MONTHLY BULLETIN NO. 13, DEPARTMENT OF ECONOMICS AND POLITICAL SCIENCES, AURORA UNIVERSITY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00926A006900040019-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 137
• Document Creation Date: December 14, 2016
• Document Release Date: March 21, 2002
• Sequence Number: 19
• Publication Date: February 16, 1954
• Content Type: REPORT

. CONFIDENTIAL
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CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY China
SUBJECT Monthly Bulletin No. 13, Department of Economics and
Political Sciences, Aurora University.
PLACE ACQUIRED
(BY SOURCE)
DATE ACQUIRED
(BY SOURCE)
DATE (of INFO.)
25X1A
UMN,NAN MA N AC IN WNA IONAL OCEANIA
OF TWA UNITA? OATH. WITHIN TWANCANINO OF TITLA IA, SECTIONS 791
AND 714, OF TWA,U.S. COOS, Al AMMO, ITS TRANSMISSION OR RAYS.
LATION OF ITS CI:INTUITS TO OR RAMP? AV AN UNAUTWORIKAD PARSON IS
THIS DOC KT COTISIFOR TIO AFF T OTAT
THIS IS UNEVALUATED INFORMATION
REPORT NO.
RESPONSIVE TO
J.
2
CD NO.
ORR NO.
DAS NO.
OC I NO.
DATE DISTR. /69- Feb 54
NO. OF PAGES 1
NO, OF ENCLS.
SUPP. TO
REPORT NO.
Boum DOCUMENTARY
l-Avo12ab]e on loan from the CIA Library is a photostatic copy of Monthly,
Bulletin No. 13, dated December 47, prepared by the Department of Economics
and Political Sciences, Aurora University, Shanghr?i. Chapter titles are
as follows:
Tragic Condition of Monetary Circulation and Banking in China.
An Estimation of the Quantities of Silver Still in Private Ownership
in P1411a,
A Review of CommodityPrices Since the Victory.
Velocity of Monetary Circulation in China.
-
Cash Margins. on the Stock Exchange.:: Idle Capital and Black Market.
The Draft fera New Commercial Regietration Law,
Chinese Reactions to the Reopening of Private Trade with Japan.
ANNEX
Draft of the Commercial Registration Law.
Regulations for Controlling the Rate of Interest.
Revenue Duty Stamps on Sales Invoices.
Regulations Governing the Renting of Houses.:7
EMIARY .sueJEcT 4.AFmA CO!
-end-
777 IL/c
773!23_ IL/c
7712-- ? 1L/c
773.11 IL/c
.772.4 '
_
781.1 IL/c
776 11./c
784.31IL/c
752.31IL/c
751.4 IL/c(3L)
751.3 IL/C(30
105.22 IL/c
773.4 IL/c
855.2IL/c
890.1 IL/c (314
U.S. Officials Only
CONFIDE:1IAL
,
25X1
25X1
?
'
IDI STR IBUTIONA+
This report is for the use within
Agencies indicated above ItJai
originating offiRf6UtfiPrAll
STAT LX
ARIALX
NAVY .4c
AIR
FBI
ORR ?Ev
the USA of the Intelligence components of the Departments or
_not to AletteWripkvit
. AA the
MAtebINI ei* A 1." ' VOCkliff, CIA.
25X1A
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Article 18.
The penalties provided-in these RegUlations shall
be inflicted by court ruling.
A appeal may be ledged within five days after
service of the above-mentioned ruling, but no further appeal
shall be made. .
Article 19.
If while the lease still rune, the *weer of a
house, without any reason, compels or orders the lessee to move
out, the lessee may request a Judicial organ to give him
effective protection.
Article 20.
If against legal procedure and without any adequate
right, any person occupies or uses the house of another, the owner
of the house may warn him to mare away within a fixed time liniti
he may further request a Judicial-organ to make him more out by
compulsion.
Articte 21.
45 order to comply with the needs Of the localities
or regions designated in Article 1, the various provincial end
municipal governments may draw up supplementary measures and subrit
them to the Rrecutive Yuan for confirmation.
Article 22. '
ese Regulations shall coma into force on the day
of promulgation, a'h4 the term af their effectiveness shall be
three years. On thaypIratjon of this term, the supplementary
measures mentioned in the preceding Article shall simultaneously
lose their effect.
I d)
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4-
UNIVERSITE L'AU.RORE
SHANGHAI
?60iikALIDEltogtINIFITATIOK
(g.corousic culmoist)
200 CHUM:MHO NAN LU (OUDAIL)
TV., 10701
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UNIVERSITE L'AURORE
SHANGHAI
* lir
FACULTE DE DROIT BUREAU DE DOCUMENTATION
(ECONOSSIN CUSTOMS)
No.--
? SECTION ITIM SC1ENCS?
POUTS:1MM ST ECONOMIOUITS
SOO MINOS/NO NAN LU (DUSAN.)
'MU IIIS7?1
-MONTHLY BULL T I 11
? A. BO:640HW
M. IllaRNTOg
A. SUNG us:IA-HUAI
N.LIASB
JOHN T.8. CRN
SN00.603 YEAR
E.S. de BREUVERY
Dean of the Department of Economics
and Political Sciences
Editor
Advisory Board
Doan of the Faculty of Law
Dean of the Department of Sooiology
Professor of Chinese Civil law
Research Assistant. Bureau de Documentation
Research Assistant. Bureau de Doeumentation
Main - December 20th.1947.
,
Coniepts
DOCUkNNT NOS.
73. Tragic Condition of Monetary Circulation and Banking in China.
74. An NOtimatiod 9f the Quantities of Silver Still in Private
9711#ZAOP 1P C1P.p4.
.7'.7-0.4AM*OW_of,OOMmodlty' Prises Since the Victory.
76. yo,Coity of Monetary Circulation it China.
- 17. Gash Margi'n's Oh the Stock Akchanges .Idle Capital and
Black Zarket.
STUDY NOS. ?
III. The Draft for a New aomweroica Registration Law.
XIII. Chinese Reactipne.to the Reopening of Private Trade with Jelml.
-
ANNEX NOS. . -
149101. Dritft of the ComMereial Registration Lau.
xxxvrx. Regulotiona for Controlling the Rate of Interest.
=XVIII. Revenue Duty Stamps on Sales Invoices.
=XXX. Regulations Governing the Renting of Houses.
SRR PAG 4P II & III
pox throe iPpertant notes.
_
Qa_tbo 44es 4overning the Application of the Special
BUSiness Tax law. '
2. On the Banking Law'.
3. On the Rules Governing the Application of the Revenue
8t Duty --P!a?vi; PgriVr49P-Pt.g4,Pr*Pti,r14100a4._
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ee
IfiDITOR '3 NOM'
ON THS RULES OOVARNI-MG TH.6 APPLICATION OF THR SPBCIaL BU8INEd6
TAX LAW promulgeted by the elecutivo Yuen on the 11th. of June
1947, the trensletion of which eppeered in dontbly Sulletin
No.IX (Juno-July 1947). Annox XXIII. ?
In a letter (Tsvei Chih 'II' Tzu No.63977-13890) to
the Bankers' Assoctletion of Shenghei on Oct.21st.1947, the
Ministry of einence decleres tie,t upart from the "interest on
deposits" whose temporery cencelletion had elreedy been gee:Int:A
(ace donthly 3412,etin Ro.IA --Oct".1947. P.II. Miter's Note 4),
the items of "remittenee chrgcs" (oherges for rcmitt...nce
servioce) and "fees? (fees rocoiirod for payment services) may
also temporcrily be deducted in the eomputetion of the business
profits of. henkins institutione (sac etteched tale of Art.5),
in order to lighten their tem burden (cf. the Br era' Weekly,
Nov.17th.1947),
?
?
Od THL 3m1A1Au Leei promulgetcd by the dational Government on
the let of beptember 1947, the trenslation of which appeared in
Monthly Bulletin ed.Viil (gay 1947). Annex XV and No.IX (June-
July 1947). Annex
.a) The einistry of.Fin,nce on Oct. 22nC.2947 issued
the fdllowing erdieenwe (Ts'ei Ch'ieh u Tzu me:17440)s 8inee
it is laid down in Jert.110 of the Beneing Lew that the proc,dure
for the business registretion of beaks shall be governed by the
provisions of the,Compeny Law, and eocording to .rt.308 of the
Company Lew the registration of the esteblishment of e branch
company shall not become definitc, until a licence hewbcen issued
by the oentrel comdetent euthotity, it is clear thet a businees
licence should bc issued for the registretion of each brench or
suboffice of E bank. Therefore all branch benks whose found-tion
hes been-approved by the Ainietry, shell Within. one yeer epply
to-the Ainistry for the ieaue of a budinese licence, submitting
the licence fee end 'tbe! revenue stamp duty for the licence and
_eleo Betties forth the following particulers as provided in Art.
$49 of the Company law: 1 The nem of the branch offico;
2) .Looetion of the brench bfficee 3) FU11 name, netiveeplece end
domicile of the 1.eneger of the brenoh -office; 4) Particulars act
forth in the oertificete of registration of the head office of
the company end the number of the certificate (cf. the Wim-noi1
'Weekly, rec. 3rd. 1947).
.b) Another ordinence (Wei Ch'ien /1u Tzu No.17442)
dated Oct. 22nd.1947, also iesued by the diniatry of Finance,
lays down that if the name of ,.aIy bank wheee registration had
been epproved before the promulgetion and enforcement of the
Banking Lem, cioes net correspond to its type of business,eith_r
the business trens:Ations sh.11 be re-ed:usted or the name shell
be ohenged within one year efter the eromulgetion of this Lew
(see Art.14 of th, 3eeking Lew); if the nume of any bunk f:Als
to indicete its type, an indicetion shell imaedietely be added
and eneeltoretion shell ac ....de in the business regletretion
with the Ministry of mire be (cf. the Minenciel iesklys l'ec.3rde
1947). .
o) mettordieg tJinformetion publiehed in Te AUng keo,
Shenghei, Dec. 9th.1947, the Ainietry of Pinence has recently
nnnounced th.t ell heeks whine' ,.ev.c not yet readjusted their
business treeseoteeee eee-J:eding to the law, shell comply with
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Arb;53 of the Banking Law concerning. the restrictiOne on
their investments, i.e. when they purchase ocrtifici,tes of
shares Of limited liebility of Companies for productive
enterprises, public utilities or communicatione, the pur-
chaeing value Jf th sht.re certificates of each company shull
not exceed two per cent of 'Wu: total amount of the deposit::
and the aggregc:te pure lasing value shell not surpass twenty
per cent of the tote' amount of-the geposital where previous
investmente hive exceeded the 4bove prescribed limits, re-
adjustment shill be mnde within one year. All banks shall
also, ir,cearding to Items 7 & 9 of Art, b0 and Items is & 7 of
Art.69 of the -Banking Low, strictly sept-rate their investm,nts
in productive enterprises from their purchases and sales of
seouritiee, and in particular shall keep separate accounts
for them. ?
3.- QM THi; RULE GO/MINING THt AallOATION OS THE kIWENUIG STialP
DUTY DAff published in Monthly Bulletin No.X (Aug.-Sept.1947).
Annex MI.
Through a printer's slip, there is a mistake in
the date of promulgation given for the above-mentioned Rules;
it should be: the 3rd. of July 1947.
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The MONTHLY BULLA2a.is edited by The "BUREAU DE
DOCUMENTeTIOAM of the Department of Economics and Political
4doiences, Aurora University (ahanghui).
Part o. the work of the "BUREaU DE DOCUMENTATIOSM
is the systematic filing of all articles in the chief Chinese
periodicals (monthly, weekly and daily) which deal with the
economic -end finenciel life of the Per East. -References on any
subject c,n be found immediately by means of e detailed curd
index.
The eim of the BULLETIN,which appears on the 20th.
of ecoh month, is to put at tele disposal of foreigners-the
economic end financial points of view expressed in articles in
the Chinese reviews. A certain nuleber of these articles are
c,.refully chosen end reproduced each month in Englishoither in
full translation or in the form of digests.
Each article translated or suftearized in published
separately under the heading JDOCUUBAT No...." so as to enable
each reader to classify them according to his personal system.
A classified index will appearat the end of each year. .
Where several articles on the same subject are
written from widely divergent points of view the BULLETIN
summarizes these points of view under the nem "STUDY,No...."
When it seems advisable the BULianti adds to
these Documents Leul studies the translation of relevant laws
or administrative acts, which from "Annexes". to the Documents
or Studies.
The BULETIN is being published to meet a definite
need and eny suggestions es to the best way of meeting thet need
will be welcomed.
- Though the selection, translation and summar-
izing of the artiolee and other texts is done under the
authority of the Dean's Office of the Levirtment of Econend.cs
and Political Soiences, the authors,whose names appear on -
each Document,atudv end ennex, are alone responsible for the
statements of fact or opinion expressed in them.
As regards the 1,i2RODUCTION of translolons and
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1. The Bureau of Documentation reserves to itself the right of
permission for the reproduction of its Documents,StUdies and
Annexes, either in whole or in parte in journals or reviews
peblifened in the Zest.
P, ehere ie e,?e,2.e+.!Len on the reproduction of articles from
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thee privilege is requested to sk;ad to the Bureau of Documentn..
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3. Every reproduction should be preceded or followed by the
acknowledgement; ufrom the eiONTHLY BULLETIN published by the
Bureau of Locumbntatien(Chinese Apenomics) of Aurora University,
ahanghei".
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AT -1113
"BUREAU DR DOCUMICHTATION,
(Deoember.20th. 1947)-
AM&
The Rankers' quarterly (Fukien)
The Bank of Taiwan Quarterly
The Roonomic Development.quarterly(Kiangsi)
.quarterly Review of Social Heiences
Spinningaeaving & Dyeing quarterly
MONTHLY REV1
Agricultural Information
Banking Information
The Central Bank of China Monthly
The Chekiang Econormic Review
Chins Industrial Development
Commercial Research
The Cotton Yarn bbnthly
The Faralare' Sank gonthly
The Ananoiel Review
Industrial Cooperatives
The Industry gonthly Magazine
The Juriatic & Econowic Review of
AcrOra University
Kling Yih Industrial & Commercial Bulletin
The Lilt Hein Monthly Review
Modern Accounting
The Xe;,t1.94141, _47._ournal, of. Commerce
National Reconstruction
The Oriental-Review
The Pacific Monthly Review
The Public Opinion donthly
The Rural Affairs Monthly
The SWYPOUOts Monthly .
-Slinningaeaving ef Dyeing Engineering
Monthly
Taiwan Paper Information
Textile Reconstruction Monthly
The World MCntlary
Yin Hang Chi Wan)
Taiwan Yin Hang Uhl Van)
Ching Chien Obi Kish)
She Hui Xs Reuel Tea Chib)
Yang Chili Yen Chi Elan)
The Business lor14
The 4040.0ic Review of the Hop
ProvinCial Bank -
The 4e7f..40104.Megasine
&
stook change iwview
Taiwan eugar informatiOn 1)
Yin Hang
Yeh Mug Hein)
Yin Hang Tilling Hein)
Chung Yang Yin Hang Yneh Pao)
Chekiang Ching Uhi)
Rung Kwang Chien She)
Shan Hsush Yen Chiu)
Mien Yeh Yueh Pao)
Chung Hung Yueh Kean)
Talai Chang Peing Lan)
Kung Yell He Too)
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Chen Tan Pa Lu Ching Chi
Tea chili)
Ming Yih Aung Shang Tiung Heine
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Lib Hein Yueh Pao
Haien Tel &lei Clii1
Shang Yoh Yueh Pao
Chung Kuo Chien She)
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Ch'ing I)
Rung Milan Yueh Van)
bbui Chian Yueh E!an)
Pang Chili Yen Kung Chieng)
Tial Chili Tiung MAO
Pang Chili Chian She)
Shih Chish Yueh Van)
1E14
E
eh H
ung Shang T'ien Ti)
opeh Sheng lin Hang Ching
Chi Pan Yueh Klan)
Hain Chung Hwa)
Cheng`Ch'uan ehih Chiang)
Tiai Tiang Tiling Rein)
WRII,IWYNTHLY
The Bankers' Weekly
The Geptury Review
The..4490P911491.400$1Y -
- The 4.4204,e_Review
The Rinangial Weekly Review
The Observer
The Textile leekly
The 4eekly Reyiew of Laws
9b:epcirRet9_, .Chin.Ynng Jilt
. en Pao-- Sin Wen pas ,
7 Tin slang Chou Pao)
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Ching Chi Poing Dun)
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Pao p. Chung Yang Jib Pee ..., Shang Pao .
Ta Kung lao - Tung Han jib Pao
1.) Published three time, moot
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AT -THE
"BUREAU DE DOCUMENTATION"
(December 20th. 1947)
QUAR
The Bankers' quarterly (itkien)
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? quarterly Review of Social Silences
Spinning, Weaving & Dyeing quarterly
Agriculturai Information
Banking Information
The Central Bank of China Monthly
The Chekiang Boommic Review
China Industrial Development
owmercial Research
The Cotton Yarn Monthly
lbs Barmen,' Bank Monthly
The Vinenoial Review
Industrial Cooperatives
The Industry Monthly magazine
The Jurieqic & Economic isview of
Aurora University
Hung Yih Industrial & Commercial Bulletin
The Lih Hein Monthly Review
Modern Accounting
The National Journal of Commerce
National Reconatruction
The Oriental Review
The Pacific Monthly Review
The Public Opinion Monthly
The Rural Affairs Monthly
The Sea Products Monthly
Spinning,Weaving & Dyeing Engineering
Monthly
Taiwan Paper Information
Textile Reconstruction Monthly
The World Monthly
MONTHLY REV
?
Yin Hang Chi Elan)
Taiwan Yin Hang Uhl Van)
Ching Chien Ohl Von)
She Hui Ha Heueh Tea Chili)
Fang Chili Yen Chi Klan)
IrIS
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Chung Yang Yin Hang Ytieh Pao)
Chekiang Ching Chi)
Hung Hwang Chien She)
' Shang Hsueh Yen Chiu)
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Tal Poing Yang Yueh Klan).
Ch'ing I)
Bung Tenn Yueh Val
Shut Chlan Yueh B!an
,
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Bang Chili Chien She)
Shih Chieh Yueh Van)
THUngShang Tlien Ti)
Ia.?
opeh Sheng Yin Hang Ching
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iHein Chung Hwa)
Oheng'Chluan Shih Chiang)
Tlai Tlang Tiling Hein)
The Business gorld
The Alcpnomic Review of the Hop
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The New China Magazine
Stock Exchange R?miew
Taiwan sugar InformatiOn 1)
?ElU-MONlBY
eh
The Bankers' weekly
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The Waanoial Weekly Review
The Observer
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Chong Yen Pao - Chin Yung Ji
Shen Pao sin Wen Pao
Illa""ilin Hang Chou Pao)
bhih Chi Pling Lun)
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?Ik
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B.13J03.
U N ei
R
-Shanghai
BURAAU DB DJCULZLEL.TiON
(2nonomie Chinoise)
s
r.
280 Chungkine ken lei (Dubail)
- Tel:85761
Topics Tragec Conoltion of eionetary
Circulation ane Benking
in China
Author; Chi Oh'ung ewei
Ta 4ung Pao
Dates of Issues 1ov.26,27,28,
Dee. 1, A, 1947.
UhOR
Deeument No.. 73
katures Translation
slightly condensed
&ober of pages 10
Remarks: Origieal title
is: ?Conditions of
the Monetary Circula-
tion in Chine-sub*
titles aro not in the
original.
TRAULC CaitaaluN OV gONETARY CIRCUseATioN
ARD BABAlaG ik UHLAA
Sveryone knows that the present economic crisis in
China.is due to-monetary inflation; everyone is crying out against
the depreciation of currency values. Obviously besides ourrenoy
inflation the present economic poverty and the rapid rise of comodkty
prices have many contributory causes such as wartime%destructione
the decrease in production, the exhaustion of our foreign exchence
, re-nerve And be paralysing of transportation, But currency inflation
le still the most important factor, therefore in studying the
trends of China's economics stress must be laid on the conditions
' affecting the currency itself and on the actrvities revolving
around it.
I.-, Characteristics of the 2resent Circulation of
gooey in China and Its Lffects on erices.
Monetary circulation in China today presents three
characteristics deserving our special attentions the inflatery
volume of note issue; the increasing velocity of monetary cir-
?Illation' and tht steadily narroeing area in which fapi cirouletes.
With a clear understanding -of these three points we can arrive at a
cooperatively accurate estivAite of th& presant end future role of
the legal tender in thi. economy of China.
1. Influtory eirnulation.
4-..coording to general estiLat%i the volume Of note.
issue at the end of leet year wes_abdut 3,b0u,000 million dollars.
At the end of June this year it was over 10,000,0GO million,showing
that the Government, owing to-the unbalenoed budget in the., first
half of the yeer, hod increneed the issue of notes until 4.,t averged
-V17,01.1.40A,00QAbillicn dollars per month. At the end of August,
according to reliebte information, the valve- ce eetes issuee wes
about 15,0,0,J00 million dollars. In September and ocAober,beeemee
of the rise in commodity prices, the mote issue was greater th,n in
. any of the preceding months.
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Assuming that-until November the Government was
short ot 3,000,000 te 4,Q,DJ million dollars per Month, the
volume Of note issue eennot be less than 24,0.:70,000 million doliare,
not including notes of the Bank ot Taiwan and the notes circulating
in the North haat. The vplume of note iesue in 1937 was 1,400
Million dollars, even inclwAng notes issued by the various
Provincial and ghnicipal "lanks it was at most 1,800 million dollars.
itcomparison with the present figure shows an inflation of 13 to 17
thousand tines
" .Thule the currency has been inflated to more than
10,0e0 times what it was before the war, the index numbers of commoeit
prices show an increase of 80,ee0 to 90,u0 times for the same period
according to the index ntinhers of commodity prices worked out by the
ghina e,conamic heaearei .Bureau on eovember lbth, the price level was
104,b71 times the prewar level, and according to the index numbers
Of wholesale pricea for basic connoeitiee in ahanghai, worked out
at the sane time by the :conomic Aesearch .3ureau of the Central 3an,
it was 1,8G2 times. The great discrepanoy between the rise in price
levels and the inoreaee in the volume of note isshe is explained,
apart from the general principle that the rate of the rise of prices
is more rapid than that of infiction, by the condition of the
circulation of the fapi.
1
2. Inereasing Velocity of e:onetary Cireulation.2 ?
In a period of inflation, a riot: in conmoeity prices
can be caused not qnly by the volume of note issue hut also by the
velocity of its.circulation. The people of China, who have suffered
from inflation for the last Un years, have all but lost both their
confidence in the fapi ane their interest in keeping it. No one is
willing to keep fapi but all are doing their best to exchange it for
goods. The period favours the philosophy of ',Mat you save you lose
and Whet you spend you have' 4hen prices fluctuate, the velocity
Of Circulation of the fapi increases more and more. This is refledted
in tile liqUidity of bank deposits. 3efore the.wer more than 40; of
these wore fixed term deposits; but now, except in a few large banks,
fixed termtleposits'have droppee n.eE).rly to zero. In august 1947
they constituted only e.3,?. of a total deposit of 1,400,000 million
dollars in th, banks in Shanghai, and only 10.6 of a total deposit
of more than 2,500,000 million dollars in the banks of the whole
country. aoreover Oven these deposits are mostly public tunas or
endowments ehose term is very short, usually 10 Or 15 days and at
.most 2 or 3 months. To attract fixed-term deposits the banks have to
pay Interest almost as high aa theton loans; deposits that really
represent savings do not exidt, An examination of, currentdeposit
accounts in early banks reveals at once that thonah figures for
debits and credits are very large, reaching hundreds of billions of
dollars, yet the credit balance remains very small, usually between
100,00 and 1,0e0,0a0 collars. hxcept for special-reasons, such as
a large payment ahead, the industrial and coweercial firms will not
leave large deposits in the hanks.
