CHECK ON CURRENCY

Greymouth Evening Star, 14 February 1947, Page 6

CHECK ON CURRENCY

GRAVE ECONOMIC CRISIS IN CHINA AUTHORITIESFEAR RIOTS NEW YORK, Feb. 12. “An order stopping the circulation of United States currency and reI striding public gold transactions was presented to-night to Marshal Chiang Kai-shek, who is expected to sign it,” says the Associated Press correspondent in Nanking. “The order is designed to stop violent fluctuations of Chinese currency. “Meanwhile riots are feared as the result of high prices and the hoarding of rice. Already, one Shanghai rice shop has been overrun by a mob which took most of its stock. Some shops turned away customers, saying they had no rice. The municipal authorities say there is no danger of a rice shortage unless there is hoarding, but extraordinary defence measures have been taken in Shanghai.” The New York Times correspondent in Shanghai reports that one factor in the new inflationary upsurge was a rumour that the Government’s campaign against the Communists in the Shantung Province is not going according to plan. According to reliable sources the campaign has collapsed because of widespread demoralisation among the Government troops. This is reported to have prevented the easy victory for which the Nationalists had hoped in their attack on the Communists Shantung headquarters at Ichowfu.

I ■■ DARING RAIDS MADE BY COMMUNISTS NEW YORK, Feb. 12. Communist forces have made two daring raids on Tungchow, seven miles east of Peiping, since Monday. To-day they seiezd the east railway station and pushed towards the ■ south station, through which the Peking-Tientsin railway passed. In the first raid the Communists set Government buildings on fire, freed 68 prisoners from the gaol, and inflicted casualties before retiring in ( the face of a Government relief ■force. 1 These attacks are the nearest that (any sizeable Communist force has I approached to Peking in many imonths. It has taken as an indication of the Communists’ growing strength, and also their ability to strike quickly and retire safely against the superior, but less mobile ; Government troops. ! The correspondent of the United Press in Peking said that Communist guerrillas scaled’ the northern walls of Tungchow under cover of night and held the town for five hours before being ousted by Nationalist reinforcements and armoured cars from Peking. At least 100 police, soldiers, and Government employees .were killed. Harried Government military headers held an emergency conferience in the wake of the daring raid. I Chinese newspapers reported that the buildings set on fire included the gaol, the police station, the' railway , depot, a water tower, supply offices,' an army hospital, and a military es~ > tablishment. ]