on November Is
was equivalent to S53,00O,O0O Mex, n
gain Of $4,000 600 Mex. since October
15, but compares with a stock of $74,-
100000 Mex. year previous. The
banks buying rate for 81 gold had adj
vanced from $1.67 Mex. on October Is
to s1.70 on November is, but it has
dropped since, for the New York quota
tion for silver dollar exchange on
Shanghai increased from S054 on No
vember 16 to SO.561 on November 2l.
The speculation conducted through
the newly established stock exchanges
has seriously affected the exchange
and financial situation by monopolizing
funds which formerly were available
for trade, and as result money is
tight.
iNNid 10 iCpOItcQ W nave pOQ20C
about twice as much silver from China
this year as it did last year, and the
demand continues. Arrivals of silver
at Shanghai recently have been large.
but the metal has been shipped out
almost Immediately.
Export and import Trade Quiet
Prices of Chinese raw products gen
orally have been ruling lower than they
were a month ago, particularly for
Chinese cotton, but exports have been
very quiet in nearly all lines, with the
exception of silk from Shanghai and
Canton, and for small shipments of
wood oil, nutgalls, vegetable tallow
tea, skins and furs. Under these con
ditions outward tonnage available ex-
ceeds the demands for cargo space.
There was a further slight increase in
the export Of hair nets to the United
States for October, which brings the
total shipments for hair nets from Che
foo to the United States for the ten
months to 1,482,00O gross, OF almost
equivalent to the total for the previous
six years. The American consul Of
Swatow reports a very considerable IN
crease in the embro idery industry, and
ii is anticipated that the value of the
production of that region this year viii
he in excess of $1,250000 Mex. Man
churian wheat is being held at higher
prices in anticipation of Russian ia
mine demands.
Imports also are quiet, but in gen
eral prospects are encouraging, as the
country has need to replenish its stocks
There is noticeable increase in the
imports of American motor cars, flour
and cotton. The cotton piece goods
market, however, is weak, with no new
commitments. The principal revivals oi
merchandise are of Japanese and Amer
lean cotton piece goods. copper ingots
Belgian and English window glass anc
German aniline dyes. Purchases oi
railroad equipment, except in small
quantities, are likely to be quiet tor Z
year to come on account of the eNten
sive purchases already made this year
Military operations on the upper
Yangtze had very bad effect upon the
export business, as curtailment of ship
ping on the part of native dealers pre-
vented the produce from reaching Han
kow. The transportation conditions il
central China and on the upper Yangtzs
| River have been comewhat improved
during the month.
Export Trade to Z. S. Fairly Acty,
Declared exports from Shanghai Il
! the United States for the Scptembe,
quarter this year amounted to S12,
653, 600, as compared with sl3, 1866 ,00t
for the same quarter last year, whicl
brings the total for the nine month!
ended September 1921, to SAG ,S5l, 900
as against $62 ,952 900 for the same pc
riod last year. The principal export
for the September quarter of this yea
were cotton laces, embroideries, hai
nets, raw silk, wild silk and tea. De
clared exports from Canton to tn
United States for the September quar-
ter were valued at S6,4S7 600 this year
as against $3,993000 last year RE
turns of declared exports to the Unite
States for the September quarter hav
not been received from all the consula
districts, but the total of those re
ported from Shanghai. Canton, Chefoc
Mukden, Nanking, Swatow and Tsing
tau amounted to $21 4S0 900, as agains
S21, ,520,0 900 for the September quartz
of 1920. These figures of declared ex
ports are in American currency, an
include only exports to the Unite
States. Shanghai is planning a sewer
age system at an estimated cost equiv
alent to about $3,000,00o gold, includ
ing the land necessary for DISPOSE