ALIT0106 80Te8:
1) Compare with Document NoM in this Bulletin: "A
heview of Commodity Prices since the "Acturyo (p.3) by gang Chung-wu.
?
? a) 2or a more detailed study of this matter see Document
No,76 in this Bulletin "Velocity of gonetary Circulation in China"
by lieu Chien-p/ing.
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001,019-4
n. 13.13.Y5.
-,aaat
,ff it=i
From the figures for th!: amounts oleared through the
Shanghai Clearing House we can estimate the present.velecity of
ciroulation of the fapi.
Repiod
Nkaar:bille
AMODIAXAOMY
1936
2,578,913
16,984,361,071
Abnthly Average
214,909
498,692,172
Lily average (on basis
of 26 days)
8,265
19,180,468
sept. 1947
4,105,562
68,783,065,661,602
Daily average(on 20 days)
157,945
2,200,887,141,600
hatio of increase
19.1
118,994
AS analysed in the above table, the number of bills
cleared in eeptember is 19 times the aoathly average of 1936 and the
amount cleaarea is I19,000 times. On the 15th and 30th of septeMber,
when the figures were highest, the number of bills was25 times Gnd
the amount cleared 159,572 times the average of 1936. This is more
than 10 times the increase in the issue of fapi. Therefore the
expansion of oredit ouirency is 10 tines what it was before the war,
The eoonovec research organisation of a certain bank
has calculated the velocity n:f deposit ciroultition in modern and
native bunks in shanghai from the figures of cleai.ances and etatistice
of deposits in several important banks. The velocity reaches 60
times per month, which means that eaoh dollar chanes hands twice a
day in tha market. A parallel study by the Aconomic Research Bur-eau
of the Central 7ank gives the folloning results from January to
guns 1947;
January
19.77
april
22.57
February
24.63
May
33.96
-AbrCh
21.32
June
30.06
The above statistics show that the velocity of
circulation of deposit currency is continaally increasing. Though
no statiatics,later than Juni have yet been published, it appears that
in aeptembor it increased by as much as 00 times.
istom the above discueaaon of the.velecity of
circulation of deaoeit currency it is clear that 'the velocity of cash
-circulation, though perhaps nal so high, has increased enbraseuely as
coMpared With th, prewar period-.
This incraase in the velocity of ourrency oirculation'
is'aquivalent to En increase in purer...sing power which immediately '
orentes o demand for cemmonitics and services '11.d thus acts as : strong
stimulation to commodity pric,s.
,
3. The ateadily narrowing are' ef lapi circulation.
The territory in which fapi airoulates is continually
narrow/nip, at pr?sent there are two groat forces t work against its
,eirculation in tha countryaide. The first is that fapi can'no longer
eiroulate'in military areas; the second that in rural villages and
sxall country towns comaadities are gradually taking the place of
0:100Y-ap a medium of eiChc.nge. Farmers and small dealers in the
interior, having lost confidenee in the fapi use commodities suCh as
rice, corn or cloth as standards of payment in their Belles transactions *
and loan Obligation's. 2api is used only for the purchase of daily
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neoessaries from outside ani for petty expenses. Thus th.f, distribit0.
tion of fapi in the country districts continually becomes.smeller,
while the fopi originally circulated there is gradually driven in
and centralised in the large cities._
IliAination Jf the True ftnotion of lenking.
The inflation of currency can stimulate industrial
dhd commercial development and aleo promote an abnormal prosperity
in the bunking husinesa. 6ut this happens only in the early etat4e -
Of moderate inflation: When the commouity prices rise rapidly
again and again, oho hyper inflation sets in, not only is the
developmant of proper inoustrial and coimiercial enterprise hampered
but bankin? itself anc-ite position in the national economy are
weakened.
1. The position with regard to deposits.
Before the war the amount deposited in banks
-throughout tha country was about 4,000 million dollars: in 1936
the deposits in all co, mt-rcial banks totalled 2,700 million odd
dollars. The amount of the deposits was therefore at that time
more than the vOmme of notes issued. But now the deposits in
"hanks other than government banks for the month of August was
2,600,uoU million dollars for the %Owlet country, or the equivalent'
of 10 to 20% of the volume of note issue. Nven if we include the
A, deposits in the-Bank of China, Bank of Communications, 2armerss
Bank, Postal Remittances Savings Bank, Central Trust and Central
%Cooperative Rank, the amount of deposits is equivalent only to
\00 or 50% of the volume of note issue. Comparison pay be made with
aountries which possess a relatively stable currency, such as the
United States, Where in December 1946 the volume of circulation
waS:28,500 million dollars, while the deposit in coMmeroial banks
MWO-40,000 pillion dollars and the ordinary deposit in the Rederdl
helerve Bank_was 60,400 million dollars. The total amount of
deposits was more than five times the volume of notes in circulation.
At the same time the volume of notes in circulation in England was
1,380 million pounds and the deposit in commeroial hanka was 5,b85
million pounds. The amount of deposit wae more than fteur, times the
volume of nate issue.
_
it we measure the deposits today by the index numbers
of commodity prices we find that its real value is pitifully smell.
In August when the wholesale commodity prices were 50,000 times those
before pc war, the deposita in the commaroial hanks of 8hanEhai
.\ amounted only to 4,400,000 million dollars, or the equivalent of 28
',million dollars before the war. But in 1936 the deposits in the
'Shanghai Commercial and bavings Bank alone were 140 million dollars;
in the National Commereial Bank, 60 million dollirs and in Sin Hua
Trust & Saving? Bank, 30 million dollars. At present the deposits, in
these banks amount at most to 40,000 or 50,000 million dollars.
To prove that the volume of deposits ia in inverse.
ratio to the, depreciation of currency value we may compare the rate
of deposits and the index numbers of commodity prices over. 2 years.
In January l94 the deposits in shanghai banks amounted to 36,500
million dollars, while the pries index was about 1,000. Dividing
the deposits by the price index we get a pre-war value of a little
oVer,26 million dolldre.. in January 1947 the amount of deposit?
was 290,500 million dollars and the index number Of commodities
was almost 10,00; to that the prewar value of the deposits was
only 29,050 thousand dollars. In August it had further "declined to
28 million dollars: conditions were indped going from had to worse.-
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B.13.D.73. 5
In October a Joint Assomiation of the Native Banks
of the whole country was formed and held its first meeting et
Nanking, at which the following very important stategent was made
eoncerning the position of both modern aria native bunko:-
"since the inflation, the econouic order has oeen
disturbed and the greater part of the nation's capital has ceased
to pass through the bankinG institutions. Therefore the predent
financial strength of the bunks cannot be compared with what it was
before the war. In the past, the deposits in a native bank in a
village or town could meet the financial neeos of several hfisdred
farmer families. The funds of a native bunk in a city could Supply
working capital.for at least-thirty to eighty factories. But now
eyerything is changed. Native banks in the interior oitiee have a
capital of only several hundred million dollars, while that of the
small banks ie scarcely worth counting. Bven with aeposits of
10,0J0 million dollars the strength of a bank is only about equivalent
to that of a cloth store with a stock of a hundred odd cases of,
cotton cloth. It can barely meet the demands Jf present-day
society,.
2. Unsound competition from Government lanke.
?
Another charantJristic of banking today is the
abnornel developuent of the power of the Government banks. Under
their unfair competition the power of the commercial an native
banks is continually decreasing. The total voltude of deposits in
Government banks may be compared as follows With that in other
modern and native banks throughout the country for ttle last year
and a half:- (Unit: al00 million)
Ifitit .JADAR_of dholg_colintry GovOn_men_t3ankp Ratio
Jan. 1946 754 8,566 1:11
June ? 2,505 31,157 1:13
Dec. H 4,98(3 53,904 1:11
Jan. 1947 6,138 - 5t,480 1.9
.Uar. d 11,263 57,093 115
June " 14,290 126,950 1:8
MOTE: 0eVernMent Bank? include the Central Bank, lank of China,
Bank of Communications, liermers1 Bank, Central Trust,
-Postal liemittanceaand Savings Bank and Central Coopera-
tive Bank. The Banks of the whole country include
provinoial, municipal; oommeroial ana native banks.
The reasons for the great discrepancy between the
amounts deposited in the commercial and n.ftive banks and these in
the Government banks are, as followh:
1) Government orgaqzations and Government operated enterprises
are-not allowed, uncle; the restrietions Of the law, to make
deposits in commercial and native banks.
b) The very large loans granted by the Government ianke to
industrial and commercial firms are closely related to the
deposits, since by the conditions laid down in the loan
contracts Money so borrowed from the 6wVernment banks may
not be deposited in other banks.
e) The establishment of branches by the commercial and aatkve
banks is restricted by law.
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2.1341.73. 6
Ten to fifteen ptr cent of the limited amount of
deposits in the coemercial and native banks has to be lodged with the
Centrel aank as deposit reserve. In August the Shanghai banketwith
total deposits of 1,400,0eC zillion dollars, had to lodge a reserve
of 20U,000 million with the Central Sunk, which also received a
deposit of 20J,0,0 to 300,eaa million dollars from the clearing banks.
The Oentral sank thus lessens the funds available to the commercial
and native banks for daily use, by about 20 to 30):. dben money is
tight they cannot eat relief from the aentrel Bank through rediscounting.
The three aovernaent banks, the Central Trust aGd
the aestal aenittunce and eavinee Bank make no deposit reserve in
the Central Bank against their deposits, and they can obtain a
supply of capital by overdraft, rediscount and remortgage with the
Central aank. They can perform the funations of an oreinary
oommeroial bunk while the or:inery oommercial banks cannot perform
their functions. Therefore they can take advantage of their
special position eno powers in conpeting with the oomnersial banks.
aoreOver they form a special-bloc with sole powers of manufacturing
and dontrolling.currenoy,
For the granting of loans the yovernment banks are
again in a privileeea position. The oreinary loans which they have
recently grantee, with the approval of the Joint Head Offiee of
the ever Government :flanks, amount to about 2,800,J00 million dollars,
while tae total volume of loans made in eugest by the oommercial and
native benksan Shanghai only emeunted to 1,0)0,000 million dollars;
and acoording to time deposit ratio of the Sacneaai banks lo these
of the whole of the country, probably the total volume of loans
from the coemeroial banks of all China ceuld not have been more than
2,0a0,0a0 million dollars.
3. The imeatence of the private 'banks-.
Space limitation prevints our setting farth all the
grievences of the ceenerotal and native banks; but .we must point
_Out _iaow the relative weight of these banks an tae general social
economy has been diminished by the diaappearanee of the social
classes who have sevinee, the accelerated velocity of circulation
am the aonopolising of the greeter part of the inflated currency
by the UOve2naient banes. The benxe can neaonger absorb end utilise
the wealth of society but heve become mere agents of the industriel
and coemetciel enterprises for paying, receiving, clearing end
settling their working cepitel. The strength of the commerelal
banks' has been so-weakened thet it is not even equal to that of a
large factory or business firm.
all this 11,:.s the following reacti.ms on the
money market:-
a) Oclaweroia banks cannot Meet the nceas of industry and
bueiness. The amount of their deposits is eeall end they
are very fleeting. Therefore the term of -deposit oecomee
shorter and shorter while the figure representing purchasing
power steadily diminishes. in smell and middlesiSed
mortgaged loans at fixed term have beccie rare and the
chief types of loan made are discount and overdraft. Some
smrll br.nks gint loans on a daily basis one day money is
easy ena the bank lends; next day money is tight and it at
once cialbt in its loans. 3anes whose financial standing is
eo week certainly cnnot satisfy the needs of industry and
besiness. Therefore
1)). Productive %:,11.terories, besides relying on their own
reeources, apply to the uovernmet for loans, resort to
undergrouno benka or than-selves ebsorb oaPaaita.
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15.13.D.73. 7
d) though the ooMmercial,banks have been weilkenod, they are
stillthe centres for crtdit an. clearance.- They sannot
? meet the public demoad for capital, but on,ascount of the
difficulty of obtaining advances from the 6overnment they
are still the main source of finanoe for industry end
commerce. Therefore the whole money market is ordinarily
influenced by th weaknest of thu commercial WInke. Put
? today the money market follows not the modern or native
banks but the Govertment banks end floating' capital.
The commercial and native hanks are now pas-sive and receive
their impetus from others.
III.- Prcseht Trends of China's
Money harket.
2or a full understnding .of the situetipn of China's
banking Ousiness we must otuey the present trends of the money
market hnothe movement of cepitl throughout the country. Three
main factors determine the present trends of the money markt, the
flow of loose capital to Shanghei from the interior', the movemnt
of funds from North to South China ? and the inability of the
Centrel 8,-nk to countereet the consequences of the unbalanced Budget.
1.. The flow of loose capital to Shanghai.
According to the statistics of different banks in
Shanghai in 1946 the money remitted to Shanghai exceeded tht
remitto4 from Shengbai by 782,500 pillion dollars 1). Prem
January to SepteMber 'nap year the inward remittances exceeded the
ehtwerCby7,780,11,do million dollars. The percentage of excess of
the inward remittances is steaiily increasingg last year it was
20(0 to 300% more; . this year 30O to 400%; in August it reached
666%. The. neigh that flows into Sha4hai from all parts of the
country must also amount to at least 20 to 30 thousand million
dollars, Judging from the fact that most of the olearancc of small
and middle-sixed banks has to be settled in cash; but no exact ?
statistics can be made as to the volume. Part of this money 'comes
to Shanghai to buy industrial products and commodities, part for
OpRegaatieh and lending out at a high rate of interest; A10_1)4124
to.:41y foreign exchange on the black market to effect a. flight of
capital.
2. The movement of funds from Rorth
to South China.
The direction of flow of the wealth of the country
is .generally from north te South. The North is the in battle-
aelds_ large amounts are paid for military expenses there ani the
floating funds thus created, finding .no use in the North, flows in
large quantity to the Southern and Eastern provinces, with Shanghai
48 centre, there to be-exchanged for such commodities as food
products, cloth and industrial goods from Central China or to be
used for other actiNities. In the past these floating funds usually
???
1) NOTE' AA the end of last zar, the total volume of note iseue
only amounted tO 3,5000C'million dollars.
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B.13403*
onntentrated on the gold bur and U.S. dollar markrt and on the
-security market. But since trading in gold_bars and U.S. notes
has been forbidden and sipce the imposition of foolish restrictions
on the.,secIATAM exchange -L), the floating fund can only. conoentrete
on'commoeities.or escape through buyine exchange on the blec -
market, A large quantity of the fapd concentrated in dhanehai also
flews to _South China by the payment of oversee remittances while
part is useu eo ouy semegled eooes ane'part escepes to HonLkong,
to eiecao or to foreign countrees. .?s a result the flaw of fapi
to the eouth directly treeka down tne control of our foleien
exchange arm indrectly devaluates he fapi abroad.
3. Inability of the Central Dank to coenterect
the evils of the unbalanced Budget.
Public expendituru being -continually in expess over
public revenue; theeeovernecht has to resort to continuous printing
of now netes, but the notes once. iesued eannot_be retiree from
circulation despite the efforts- of the Centre]. Bank. the .
breaches of the Central Beek are usually short of. lash, the markets
in the same places ere flooded with currency, forming e merked
contraee. .In the cities of Manchuria end eorth China, especially,
since the beginning of this year money has remained easy and only
when commodity prises rose rapidly ). slight monotrlry stringency was
felt. In bhenghei the Government was .eble to absorb only part of
the inflated currency through the sole of coemodities.and the
collection of a large amount in taxes. .But the currency thus
re?re0 iPelieited. If we examine the clearance of tie: Government
banks in Shanghai .we shell find t. credit belence of 30,Uue million
dollars in mCrch, of 110,000 million in April, 3f 104,0e9 million
dollers in '14 and June toeetheri a debit belence ef 12j,C,00
million doll-re in July and of 70,0e3 million dollars in August,
end -a credit belence of over 440,j-0 million dollers :again in
eeptenber, ioi thae seven months, offsetting the credit .axi debit
1:044C.01, the net credit bele6ce W48 only 470,o.-0 million dollars.
Put:.v0hin,the ;Jame period the incoming exceeded the outgoing -
remittences in the commerciel banks in shenghei by 7,200,0u0 million _
dealers. Therefore the volume of eurrency absorbed by the Central
Bane in shanghai is onlx one : fteenth of the capital flowing into
the city from outsine 2). Though these efforts of the Central lank
have but a meaere effect on the contraction of currency, they have
great influence on the money market in Shanghai. It may be said
that .t4e Shanehai money market is today the scene of the principal
battle between the Central Bank arid idle cepital. The Central Benki
in orra7er to nontraet the currency, resorts to other methods besides
selling ceemodities and collecting taxes. It sells emerivan treasury
notes, exacts deposit reserves, clearing deposits ani a margin for
trading in securities. But the exeenditure of the National Treasury,
the purchase of commodities, the granting of productive loans and
the continuous inflow of currencyfrot_outaide make it impossible for
its auction pump to dry up the flood of cash in Shanghai. No effort
made by the Centrel. ee.nk to tighten up the currency nen be
Maintained fpr more than ten .4.1rEis Rhile as result of easy money
-44444tY prices rise stealily in a series of large increases and
. ?
1) ZDITORIS NOTE. For a detailed study of this euestion see Document
?
No.77 in this Bulletin. Cash Margins on the Stook 4cchenget Idle
Capital and Black Market" .by Liu Kuang-ti.
)-Neetee: The debit and credit belonees of cash are not included
here j ueuelly eeetrel in ehenebei pays out more cash
than it receives. I
?
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B.i5.D.76.
9
small decreases. The Centre]. Fienk in fully were thet no local or
temporary contractions of currency can 'stop the rise of commodity
pricee; but the rise cen at least he restricted within certain
limits by tightening the currency.
In this struggle between the. Government banks and
idle cepital, the ooeueerciel benks are the first to suffer.
IV.? Americen Help is insufficient .to 3reak
these Vicious arcles. .
As everyone "mows, the currency inflation is due to
the unbeleeced 3udget; ene the Budget is utbalanced mainly because
of the civil wer. As long as the otate of wer continues, none of
the methods used by the Government to balance the 3udget end to
eounterect the present monetary evils oen bneffectuel. The sale of
gold bers .no commouitia the i83UC of bonds 'neve already been
tried; at present the Government is attempting to bring down
commodity prices by controlling the commedities. But this method
obviously cannot succeed so long as the production end. consumption
Of the whole country are net in equilibrium. :That then is likely
to be the future tendency of finance and chat will be the fate of
the fapi?
liany believe that the only way to save China from
economic collapse is to ask aid from America, but this is sheer
illusion. The real value of emerioan aid is'often overestimated.
For instance sir. eilliam Aullitt, in "Reactions oft my visit to ChinaTM,
expresses the opinion that 250 million U.S. dollars will suffice to
recall ell the-fapi. Therefore an exchange stabilieation furef: of
150 million U.S. della ' and 200 million U.S. dollars annual
unsecured loan oan so ve China's inflation problem. We oannot agree
with big point of v'ew for the following reasons:
. The fundamental problem in our currency inflation
is not the bankenotes already f 'sued, which are already in process of
inflation an:ehhve shifted their burden to the people, but the
future balan ng of Government finance. Though 250 million U.S.
dollars oan/recall the existing fapie if after its recall Government
finances still cannot be balanced, the problem remains.
2e After ten years of inflation tapi has made u deep
inprsesiion on the popular mind if confidence in the currency is to
be,rbestabliened the monetary system must be reformed. Such a reform
tj:rbe stable, must embody three points: there must be an ample
ieserve; public expenditure must not depend on note issue; and
produotion and coneumption must be mutually coherent. These three
points cannot be fully achieved by aid from America, since it is to
be conditional on control over China's trade and foreign exchange
and limited to the supply of foreign exohange and commodities. -
5. Currency inflation is not the only factor in the
rise of commodity prices. The civil war is destroying or obstructing
industrial, mineral end agrieelturel ,1-eeuetlen and paralysing
transportation. The consequent decline in production and difficulty
in moving eommoditiee from place to place ere the 'main canoes
accelerating the rise of commodity prices. Therefore so long as
military destruction continues, production remains stagnant and
transportation fails to operate smoothly, even though outside aid
is forthcoming end the monetary system is reformed, commodity prices
cannot be stabilieed; end unless they era stabilised currency
411 si44 repeat itself whoa wutside aid is reduced or
Witbdwas
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de23.D.73. 10.
4. Until the war is ended it will.be extremely
- difficult to restore popular confidence in the ourrenoy by the
issue of another kind of paper money, evdn.with ample foreiam exchange,
gold or commodities ea reserve, since many of the farmers in China
no longer have any confidence in the fapi and will not be able to
distinguish between' it and the new issue. It will be very
diffioult to reestablish confidency unless metallic coinage is put
into circulation; but to ohange from a paper to a metal currency
of a gold or silver standard is .hardly in aosordanse with modern
trends, and the United States will not be willing to lend gold to
Chita. YUrthermore the value of such money would be dependent on
the price of gold and silver in the international marktt; and as
these prices are controlled by others we could not stabilise the
_value .of the money by our own efforts. arise. it is put into circula-
tion within the country it way be adversely affected by these
outside causes.
We are therefore forced to the conclusion th..t in
spite of all.hopes the United states cannot solve our currency
inflation problem nor stabilise the economy of China. The reason
is that the present economic state of China may be compared to a
man suffering from a serious illness. His most urgent need is quiig
and rest. .,merican aid canonly be a tonis; but if tha sick man
only 'takes a tonic and does not rest, no good doctor will undertake
to cure him.
( End )
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UNIVERSIT2 LI
-Shanghai-
TOpici
Authors ,
Pen odic*.':
?
Date of Iesues
A UR OR '2
BUItEadi DE DOCUAENTaTiON
? (Economie Chinoise)
280 Chungking an Lu (bail)
Te1;85761
1
An Ittimation of the
?uantities of Silirer
Still in Private Owner-
ship in China.
Yang .erh-ohlena
Central Bank of China
Monthly .
(Chung Yang Yin Hang-
Yueh Pao)
Oct. 1947.
'Document No.* 74
Nature: Digest
Mambo, of pages; 6
Remarks: None.
AN ESTIMaTION OF THE VARTITIES OF 3ILV.i2
STILL IN PRIVATE ORVERSHIP IN CHM
Although China has never been a silver producing
Country she had a silver standard currency up to Nov. 4th,1935 and
for this reason the variations of silver price on the international
market exerted a- strong influence on her foreign trade and economic
conditions in general. When, in Nov. 1935, the Chinese Government
abandonned the sillier standard to adopt the "managed" 2api the
circulation of silver coins was forbidden and people were instructed
to hand over to the galverpment banms whatever silver was in their
poseession. Only a relatively small amount was actually surrendered
and in many parts of the country people diatruirtfUl of the new
currency held ts their silver hoarding. Alen international conditions
were -favourable large amounts of silver were smuggled and meanwhile
a part of the hoarded silver has been disposed of for industrial
purposes.
This being ao it would be interesting to try to
evaluate what approxiaate amount of silver remains at piesent in the
possession of indiv!.auals or oc ,orate pen:one in China. This would
show to,what extent fluctuations of silver pricee on the inter-
national market still influence Chinese econopy as a whole and what
help -the Chinese Government Could obtain in its fight for disponible
foreign exchange and other economio purposes, if it could by any
means get hold of the silver privately possessed in this country.
I.- Methods of iSstimation.
