New Chinese Currency Intended to Freeze Prices

Grey River Argus, 24 August 1948, Page 5

New Chinese Currency Intended to Freeze Prices

SHANGHAI, August 22. All the banks and share and commodity markets remain closed as the Government promulgates various measures introducing its new currency and economic reforms. These include Presidential decrees ordering the registration by Chinese nationals of all holdings and property abroad valued in excess of 3000 United States dollars and prohibiting the circulation, possession or sale of all, foreign currencies in China along with gold and silver bullion and silver coin. Economists say the real test, of China’s new currency regulations will be the Government’s efforts to freeze price levels. - If the price of daily necessities is kept within the reach of the salaried men’s pockets, they say the battle will be won and inflation arrested. Meanwhile the stores are doing business as usual, in most cases at unchanged prices. The Foreign Minister, Wank Yur Yu, said the Government hoped •to secure a monetary loan from the United States, either for the direct purpose of backing the new gold Yuan currency or otherwise stabilising the economic situation.