CHINESE HIGH FINANCE.

New Zealand Herald, Volume LXIII, Issue 19452, 7 October 1926, Page 11

CHINESE HIGH FINANCE.

LATEST CURRENCY REFORM.

UNPOPULAR PAPER MONEY[from our own correspondent.] SHANGHAI, Aug. 14. Marshal Chang Tso-lin is having considerable trouble in regard to the paper money issued by the Manchurian Government, under his authority. These notes are known as "Feng-piao." "Feng" being an abbreviation of the Chinese name for Mukden and "piao" a ticket, the literal translation is therefore "Mukden tickets." The Mukden Government, when short of money, has simply turned the handle of the printing machine and issued some more notes. Unfortunately, there is some little doubt regarding the gold or silver reserve as a security for these notes, and consequently "Fengpiaos" are decidedly unpopular with the general public and have depreciated enormously. Nominally of one dollar and multiples of a dollar in value, the dollar notes were quoted as low as 6.40 notes to the silver dollar and ara now about 4.80 to the dollar. Furthermore these notes, dne mainly to manipulation by exchange brokers, arc subject to violent daily fluctuations tims making business practically impossible. The Mukden authorities recently announced their intention of controlling the exchange brokers in the I'engtien Piovince and started in by arresting scleral of the leading exchange brokers, while according to another report, two ,nore brokers were executed for in exchange An official notification was issued that these notes were to bo cashed at the rate of 4.80 to the silver dollars and a leading Chinese storekeeper in Mukden who was discovered quoting over 5 00 notes to the dollar was arrested and thrown into prison. The broking business it. not at all popular in Mukden at the present time, a number of the exchange brokors have closed their doors, while tho Mukden Exchange has practically ceased to operate. • j Marshal Chang Tso-lin has now issued a further statement that there are 20,000,000 gold yen in the Bank of the Three Eastern Provinces and that his administration holds huge tracts of land and other properties, more than sufficient to provide ample security for all the ieiigpiao" notes that have been issued.