Owing to lack of statistics the estimation of the
stocks of silver actually held in China is not an easy matter..The
only general fla,lves at our disposal are those compiled by E.Henn
on the am:1u:-. of silver in China in 1930, Which he recorded to be
2,500,^00,000 ounces, and the data on imports and exports since
1930, based on the returns of the Cht...,ae Customs, which owing to the
varied units used in cmputation (Haikwan tael, Customs Gold Unit,
Shanghai tae]. and Chinese Aational or 8tandard-dollar) have to be
_converted to ounces. The quantity of silver smuggled in 1934 in
known to have been 301,378,0j0 ounces, representing definitely the
maximum attained during all these years.. Aeanwhile it is estimated
that ailver used for industrial purposes and ornaments represents
one fifth of the total stock.
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B0,41004.? A
These various elements make it possible to figure
approximately the total quantity of silver remaining in the whole
country and belonging either to the government or to individuals.
It romaine that, ir order to find out the stock in
private hands it is necessary to appraise the government stock
and deduct it from the results obtained already. There is no
available record concerning the amount of silver handed over to the
governmental institutions between Nov.. 1935 and the declaration of
war.
?
Efforts made by the authorLties to collect silver
during war time met with little auccese. It is reported that the
four government banks gathered scarcely 140,000 ounces in the whole
year 1942 so that it is safe to assume that 50?i,000 represent a -
maximum for the 4 following years. It is true that after the -war.
a yery large amount of silver, about 200,000,000 ounces went to the
Government from the Federal Reserve Bank of thc puppet government
of North Chine anti the Central 'Ieserve Bank and the Hue Being Bank
of?the puppet government of Central China. This lust amount can be
taken as representir4 the preseht stodk of silver in Government
poseession. By deducting it from the total obthined as indicated
above we will obtain the quantity in private hands (Fornula A).
The let steps to take in our estimation will be
to distinguish in these private stocks, the amount of Olver coins
from that of silver bullion. This will present no difficulty for
we know the total circulation of silver coins in 1935 and we can
estimate the quantity which has since been restored to the government,
or disposed of by industrialists or sent abroad. The difference
betWeen the coins circulated in 1935 and these restored or disposed
of since 3.935 well give the quantity kept by the people in China
(Formula B.).
To Ascertain the amount of bullion privately owned
it will suffice to multiply the results of Formula B by 0.77, to
convert coins into ounces, and deduct this .result from the figures
obtained in Formula A.
II.- The Three Formulae for Computing the'
People's Stock of Silver.
?
Formula A. "Total silver stock in China in 1930" minus "Difference
between importation and exportation of silver in the years 1930 to
1947" minus "Amount of silver smuggled to foreign countries" minus
Nuantity of silver used in industry" minus "Governreent's stock of
silver" equals "Total people's stock of silver".
sot 2000,000,000 1).- 693,576,836 2) 301,378,000 5) -540,000,0004)
?
200,000,000'5) . 765,045,164 ounces.
Notesol This is Kann's, estimations, see attached Table Vs
2 See attached Table III.
See attached Table IV.
4 1/5 of the total stock of ?fiver of the whole nation is
.considered by well-informed authorities to have been used
in industry and ornaments.
5) The approximate amount of silver taken over from the
Puppet Governments after. Victory is here considered as the
National Government stock.
pfnUla B. "quantity of silver coins circulated in 1935" minus
"quantity of silver coins whioh have left the country since 1935" -
minus "quantity of silver coins restored to the Government" minus
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*Silver coins used for indusitrY? (i.e. coins destroyed) maltuantity
of silver coins kept by the people.
1,815,845,000 1) - 158,037,932 2) - 424,839,000 2) ..-181.584,500 ?)
a 551,373,568 pieces.
Notess 1) For the quantity of silver coins circulated in 1925,
dee attached Table II.
2 See attached Table VI.
1
2 Bee attached Table VII,
4 The quantity of silver co ns destroyed is here presumed
to be 1/10 of the sum air ulated.
Yormu3g-2. "Total people's stock f silvor at present* minus
*quantity of silver in ounces der ed from the quantity of silver
coins kept by the people" equals CLuantity of silver bullion kept
by the people of whole country".
765,045,264 1) . (551,373,56 2) x 0.77)= 765,045,164 -424,567,647
PE 340,487,517 Oz.
Notes, 1) Figure from For a A.
2) Figure from For la B. multiplied by 0,77 to convert
the sum into 0 es given that dollar contains 77% of
silver.
elusion.
The q tion now arises whether of not the 764,000,
000 ounoes of silver resent held. by our people can play en
importagt role in 0b1 a s finance of to-day.
Acprd ng to a repgrt of Reuter on August 27, the
market price in Ne aor was U6$0.60 for one ounce of silver.
Meanwhile one ounc of old costs officially u8$35 so that 765.000,
000 ounces of silv r we ld be equivalent to 15,191,811 ounces of
gold. If the Gov nment could get hold of it, it would be equivalent
to-a loan of US 000,000, on one and a half times the exoees
value of import lover exports $n the year 1946, and would greatly
relieve our fi once and international balance.
But it seems.' unlikely that the Government can
ver their silver holdings. it is
ldinge are kept by people living in
Who still use silver coins in their
he failure of 1925, although muoh
tting up exchange setablishnents
persuade the eople to hand
estimated that the biggest
the far remote border areas
transactione. Airtherszore
money bad been wanted in
throughout the eohntrY, id not very encouraging for a,neer Arial in
the present state of affairs,
( See Attached Tables on next pages )
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13.13.1474. 3
*Silver coins used for indusitrY4 (i.e. coins destroyed) oQuantity
of silver coins kept by the people'.
,--
1,816,845,000 1) - 168,037,932 2) - 424,839,000 3) 181.684,500 41
a 551,373,568 pieces.
Notes: 1)
2
3
4 1
For the quantity of silver coins circulated in low,
dee attached Table II.
See attached Table VI.
See attached Table VII. :
The quantity of silver copue destroyed is here promised
to be 1/10 of the sum dr ulated.
joron4...g. "Total people's stock ?f eilvor at present* minus
*quantity of silver in ounces der ed from the quantity of silver
coins kept by the people" equals quantity of silver bullion kept
by the people of whole country".
765,045,164 1) - (551,373,56 21 x 0.77)m 765,045,164 - 424,557,647
w 340,487,617 oz.
Bates. 1) Figure from Form a A.
2) Figure from For la B. multiplied by 0.77 to convert
the sum into o es given that dollar contains 77% of
silver.
M.+ C elusion.
The q tion now arises whether of not the /64,000,
000 ounces of silver resent held by our people can play en
importailt role in Ohl e finance of to-day.
a
? Am rd ng to a replpt of Router on August 27, the
market price in NeW or was US$0.69 for one ounce of silver.
Meanwhile one ounc of told costs officially U8#35 so that 765.000,
000 ounceaof silv r wohld be equivalent to 15,191,611 ounces of
gold. If the Gov nment could get bald of it. it would be equivalent
to.a loan of US$ 0,000,000, or one and a half times the exoese
value of import over exports in the year 1946, and would greatly
relieve our fi a co and international balance.
But it seems! unlikely that the Government can
persuade the peOple to hand ever their silver holdings, it is
estimated that the biggest bldinge are kept by people living in
the far remote border areas who still use silver coins in their
transactAons.Ihrthermore, he allure of 1935, although muoh ?,
money had been waited in sitting up exchange establishments
throughout the country, AA not very encouraging for a,new trial in
the present state of affairs.
c See Attached Tables on next pages )
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' ,14
-
41441144414*
TABLE I.- Showing the Value of Importation and
Exportation of Silver from 1930 to 1947.
(of.
Custom& Reports)
4
iagE
IMPORTATION .
pilveT Bullion 8i1ver,Coine
EXPORTATION
Mier Bullion Silver Coins
,
1930
HX.l ?b 102,559,947
RN.
36,554,029
1931
0 75,887,687
N.
-30,442,671
1932
0 ..,
68,414,489 H14
8,840,779
.11
6,737,665 62,863,187
1933
1934
OW)
"
69,358,917 04
3,395,728 u
21,073,557
7,434,652
.C!181)
7,948,598 CIS 86,906,316
11,338,201 256,220,330
1936
*
10;996,768
33,178,579 37,215,818
1936
?
2,579 0
4,710,903
21,404,-000 U 232,932,763
1937
1,889 "
594,880
2,607,045 396,479,158
1938
N
372
1,261,552 U 79,068,143
1939-
u
824
179,455 ? 1,787,418
1940
? 16094,640
1941
1942
m
.
4,284
2,600
? 3,245,360
m 620
1943
' .i
ERB5) 67,500
190
"CRBul
5,557,778 CRH
- 1,500
i- 1945
*
2,777,778
' ?
OS 4)
18,718
1946
CN$
25,302,000
CR4 8,000
1947..
3,390,681 Os 5,217,162
.June
0427,643,066,000
I
NOM' .4. ELK = Haikwan Taal ..
2 CB* = Chinese National Dollar
3 CRE = Puppet Centralikeserve Bank Currency .
.4 Os I* Ounces
0 ERB w Puppet Federal Reserve Bank Currency.
-TABLi II.- ipsowlpg the Amount of Silver Dollars
Circulation up to the End of 1935.
at the end of 1932 the number of silver
dollars in circulation was as follows.
The number of silver doliare,(ooins)
minted in 1933.
The number of silver dollari (coins)
minted in 1934.
The No. of silver coins minted in the 1st.
sOMOstOr Of 19054
NOTEs
TOW,
in
#1,707,226,000
27t670;000
-70,960,000
10,000,000
$1,815,845,000
This-table is the combination of Page 108 and
Page 116 of the ?Recent History of Finance in
China" written by a Japanese.
?
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TABLE III.- Showing the Differences between
Exportation and Importation
of Silver from 1930 to 1947, by
weight (from Custom Reports after
Convereim to Ounces).
1190.: Ounqgg
1
1930 .! 79,971,563
- 1931 54,258,627
1932 - 5,656,099
1933 .+ 11,105,278
1934 + 197,680,676
1935 + 43,736,174
1936 + 192,209,926
1937 + 306,837,095
1938 + 60.735,880
TOTAL
? NOTES:
Year Ounces
1939 + 1,513,858
1940 i 12,931,873
1941 + 2,493,62/
1942 + 477
1943 + 44,275
1944 4,296,244
1945 2,158,889
1946 18,724
19474une + 8,607,843
+ 693,576,836
1-1 Means import excess
1+)
Means export excess.
TABLE IV.- Smuggling in 1934.
4391,400,000 or 301,378,000 ounces (41 m 0.77 oz)
of silver were smuggled abroad in 1934, according to Page 128 of
'The Articles of China's International Payments".
TABLE V.- Total Amount of Siler in China in 1930.
.i.ann had ascertained that China had at least 2,500,
000,000 ounces of silver among which these were 1,700,000,000 silver
:dollars ,(Cf. Central Bank of China Mtnthly, May 1934).
TABLE VI.- Showing the Difference in the Importation
and Exportation of Silver Coins from
1935 to 1947.
Year Importation
Rknortation Differenog
1935 10,996,768 37,215,818 26,219,050
1036 4,710,903 232,932,703 228,221,869
1037 594,880 396,479,158 895,884,278
1938 372 79,068,143 79,067,771
1939 1,787,418 1,787,418
1940 16,794,640 16,794,640
1941 2,600 3,245,360 3,242,760
1942 620 620
194357,500 ? 57,500
1944 21-,5061- '21,500
1945
1946 8,000 + 8,000
1947 6,7752535 + 6,776,535
------------- --
TOTAL * 758,037,932
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6
TABLE VII.- Showing the Amount of Banknotes Issued
for Buying Silver COins from
1935 to 1936.
Amount of Banknotes issued up to December 1936.
Amount of Banknotes issued up to November 1935.
'Amount issued in 1936.
As tae average annual increase of note issue
during the years 1930 to 1935 was about
4200,000,000; so the total amount of bank-
notes issued for the purpose of collecting
silver may be considered as
$1,167,804,000
542,965,000
$ 024,839,000
624,839,000
M 200.000.000
424,839,000
N01'E3 -From Yu Chielv.liang's "China's New Currency
Policy". Page 220.
End )
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B.13.D.78.
?
V
Topics
Author:
Periodioall
Late of Issues
?R a I T JS1.
ghang.hai
e
BUR.g.aU L. LOCUOENTATION
(Boonomis Chinoise)
280 Chungking Ban Lu (Dubai')
-Tels857b1
A Review of Commodity
Prices Since the Victory
lang Chung-wu
The Oriental Review
(Tung Peng Tea (ihih)
Oct. 1947.
UR OR
Beaumont No,: 75
Natures Digeet
Number otpagess 11
Remarks: Original til.
tier "The Problem of
Commodity Prices at
the Present-Stsge".
A RRVIEW OP COMMODITY PRICES
SIRC.e THB VICTORY
Bluctuations in commodity prices may be due either
to changes in the supply and demand of various goods, or to
variation in the value of the surrency in circulation, or to both.
At present however, commodity prioes in China are mainly affected by
the monetary depreciation.
I.... Three gtages of Monetary Inflation
and Commodity Prioes.
The monetary inflation in this country falls into
three steges.
L. Yirgt Stage: July le37..Des.1989.
? The Government utilised surrency inflation as
means to inirease the pirohasing power of the people by issuing
more notes on the market. During this stage, all goods in stock
were easily sold out, and production greatly improved. All idle
capital and labour as well as equipment were fully utilised. The
rise in commodity prices was not very great and the velocity of
monetary circulation was levier than the rate of currents), inflation.
To obtain work was by no means difficult, and business in general
was very pro's/Hiram); But this stage did not last long.
. .
2. Seoond Stage; Jan.1940-Aug.1946.
On accuunt of aooelerating currency inflation,
commodi4y prices rose to 11441per levels. The faster the inorease
of commodity prices, the more unbalanced was the national buegetf
the greater the note issue, the faster became the currency infIstion,
and commodity priees soared still further. The movAment of
currency inflation hud become vicious sirole., Between December
1943 and ,:ag:.st 1946, the rate of increase of commodity prises was
6:1 as compared with the rate of currency inflation (see Table 1
below). At that time, the amount of produotionspossible with the
exieting technique and equipment had already reached its maximum,
and no increase in oupital or labour could do anything to increase
it. Consequently, th6 growth of the output of goods-lagged rar
behind the increase of ourroncy issue. Commodity prices rose
tremendously, and the rate of interept went up aqpordingly. As
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B.13.D.75. 2
result, the more rapid the turnover of capital, the larger was the
profit realised, and on the contrary, the longer the period of
production, the darker the prospect. Hence, agriculture became
less lucrative than industry, inflUatry than conu,rce, and commerce
less profitable then speculation. In the arena of speculation,
those equipped with great financi..1 power always benefit subs-
tantially by a rise in Commodity )rices. Consequently,produetive
enterprises had to face deeressioq while a sense of uncertainty
prevailed throughout the count.,"as-the pour became poorer and the
rich becemi richer;
3. Third otage: Sept.1945 up to the Present. "
This stage has witnessed a striking change in the
history of .the inflation. At the time Of the Japanese surrender,
a golden opportunity for economic rejuvenation WED actually offered
to China. Her situation markedly differed from that of the wfr
period:
1) The oirculeting zone of the legal tender expanded to the
whole of China, so that currency inflation was less felt.
0) As the prosperous eoastal erele were recovered, supplies of
mpturials could more easily 130 obtained end sources of
tax,etion were mueh enlarged;
3) Many wartime organisations of the Government could be
dissolved, thereby reducing its expenditure;
4) China's 118#350,J00,0J0 in the U.S.A. were unfrozen and two
payments aggregating 884550,000,0W were made by the U.S.A..
for the expenses of american forces in this country so that
the total amount of U.S. dollars at China's disposal reached
90e,Jeu,u00. At the conclusion of the gar, China had
3,500,000 ounces of gold in steak anal took over b00,0k,0
ounces from the puppet Central rieserve-Bank Of China. 1)
In addition aPproximately CNel,W0,000,000,C00 Worth of
properties and materilele were taken over from the enemy and
the puppets 2), and Ui:,01.40.W0.)00 worth of relipt- goods
scaling 2,700,0u? tons were received from UMW' a). This
enabled the Chinese Government to bring down priee levels by
Selling gold, U.b. notes and materials and recalling currency
notes to the vaults of the Central Bank; -
5) The lifting of the coastal blockade made it possible for
production tools to be iFvorted; produotive technique and
? also production ?selzware greatly improved.
?or the above reasono, after V-J Lay, there was
even a drop in the commodity rices. Though currency inflation
continued, the relative rise in prioes slowed down. Towards
December 1948, the ratio between commodity prices and note issue wee
only 2.311.
i60138s
1) of.
Wan Hui
2) of.
published in
3) cf.
People's Poli
1947.
"Present Finance and kegal Tender", by Yang Plei-hsin,
April let.1947.
figures issued by the ellen r.rueerty ,dmknistratl-,r, 9s
various newer -i 21st.1947.
report by the Director general of ONRRA, P.H. Ho, at the
tJ.eal.riouncil as given in Various newspapers on ..ay 28th
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TABLR I
Indictee of Curreasy and CommodityTrlossli
(June 1.931?-v1u.g.2947)
?
-Time, ampunt.lssupd
(Unit.041uU,
000,0Ju)
June 1937 14
Currency Issue
Commodity...1;W?di
tzes .
c2ARAYRO
A.B11.93
,
100
12423(let six.
ariLar...1.21b.
with Qurrimpx
Jesus In4,0(%1
4;
Dec. 1937
16
113
106.7
94.4
Leo. 1938
23
170
170.0
100,0
'L.ec. 1939
31
222
340.1
153.2
Leo. 1940
78
557
1,223.7
219.7
...ec. 1941
150
1,071
3,043.1
284.1
3..ec, 1942
240
1,714
8,062.0
470.4
i,e4. 1943
750
5,357
23,452.0
437.8
Leo. 1944
1,900
13,571
71,921.8
530.0
Aug. 1945
5,0./0
-35,71L
179,500.0
502.6
1,ec. 1945
10,390
74,214
140,448.0
189.2
Lec.-1946
35,0)0
249,999
571,313.0
228.5
Apr. 1947
65,000
464,286
1,425,258.0
30/.0
June 1947_
99,000
707,143
2,993,071.0
423.3
July 1947.
11701.10
835,714
3,116,857.0
373.0
Aug- 1947
135,000
964,286
1
3,195,693.9
331.4
Unfortunately the influence of other faetora soon
began to be felt. The civil lux raging with full fury eaueed tremendous
devastation and damage to coal pines, rai;ways and productive areas.
Communioations were handicapped and the transportation and sale of
products were rendered difficult. A general depression prevailed. The
ever increaaing war expenditure engulfed the Government in financial
distress, and made it?necessary to have recourse to note issue,thereby
once more launching the country into a vioious circle of inflation. AO
a result, fluctuations in coeawdity prices were very narked in 1947.
If the price level of January 194o ia taken as basis, then in August
1947, tha pric, of riee had increased 43 times U.8. notes 27 times,
gold 32 times and wholesale commodity prices 24 times.
1) HOTS: a.Referencesfor Amounts of Issues .or 1937 to 1939, of."Out...
lines of Statistics of the Chinese Republic"; fer 1940 to 1945,
of.lartiol, by Yang Plei-hein, Wen Hui Pao, April 1st, 19476 for
1946 up to April 1947, of. th, financial report by Sinsnoe ainist,r
O.K. Yui on May 7th, 1947; for 1947, of. article written by Dr.H.D.
Fong, Chin Yung jih Pao, August 22nd.1947.
b.References for Commodity Price Indictees Per the period
before 1944, of. "the 2holesa1e Commodity Price Index in Chungking"
by *jong Chung-wu, SPecial Bulletin of Commodity Prices in Chungking,
Vol. I & II? published by the Pohtal Remittance and Savings lank; for
1945, cf. the Nbolesale Commodity Price Indices in Chungking, compiled
by the Central Bank; for 1946 and 1947, of. the dholesale Commodity
Price indices in Shanghai, compiled by the Central Bank.
?
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TABLL I.77.
Monthly Price Indices Jan.1946 to Aug.1947 1).
*matt
9214
1,01a9.1k11.1
Tg..26
butal_9140RAILAs
10462
Jan.
100
100
100
100
Feb. -
185
138
233
180
March
175
13t,
317
211
April
172
140
364
219
may
19b
158
600
255
June
209
174
562
259
July
215
170
706
280
Aug.
226
197
688
300 ,
- Sept.
236
241
803
330
Oct.
247
290
753
345
Foy.
277
308
653
324
Leo.
370
396
702
383
19472
Jan.
418
449
765
468
Feb.
600
815
1563
866
arch
630
813
1260
826
April
1670
1184
may
3420
1750
June
6010
2120
July
4720
2440
Aug.
(3174)2/
(2666)21
4342
2671
Refleetions on the tiovernment Policy .
in Fighting Against the Soaring
of Commodity Prices.
As has been uentioned above, after 1114 Day, in order
to bring down comModitY Prices. the Chinese irovernment had much recourse
to the so-called 'tightening of currency' policy, by selling gold,
U.8. notes, alien-and puppet properties as well as U.S. mrsy surplus
materials and taking back 0.N. notes from the People's hands. But so
long as the Government had not a balanced budget, all such measures
could be of little avail. Re have merely-to consider the budgetary
position of the Government for 1946: the budget amount had been set
at 01442,750 billion, but the actual expenditure reached 6,000 billion
or 2.4 time the first estimate 3). Purthar, in eonneation with this
currency tightening policy, the Governthant.bas passed many erroneous
measures whose evil effects mey be cited below'
Rixet, at the time when the Goverment tried to tighten
the currency, it simultaneously prOmeted the policy of a lo,srate of
interest among bankers. A4 EL result, all depositors withdrew their moiler
mal ?? im am 4ms ma am
AGT461.
1) from Cheng Ten 2ao.
2) The figures in brackets are appresimete. In.Jeauary,1946, the
price of one ounoe ef gold was 0M485,685 and of a U.S.* nate
CN41,470. The pries of gold around Auguet 1947 is here taken
as CM42,700,0u0 and that L.: a U.8.4 note* CR439,000.
. 3) of, article by Chen Shed-pin, Ta sung Pao, baroh 10th.1947.
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frOm hanks and either investeei in speculmtion or passed it to
'underground' banks which escaping ill Government control, paid
high interest to absorb deposits and en-Aged in 'speculations_ and
harding.
uecondly, when on aecount of large sales of U.8.
notes by the uovernment, 0.6, dollar- quotations note kept to a very
low level (see Table 3 below), no limitation was imposed on imports.
The result was that the ahinese aerket was congested with chtap
imported goods, which dealt a deadly blow to-domestic industries.
Thiroly, after the voverment had lost too much
foreign'exchange, it beg.n to think of restricting imports.
Consequently commAity ,rices soared still higher.
.iiourthly, the selling of large quantities of gold
and U.6. notes by the Goverment at low quotations greatly reeuced
its financial power. ,--ocording to information from a reporter in
jashington, China's foreian ichange sinking fund in January 1st.
1947 Was only U800,000,0G0 J. Though this information may not
,be reliable, yet the financial stringency of our Uovernment at this
time is out of question. When the Government cauld not sell any
more gold or greenbacks, imi:.ediately the price of the latter?rose, and
commodity prices were alio brought up. The country faced a most
serioue financial crisis known as the "gold and greenback rush".
TABLE ill
Commodity Prices and Gold & U.8.4 Quotations"
in-the-lst Half of 1937 & on Jan. 15th.1947 .
? Prime
in __i.
of 34137
Price on. Jan.
Number of
half
5th. 1947
Times,In-
(314)
ACtie) -
creaael__
Aloe (Shih Lan) ? 11.41
69,0,b
6,047
Arlour( 49 Os.)
3.97
27,000
(otton(Bhih Tan)
45.0
157,000
1,9801
::
kdible 0i1Whih Tan)
22.3
135,000
6,054
Coal (Ton)
22.7
750,000
33,039
Pig Iron(Ton)
Gold (Ounce)
109.5
115.0
2,400,000
- 373,250
21,21416
1 U.8.4
3.33
..6,626
1,989
-
III.- The,Gold ;Ic Greenback Rush and iti
bffect on Commodity Prices.
it is first to be noted Oat since the enforcement
of the legal tender policy in China in 1935, the buying power of
the-Chinese dollar has been dependent upon its value as compared
with foreign currencies-. 4ence the rise or fall in quotations of
foreign exchange reflects eirotly the external value and indirectly
also the dnmcstio wipe of the Chinese legal tender. In a similar
way, gold as a 1,--:eci0us- metal has aled bean serving asinsIemment for
measuring the foreign as well as domestic value of-the Chinese
currency.
NOTL8;
1) cf. report by the LAreetor general of CRA, V.R.Ro, at
the people's Political Council as given in various news-
papers on iiay 28th.1947.
25 2rom the Anancial aeemly published by the Joint Head Office
of the 4 government Banks.
-? _
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B.121.D.75. 6
The tame-A4Ald & greeribsefere to the rapid.-
soaring of the quotatiens of go.14Vand greenbaoks, Whishaal4mu1ated
the rise in commodity prices. The main clause of this crisis already
.given at the end of the preceeing chapter was accentuated by many
other factors.
. - -
In December 1946, the quotation of the U.S, dollar
*once reached the height of CN47,70:J and gold was at OB4395,000 per
ounce. later the' Central Bank sold out gold and greenbacks in
huge quantities, and on the 23ra. Cf the same month the quotations
began to drop, with gel.; becoming stdble at 0E4340,000. The Chinese
Lunar 'aew Year came in the latter half of the month of January 1947.
A
bonus was Liven to workers by various factories in Shanghai,
eggregatine mere thnn 0/4,500 billion. The Government granted
industrial loans to 314 factories, which awounted to 65.5 billion 1).
at the same tame thc aentral iand issuea new denomination notes of
250 and ouu Customs eole Units totelling about 0A4391? billion as -
estimated from the nuaber printed on the new notes 2). EUrthermore,
as in many places, peace anc order could net at once be restored,
capital fled to ahanahai from' the interior. In January and
Yebruary 1947, about CA0560 billion poured into Shanghai 3).Therefore;
loose capital suddenly inoreased on the Shanghai market, And the
control of the Government over gold and greenbacks became weak. as
a result, the price of gold exceeded 4400,000 per oz. 4ith one Lore
huge selling by the Government, the soaring was temporarily chehked.
On the 4th of asbruary; however, the price of gold reached
480,0,10, and on the 10th, the Central Bank suspended the selling nf
the metal. A great excitement reigned over the market. On the 10th -
apd 11th eold rose by 200,0,,0 daily and Tegistered a maximum of
0E4940,00 On the 11th. The market thus became very chaotic and all
gold shops and native banks suspended their business. .
TABLE IV
Daily quotations of Gold and U.S.Dollars-Jan.4th.to Feb.14th.1947.4)
REIM
Jan. 4th.
6th.
7th,
8th.
10th.
11th.
13th.
-14th.
' 15th.
16th.
17th.
'18th.
24th.
27th.
28th.
29th.
30th.
31st.
Gold Quotation
' - V.814 Quetation
0E4350,000 per ounce
358,00
560,00
, 364,o..)
370,000
384,000
374,000
568,00
372,000
378,000
375,000
386,000
384,000
413,000
408,000
396,000
. 396,000
'
413,000
CR, 6,500 per 8841
6,500
6,300
o,250
6,400
6,700
6,700
::=
6,600
6,600
6,600
6,500
7,100
6,800
'/:49011)13
7,900
.. -
NOTESt
1!, cf. ri.1;%.)ri by thc. 31,visc,ry _Committee on the Geld and
Greenback aadh. a billion is here taken as 1,000,000,000.
2) of. artiolf, written by aang 8zu-shu, gen Hui_Pao, April
g3rd. 1947.
3) of. Chin Yung Jib Pao, July 4th.1947.
4) From Chin Yung Jib Pao, July 2nd.1947.
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la.tu
Yeb. 1st.
-
."11BL2L-1.11^t0-0-01d)
gsad 4.uotetior.s
CN4
CN*410,000 par ounce
3rd,
445,000
7,700. per U801
4th.
480,000
8,000
.5th.
495,000
8,800
6th,
491,000
8,800
7th.
535,Wy
9,400
8th.
595,000
10,400
10th,
7000:1,0
14,000
11th.
940,000
18,0o0
12th.
830,000
15,000
13th.
710,mC0
14,000
14th,
730,000
12,000
-
iinally, Lmergency. Lconcmic geasures were procOlgeted
?
by the. 0overnment, rLIibitinh the circulation of foreign curreneis,
the buying ..ind soiiin of gold taid also specultion. The officiel
rote of for,ign exche.nge was rea4usted to 01.4,12,000 for U841 and tie
cost of livine, index was frozen, takkng tlIA of January 1947 as the
acximus..e.s no effective control woe laic on import,,tion and at the
same tithe no surl'icient foreign exchange was supplied for nocess-ry
IiLporte, te fereitn exchange ol,ck harket was still rdmpnt. Th.
(ov.rnment w,::nt.d to 0,11 in all gold t the offici4lly regul-tcd price
of Ciis480,0c4) per ou.ce, but did not succeed. AS to freezing the cost
of living index, there were any practical difficulties: Since the
Governthent could not freeze the commodity prices, how could it peg the
index? Benda, the effect of the Economic Ebergency keasures could not
be listing. The following t:A)le shows commodity prise levels before
and c.fter the Gold f.nd tireenbok Rush
TABLE V
Bluotuetions in Commodity Prices in Shanghai Before
and After the Gold 4 Greenback ,Rush 1)
Anme of YAILicAtilli
Days_be-.
Ftl_b_c_liaLlit
(Pev4L2f
l'Ellalthc
Day og Pro-
A r 34L.471.
alil?lhA
(2 mouths_
After E14)
Jommodily (10
1 month
fore ITSAI
Buo
EmlÏ Rfter rag)
.g)
Rice CNS
cli4
CN CN
C114 CA;
CP$
(Shih T-tn
86,000
140,000
120,000
107,000
144,000
Elour(Bag
40,000
40,i-070,000
52,000
53,000
Edib1e Ci Loo
bhili Chin 0)).
ootton(szu
1900)30
300,0-0
235,000
28T, Coo
- 350,000
At. ?k.n 4)
250, .)o()
580,000
520, 0o)
650,000
930,000
)ituroinotigt,
OA. (Ton)
83.,000
950,030
1,000,000
1,200,030
1,200,000
Pig Iron(Ton)
3,200,0.X
0,000,600
7,000,000
4,000,000
5,000,000
Oteel (100
Chih Chin)
5,600,0e
2,540,000
Cement
(3,;rrcl)
loOpoJO
100,000
75,060
190,000
220,000
NOTES;
1) ;J'rom the Yinr.nci..1 4cekly.
-21 EEd ctl.nds for Loonomdc Emcigenuy
1 Shih Chin = 0.5 4gr.
4 1 Szu 0 Lin = 41.34- iigrs.
gec,sures.
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3.13.1. 1.5.
IV... The Alec aush ::,nd its Afteruath.
0040019-4
_I
8
Ah. year 1940 imae'diately after the conclusion the
-War, witneasad f,ir inprovemant in the food situ:Alen in ahin..
During that year suppli?s of riot. and *heat in this country totalled
1,367,163,0:.0 Saih :an, a little more thnn in 1036 (a-6'e Table 6 below),
while after th,- protracted war, the Chinese population must have
diminished. therefore, it did n't seem likely that there would be any
shortage in food supplies in the following year 1947: Nevertheless
the food problem, as we shall see, is far from being solved in 1947.
TaaLE
Supplies of aice and 'Iheat in 1946 1)
(Unit: 1,0a0 ahib Tan)
year
'AtaatiatlaaraiTa4M9APa
agantaly of Impprt
Taal
1946
1,357,532
9,631
1,367,163
1936
1,332,557
14,
8,543
1,341,100
1935
1,296,589
36,347
1,332,936
1934
1,146,064
24,720
1,170,784
Aaitary movement as well as conperiptian often
compels farmers to give up farming, ana inundations and droughts in
any pieces create the fear of food shortage. acooraing to news-
paper reports in 1947, the harveat in the caorth Repel was foreoast
at less than 60% of what it used to be and that in Shanei at only
3t4la In June 1947, in awangtung about 60 districts with 6 million
inhabitants suffered from inundation. The same disaster befell
several districts with a total of 1-1/2 million inhabitants in
Kwangsi. rood shortage has been keenly felt in the Northeast and in
many other war zones.
rarthermore, disrupted oommunications make it
difficult to transport foodstuffs from producing centree to consumers
in other places. The aesult is that food is very badly distributed
and prices differ considerably in different localities. In the past,
this country used ao have organisations whose work was to adjust the
supply and demand of foodstuffs in order to avoid serious price
fluctuation. Tait this system was discarded long ago.
TABLE VII
Difference of Rice Prices in Various
place;
AE11.1.2181:
Shanghai
^7-1?',(4.0o0
141,-,7
100,0'7:
Uhungsna
108,000
Uhungking
58,000
Y000how
176,000
Hi-nchow
185,000
oivIn
305.0uu
Takyun
360,000
14eiping
277,000
NOTh81
Places. 2)
gay 5th, -
Juno 2od,
7th.'
'e,'7) -..V.
(1174 410,000
CN # 445,00a
110,000
170,000
220,00u
98,000
130,000
? II?mb
600.'00
85,000
210,000
209,600
500,000
450,000
---
380,000
400,00u
490,000
500,000
562,000
1,150,600
570?000
705,000
1,050,00u
?
1) Soso.: on the estimates of the Central agricultural Ibmeriment
Institute and Customs' reports.
n) from the ainancial 4eek1y.
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9
even in placea .iOc4ted in the sams province Pri-ded--""
may be very different. This can be
1:eiping and Alloyang both in Hopei.
2!AB.L.:11111LI
1)
_.Comparison of Foodstuff irides in Peiping Ant:yang
? (Unit: I. Chin a 0.606 Ar.)
and Peiping
hula lja.
May 1st.
ARAX-1.21.?
11"Yan-ItIL
White Flour
1,450
3,000
1,300
1,500
Moe
1,100
2,300
1,100
1,500
gillet
650
1,760
-?
700
930
adible Oil
3,30u
'
7,000
4,000
4.200
dheat
1,100
1,600
?
970
1,150
The fluctuations in the price of goods on account of
shortage and bad distribution were accentuated by the continuous
currency inflation. The Government Carried on its note printing, and
in April, the note issue index reached 4,600 times the pre-war volume
(see Table 1 above). FUrthermc..7e, idle capital continued to f12,2 to
shanghai; in March and April, it amounted to C141,200 billion 4/.
As the I5conomic limergencylleasures Could not stop or slow down the
inflationary tendency, they were ineffective also in settling the
economic problems. When 'idle capital was banished from speculation
in gold and greenbacks, the sphere of its activities *hanged over to
the hoarding of rims%
in April 1947, the price Of rice rase tremendously,
and oases of rice robbery were repeatedly reported in 40bsiOhaohsing,
Hangchow, Wuhu, Hofei, Uhichii, Esuanch'eng, aanling, Pluchenge.
Shanghai, Maniciwg, Mluenshan, Chengtu, Auanhsien, deiklang,Lungchiang.
Tatou, and other places, among which Wiihu and Wuhsi are famous for
their production of rice.
?
As rice is a fundamental requite of daily life, the
lower the standard of living, the more important is the place which
rice occupies on the consumers' budget. Consequently with the sharp
soaring of rice prices, the masses suffer the most.
Therefore the Government felt compelled to unfreeze,
the cost of living index. Wages were increased, and so was the cost
of production, which eventually entailed a general rise in commodity
prices. Aa the salary of offcialswas also readjusted, the
Government was obliged to put out new notes, thus still further
pushing up the price level. Then came the bad news that the long
awaited 500 million U54. loan had been cancelled. June 23rd. was the
tragon Boat Festival Lay; general consumption increased considerably.
The Government Limited the amount of subsidies to the public utility
enterprises, which were compelled to raise their charges. All these
factors came in one after another to stimulate the soaring tendency
of commodity prices, so that from April 16th, to the beginning of
July, the general price level had increased two to three timea.
aoTAs;
1) From the 'Economic :struggle in the Central Hopei' Chin Yung
Jih vac), 20th.1947.
2) of. Chin Yung Jih rao, July 4th. 1947.
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TABLE. IX" ?
Fluotuation of CommodityNPrioeg
after-the 4ice Rush in
(Units in C.A.C.)
BOAT of:...g9mmodi_ty
Before and
1947. '
'
PAY ffij.Anal_
th. 1.21X-11-4.
:iicse(Shih Tan)
.411.1_16Ah.
144,000 210,000
425,000
420,000 460,000
.lour (Bag)
70,0?,0
76,000
. 145,000
125,000
117,000
Rape Seed Oil(Chin) 6500.b.0
480,000
630,000
510,000.
760,000
Cotton(Szu Aa Tan) 930,0uu
f4tumlnous Coal
1,680,000
1,600,000
1,870,000
-(Ton)
1,200,000
1,200,000
4400,000
1,300,000
1,800,000
Pig Iron(Ton)
7,000,000
8,0,J0,000
7;600,000
1,20U,000
Stee11100 Chin)
3,080,000
3,740,000
5,720,00U
6,050,000
7,400,000
Cament(Barrel)
220,0uo
400,060
450,000
450,000
560,u00
. Comparing the prises of June tbia year with those pf
one year ago, gold and greenbacks had been multiplied 15 times; rice,
tung oil and bean oil ,ten times. Capared with ten years ago (1937), coal
had increased 90,0.0 times; rioe, cloth and silk about 50,000 times,
( gold 26,000 times, and greenbacks about 12,000 times.
TABL2 X
Prices in 1937,June 1946 and June 1947 1)
CNC
?
;Lind Jlf June 1946
June 62_,_.1947
Index ot
Ingax _
1.9.1T-21.2R.
Durip_g_the
10_,xsar2
Year of 1937
11149Al2
pup_mg
the year
Rice(Shih Tan)
11.2
47,667
490,000
10.3
47,350
Flour (Bag)
4.0
14,633
133,000
9.1-
33,260
Bean Oil (100
$hih Chin)
22.3
62,000
740,0,0
11.9
33,184
Silk(Szu A4 tan)
Tuns Oil(100
674.1
2,097,408
32,500,000
15.5
48,21,2
Ohih Chin)
46.1
70,000
720,000
10.3
15,618
oerge (Piece)
8.9
55,uo7
400,0uu
7.9
49,438
busar 100 bhih Chin)16.0
98,000
680,000 ?
5:9
36,049
Coal Ton) 21.4
i
296,667
2,050,000
6.9
96,001
&old Ounce)
115.0
191,667
(3,000,000P1
115.7
26,087
1 U.8.0
3.3
2,587
(40,000i
16.5
12,121
'NOT
Ss
1) For the first half of 1937 and June 1946, of. "The Statistics
Semi-annual Review" published by the Shanghai A4nicipal
(.overnment; for June 30, 1947, of. market quotations published
' by Cheng Yen Pao. Ror the quotations of gold and greenbacks for
_1937, of. the Financial Weekly, and those for 1946, the
- Statistin9.bothly.
2) Black maret quotations.
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?
11
The facts given above show clearly that the '
fluotuation in commoditrpriees is mainly due to ourrensy inflation.
At present, the domestio value of.the Chinese legal tender le only
Z/32,000 of the pre-war value, and the external value le enly
1/12,000. The seriouaness of the situation can no longer be
neglected.
,We therefore suggeet that the efforts of the
Government be directed along the following lineal
1. ffort to balance the Budget and. tomake it public an order
to win the coriffdence of the people;
2. Covering of extraordinarir'expenditure by extrinrdinary means,
such as special taxes, but not by issuing mare note.,
3. Carrying out of planned production and systematic distribu-
tion of ray materials and produota required and yielded by
various production units and the ensuring of riasonaple
profits to producers;
4. Enforcing a rationing system so es to hold off the extra
oupital from the too few goods.
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6110,600
U
NIVERSITE
Topic,
autribri
Periodicali
Date-of Issue;
L faUR OR Z
- h a.n g ha i -
BUREAU DE DOCUMENTATION
(Economia Chinoise)
280 Chungking Nan im (LUbail)
Tel j85761 -
Velocity of Monetary
Circulation in China
Hsu Chien-piing
Central ..tink of China
Monthly
(Chung Yang Yin Hang
lUeh Pao)
Oct. 194/.
Document Moo 76
'Natures Translation
Mater of pages: 7
ReMarkss Original title
is: "Velocity of
'Monetary Circulation
and Loose Capital".
Only the'first_part
has been translated.
VELOCITY OP LYNETARY CIRCULATION
IN CHINA
In normal times the velocity of circulation of
money is generally constant. But in time's of currency inflation,
especially-in a period of hyper-inflation, we have to take into
account the inereaeing rate or velocity of the circulation. For
When everarone ie anticipating an appreeiation or a rise of prices
two kinds of menet:irk shange are likely to develop. First, the
money originally hoarded is set free to buy commodities and ?
services,, and this contributes to further raising of pricei
Secondly, the velocity of circulation is bound to go up.. This
increase of velocity is equivalent to an increase of the currency
actually circulating, and similarly the money set free from
hoarding increases the speed of circulation.
-
The first of these two kinds- of monetary change,
relative to the Money set free from hoarding, should not be over-
looked in the beginning of a period of rising prices. But after
the prices have continually risen for a certain length of time, it
can almoat be disregarded, especially when this stage of vicious
hyper-inflation is reached. In such a period the money originally
hoarded has already been spent on the markt and no one cares to
hoard money anew. Therefore, although shortly after viotory, when
the bear, psychology prevailed, some hoarding of monoy may have taken
place, we cea'leave abide the question of money hoarding, When we
study the 'volume or money in actual circulation during, the latter
part of th,-. war end the po8t war period.
1) NOM For instance, the v..ume of money is 100 units, 10 units of
which are hoarded. Thus, there are only 90-Units in actual cir-
, sulation (assuming that the velocity of circulation is disregerded).
Now if the volume of money_is increased or inflated by 10 units,
resyl:ting_in a popular aaticie,--..tion of a rise or prices, the money
,444L41?4.13-7 hoarded will begin to circelte. APParantlY the volume
'at MoUoi inereases to 110 units from 100 Units. But in reality
it is equivalent to increase to 110 units from '90 units. Therefore,
an increase of the volume of money by 10 units nrly bring nbout
a rise of le instead of-l.
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"
But the change in the-velocity-or'airmul=tiorris -
a problem that requires c:reful study, as it is one of the main
reasons why At present; the rate of tha rise in prices weeds th:It
of the increase in the volume of notes isaued by the Central .nk.
I.- Th a Present increse of Velocity of Circul-tiOn.
_according ta, the equ.:tion of th, aunntitatiie
Theory P4IAT--1--Vvy the rata of tho rise or fall of price P is .
eaual to thet of the iperease ur decrease af the currency in
circulation av + M'V' -L), if wo assume that the volume of trade T
as constant; and it invL.rsedly corresponds to thnt of the increesc
or decrease of the volume of trade, when the amount of currency
antuelly circulating is constent.
Though figures reL,tive to the sped of currency
circulation nrc not avilable, yet sample statistios ralating to t'ae
speed of di-rota:Alan et' t; aeaosit currency (th,e current dep..asits ,f
-different benks) in ShlInghei bc.:n trade by th.E .6conumic Rase-rch
Bureau of the Central Bank from the data available this year. .at
.present, such statistics have eeen aade out up to, and incliviins, 1.-ae
month of day. From.200 coamercial hanks both modern and native, 30
banks were chosen at random, to which have been addid one arovincial
bank and one municipal bank, making a total of 32 units. ny divAina
the monthly total debits of current deposit accounts in -these 32 lanks
by the average of the balances of their current deposit accounts on
the 10th, on the 20th and at the end of the month a quotient is
obtained whioh represents the velocity of circulatien of the months
January 19.77
February
Aarch 24.63
21.32
April 22.57
May ? 33,9u
The table shows that the velocity of circulation in
January this year was low in comparison with the other months. This
may be due to the fact that there were less business days in January.
The prioes rose rapidly in debruary and circulation accelerate.
But in the latter pert of the month it was influenced by the Emergency
Economic Abasures, and slowed down accordinaly.in Aarch and april.
Thereafter, in Ilay the velocity of ciroulation again increased greatly.
- 1) EDITOR'S NOTEI U Amount ef money in circulation.
VI Velocity of monetary circulation.
Mos Amount of deposits.
.VIL Velocity of circulation of deposits.
???
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?
j
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B.13.D.76. 3
If the figurt: above represent faithfully the
velocity .of circulation of the eposit money of the commercial
banks in Shanghai, it is really appallingly high when we remember
that, eccording to simlYbr statia%iss-for the United States, during
the year 1929 when the velocity of circulation pr.s at its peak,
the monthly zvcrage in New York was only 10.37 1). _
. Figures concerning individual banks in Shanghai
are still wore suggestive. 4e find two of them in which the -
velocity of circulation reaches the following records
A Certain Modern 3ank
it, Certain Native Bank
January
127.7
68.9
February
177.6
120.1
March
86.3
69.7
^pril
78.6
65.4
Ilay ?
160.4
121;7
The lowest velocity 'of circulation, as reported
in two other banks, also far exceeds the normals
Malik A.
Bank B
January
6.1
10.9
February
13.5
12.9
March
8.8
11.8
April
7.0
11.4
May
12.3
17.1
1) NUT:61
in
years
XIAX
The yearly velocity of circulation
the commercial banks in the
is reproduced as follows&
Whole Country New York
United
X2111
of the deposit
States for a period
Whole Coon=
currency
of
Ilmismis
1919
35.0
59.9
1931
33.2
54.7
1920
35.4
60.0
_1932
27.3
37.6
1921
32.6
54.9
1933
26.8
34.8
1922
34.2
61.8
1934
26.3
31.1
1923
34.1
65.5
1935
24.9
31.1
1924
34.4
66.5
1936
34.7
32.2
1925
36.4
71.9
1937
27.7
30.0
1926
37.7
77.8
1938
21.6
26.7
1927
41.0
85.3
1939
20.2
22.0
1928
46.8
106.3
1940
18.5
17.6
1929
53.6
124.4
1941
19.4
18.0
1930
40.4
77.0
The specially high speed of circulation in the
United States in 1928 and. 1929 respectively was due to the frenzied -
speculation.. But when compared with the present speed of oiroulation
in Shanghai, it is far behind.
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Approved For Release 2002/08/13 : CIA-RDP80-00926A006901111,
B.13.D.76. 3
If the figurv above represent faithfully the
velocity-of circulation of the ueposit money of the commercial.
banks in Shanghai, it is really appallingly high when we remember
that, according to simiYar statisties-for the United States, during
44110. yertr 1929 when the velocity of circulation a8at its perlk,
- the monthly Lverage in Now York wu only 10.37 1).
Figures concerning individual banks in bhanghai
are still wore suggestive. ie find two of them in which the '
velocity of circulation reaches the following record:
A Certain Modern 3ank
A Certain Native Bank
January
127.7
68.9
February
177.5
120.1
March
86.3
59.7
pril
78.6
65.4
May ?
160.4
121.7
? The lowest velocity of circulation, as reported
in two other banks, also far exceeds the normal:
Bank A.
Bank B
January
8.1
10.9
February
13.5
12.9
March
8.8
11.8
April
7.0
11.4
May
12.3
17.1
1) MUTE:
in
years
Xear
The yearly velocity of circulation of the deposit currency
the commercial banks in the United btates for a period of
is reproduced as follows:
yhole Country New York Year Whole Coup New York
1919
35.0
59.9
1931
33.2
54.7
1920
35.4
60.0
1932
27.3
37.6
1921
32.6 .
54.9
1933
26.8
34.8
1922
34..2
61.8
1934
26.3
31.1
1923
34.1
65.5
1935
24.9
31.1
1924
.34.4
66.5
1936
34.7
32.2
1925
56.4
-71.9
1937
27.7
30.0
1926
37.7
77.8
1938
21.6
25.7.
1927
41.0
85.3
1939
20.2-
22.0
1928
46.8
106.3
1940
18.5
17.6
1929
53.6
124.4
1941
19.4
18.0
1930
40.4'
77.0
The aped ally high speed of circulation in the
United States in 1928 and 1929 retpectively was due to the frenzied
speculation. But when compared with the present ,speed of eiroulation
In Shanghai, it is far behind.
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Me 1 4.110
cannot be taken as representing the condition of the country as a
whole for several reasons:
4
1) The speed of circulation in Shanghai is higher than in any
other place, as -Shanghai owing to its stock EXchange is the
center of speculation in the country.
2) Iwthe above atatistios current deposits in the Government
banks which are usually several times asp much as those in
the oommeroial banks are not included 1), Moreover, as the
Government banks do not practise the "immediate credit"
system which is to be discussed later, the velocity of
circulation of current deposits in the Governmentlend the
commercial banks combined should be lower than that of the
deposit currency in the commercial banks alone.
3) Our sample statistics only deal with the deposit money (0)
As there is no way to find out the velocity of circulation
of currency (M) itself.
II.- Influence Exerted by "Immediate Credit".
The acceleration of circulation, is undoubtedly due
to the popular attitudeof anticipating rises in prices. In Shanghai,
bull speculations in shares, gold bare and U.S. notes have been
exerting great influence on the speed of circuletion.
ffffff ??? .0
1) NOTE1
"mu 0011
Volume of current Deposita. Volpe, of Current
in the Govt. Banka of tha lanosite of the
Wholl:lountNy
( Unit:
Of the WhoIg coUnars,
ON$1,000,000,000 )
i
1046 January
605.8
- 71.0
Eebruary
683.8
77.5
March
? 717.6
105.7
April
1,208.1
177,4
M4Y
1,299.0
186.t
.-June
2.436.1
212.1
July
3,185.7
273.2
August
3,089.2
288.2
September
3,607.2
341.9
October
3,203.0
369.4
November
4,421.0
. 431,9
December
5,012.3
462.7
1947 Januery
5,160.3
542.0
ROT4hrY
5e019.6
678.6
-Ahrah
5,025.9'
1,008.8
April
4.984.8
1,341.7
Deposits in Government banks are based on the
Statistics of the Joint Head Office of the 4 Government Banks and
ineaude those of Central Bank, Bank of Chinai-Benk of Comaunicatiods.
404;apTe Bank and the Postal Remittance and aavings Beni:: Deposits
in the ,commercial banks both modern and native are based on the
statistice given by the 'Auditing Depertment of the Central Bank".
?
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----71
? B.11.1)176.
5-
It may be said that such an anticipating psychology
affects the Velocity of circulation in a speculative market to the
highest extend and the velocity cf circulation of money in the,
wholesale commodities market in a lesser degree while the money in
the hands of the consumers for coneumption purposes is comparatively
the least affected. Owing to the rapid soaring in prices during and
after the war, the speculative aaaket and the wholesale commodities
market have found it inconvenient to use cash and use checks instead.
Therefore the ve1pcity of circulation of deposit currency must be
higher than that of cash (ii).
Accoraina to the statistics given above, the rate af
velocity of circulation of the deposit money in an individual bank
in one month exceees 100 tiaes an thet the sample commercaal banks
combined exceeds 30 iiees. auch a pnenomenon cannot develop in a city
where a sound clearing system prevails. Ror ueder the clearieg
system, when e aepositor lodges ehecas with e Oank ottar than the
drawee bank or bank of payeant, such checks must .go through the
clearing process which tekcs place oiler. e day in the clearing
before credit is given for thee:. Therefore the monthly velocity ef
circulntion of deposit currency, at any rete cannot exceed the nuffler
of working days which is 26 in e month. If it bee reeched neerly
34 times in 6henahei the cause is to be found in the aimmediete
credit" system edopted by the banks here es elso in Ohungkine .nd
other lerge cities.
The so called -imaediete credit" system means that
credit is given for checks even before they ere actually collect -7.
"Then a depositor of bank A deposits e check drawn by anoth r ageinat
another bank, the bank A4 on the system of immedinte credit- for sue%
a check,. allows -him to drew e new check against the face vnlue of the
deposited check. In other words, the depositor presents a oheok
drawn by some one else which, before going- through the clearing house,
becomes et once his current deposit subject to check. Therefore with
the "immediate credit" system, the velocity of circulation oen be
increased to the greatest extent.
Of course, a depositor does not eutomatioally get
the privilege of "immediate credit". He has to obtain the permission
of the bank and theoretically the bank does not grant this privilege
to every depositor, But inasmuch as suclaa systam exists.in Stv:zghzli,
it would be diffioult to attract deposits especially in the case of
small sized banks, new esteblished b.:n48 and netive banks in general,
if such a privilege weee refused.
Of course, banks of long standing with good business
are rather reluctnnt to give-"imediate credit", and the Government
banks in perticuler do .not accord suchea privilege at al/ to their
depositors.
?
, The influence of the "immediate credit" system on the
velocity of circulation cen'be illustrated by thetollowing
comperetive table. This table gives, on the one side, the everege
velocity of circulation of the deposit currency of the commercial
banks in ahanahei (As given above) and, on the other side, tht everege
velocity of circulation in the Government banks which do not grant
the "immediate credit" privileee.
ayarageaferapll aanas
ill??=Ichc-i --
January
19.77
Zebruary
24.63
'11hrch
21.32
April
22.57
443,
33.96
4 Goyernmot Bank%
?12.03
12.47
12.68
13.37
18.0/
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Be3.502069ie
-0f?-aoure-e,thee-exierteetaecrecaTa?-"
system. ie due-t& the demand of the market, but the demand, in meat
cases, does not come from concerns with proper business activities,
as on the average the monthly turn over of their oapiial can hardly
be more than 30 times. Thus, in geaeral, buch firms do not request
immediate credit for their checks. Those who want such a system of
uimmediate credit" are really speculators buying and selling on a
very small margin of profit on the wholesale commodities market and
on the Stock Exchange, as the turn over of their capital has to be
Very fast in order to ensure more substantial gains.
III.- Velocity of Circulationorolume of Trade,
and the Preaent Lay Prices.
The faqt that the :ate of the rise in prices exceeds
that of the increase in the volume of maney can be partly explained
by the increase in t'se velocity of circulation.
For instance, the voluee of meney before the war,
according to a number of authprities, consisted of 1,400 million
dollars in bank notes and 1,400 million dollars in current deposits
making a total of 2,800 million dollars. Meanwhile, it is estieeted
that the velocity of circulation of money before the war was 2 tiees
per month. The volume of currency in April this year consisted of
6,970,000 odd million dollars in bank notes ane 6,300,000 odd
million dollars in current deposits, asking a total of 13,300,0e0
odd million dollars, about 4,750 times what it was before the war,
But the price index in Shanghai for Aptil 1947 was 14,250 times end
in Chungking for the same month 5,020 times what it way before the
war. If we assume that the average price index of the ,whole country
was 12,000, then the rate of rise in prices will be 2.5 times th t
of the increase of the volume of money..
+,
In the light of the formula Pes MV MV I , the
-- T
exoessive rise in price is either due to an increase of the 'Ve:locity
of circulation by 2.5 times supposing no change has occurred in the
volume of trade, or to a decrease of the volume of trade by 40% if
the velocity of circulation tee remained unchanged, or to e slighter
decrease of the volume of trade eccompanied by a certain increase of
the velocity of circulation.
According to conaeon sense, the volume of trade
must hear? deOreresed, and stectistics indicete that the velocity of
circulation has increased. But since we have no accurate date in
either case, no relieble estimate can be made. If the figures for
April are used horn as an example it is simply because the enieee
of note i8SUe up to the end of April has been mede known to the
public by Minister of Finance Yu. The volume of note Josue es
stated above is the volume nctuelly issued minus that in the vault
of the main and branch offices of the Central Bonk. If the above
figures are reliable, though the velocity of circulation of
M * MI per month in the whole -country has increased in a certain
measure it cannot be over 5 times (or equivalent to 2.5 times whet
is used to be before the war), otherwise the volume of trade T would
have inereased, which cannot he accepted according to common
experience. On the other hand, the volume of trade must not tv.:ve
been reduced by more than 40,5, -otherwise thc. velocity of circula-
tion would be even lower than it was before V'e wor, Which is not
in keeping with the statistics given ebova.
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11;13.1-476. 7
,
Thereftroe-assamOie emrsate--epe--*ed, that the
Velocitk-of circulation has laoreaS44 eI00-9P _!0!0 POOT7:that the
-
volume of trade has decreased, assuming at the !same time that
betore,tht war, the velocity alf cieculatiohas g and the volume
of trade wag i, the relationehipbetween the increase and the
;decrease of the two factors MaY be showr as foilowsz
7Velocity of circulation B 4,6 3.e0 __045
Volume of trade, 3.0,P 0.8 0.7 0.5 0.4
? In'other words, If there 4a no change 6n the volume
of trade, the velocity of circeletion per month will be 5. If the
volume of trade decreeses by lf.,c4 the velocity of.circulation will,
be .4,5 If the volume of trade decreases by-00, the velocity of
circulation will be A. If the voItime of trade'decreasea by V10, the
veloeity of circeletion will be 2.
-
However, it must be pointed cat that the conclusion
that the velocity uf circule,tion cannot be hig4er thaR_O (2.5 times
what was before the war) is based on the folleWing four figur&gi
1) The volume of currency before the War; 2,540 million dollars.
2) The average velocity of.circulatien in Via-VIE-Olt: country per
month, Which was 2 before the war. ?ee,
3),The present.(aprilivolume of currency, ehieh ii 13,50Q,000
,
million dollars. ee.
? 4) The present (epril)'price index nturbert 12,000 times what
as before the war.
:
Though the first and the second of: these figures
have frequently been cited by economists, nothing indicates that
they are absolutely reliable. The third figure does not include the.
deposit currency of the Central Trust Corporation and the Cc/Operative
treasuries. As to the fourth figure, it is still more questionable,
beoeuee we have the price index numbers pf only two cities, and any
average price index of the whole country beeed'on the figures of only
two cities is rather arbitrary, At most, such an average is only an
approximation. goreover, ther'e are at present two nde of price
indexelumbers, namely the price index number of the basic commodities
compiled by the Economic Research Department of the Central Bank and
the index number of the wholesale prices by the China Institute of
Economics. The former is lower than the latter. For example, with
regard to the price index for eeril 1947 for Shanghai, the former
gives 14,252 times and the latter, 22,151 times. The former peep the
first half year of 1937 as theebasie period, while the latter uses
1036. We use the index numbers of the Central Bemk here, because the
Central Bank compiles at the same time the index numbers for
Chungking,while the China Institute of SconOmics only prepares index
numbers for Shanghai, In view of the above, our conclusion that the
monthly averego velocity of monetary circulation in the whole of China
cannot exceed 5 times, can only be considered e_s approximate.
However, in comperieg thia 80.:Miel/l_yeaceurate
average velocity of monetary circulation for the whole country with
the velocity of cirouletion of currency deposits in shanghcli, we
are led to a sure conclusion: that the commerciel benks in I
have been a most effective ireeem.nt for bele&-etoireeeeee the
volume of effective ouee,eee, for eteel-eleg price soaring and for
facilitottee seele]etiJn and heerding. Thus it is no wonder th-t
the price level in Shenehei in higher thanthet irately ether place
in the country, :;ald tnet capital from interior Chine flows to
Shanghai, causing the economic iepression of the interior, -
eeee eeel
( End )
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Approved For Release 2002/08/13 : CIA-RDP80-00926A00690
UNI V
Topics
Authors
PeriodicalL
Mate of Issue,
'-171-.144,404.41.11r---
4RsITE LA
-.Shanghai
BUREAU DE DXUAANTATION
(Economie Chinoise)
-280 Chunghlng Nan Lu (Dubail)
Tels85761
Cash Margins on the Stook.
Exchanges Idle Capital
and Black .11arket
Transactions.
Liu Enang-ti
4tock Exchanse.Review
(Chang Ch'uan Shih Chlang)
Mov.lbth.1947.
V R 0 R.
VocuMeOt 90,1 77
Natures Translation
slightly condensed
Number of pages& 7
Remarks; Originarlitle
iss !Spooking of Cash
--
Security for Deferred
Deliverrowilubtitles
are not in the original. ?
CASH NARGINB ON THE STOCK XXCHIJRas
LUIZ CAPITAL AND BLACK MARKET
Since the introduction on the Shanghai Stock Exohange,
On Nov. 14th.1946, of traneaettions with deferred delivery, there have
been several different rulings concerning the amount of the margin,
At first it was fixed at 30% of the total trunsaotion; 10$ to be Paid
in cash and the other 20% in secirities quoted on the market. Later,
a written guaranty from a bank, modern or native, wae accepted in
place of the securities; while in the middle of lis* 1947 the Ministry
ruled that the 20% not paid in cash should be covered by U.S. dollar
Bonds. This move was unwelcome to the-brokers and a compromise was
temporarily, reached, by which the 20$ could be paid in U.S. dollar
Ronda or in cash or in both. Finally the ainistries of Finance &
Edonomice, carrying out an order from the hecutive Yuentnetified
the Security Exchange that from July on the margin was fixed at 54
of the total transaction, payable in cash only.
?
The object of the following artiale is to examine .
the effects on thc, stock Exohange of this last reform, now four
months in forces and the nature of the troubles it has brought in
its train and finally -to present some Auggestione towards a remedy.
I.- The Experienonof the Past Pour Months.
' During these months the outlook has remained dark,
while there has been a great increase in commodity prises, tho
situation has been-gradually becoming more grave. And isecurity
quotations, against general expectation, have shown a Staghlhr
_tendency towards depression.- Calculating from-the first week of
July as the basic. period, .the oommodity price indixt of the 3rd,
week in Ootober was 230%, a rise of nearly 150% While the security
quotation index re shed 122.4%, a rise of 25% only (see Table / .
below). Thus there is no longer any correlation between these
indices.
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TABLE I
\\Btoci,_44110.tation.s..a.nd...(karcadLtar-vgx.i...1.441..?
Rerkod
July 1947
Commodity
Index of
Prigs!
let, week
100.0
10000
2nd. ?
101.6
115,6
3rd. 0
103.8
18609
4th. a
103.3
- 8001
5th. a
104.8
88,7
August 1947
let, week
104.4
?
85,2
2nd. u
102.3
81,1
3rd.
109.6
04.5
4th.
deptember 1947
let. week
110.0
121.8
03,5
944.
2nd.
129
90,7
3rd.
'
137
06,2
4th.
148
97.2
October 1947
lst.week
164
09,9
2nd.
196
111.7
3rd. P
239
122,4
le
A. study of the total volume of business transaeted
in the Stock Exchange, the debit balances of inventory accounts and
the amount of the cash margin, will reflect the prosperity or
depression of the sec'irity market.
TABLE II
Volume of Business TransaCted.Debit Balances of
Inventory Accounts and Amohnt of Cash Margin
(Daily AYerageo. Unite
Volume of
C141,000,000,000)
DebitQath_
lielanceg AMAMI
;011v ATer. &1Y saes.
1246:
Iiusinees Traneacted
41yhver.
Nov.
180.0
, 6.9 ,
....
1.82
Dec.
276.6
10.6
4,89
2658
1947:
Jan.
238.5
9.6
6.19
\i'lg:::
B O.
990.9
41.3
20.40

Mar,
1.952
78.2.
48.29
24.75
Apr.
3..404
130.8
126.09
41.04
:Jay
4.717
174.7
126.44
65.28
Jun.
2.719
118.2
91.03
35.0/
Jul.
2.823
112.2
66.14
20,66
Aug.
2.056
82.3
38.64
20.36
Sep.
2.423 -
93.1
32.86
17.17
-
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J.13.D.77.
3
Then,. -uaisLE-Aurie---1S43---a.e.-baate-period, let US
ascertain the recent amounts and fluctuations of trameaslieums-with
deferred delivery and corresponding debit balances:
geriod,
TABLE III
Volume of Deferred Transaction and
Corresponding Debit Balances
Ilfprred Transactions Debit Halapos ?
JAM
Index
1947: _
Jun. 100.e" 100,;00
Jul. 91.7 58.73
Aug. 61.7 39.43
Sep. 66.8 33.08
Oct. 8.0 - 34.6
II... Absorption of Idle Capital ee atabilisation
of Commodity Prices.
The origins/ aim of the Government in ordering the
formation of the Stock EXohange was to ab8orb idle capital, to
stabilise commodity prides ana to increase revenue. Our study shows
that the increase of the cash margin has made the realisation of
this aim impossible. After the coming into force of the Amcrgency
Economic Measures, in February 1947, idle capital-flowed into the
security market, bringing it to an unprecedented boom which attracted
public attention. Some feared that this prosperity of the security
market would react on commodity prices and therefore asked the
Government to strengthen its control on the Exchange, forgetting
that a security market is purely competitive. Unlike the commodity
market and the gold bar and U.S. note market, where control is
difficult, in the security market an order from the Government can
easily produce either a negative or a positive effect. The bOilp cash
margin -requirement was certainly aimed, at preventing speculation
and abOorbing idia capital, with a view to lessening its effect on
commodity prices; but to judge from the last four months it Merely
led to increased speculation on securities in the black market.
Idle capital withdrew from the regular security exchange snd
Commodity prices rose even more rapidly, on account of thz.l.infletion.
The security market, as we have said, performs t're
function of absorbing floating funds, whose volume may be gauged by
the amount of the cash margin received each day on the security
exchange. According to the statistics, in May, when the cash margin
required was only 10%, the gverge cash margin daily renlieed by
the exchange amounted to more than 65,000 mull n ddflars. But when
the cash margin requirement va45 increased to 50% the amount of cash
margin collected dropped rapidly. In July the average daily cash
margin receipts were 29,000 million odd dollars, a decrease of more
than 50. This decrease continued through the next three months;
though commodity prices registered the highest level of the y,ar in
September ani October the volume of security transactions showed
little increase and the cash margin receipts dropped almost to the
level it had held before tha-Emergenty Aconomic 1::aasuree were
enforced in mik:-;e'ele-y. This shows that the increase of the cash
margin from 10% to 50%, far from absorbing a greater amount of idle
capital has in fact lessened the receipts from cash margin.
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.1t, 4.
Inea.nateheremarli-e-Le---zr--
erices an-commealty prices over a period of years, cencluding that
the basic cause of the rise in commodity prices is unbridled
inflation. Unless inflation ends, there le no way of limiting the
rise Of prices. To maintain that commodity pries can be stabilised
merely by forbidding speculation grid restrecting'the rise of security
'prices is to apply the wrong; remedy, with detrimental results.
Our analysis shows no example of a rise in commodity prices being'
due to a rise in security prices; the facts witness that on several
occasions the rise in commodity prices has stimulated a rise in
security prices. According to the statistics, from the first week .
in September to the end of the third week in October commodity prices
rose 200% while security prices remained far behind, with a rise .
of only a little more than 20;1.
Stock quotations and the heal Value
of assets..
It may be asked whether the present inertia of
security prices is not merely a reaction from their former abnoreml
rise. To gauge whether the rise in security prices is abnormal
or excessive, it should be compered with the real value of the assets
Cf the issuing company and its condition of profit or loss. In a
period of. currency inflation the value of the assets of a factory
increases daily. At the Moment we have no reliable detailed eatimute
but from available data it is safe to say in general .that the prices
Of securities sold on the 1Xchenee have not exceeded the real value
of the assets of the issuing companies, For instance the quotation
of the highest security registered, the Wing On Cotton Mill, has
need by 20 times since the opening of the eXchange last year,while
its assets amount to about 01442,200,0o0,000,000 and on the basis of
6,0u0 million shares, oath share should be worth about 4370.
Caloulating the velue of the shares in terms of U.S.4 at black
market rate, when the exchange opened lust year Wing On Cotton mill
had a value of U.6.40.0054, on the basis of recapitalisation. This
was'eetimated as being close to the real value. Its value lately
has been U.S.40.0038, or about 70% of the price when business opened
last year. The quotations fqr Wing On Cotton Mill show the highest '
rise in terns of legal tender; but compared with the rise in
price of either gold bare or U.S. notes it still lags behind;
therefore the rise in the quotations for other shares must be still
farther behind.
If the Market quotation of the shares does not
exceed their real value, as we are assuming, the fact that the rapid
rise in commodities prose has failed to stimulate the price of
securities can only be explained by the withdrawal of idle capital
from the security market, after ths increase of the cash margin in
July, and the resulting increase in the activity of the outside
black market.
IV.- Pred9Minaece of Bearish-Activity
. On the Black Zarket.
AS the actl-eity of the ertotde black market can
thJ vr-:, on ths echenee. there is
still need .% ..eeeain the decline in quotations of stcck. For
several months the predominance of a bearish trend has made any
improvement in the price,of.shares impossible; and it is diffieult--
for the bulls to be active, since they are precticelly helpless
outside the exchenee, where they may fail at any time end -must '
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B.13.D.77. 5
proceed with great cantion. If the cash margin rises' too high the
bulls within the exchange, if their capital is not large, find
themselves in difficultieo and may be forced aver into a bearish
trend. The price of secUrities cannot rise while the buyer market
is in a state of collapse.
At present the main difference between the two
markets is that in the commodity market. only bulls can be active,
while in the seourity market one can net only buy long but also sell
short, so that bearish speculation is possible. It is especially
profitable to eell short outside the AXchange, for the following
reasons:-
1) No capital is needed, as the cash margin is at most 20% to
30%, and even this need not be paid if one knows the ovner.
2) If for instance Wing On Cotton :Jill is used as the object of
, direct treeing, the unit for trading is not fixed but may
- vary from twenty thousand shares to more than 10 million.
3) There is no fixed date of delivery; treepactions can be
closed at any tinIe or delivery mey be postponed indefinitely.
4) A bear receivee interest, while the bull has to pay it.
If the quotation drops tae bear receives not only interest
but also the difference in price.
A concrete example mey make these advantages
clearer. suppose thi.t on Ciet. 15th, A. sold 100,000 shares of ding
On Cotton at 4320 and received an interest of 25 d or 25% of
a dollar' and B. bought the same number of shares at the same price,
paying an interest of 30 ef . We may calculate their respective profit
and loss in three different oases: a declininge_a stable and a
rising quotation.
a) In the black market interest is calculated on the closing
quotation of the 'Wing On Cotton 4111 for spot transactions
in the forenoon on the exchange. Price difference is
calculated on the closing quotation for spot transactions in
the afternoon. If on Oct. 15th the forenoon closing quotatinew
was 4320 and the afternaon 4300, the respec4ive profit and
loss of A & B on the first day would be as follows:
1) A's profit from interest = 32,000,000 x 25% r 30 =267,000.
A's income from price difference = 32,000,000 - 30,000,000
=62,000,000.
A's total profit (with no cost incurred)442,267,000.
ii) B's loss on interest = 32,000,000 x We; t 30 =4320,000. ? '
B's loss on .price difference = 32,0ee,000 - 30,0e0,000
= *2,000,000.
B'e total loss = 42,390,000.
' If the quetettee enntinues to deoline, bear, will.
make a very coneideraole profit: but the eeeeer their profit the
more difficult tt is for the security prices to imerove.
b) If the quotation remained stable and interest outside the
exchange remained constant, which in fact never happens, there ?
would be no question of difference in price but A would .
receive about 68,000,000 a month in interest and B would have
,to pay interest, of about 69,000,000 per month.
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4.4.1' ? ?
8.74.1477, 6
c) If at the end of a month, the?traneactian not yet being'
closed, the quotation of Wing On Cotton mill_rose-from
#320 to 060, A night not suffer any loss; since his
interest of b to 8 million dollars would cover hie loss
on the difference in price. But B would risk heavy loss
since although he mane a8u per share from the difference
in price, be has to pay interest varying from 8 to mare
than 9 million dollars.
- The example just worked out Makes clear that the
basic advantage in such transactione lies with the bear, who can
take advantage of every opportunity to sell short. As long as there
is no steady rise in quotations direct trading in the black market
is far more favourable to bears than to bulls. The Oftook EXchange
has thus to face the fact that it is almost impossible to strengthen
or improve its security prices as long as the black market continues
to exist. This is'a great obstacle to the development of the
Oapital market, since it discourages regular investors and those
who buy securities in order to maintain tha purchasing power of -? ??-? --
their Money.
All thib explains why since the increase of the
cash margin, selling activity in the black market has contributed
to the depression of security prices. Not only has such activity
increased from day.to day but even on the Exchange it has become
more profitable to sell short than to buy long. The 60% cash margin..
is the same to both bull and bear, but its actual effect on each is ?
different, since the bear has in hand a certain quantity of spot ?
goods which can be used for immediate transfer while the bull cannot
use securities in lieu of cash payment but must deposit the 50%
cash margin. In passing the law requiring this 50% cash margin,
legislators were not actuated by any bias in favour of bears, yet
in actual effect it lays a much heavier burden on the bulls.
11... Radical Chance Needed.
The above analysis points to the neceesity of a
reform of thc trade in securities to bring it into line with the
-Present economle situation; and,given the importance of maintaining
the Steck Exchange, to the necessity of keeping up active business. ?
in order to absorb idle capital. If these objects are to be
realised it is important that the following two points should be
brought outs
1) The question of the cash wargin for deferred delivery
transactions should be-reconsidered;
2) Direct trading outside the Exchange should be stopped and
all trade brought within the Exchange.
There is nothing to prevent both these points
being carried out simultaneously; but from an economic standpoint
the former is simpler and more effective. If the cash margin oae
be reduced to bring it into line with present needs, or if some
elastic measure is adopted, giving the heads and the supervisors of
the Shanghai Exchange power to adjust the cash margin to the neode
of the moment, we believe that not bn9y will trade within the .
Exchange resume its activity and draw idle cFrOtckl haok there; but
also the trading outside 7rili eir3cted back into the Exohange. ?
It may be objected that any reduction of the cash
margin will tend, as it did in 1921, to the encouragement of
speculation and finally to a collapse of the trust companies and the
Exchange. Naturally this is quite against the desire of the Govern-
ment. As we have said, the cash margin must have elasticity, being
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/1.13.D.77. 7
adjusted to the needs of the 0,enging situation. 1921 is not an
exact analogy and its collapse need not be repeated. In that
year there were more than 140 exchungesin Shanghai alone, with
neither a centralised control no' any uniformity of method; while
now the organisation is uniform and control is comparatively easy.
Secondly, in 1921 the tmaiog was in unsound end unqualified shares,
while toduy shares are subject to strict examination before they
can come on Axchange. Thirdly tha exchanges of 1921 lacked the
support of large amounts of idle capital and so finally came to
a collapse; while the present :Exchange is surrounded by a steady
flow of flouting funds, so thLA it is even threatened with an
inundation.
The policy with regard to the AXchange needs a
radAel change to meet the changed situation and we need not
fear a repetition of the 1921 depression. The first and moat
urgent' step is to reconsider the question of the cash margin for
delayed delivery.
( End )
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URI VER 8 I T tjURORE
aShalighai?
BURBaU LS DOCUXOTaTION
(Economic Chinoise)
280 Chungking Nan Lu (Dubai].)
Te185761
The LTaft for a liew Commercial STUDY MO.;
Registration LAM Number of pages: '7
articles aiaested and eombined
An this atudy:,
"Opinions on the Projeeted Commeroial Registration
Law", Editorial,Shen Pao(Shanghei), Oet.let.1947.
"A aecond Discussion on t!.7e Projeeted Commercial
Registration Lawa, Lditerial, Shen Pao (Sharghai),
Oct. 7th.1947.
"Sasential Points of the Rew Draft Of the Commercial
Registration Law a. intonation, Ta Agng Pao(Rhanghai),
Oot.14th.1947.
"Views on the Project of the Comaereial Registration
Law", by (Jhlen nenalin,the lih Hein gonthly,
Oct. 15th.1947.
"Draft of the Coamereial Registration Law", the Lih
Hein ?onthly, Oct. 15th:1947,
THE DRaFT YOR A NSW COLataliO1AL
Rffil3TRaTION Lap 1)
The fact that it is already more than ten years
since the promulgation of the Commercial Registration Law actually
in force (June 28th. 1937) 2), makes it clear that many of the
provisions should be revise? in order to 00pe with the changing
circumstances. it is therefore gratifying to learn that the
ainistry of ,Aonomac Affairs has recently published a projected
revision of the CoameroAal neaietratian Law and invitee all concernea
ti air their opini)ns and suggestions. It has been reported t
before being made public this new Lraft had been given a careful
joint examination by the ginistries of 1;oonotac affairs. Finance,
aocial Affairs and Judicial Adminietration and that consent and
appreciation were unanimously expressed. Indeed the traft actually
oombines all the detailed provisions of the present and
Application Rules and furtbernore contains many improvements. The
innovation of the Chapter on comuereial businesses operated by
foreigners, especially, answers an urgent need.of the times.
2;DI.TORIS haTA.d:
1) For a full translation of the .raft of the Comaercial
Registration Law, see i-.nnex XAXVi of this bulletin.
2) The Application 'aules were promulgated on gay 19th.
1938.
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Nevertheless, an attentive reading orthe whole text of-the areft
indicates that its elahaes still contain a good number of
inconsistencies anu faults of which the .ain ones will be eieoussee
below.
I.- On the Compulsory Aegistration System.
A free registration system was originally adopted
in Chinese legislation. This may be observed from the fact that tr-e
'Joapercial hegistretien Law does not contein any provision which
can serve as a basis for the setting up of coapulsery regietretien.
The system of coepuision which is nw being imposed, took effect
from Cr. ardieeace issued by the eirustry of aconoeic .fairs in the
year 1943. ahether this chengieg of the law by a simple ordinance is
legal, is greatly in houbt. laow the new Lraft clearly introduces
the compulsory systeh anc thus aenee the aoove legislative deficie:;cy.
oince tac maln purse ef coeeeeciel reeistratian
however, is to protect the rib'nt of treee names, it shoulu be the
elfeir of teemerchects themselves to deciee whether they.neea juc
protection er not. once the reeistretion is meoe eoligatory wite
all its prescribed tiae fleets ane penalties, insteee of contrioute-7
to toe welfare of toe business men, it may become a nuisance to thea.
Then expleinlng the new Lreft, the governeeet
authorities claim that the compulsory system will enable the Govern-
ment to exert a reasonable dontrol over ell coaaereial businessa
and to lead them along lines of normal development. Here we must
ask whether reeistratien is ie-spensable to Government control Eked
the nermal development of comaerce, or whether without registratien
the above purposes can be served equally well. its we know, the
means of uovernaent control at the present moment are simply the
establishing of ceiling and arbitrary prices, and the suppression of
speculetien and hoareing. It is clear that any order cOneerning
such controls is aeant for all ciarshants. i.e. both registeredand
non-registered fires will equally be aale to obey, and registration
has therefore very little to do with the enforceaent of controlling
measures.
Some may think that unless coaaercial businesses
are obliged to register, the hovernment have no real insight into
the conditions of coee.ereial circles, and as a result will find it
difficult to formulate measures compatible with actual oircumstancee.
In other words if they promote compulsory registration, it is'for
the purpose of procuriee stetistical data ooncerning oomeerce ehich
will serve as ref.eenee eaterials fur policy aukine. This seems
to be a good idea. But it must hr, reeembered that the averege
merchants disliee empldnela h aeo adopt e supine attituoe towards
all obnoxious legal procedeie. laot even strict enforceaet
rigid coepuisien uneer penalty e_uld drag many of them into doing
anything. aet us illustrate this with re few instunces; euccoreing
to the law, business firms of any trade are under strict obligetiwn
to join theit own trade association, failing which penalties will
be inflicted. Yet if we look around we may marvel at the greet
nui.aer of business firms which simply ignore this rule. In an
analogous manner, the law imperatively demands that all workmen
should join their inaustreal guild. Yet, many workmen still
Obstinately keep away from any such association. Finally, let us
consider the effectiveness of the exonomic adnistry's ordinance of
1932, making comaerciel regiscration.obligatory. "When in. 194b thie
coepulsory system was first put into prastice in Shanghai, the city
was systehatically divided into several sectors in order to
facilitate its enforceeent an. a ciae linit was prescribed for the
completion of registration oy all coaaercial businesses. 'time eed
again business nen were exhortee to collaborate with the auth.-rities
end reeinded -of the imperativeness of the provision. Two yeers
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have elapsed, the time lleit has oeen prolonged again and aaain,
but up to the present, only about Sixty thousand comeeroial firma
in 6henehei have registered. in other plecee and especieily in
districts in the interior the einistry's ordinence has gone largely
unheeded. even the district governments themselves which ere in
charge of carrying out compulsory registration, are ereoccupiec with
other matters far more urcent and importent and find little time to
see to its enforcement. It may therefore be seen how it seems to
be a mere dream that government authorities should secure complete
and thorough ceim.eroiel statistics through the prectice of compulsory
registration.
In view of the above, instead of burdening the
merchants with all the trcubles and penelties of a compulsory
registration in a rather unsuccessful attempt to facilitate adeinistre-
tion, Government authorities will be much wiser if they themselves
engaee in some research work and compiling of statistical date. in
this connection, the following case may be advanced as a good exeme.le
to be followed by government authorities. In 194z-,, several institulions
in Shenghai grouped themselves together to sponsor a general
investigation of labour conditions. ior that purpose printe-! forme
were sent to various factories and qualified persons sent to explein
hew to fill them in. Rearly the whole work was ;one by the soce eers
who tried to give the facteries es little trouble as possible zee
thereby won their hearty colieboration. all that the factezreee
requestee to do was to state the facts. Later the sponsors sent
people to collect the forms, on which they base e their statiseics
and frem which they drew their oonclusions. it is said that t'le
results thus attaineo were very eitisfectory.
liee Problems erising from the Use of the
same or bimilar Trade aames.
A. The use of the same or similar trade
names in different districts or
municipalities.
According to the present Comercial Registration Law,
with the exception of company organisatens which have the exclusive
right of using their trade name throughout the eauntry,all individual
ownerships or partnerships can monapolise their trade name only
within their ewn distriot or municipality. The same Idea is aaintcieed
in the following clauses of the new Lraft: Jio com-ercial busieess
?hall 4ae a name identical with or similar to that of ancther coleeerciel
business already regiateree, in the seme'municipality or district,
and engaged in the same type of business' (ertiole 21,- let paragraph),
and "When a registered comteroial business or Coepany founds a
branch store or Company in another municipality or district, if in
that municipality or district there exists another store- or Zompeny
which bears the seine or a similar name and operates the seee type of
business, except where the provisions of -rticle 1) apply, the name
1) 4DITOR/a Rolle: gull text of -rt. 2o of the Lraft reads;
*If a commercial business which has already been registeree in
aocordaace with this eaw, reoreanises itself into a Company,and i;
it has been usipg its registered name continuously and without
interruption within a municieality or district for more than ten
years,countine from the eate of regestration,then the restreion
imposed by iirticle 2o of the Oomeeny Law shall not apoly; but
neither the principal rer the branch office of the Company shell
move outside the manicipelity where it was originally lecetee,unless
its name is first changed".
The Company iaw mentioned in the above provision was
promulgated on the 12th of April 194o and in .rt.26 lays down:
"Companies engaged in the seme type of businese,no matter whethr
or not they are of the same class or whether or not they are within
the same province or municipality or looality,shell not use the
same or similar names".
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ef thz; branch store or Company shall be preceded by the name of the
place where the prinsipal store or Company is located, ano words
shall bo aided, to mane clear that it is a store or Oompany'iartide
28). eevertheless to our surprise we find the following wording in
-the first paragraph of article 22 of the SdAse Lrafts "If a name
the same as or similar to t;let of another commercial business
already reeistered, is used for illegitimate competition, wheth,r
in the sae aunicioelity or cistrict or not, the persons interested
may request the eoapetent authority to prohibit its uee; 'if they
have sustained any duaaee therefrom, they may further ask for damages'.
The contradiction between this provision and the others cited above,
is evident. therefore unless the traditional legislative principle
is to be changed, this olauie of article 22 should be pancelled.
2. applications for registering the same name
or similar names for several firms.
When several commercial firmsapply for registration
of the game trade name or similar 'trade names, the following two
solutions are both. reasonable and either of them, may be ascepteds to
grunt approval to the applicant who first used the name, or to the
one who first sends in ao application. negarding this problem, the
1st paragraph of Artidle 24 lays down: "If within one year after -
the enforcement of this Law several commercial businesses founded
before its enforcemeet cake separate application to the competent
authority of the same municipality or district for the registration
of the same name or of similar names; then the one whose use .7f the
name within the municipality or district was earliest and has been
uninterrupted, shall be allowed to register it. If before the
application (the name) had never been used by any one of them, or if
it cannot-be proved who was the first to use it, then the one who
first sends in an application, shall be allowed to register it..."
Since the i,raft gives preference to the 'earliest user' and the
so-oelled 'separate applisatien' used in the above provision
presumably means that applications were submitted on different dates'
one question remains to be answered; Suppose that within one year
after the enforoement of the maw a comaersial firm founded before
its enforcement, applies for registering a trade name, and the
competent authority not being cognizant that there exists in the
same municipality or district, another firm also founded befek,; tht
enforcement of the maw and which used the same or a similar num
earlier than the first applicant, allows him to register. If later,
but also within one year after the enforcement of the law, the.
actual 'earliest user of the same or of a similar name, submits
documentary evidence proving that the really first used it and
applies for registration, will the 'competent authority cancel tha
first registration and allow this second applicant to register? A.
*leer decision regarding this ease should be inserted into the re-
vision leaving no room for future doubt and disputes.
earteele 25 of the Lraft lays down that if several
commercial businesses, founded after the enforcement of this Law,
all apply on the same day for the registration of the sameor
similar names with the oompetent authority of the same municipality
or district, they shall be ordered to reach a mutual agreement to
let one of the commercial businesses use it, and then only shall
the registratLon be allowed. it often happens that in such a
ease none of the applicants is willing to yield, thus making all
agreement impossible, it wcald be wiser to give preference as in
the other instances cited above to the one whose use of the name
was earliest.
? Onncerning the periokof the use of a trade name
by an applicant, the following provisions of the Lruft are rather
inconsistent with each other; In art.25, it is laid dosn that
if one firm has used a name continuously for TWO YgAR8 before the -
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enforeement of the Law, but subsequently to such use the same or a
similar name has alreauy been registered ay .nother commereial firm
doing the same type of business,then the firm shall, in registering
its Twine, add a distineuishing mark. On the other hand, the 2nd
paragraph bf art.24 runs: "If the aarious coaaercial businesses
Which separately apply for retiltration as mentioned in the
preceding paragraph, have all beenusing the flame or names for more
than THREE YEARS without interruption, they shall all be allowed to
register; but each shall add a distinguishing mark." Since the
two provisions deal with a similar case, it seems that the period
provided in the 2nd paragraph of art. 24 should also be reduced to
two years only.
ILL. - Restrictions on aegistration.
according to article v of the Rules governing the
aepiieation of the aomaereial Registration aaw, coameroial business
as referred to in the Law must not be against puolie Order or good
morals. In other weres, provided a caLaercial business neither
distairbs.social order nor perverts customs 6116 useges - which condi-
ti ap is rather vague, and provided it furthtr carries out all the
required-prooedure, it will readily be allowed to register, It may
therefore be said that in practice there is very little restriction
on registration. The new Draft pays no attention to restriotions on
registration either. However when we study the actual eircumitancee
nowadays, we cannot but be convinced that a certain degree of
limitation is indispensable in some particular oases. Forp.as we
are all aware, what actually induces registration is not at all legal
compulsion, but the temptation of good profits. when in a peculiar
type of business applicants for registration suddenly increase, we
may be very sure that it is either because that perticular business
has hecomeurameially lucrative or because the Government has announced
that goods are going to be allocated to business firms of that
category. Take for instance the case of rice shape in Shanghai:
their number is now over four thousand. The competent authorities
of the city frown at this excessive number of rice merchants and are
anxious to restrict the founding of new rice shops. Yet when new
applicants fulfil the too easy conditions prescribed by the law, an
what clause can the authority base a refusal?
Other examples are more scanoalouss There exist
at the present hour many undesirable fires solely engaged in
11 speculation or cheating. Among others there are unnecessary enter-
prises whioh undertake to manufaoture luxury articles, and instruments
of gambling.. When these businesses apply for registration in full
conforaity with, the Lawe no objection can be raised by the registering
office. Se may therefore oome to the conclusion that if government
authorities want to ensure a more normal development of trade, they
should do it by laying down eertain lawful restrictions on oouraerdial
registration, but not through indiscriminate and unrestrictive
compulsory registration whose shortcomings heve already been steted
above.
IV.- Some Promtioal Suggestions for Improving
the .plication of the Law.
- 1. Simplifying of registration procedure.
apart from the above ineonsistenoes and faults
contained in the new Draft of the Law, which ought to be reotified,
some small suggestion, may be put forward with a view to smoothing
the way for a successful application of the Law.
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..elowadays when govqrnment administration is slow
and -troublesome, efferts should be made to simplify as muoh as
possible all procedures for registretion. It is especially desir-
able to avoid unnecessary repetitions. For instence, when a
Compacy has been registered according to the Company law, since
it trade name has already been well established, and is entitled
to legel protection, it sheuld be exempted from further applying for
a oomeercial registration. The same exemption should be grantod
when any firm has secured protection for its right of trade nape
according to ether laws er ordinances. 4hus, when a pawnshop has
registered and obteined its licence in conformity with the proper
regulations, it should not be asked to resister again. Also, to
save the time of the merchants, once--the coameroial registration
has been completea, insteee of asking them twice for the statement
of the same facts, all taxi: e o:fices should get into eontact with
the commercial registering euthoriey an aequire copies of ite
records.
2. .eleseifece.tkp_h_Ef different types
?
of business.
In laying down what the term "ooemersial business'
refeels to, the new :a-aft gives up the old system of enumerating
different trades, but following the suit of the Company Law,confines
itself to giving a simple definition. "A commeroial business" as
mentioned in this Law shall refer to all enterprises operated fJr
the purpose :f making profits, but shall not incluae speeialised
professions of e technioal eeture (Article 1), Alen we go on to
article 21 - 1st paragraph, "no commercial business shall use e
nume.identioal with or similar to thet of another commercial
business already registered in the same municipality or district
and engaged in the saae type ofebusiness", we may press a perplexing
question; what-is to be considered as the same type of business,
and what is not? or in other words, how are we to classify and
demarcate various types of business? For instance, it seems natural
that transections in chemical raw materials are the business solely
of merchants of chemical raw materials. Yet pharmacies and dyestuff
shops often concurrently deal in such goods. -If you say that these
two kinds of shops are engaged in the sa-e type of business as
merchants of chemical raw materials, they will-argue that they do
not deal in the same goads and that they belong to quite different
guilds. do, they cannot be accused even if under the pretext of
doing another line of business, they actually engage in the sab,e
transactions as another registered steep whose trade name has been
stofen by them. Unless a clear classification ana demarcation of
the aifferent types of business is made the application of the Law
will be greatly marred, Aeverthaless, in view of the varied
conditions in different sectors of the country, a uniform elaseifica?
tion is by no means commendable. It will be better to confide tee
task to the various local competent authorities who will base -theit
decision upon local. actual circumstances end submit it to the
einistry ofAcopmic affairs for confirmation.
3. Founding of more offices for registration.
The new Draft follows t'ee. Aaw entuelly in force
in providing that the competent Luthority for commereial registreteon
shall be the district government in a district ere:: the municipal
gevernment in a municipality. In the case of a manicieslity which
does not cover e very wioe eree, where commercial fir aw are
concentrated and coeemnication facilities are numerous, it is not
too inconvenient to come and go several ti,:-es in making arangements
for registration. The case of a district is entirely different:
apart from its small city, it easily stretches to hundatds of.piles,
shops are usually scattered in all sectors and transportation
facilities are lacking; if the registretion must be made with the
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distriet government, the aerehants will have to travel for days
before they can errive at the eentre,and the aggregate sum ef all
the travelling fares in daytime, ad expenses of lodging in inns
at night will be several times higher than the segistration fees.
In order to avoid stash ineonvenience, the munioipal government
should be allowed tomntrust the work of registering to sub?
district authorities. '
4. dervioes to facilitate registratioa.
At first sight, all the details of preeedure of
commeroial registration including filling blanks of various forms,
securing the certificate, paying fees, etc., appear to be quite
simple and easy. :hit people who are not familiar with the law and
who are not acftstomed to fill in foram, say be at a loss as to
what to do first and how to do it correctly. igven in a great
CONWereill 1 city like ahanOlai, where merehants are supposed to be-
of better than average coaxercial education, they often have to pay
soecialists to carry out the registration prooedure for them. Knowiaa
this, the 3ureau of Sociel .:ffairs has is3ued measures allowing
guilds to undertake to regieter on behalf of their members. Similar
steps aay be taken by other district or munioipal governments. It
woUld be specially belpful if information and writing services cauld
be set up inside every reeistering oFfice to give all necessary
guidance and to fill in forme on'behalf of applicants against the
charging of a small fee.
t. Cancellation of the tiae limit for eoupleting
the eommereial registration.
Let us finally consider the time limit set down by
the Limn for completing sommeroial registration. Article 61
provides that all comueroial businesses which had not been registered
before the enforcement of the Law, shell within one year after its
enforeement apply for registration of establishment aecording to the
provisions of the ani. This presoribed time limit is evidently too
short. .For i has already been mentioned although eonpulsory
registration has been inforce in Shanghai for two years, an optimistic,
eetimate plaoes the percentage of commeroial firms registered in the
city at only about 66%. dhat about the great number of districts
covering more extensive areas? ieurtherwore, onoe a time liait hae
been laid down. in the Lew, it becomes an imperative provision. If
commercial firma are still not registered at its expiration, they will
become illegal. The va wit local competent authorities will be no
lees responsible, since *m not made enough exertien to 'enforce the
Law, It-would thereto e be better not to set down any time limit
in the law itself for the completion of all commereial registrations,
but to leave this to the discretion of the various local administrations.
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17,
UNIVERSITE L'AURORE
-.Shanghai-
BUREAU DJ q lOOULEalaTION
(Economic Ohinotse)
280 Chungking Nan Lu (Lubail)
Tel 87?1
*Chinese Reactions to the Reopening of
Private Trade with Japan.
STUDY NO. :AIM
Number of pagestal
Articles and reports digested and combined -
in this Study:
%
'Reopening of Japanese trade vis-a-vis China's economy",
Ta aung Pao Editorial, June 21, 1947.
?Statietioa on ino-Jap barter since 1946', Ta dung Rao,
July 2, 1947.
'On the reopening of private trade with japan', by ,thou
Ch'in-wen, new China magazine, august 1;1947.
'Reopening of Japanese trade ana China", by Hsieh Shuang-,
chiu, Sin den Pao, August 8,1947.
"Cpiniane on tie project relative to the reopening of
private trade with Japan", by Chu Szu-huang, Bankers'.
Weekly, August 22, 1947.
"The Taiwan-Japan trade previewed", by Chang Jen-fai,
Ta ..ung Pao, August 27, 1947.
"Our view of reopening Japan's private trade", by iffang
Yung-jen, Century Review, August 30, 1947.
0A thorough examination of the Sino-Japanese trace problem.',
by Liu Lih-ohai, The Economics Weekly, September 25,1947.
'Taiwan-Japan trade project, by Chan iiha-chou, Chin-Yung
Jib Pao, September 28, 1947.
(Continued in the note on page )
CHINESE ,REACTIONS TO THE REOPENIN:i OP PRIVATE -TRADE
WITH JAPa#
The announcemeat of Gark.ral Anarthur.on the
reopening of private trade with Japan has been received with strong
apposition in Chinese inanstrial alai business circles. Prom their
standpoint the aeneralla unilateral declaration not only lacks
maturity but is inoppoune, since many problems onLoarning_the
Japanese war reparations and the".convocation for the Peace Treaty are
still being vethemeiAly discussed among the Allies.
The reaction of the Chinese Government has been
less definite. On the one hand the Government has vetoed its -
agreement with MoAAharie declaration and on the other it appears
to be leaving the entire matter to the choice of the people.
Meanwhile -official circles are inclined to pensider the reopening
of private trade as an opportunity for price stabilization in China
by providing the country with a large amount of eammodities.
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As far as the Chinese people at large are concerned
they objeet to the plans for reasons mare paliticalethan economic,
The argument is always the same, however it t.ssy be dressed up: 4
is feared thet China will soon "ee;)ome the easy prey of Japanese
products even on her own markets. This view is widely held
throughout the whole nation and especially by such powerful
organisateons as the National industrial eration, the Native
Manufacturers Union, the geohanical Industrial Union and the
Shanghai Chamber of Gommeroe; so imech so that the equivocal policy
of the-Government has been strongly criticised even by high ranking
members of the Control Alan, of the People's Political Council and
of the National Economic Council.
Meanwhile barter "transections between China and
Japan 1) channelled throueeSCAP have been current since 1946 and
projects are already Lade out on theetame lines for a year to come.
I,e Progress of Government Action.
On July 31 this year, before tvle Central Political
Meeting, The Auomintang Party appro*ed three principles relative to
the reopening of privete trade. with Japan, namely:
i)-A ffrade Mission to jepan, Pending approbation from the
Mxecutive luen, should leeve the country before the 15th.
of August; .
ii) Types of commodity for trede with Japan sheuld be strictly
specified;
iii) Articles pertaining to Jepancsa war reperations sboula not
be regarded as goods for trading purposes.
Similar principles were also approved before the
Netionel Affairs Meeting which took place on August 1st.:
i) (the same es ebove)
ii) The varieties ::.nc; volumes of imports and exports in the
future trade with jepen sheuld be carefully chosen and
examined so thet they would have a favourable influence
on Chinese economy 2);
iii) Artiales and goods required for Chinn should be provided
as far es possible through war reparations.
Fqllowing the decision taken by the National
Affeirs Meeting, the Ministry of Economic Affairs was ordered to
create e "Committee- for Directing Private Trade with japan" which'
was inaugurated on August 13th. in Nanking. Members of t-,is
? Committee, presided OIECT by the linister of Economic Affairs,
are Gcvernment representetives from tbe Ainistries 'of Foreign
Affeire, of Communications end of iinence, as well as of the
National e:esourcee Commission, the National meonomio Council end
the Central Trust Corporation. Pour --consultants are also designated
to the Comadttes two of whom are Government members representing
the Mxport Promotion Board and the Import Control Board respecti?
melY while the other two represent the National Federation of
ChaMbeis of-Commerce and the eational industrial Pederation.
1) See Agependix I.
a; See _eppendi aunordeed for trade
between China and Japan.
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. the number of delegates in the Trade aission has
also been fixed: five for the Central Trust aorperation, two for thr
overseas trading associations and thirteen fer other private trading
organisations.- They were in princple to leave for Japan in turn
for a period of twenty one days each.
after these preparations, the Government asked for
the submission of a list of Jelegates during the following tan days,
beginning august 22nd. 3ut not a single one has yet been proposed
by coELereial antl inoustreal circles. In order to break this
negative attitude, the Ainistry of Lconosic affairs wade a strong .
statement etressing that the reopening of private trade with japan
would be strintly united to articles Of first necessity to China and
that in any case imports of Japanese cottonarern and fabrics would
be banned. This does not seem, however to hove had any inflUance on
the ceposition.
II.-. dieespread Uneasiness Among the Businessmen
and People of China.
- The reasons brneeht forward by the Chinese people
ace by business circles against the reopening of private tri4ewiti
Japan ere multifaripuss but two main ones are the basis of their
unfavourable attitude toward the overtures of th. Liovernment. fleet,
the feexe ef directly -r indirectly helping- Japan to reeever her
forcer aereceive power; secondly the fact that owing to the
orientatiee of the Chinese era: Japanese industries their products
ceenot but ooi6p,Ae against eech other net only in the leselfio
islunos, the south Seas and the aalay States but also on the Chinese
werket itself.
While Chine would gladly receive a large inflow A-
Jcpanese goais which might be useful to speed up her own powtwer
develepuent, she is anxious to see thel if ?ber aroduats are shipped
to Jepen they are strictly liacted to those needed for the
selisfection of peeele time requirements. Spcoial cure sheuld be
taken, for instance that Obieeee coal and iron are not exported in
such quentities as to help Japan again to develop her'metelluraicel
enterprises.
Progress intae
exports alrendy existing are bei
provisiens of the Tr:-de Proj
euthorities. Prom this point of
cerefully listed the articles wh
eletely suspended during the war
meraets:-
itzgy.ls
productive capacity of Jeprn esd the
ng followed up with ,:nxiety, s well 11
cot recently publicized by the Jepenese
view, a Chinese journalist hes
ose production was eertially or :leap
-
but is now being resumed, for foraign
Jan,a1R41
201,.1947 1946 gonthly
A.ts':r-Ro
sewing machines
2,470
2,815
1,379
gatches
14,2b1
18,467
11,629
Clocks
78,904
81,4-a7
45,594
Cemeres(including riarey)
1.269
3,827
12,100
Binoculurs
1,602.
1,448
3,144
aicroscopes
242
285
237
0ement(Unit:1000 eaet.tone)
82
74
77
Jandow penes (Units cese, at
10u sq.ft.per cese)
59,285
47,666
62,370
Plate glees (case)
1,570
1,733
t 985
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? Areothereelas,--out that in thc....p.rat----..--
elluded to abave, Japes] expects to ship 1"..,0ji-LeJ-Ar'elactric liaht
bulbs to %Mine in 1947. The Japanese cetiwte the consumptien in
the bouth China provinces :t 10a00,e00 bulbs; 6,0i10,0 in Iiwen,
be000,000 in the Northeestarn Provinces and se,0e0,0C0 in Aurae.
Similarly large numbers of alarm clocks end watches are provided for
in the Japenese project and, according to vnrious sources, h,ve
already arrived in Hongkong to be smuggled into the Chinese
territorice. Thc same s repe?ted for Japanese see products, the
same (gain for porcelains, chinewere .ad safety matohes..
Rather disheartening
tea production in Chin and in jepan i
of her prewir stanoi.rd for the farmer
of tho prewar quantity for the latter;
that in Septceber las some 1,i30.3 tan
were shipped from Jepem to 1:orth
of Chinese silk experted to the United
with the 5),000 quintals sent '7j, Jsre,d1
the suo.:, period.
comparisons are mtde between
n 194b; 90,000 tan or
a.gainst 4,41,160 lbs or 35,!
and the fact is emphl:sised
of Chinese-styled green teik
e. Again the 8,930 quintals
States in 1946 are contrnsted
to the (fame country durinF:
To show hew exporta from China to japan cen $%lp
the latter to recover her farmer ee.rketo it Ls nenticned thA, salt
shipped from China has allowed Je.n tceinorease her production of
caustic soda and to foster her glees industry which !fid manufectered
Bowe V 59,400,0e0 worth of glassw_re for expert by-the end of LAy
1947 some V 3,4Ou,OCO worth of which has been aold in Hongkong and
the bouth Pacific Island-a.
iinally-the Chinese. authors underline several
disadvantages connected with the problems of exchan6e, wages and
scarcity of raw material,in this country'
i) Since future transactions will be ealculated on a basis of
U.S. dollars of which China is still in great shortage, it
-seems ridiculous to spend them on inferior Japanese products
instead of importing larger quantities goods from the
United States which are far better suited to Chinese
industrial needs. atoreover it is very doubtful if China
will be able to deyeL,e her trade with Japan-under the
present exchange control regulations.
ii) As long as the real cost of production is disregarded by
the SCA:-? authorities, China will be handicapped owing to
the cost of-labour which in Shanghai is between seven and
eight times higher than in Vagaeaki.
iii) It is pointed out that China cannot make use of her finished
products in exchange for Japanese goods but can only
furnish Japan with raw materials of which she is herself
suffering a great shortage after so many yeers of war and
natural calamities. weuld it not be more sensible for
her first to supply her own people and industries:
III.- The Case for Chinese Cotton :Fabrics.
The meat debatec question is the.influence of the
reopening of (elivate trase with Japan on the.Chineae cotton textile
industry wh5.eh Is considered as the only one able to comeete with
the Japanese on foreign merkefe.
whole affair.
Let us review briefly the pros 'and cons of the
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In 1946 China sold some .10million yards of cotton
cloth to Sinaapors via Hongkong, Canton and Shanghai. In. 1947,
according to official scurces,"3,013,6005ards of cotton fabrics
were shipped in January and 8,00r!,300 yards in ?enquiry to Singapore
from the Chinese ports alone. Another 1,705,500 yards and 4,685,000
yarus were exported in February and Zareh respectively from Hongkong
making a total of 17,000,000 yards sold to Singapore during the first
quarter of this year. Since April, export of cotton goods to
aAlaya froa Chine has been low as a consequence of Japanese
infiltration an the south 'aeas market. in the early part of the
year, the China aextile Levelopment inc. received Uovernment instruc-
tion to sell 20% of its total output to South eacific and kar
Lastern countries in order to acquire much needed foreign exchanie
for China. But this was net done without hindrance as Japanese
goods cJulo be bought at far lower prices than the Chinese products,
as shown in the following quotations;
abgamutft iLlimmus
Cotton cloth(fine per yd; U840.28-40.30 USe0.11-40.26_
Cotton yarn(2018) per bale. US0330 US000
The first batch of Japanese cloth arrived at
Singapore in Jay 1947 with a total of 12,000,000 yards. Immediately
it reacted upon the prices for Chinese cloth, which dropped sharply
from 00 to ..;50 (Strait Settlement Currency). Following the arrival
of the second batch of Japanese cloth (1,0,0,000 yards) in August,
the Chinese cloth market dropped to the same level as the Japanese.
Similar reactions took place in Siam where reportedly, Japan had
shipped 12,000,000 yards in July end 13,000,000 yards in august, and
also in the Philippine islands which received 2,500.000 yards in
August from the same source.
On the hoae market, Japanese cloth penetrated into ,
the coastal provinces through smuggling. according to Ta Hang Pao 1),
it was being sold in Xiangeu, Chekiang and Fukien at unusually low
prices. It has been predicted that Japan's exports during 1947 will
fairly reach U8e99,280,000 400 of which will be aotton.yarns, cotton
goods and fibre products.
The more optimistic consider that the infiltration
of Japanese cotton yarn and cotton goods into China could be
stopped by a protective tariff, on the condition that adequate measures
are taken against eontraband. In this respect, the people are
urged to collaboration an patriotism. As to the large outflow of
Japanese cotton yarn and cotton goods to Malaya where thare is a
huge demand for these materials, Japan is not yet in a condition to
supply all the demands there and therefore, China may still maintain
her share in these fields if her textile industry is furnished with
suffidient raw aaterials, electric aower and a reasonable foreign
exchange system,
1) Chang Shou-shiht "The reopening- of Japanese private trade and
textile :!abric markats in South Pacific Islands", Ta aung Rao
(ahanahai), 3,1-PW,er 21th.1947.
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iaamally, the Chinese cotton textile industry is
endeavouring to save the situat,.on by every possible means such-se
? the plantation of native ootton, the increase of spindiage and the
salving of technical and labor problems. Chdna baa been relying
for the raw aaterials that ellp lacks, on the import of foreign cotton.
According to a recent report,) there is a shortage of some 2
million tan (133,333 lbs. per tan) of native cotton thls year for
the Chinese aille. deantime, tha dinistry of agriculture and
Forestry is encouraging an increase of cotton acreage and output,
in tbe hope of regaining thc prewar standard of 60,000,000 now (1
acreab mow) and 25,0a0,00u tan within 3 years. As fur as epindlage
is conceined, it is hoped that within five years China will have
7,0au,000 spindles of which she possesses only 4,600,000 at present,
It is hoped that the China xtile Development Inc. 4nd the oChitg
4ei" (Jompany will reach a regular output of 100,000 spindles within
three years and the rest are to be provided through import.
The reopenina of private trade with Japan will alen
affect the China silk project which was under discussion with the
azericans during the war. It will no doubt hold up the barter of
China silk for aLerican cotton as previously plaaned, since Japan
will be the jamn supplier of raw silk to the USA. The General's
attitude toaard the maintenance of the Japanese silk ineustry is
clearly aarked both by the failure of China's request for the
Japanese (.achinery and aocessoraes to rebuild her silk industry ant_
by the proposed Japanese production of 35,00a,000 lbs. by 1951.
As to the woollen industry, the collaboration of
Australia with China as previously planned has been ?hanged over to
Japan on the recoaaendation of USA.
IV.- Gloonly Prospects for Taiwan-Japan Trade.
In a recent project orawn up by Taiwanese business
circles it was proposed that food dealers shauld export brown sugar
and potato starch against Japanese fertilizers and ?undies against
condiaente ano candy machines. - The fisheries would also 0011 dea
products against fishing equipaent and vegetable and fruit growers
their own products against farm tools, seeds and fertilizers.
Recent experience however is nct very encouraging.
or instance a recent arrangeaent for selling 12,000 tons of
bananas to Japan early in aabruar$ was called off as SCP_ would net
approve any payaent exceediag USS 0.06 per lb. whicharas lower than
the aarkA price in Taiwan itself;_ similarly, a sugar deal was
suspended because against the proposal of US.? 0.40 per lb. made by
tho Taiwan bug ea Uorperation, SCAP was only willing te pay US. 0.15.
doreover, many Chinese consider that Taiwan ehoup
be isolatea frau deadness influence. Axtremasts have even suggested
foroidaine Japanese people to enter the isiana again. Some suggest
a compromisain order tp do business with Japan in Taiwan ane they .
propose that ail Taiwan iaports from and exports to japan should
be carried through Shanghai. Of course this would increase the eoat
of transportation, but they say that thal:ain burden would fall on
the Japanese.
ahstevsa aay aa asaHed in this respect many insist
on the fact that owina to the slow rcoaceay Li aer productive
neaera_a Ta'a9r. aot afford large scale exports to Japan. The
island is self-sufficient for ride but should it have any surplus it
1) Shen.Pao, December 7, 1947.
?
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would certainly be used fox military consumption. Although a
production of Zuo,O,JG tole of sugar le expected by 1948 this will
not be enough for the consumption of China Prooer. The surplus
of coal amounting to tons 13 now employed for supplying
Shanghai and export to Japan is AAT)idden. The production of -
cement does not yet cover the needs of Taiwan and Chinese
authorities consider as disadvantageous in the long run any export
to Japan of caustic soda,.hydrochlorie acid and :+leaching powder-
of which the island oroduces a big surplus.
Iuports from Japan to Taiwan are equally problematic.
To give e few instances, it is estimated tht Japan being in need
of fertilisers far herself is not in a position to supoly Taiwan's
requiremiints. The cigarette !.e7'et of the island has already been
taken up by America. The reeuire6 machinery which now nay be -
obtained through war reoeretions will lateron most probably be
replaceo by ..mericar Lakes and the ridlways of China Proper have
a definite priority for ail sleepers available from japan. This
being so ii:rports fro,. Japan will have to be limited to a few items
such as preservea n..sa.iteo fish, cottJn ane woollen materials,
cannea oode and gunny bags.
The dis.lussions are still going on and the Chinese
businessmen still delay their de?arture for Japan. ileanwhile it
is reportee that Chinese produots intended for Japanese consumption
are gradually being replaced by foreign oneb and the trading center
has moved over to Hongkong, instead of Sha.,ahai. Large quantities
of Japanese luxuries bannee by the Chinese Customs have been rushed
to Honr,kong from where they are being smuggled into the Chinese
mainland and over half of the present Chinese eXporte to her former
eneuy Lre also sintoggled into Hongkona before reaching their final
destination...
(Sne next pages for the Appendix / & 1/)
NOTE; Articles and reports...." Continued from page 1.
"The reopening of the Japanese trace and its influence
on Chinals economy", by Id Yung-t'ing, The Banking
information, October 1947 issue.
"Japanese industries for exportation", China Industrial
.aevelopment, Octooer 1947 Issue.
"A 'atudy,on JApan'a postwar traae", by Chin Hsuen-eheng,
National xeconstruction, Ootober 1,1947.
"Postwar Sino-Jap trade reviewed", by Shou Chlin-wen,
' New China klagazine, October lti,1947.
"The reopening of Japanese private trade and textile
fabric markets in the South Pacific Islands", by Chang
Shou-shih, TB hnng Pao, October 24, 1947.
'The three main economio problems in the pease treaty with
Japan,', by leng Hsien-ohang, The 2inancia1 Review,
Noveirhaw 1947
"Sino-Jap for 19480, Shang Pao, Desember 14, 1947.
"Aitere prospects of China tea relative to the t-Year Plan
of the Japanese tea industryi, by Tze Tfing-hsi, Shang Pao,
December it-, 1947.
."Articles temporarily permitted for Sino-Japanese trade",
Ta Alizg Pao, December 18, 1947.
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10PBPDIX I
Sino-Japanese Barter
C
Trade was resumed between China and Japan during the
last ronthe of 194:: in the form of barter, under the direction of the
ilo:vcutive Yuan. In april 1946 it was entrusted to the Central Trust
? L:otporatioa which through the China AlassiOn to Japan, acts as an
isitermeuiesry between the i?hinese merchants and SOAP.
ports thus sent to Japan aMounted to 3.11% Of the
JIIinese totel in 1946 and to 1.86% for the first six-moLths of 1947.
0..:1rLepon6;ng figlsros for imports were 0.40% and 0.22% for the same
peri s. 1 /
Sino-JapLnese Barter for the Year 1946 and for
J.?.n-Zune 1947 4:.
AXports to Japan
(Values th CNC401.000)
Cereals 4 cereal producta
Fruite,freeh,dried & preserved
Vei;etables
?Fuel
Textile fibres
Ores,metals & metallic products
Chemacale & chemical products
animals and animal products (not includ-
ing hidee,leather & skins(furs),
fishery a sea products-)
"edicinal suostancea & spices(not in-
clueing chemicals)
Oils, tallow sic wax
Sugar
Tobacco.
Other vegetable products
Timber, wood sic manufactures thereof
TOTa_L
NOTES: -
MrsI_LXports Vet AxsortA
During 19-0 Jan -June 1947
948,233 433,836
45 788
1,236 320
,>15,507 ,,117,740
, 50,060 ---
2,072,0J0
9,744,569 26,700,233
..m.???
?????
.0114ft
' 29,260
42,000
63,600
223,360
12,000
304,819
1,399
12,831,416 27,630,345
1) ''efore the wer the trade with Japan
15;:: of Chinale imports and exports.
2) From the Chinese Customs reports.
?
amounted to approximately
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B.13.8.Xill 9
Imports from Japan
(CaCp1,000)
Items . Net Importg_
1946 Jan.-June 1947
Cotton piecegooda, grey 4,934 29
Cotton piebegoods, white or dyed
23,639 3,348
Cotton piecegoo,:s, printed 599 ---
Cotton piecegoods, miscellaneous 5,847 355
Cotton, raw; cotton yarn a cotton thread 16,184 1,895
Cotton manufaotures, sundry 1,872 345
elax,ramie,hemp,jute a manufaclures thereof 45,655 ---
dool a manufactures thereof 7,741 -4,896
bilk(iniluding artificial silk)& manufactures .
thereof 31,044 5,618,646
'ietals a ores49,445 155,617
.achinery & tools
60,243 483,999
Vehicles a vessels 345,917 5,590,034
,
Miscellaneous Letal manufactures 37,388 209,444
Fishery Fe. sea products 135,557 104,118
?..nimal products:canned goods a groceries 46,019 2,532
Cereals & flour 95 19,286
.Fruits, seeds a vegetables---
21,081
liedicinal substances & spioea---
Sugar 21,01:
376
dines,beer,spirits,table waters,ete. 8 ---
Tobacco 290 ---
Chemicals a pharmaceuticals
310,141 214,371
byes,pigments,paints a varnishes .
24,485 4,027,600
comdles,soap,oils,fats,wax,gums a resins 161,755 8,158
Books,maps,paper a wood pulp 120,620 15,550
Hides,leather a other anii.al substorces---
l 27,328
Imber
3,842,402 20,883,348
dood, bamboos, ratans, coir, strap &
manufactures thereof 10,667 ---
Coal, fuel, pitch a tar 37,738 680,274
chinaware,enamelledware, glass, etc. 28,293 51,427
Stone, earth.& manufactures thereof 7,756 24,904
Sundry 637,419 132,768
TOTAL 6,065,119 38,232,320
From the above tables it can be seen that although
Sino-Japanese boxter showed a favorable balance of CN46,766,300,000
during the first year, this was offset by a deficit of C17410,301,975,
000 in Jan.-June 1947. On the whole, China has been a constant buyer
and the net deficit at the end of ,June 1947 amountel to C143,535,675,
000. The main reason for the deficit is attributed to a diminution
of the Chinese salt surplus disponible for export.
In this connection, it is interesting to 1.st the
chief items transacted between China E..1.16 Japan.
Item Ex
s ported Jan.-May 1947
1946
Salt
i3ran .
Iron
Phosphate rookl)
ooybean
Tung oil
--- -
-400,000 tons
17,000
2,000
20,450
- ---
8
114;631 tons
900
---
---
500,000
25,000
800
. 1)20,000 tons of this were used for direct exchange against
2,500 tons of superphosphate
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ItenAimpoTted
Artificial silk (3,0,..0,000 lbs. In 1946 and
?
2,00Q,CAX, for Jan.-Lay 1947)4 lolomutives, freight ears, sewing
machines, bicysles, woollen Lund:5, sleepers (879,155 pieces),
timer for mining (u,19(),518 pieces), TAT. (8,233 cases).
Actually the Central Trust Corporation has been
supplying the gational Rescurces Comhission with Japanese
mechanical suoplies. US4510,3X worth of these articles have
already been delivere and the value of those not yet delivered
amounts approximately to Ti4;?560,(300. ?
Speaking in general, Sino-Japanese trade. since
the victory ha ollose prerm:r lines, the exchanging Chinese raw
w.terials japende 11:,ht products. One slight
differtuce is tba.t?Uhi:na is no lonpar in a position to supply
Japan wIth raw euttoa am; the latter'has not resumed her large
scale exports of not .u- gwo;a to C'7,inc. Ekperts in the matter
considei t?._t this general trend +All be furthcr developea when
the reopening of private traue taAes place.
it is reporte. in the l_cal bhang Pao, lec.14,
1947 that the central trust CoiporatiOn is making plans for Sino-
Japanese barter in 1948. According to the Corporation the, program
for 1948 will be more or leas similar to that of 1947 and depend
mainly on the export of salt of which the Salt Adndnistration is
prepmring to appropriate a large;: quantity during the next year
for this purpose. It is said moreover that China will find it
impossible to import locomotives ancl rails if she stops sending ha'
iron are. In this respect it may be noted that iron ore from
Hainan island is being sold by the national Resources Commission
to ,(ireat 3ritain at U807 per ton for re-export to Japan,
transportation being reserved to Chinese merthantmen only.
APPENDIX II
Articles Temporarily Authorized
For Trade between China and Japan 1).
?
Trade with Japan is temporarily confined to the
following items only:
(1) EX-ports..., iron ores (to be exported this year in exchange for
Japanese rails only); lacquer (tung oil and crude
lacquer); bristles; jute, hemp and ramie; sugmr;
salt, cereals soya and manufactures thereof (in-
cluding soy, bean oil, bean cakes, aoya powder,
peanuts, green beans, rape seed, raw silk, etc.);
(W- n,port?:17 18, 1947.
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animal h4r, skins and hides Lnd bones (wool,go:t
hair, crmel huir, skins, bones L:nj horns); eggs;
tobacco; camphor medicinal plants an. sundrias
(rdsin, bran, wild silk, fruits, cvtton-saed oil,
cotton-seed cl.dze, .tc.)
(2) Irrports: Transpertation equippent and spare partsbartificii1
silk; chemicals (nitric, acid, acetic
sulphate of aLmonia); fertilizers (suvrphosphtte,
0.11cium sulphide; lime; nitreges; metals (brass
and copper, copper ingots en. slabs, wires ,:nd hcivy
steel m;:.nufctureb)g timber (for pit propsi.nd for
mItchs, round lJgs 4rmi ordiu:ry 1001); fIrm tools,
.rid scedlinbs (silkworm eggs, mulberry ser.:.dlinls
and sceds), m%chineries .nd .13eassorics (m,:chiees,
testing 4paratu3, ammeters, voltmeters, dynhmomt-is,
high-tempen,ture thermometers, Lnd sundries (wood
pulp, rtiiicil indi6o, tr,wh?ld oil, newsprint,
etc...)
?
( End )
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B.13.A.XXXVI.
UNIVERS x L'
- Shanghai..
BUKAAU L14 LOCUAILIIATLUN
(iiconomle Chinoiee)
280 Chungking Nan Lu (Lubail)
Telt8510.1
Draft of the Oft.mercial Registration Law
Drawn up by the Ainistry of Anance
Published in the Lih Hein Li':onthly Review
Cot. 15th. 1947.
Armlet No. MILKVI.
Study concerned
Ribber of pages= :3
Remarks Traneletld
by our Legal
Department.
Wan %).1" ZELL CaliARCIAA, REGIai.G.T.Lati LA 41)
Chapter l.a ueneral Provisions.
Article 1.
APoommercial busineesuas mentioned in this Law elan
refer to all enterltrises which are operated for the purpose of
making profit, but shall net include spatial/sod professions of a
technical nature.
Article 2.
The coaDetent authority mentloned in this Law shall
be the Znietry of Soodomic Affairs in the (Antral tiovernment; that
for a province shall be the Public ierke Department' that fc.r e
municipality under the direct jUriedictlon of the (IiMeoutive) Yuan
shall be the Bureau or b0P404 offaiTai that for an ordinary A.
municipality. the muniaipal government, and that to a Haien 2), the
Haien government.
Article 3.
The responsible persona of a tiommereial business ac
mentioned in this Law shall bet-in inAtTidual ownership, the owner
of the businesei in a partnership, the partners or those partnere
who conduct busidesst and in commercial businesses organisad in any
other way, as provided by their respeotive laws.
?
So.fer as the performanee of their dutioe
eoncerned, managers or liquidators shall also count as responsible
persons of cDu.:ercial businesses.
Artiele 4,
Unless otherwise provided by oth?,r laws, cosui,ercicl
registration shall be governed by the provisions of this law.
??? .0 IND $10
EDITOR'S INTESt
1) This is only a drafted revision whist has not :1;.t
been promulgated. Therefore the Commersial hegistration Law -.
June 28th, 1937 is etill in fbrce at present.
?
2) Hsient diAtriot.
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Artiole 5.
\ small scale commercial busindsses may be exempt,d
from following th provisione f tais Law.
Thd,sentral compvc,nz authority, after tkiag
consideration the ,coll.)mic co ditioas within tha art:s of VI,
various provinces uric municipalitics under t:.7o direct jurisdiction
of th (EXecutive) Yuan, shr.11 sopz;ri.tly detirmine th, resp_ctiv,
scope of their small scale commercial businesses as mentioned above,
and submit them to the Executive Yuan for confirmation and
publication.
Article 6.
If accordiag to any law or ordinance, the operation
of a business by a commercial firm is subject to previous approval
by the competent uthcrity '? the type business concerned, a
certificate of this approv..1 sni,11 first be necured and then
application shall be made for registration in conformity with this
Lew.
,Article 7.
If a commercial business has failed to reil,ist.wr
any particulars whose registration is required by this Law, Cr has
failed to make the necessary alterations or cancellations when any
change or closing down has occurred, the business cannot mete 113:. of
these facts against a third party.
Article 8.
The government authority with which a commercial
business has been registered and the Tzu 1) and number of its
regietration certificate, must be clearly incicated on all the
documents it sends out.
Chapter II.- Particulars to be Registered,their
Alteration and Canoellation.
Article 9.
A comers/al business shall, within fifteen days
after its establishment, report the following particulars to the
competent authority of the municipality or Haien where its principal
store is located, and apply for the registration of the establish.ent
of its principal store:
1
1 Name of the commercial business;
2 Business undertakenf
3 Location of the principal store;
4 Whether the business is under individual ownership or
partnership;
5) Total amount of capital;
6) The full name and domicile of the owner of ti-e commercial
business or the ft111 names and domiciles of its partners;
7) in the case of a partnership, the kinds and amounts of t'e
X contributions of the various partners; .
8) In case of the complet or partial legal disability of the
owner or any of the partners,the reasons for this disability,
the limits of their business rights and the full namee and
domioiles of their legal representatives'
1) aiTaTi..4 iT Tzu; chara-ter. The sin of registration
eonsilltaof a character and a number, as we might use A.1.2.3...
3.1.2.3...etc.
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B.13.A.X0XVI, 3
0) The full names of any partners who have been appointed to
oonduct the businees of a partnership;
10) Where managers have be'el appointed, their full names and
domiciles and the limit? of their. power of management;
11) 4here the business has commercial agents, their full names,
addresses, and the Units of their power of commeroial
representation;
12) The seal of the business, if a special seal is used.
Where a tommercial bue]iness under partnership has
already made the above registration, if any person aho has contributed
to the capital (of the business) or has proAised to do so by contract,
has not been registered as a partner, he shall be considered as a
(torment partner.
articie 10.
Jhon a eoemeeciel business establishes & brenah
store, it shell, within fifteen dears after thd latter's esteblishment,
report the following particulers to the competent euthority of the
municipality or Hsi al where the breech store is located end P2lY for
the registration of the estebliehecat of its bre:nch sterei
1) The pertioulare provided in Article 9; but if the breech
store is founded within tha munieipelity or Haien where t'ee
princiesl store is loonted, these pertioulars can be omitted;
Norio of the branch store;
The business undertaken by the branch store where this
differs from tle.t undertaken by the prinsipel store;
4) Locetion of the branch store;
6) The oepitel amount of the br,nch store if its cepitel is
sepereted from that of the principel store.
6) Where the branch store hes ppointed mnnegers, their full
nomcs, domiciles and Vie limits of their power of meneg-e-nt;
7) If-the branch store hes commereinl eg(mts, their full nems,
addresses and the limits of their power of commerciel
reprosenteetion;
8) The Ben' of the branch store if it hes a special seal for
use in its business;
9) The name of the government authority with which the principal
store has been registered And the Thu and nudmpr of its
registration certificate--- if the branch store is founded
within the municipality or Haien where the principal store is
located, these particulars may be omitted.
Artie:0.e 11.
Where with the approval of his legal representative,
a person under partial legal disability is Independently to- operete
a commercial business, or to become a partner or shareholder of
unlimited liability, the legal representative shall apply for
registration thereof with the competent authority if the municipality
or Heien where the oommercial business is located.
If upon discovering that the person under partial
legal disability ie not qualified for the above acts, the legal
representative withdraws his approval or imposes more restrictions,
he shall report the reasons therefor and apply to the competent
authority for registration.
For these two registrations application shall be -
made simultaneously for the establishment of or alteration ()oncoming
the principal or branch store.
article 12.
The restrictiees imposed by a eommereial business
on the power of transacting businesa, power of management end power
of coamereiel representation-as provided in items 0, 10 and 11 of
Paragraph 1 of Article 0 and Items 6 and 7 of Paragraph 1 of Article
10, shall not be used against e bona fide third party.
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2.13.A.XXXVI.
Article 13.
When after .their registration, any of the w:rious
perticuleri to be registered es provided in Articles 9 to 11, have
been ohInged or cancelled, applicetion for an alteration in the
registration shall he made within fifteen days after such change or
cancellation, to the original registering authority.
Article 14.
If the ownership or partnership in a commercial
business which has been registered, passes by inheritance to another
the.heir in the case of an indivijual ownership, or the other
partner* Jointly with the heir in the case uf a partnership, shall,
within fifteen days -after the heir-has received the inheritance,
apply to the original registering authority to alter the registration.
Article 15.
When a-commercial business which has been registured,
is-transferred both the transferrer/e and the transferee/e, whether
the owners or all the partners of both parties, shall, within
fifteen days after the transfer, apply to the original registeri:,.,
authority to .alter the registration.
Article 14.
Where the prinoipal or branch store of a sommercial
business, which has already been registered, moves outside the
municipality or Haien where it was originally located, it shall,with-
in fifteen days after the removal, request the original registering
authority to cancel its registration, and also apply to the competent
authority of the municipality or Haien into Which it has moved, to
register its establishment. .
Article 17.
. When a registered coommercial business ceases
Operating or is closed down, it shall, within fifteen days after
the cessation or dissolution of it business, request the original
registering authorities for the principal and branch stores to
cancel their respective regletration. When a registered branch
store of a commercial busineie teases operating, it shall, within
fifteen days after the cessation business, request the original
registering authority to cancel-its registration se a branch store.
Article 18.
When the principal or branch store of a commercial
business has not yet begun to operate six months after the registra-
tion of its establishment, or if after it has opened for business,
$t 'napes operation for more than one year, the.original registering
authority amy canmel the registration either at the request of the
intercepted parties or by the us a ef.its own powers.
Where the above cancellation of registration is
asked for by the interested parties. the original registering
authority shall notify the responeible persop, of the commercial
business in question to state their reeving .14 within a fixed. tine
lieit of between one and two months. -If the reasons are not stated
within the proscribed period ow if the reasons stated are not
sufficient, the original registering authority shall then cancel
the registration.
40
1) SMITOA15 140T.Ws i.e. their reasons for not having opened or fur
having closed for more than one y:ar.
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B.13.aaWNI. 5
A aomaereial business may state ite reasons to the
original registering authority and reauest it to extend the tiae
limits as preecribea in the two preveding paragraphs; -they oball
not be extended for more thar one aonth.
article 19.
If a registered commercial business is declared
bankrupt orits operation is prohibited by administrative puntsh-
ment or by the sentence of a court, the original registering
authority shall cancel its regiet:atian upon notifieation by the
authority or court which infliots the punishaent.
Chapter III,,- The Name af a Commereial ..autiness.
Article 2j,
None of the following shall be used as the name of
a coaaercial business when applying for registratian:
1) The natianal name 'itepablc of ahina', the nate or coanoren
of its founder 1), the -name of a aovernaena organisation or
of a legal body.
S) The word 'China " used in any sense which may be lacking in
respect.
3) Any name offensive to morels or to public order, or whieh
may cheat the public,
4) A name belonging to another person, used without his
consent.
5) A name the saae as or siailar to that of a popularly known
ooamercial business operated by others, and used for the
same type of business.
6) A name already registered as a trade mark by otheas, and
used-for transactions in goods of the same kind.
7) The name of a special product of a certain place, or the
name ef the place, used alone s the name of the eoaaercial
business dealing with that product.
Article 21.
No commercial business shall use a naae the same
as or similar to that of another coameroial business already
registered, in the same Municipality or Hsien, and engaged in the
same type of business.
A name the same as nnother, but preeeded by the -
name of a plaee or an adjective, shall be regarded as similar(nama)
unless a Chi 41 is added as provided in this Law.
3DITORta NOTI;SI
1) i.e. Sun Chnngashan, Sun Yat-sen and Sun den.
2) Chi; mark, symbol. e.g. if anotherBook Company
exists "ahanahai Book Co.,' would be a similar name, but "Jong
Chi" ahanahai Book Co. could be used.
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B.13.A.XXXVI.
6
Article 22.
If a name the same as or similar to that of
another commercial business already registered,-is used for
illeeitimate competition, whether ia the sawe munieipality or Haien
or not, the persons interested may request tha coapet,int authority
to prohibit its use; if they have suetained any damage therefrom,
they may further ask for damages.
If name the same as that of another coamercial
business already registered in the same municipality or-Heion, is
used to undertake the same type of business, and furthermore no
ealange is made despite notifioation by the competent authority of
the municipality or Rsien or by the persons interested, this shall
be considered as illeeitiaate competition.
The same provision shall apply when a neme siailer
to that of another commeroial business already registered, is used
to undertake similar business transactions and furthermore no ohanre
is made despite notification by the competent authority of the
municipality or Helen.
? .?
Article 23.
If one firm has used a name continuously for two
years before the enforcement of this law, but subsequently to such
use the same or a similar name has already been registered by another
commercial firm doing the same type of business, then the restric-
tion imposed by article 21 shall not apply; but the firm shall, in
registering its name add a dietinguishing mark.
article 24.
If within one year after the enforcement of this a
Law several commerpial businesses founded before its enforeeeant
wake separate application to the competent authority of the saae
muhioipality or Helen for the registration of the same name of of
similar names; than the one whose use of the nape within the
municipality or Helen was earliest and has been uninterrupted shall
,be allowed to register it. If before the. application tthe name)
had never been used by any one of-them, or if it cannot be proved
who was the first to use it, then the one who firetasends in an
application, shall be allowed to register it. If all the applicants
apply on the same day, they shall be ordered to reach A mutual
agreement to let one of-the commercial businesses use it, and then
only shall the registration be allowed.
If the various commercial businesses which
separately apply for registration as mentioned in the preceding
paragraph, have all been using the name or names for more than thrae
years without interruption, they shall all be allowed to register
but oaeh shall add a distinguishing mark.
Article 25.
If several eommeroial businesses founded after tae
enforeeaent of this Law, separately apply for registration of the
same name 'or similar Fames with the competent authority of the same
municipality or Heien, the one Which first sends in an application,
shall be aalowed to register; if all the applicants apply on the
same day, the,provision of Paragraph 1 of the preceding ,,rtiela
shall apply.
Article 26.
If a commercial business which has already been
registered in accordance with this aaw, reorganises itself into a
aompany, and if it has been using its registered name continuously
and without interruption within a municipality or Helen for more .
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B.13.A.XXXVI. 7
than ten years, counting from the date of registration, then the
restriction imposed by Article 26 of the Company Law I) shall not
apply; but neither the principal nor the branch office of the
Company shall move outside the municipality or Helen where it wae
originally located, Unless its name is first changed. '
Article 27.
In any of the following oases, the use of a name
by a commercial business shall be regarded as being interrupted'
1) "ere a business has of its own accord ceased operating
for more than half a year, this shall be regarded Oa an
interruption, beginning from the day of cessation of
business.
2) Where the operation of a business is prohibited by the
competent authority or by a court, this shall be regarded
as an interruption, beginning from the day when the order
is issued. _
3) Where a registration is canoelled by the competent authority
of the municipality or Haien, this shall be regarded as an
interruption, beginning from tne day of the oancellation.
4) If registration has not been applied for within the time
limit provided in article 61, this shall be regarded as en
ihterruption, beginning from the day of the expiration of
the time limit.
Article 28.
When a registered eommercial business or Company
founds a branoh store or Company in another municipality or Helen,
If in that municipality or Helen there exists another stoic' or
Company which bears the same or a similar name and operates the
same type of business, except where the provisions of article 26
apply, the name of the branch store or Company shall be preceded
by the name of the place where the principal store or Company is
boated,' and words shall be added, to make clear that it is a
branch store or Company.
Article 29.
If a commernial business which has changed its
name after registration, does not apply for the registration to le-
altered in acoordence with he provisions of article 13, the
competent authority of the municipality or Haien may on its own
responsibility or upon the, request of the persons interested, issue
an order to cenoel the original name.
Article 50.
The namd of a commercial business shall not be
trensforred .part from thc business itself.
1) EDITOR'S NOTEs The Company Law was promulgated on the. 12th,
April, 1946. Its Article 26 reads: 'Companies engaged in the
sane type of business, no matter whether or not they are of the
same class or whether or not they are within the same province
or municipality or looelity, shall not use the same or similar
names".
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3.13.A.xxxvi.
Article 31.
There a commeroial business uses the name of ito
owner or that of a partner as its name, ehen the business is
transferred or the partner retires, the owner or partner or their
heirs may ask that the name shall no longer be used.
Chapter IV.- Com.eroial Businesses Operated
by Foreigners.
Article 32.
dhere a codesrcial busineia operated by foreigner/s
has its principal store within Cniaese te:ritoriee, if it is under
indiviuual ownership, the owner of the *commercial business must have
hie dowdeile in uhinal if it is a partnership, at least one of the
partners mutt be domiciled in China.
Article 33.
/hen a foreign eomaercial business whose principal
st,re is not within Chinese ter....itories, founds a brans! store in
China, if the owner or the partners A* the cOmmercial business
no domicile in China, a person domiciled in Chine eeill be appeinted
as their legal and extra-legal ,representative.
The full name, nati,nality and domicile of tne
agents mentioned above, shell be reported at the time areen the br..nch
store concernea applies for the registration of its establishment;
a written power :)f attorney shall tirthar be annexed.
Article 34.
If according to any law or ordinance Cie locality
or business type of a commeroial business operated by foreigners
within Chinese territories, is subject to special authorisation by
a competent authority, it shall, after securing the certificate of
special authorisation, apply for registration in accordance with
this law.
Article 35.
When -a eommereial businesa operated by fbreigners
within Chinese territories, applies for registration, the appLicent
shaJ.1 submit dooumentary evidence of hia nationality; if its legal
or extra-legal representative, manager or commeroial agent ie a ,
foreigner, the documentary evidence of his nationality shall also
be annexed when submitting the application for registration.
If the foreigners mentioned ill Vie preceding
paragraph are per-sins withut nat_onality, they shall submit a
certificate from the competent authority of the census register of
the locality within Chinese territories, where they are domiciled.
Article 36.
in any of the following easep, the provisions of
this Chapter shall apply to cokmercial businesses operated by a
joint partnership of foreigners and Chinese nationals;
1) Mere foreign partners have contributed more than half of
the total amount (..f capital of the partnership.
2) 'Where the foreign partners are more numerous than the
Chinese partnere.
3) :there the Chinese oartnere ?are no domicile within Chinene
territories.
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2.15.A.XXXVI.
Chapter V.- Procedure and lees Of
Registration.
9
Article 37.
The owner, or all V.:a partn.re of a s000kreial
3usiness shall apply for the registration of establishment, the
registration of the transfer or the cancellation of the registra-
tion of the principal store of the sommeroial business, unless
otherwise provided in Articles 11, 14 and 16, application to alter
the reo.istration of princi)al store, or to register the establish-
ment or alteration or to cancel the registration ot a branch store,
?hall be wae by the owner or the partners of the somwercial business,
or by thuse partners who conduct the business.
Article 28.
aPPlieation to'register the transfer or to cancel
the registration of the princi-al store of a sommersial business
operated by foreigners within Chinese territories, shall be made
by the owner of the coomercial business or by all the partners
doaiciled in China. Application to alter the registration of a
principal store, or to register the, establishment or alteration or
to cancel the registration of a branch store, shall be wade by
the owner of the commereial business or by the partners who conduct
the business or those Who are domiciled in China.
Article 39.
The owner of a commervial business or the pertoero
Who are responsible for applying for the registration, may appoilit
an attorney to apply for the registration of the commercial business.
When an attorney makes'application as mentioned in
the preceding paragraih, he shall at the same time submit thp letter
of attorney issued by the owner of the soemercial business or by the
partners Who are responsible for the application;
Article 40.
If according to the provisiOns Of Article 6, a
previous approval is necessary for the operettas of& Commereial
business, it shall, when applying for the-registration of iti -
estataishment, submit the Original or a copy ofthe eertifioade of
approval.
Article 41.
If accoroing to the provisions of Artiely, 34, a
special authorisation is necessary for the operation of e
cowweroial business by foreigners within Chinese territories, the
original or a copy of the certificate of speciel authorisation
shall be annexed when applying for the registration of its
establishment.
Article 42. ?
When the heir of the ownttr of a-somwereial business
or the partners together with the heir apply for registration
aceording to .the provisions of Article 14, they shall at the sewe
time submit doouwentary evidence of the fact of inheritanee.
'Article 43.
dhen oomaercial business applies for the registra-
tion of a naom com:ng.under the provisions of Article 23 or
PavIgroph 2 of article 24, it shall at the enme tiwe
documeetry evidence to prove th..t it was tl.e first to use it .vid
his been using it ror continuously mere than to or three yee-rs.
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3.13.A.XXXV1.
10
When a coeeertial busipesa applies for the
registration of a name coming under the proyleiens of erticle 2o;
it shall at the same time submit documentary evidence proving that
tnn years have elapsed since the registration of the name an that
since then it has cen-tinuously been using it.
Article 44.
Zr the documents submittedoby foreigners are in
a foreign language, a Chinese translation of tht, text shall be
annexed.
?
Article 45.
An applicant for regfstration who discovers any
error or omission in the pertioulars after they have been registered,
may within one month request the Competent authority of the
municieality or Haien to make a correction.
Article 4e,
Tke lompetent authority of a municipality or Hsien
shall, within five days after adproving e reeiitration or a
cdrrectien in a reeietretie,n, 'publish tn. various particulars
reeistereu or correcteu.
Article 47.
. The competent authority of 4 munieipelity or
Haien shall issue a certificate of registration to each principal
or branoh store the registration of whose establishment has been
approved.
The form of the above-mentioned certificate if
the registration of erincipal or branch stores shall be determined
by the sentral eompetent authority k and the competent authorities
of the various municipalities and %dens shall separately make the
eertifinates according to the form appointed.
Article 48.
If because a eommereiel business applies for an
alteration to be mode in its registration, the statement on the
original certificate of registration needs to be sorrected, this
original certificate, shall be ooncelled and a request made for the
issue ef a new certificate of registration.
Alen the particulars on the certificate of
registration have been corrected, the provision of the preceding
paragraph shall also apply.
Article 49.
When a comeercial business applies for cancellation
of its registyation, it shell hand over its certificate of
registration for cancellation.
article 50.
fihen according to the A??ovieione d Articles 18 and
19, the campetent authority of a municipality or Haien eaneols
thm registration of a coumeroial business, it shall reclaim and
cancel the certificate of registration whieh it originally issued.
Article 51.
The competent authority of et municipality 3r
Haien shall only have to sanction such registrations as are
proeided for in Article 11 and also such alterations in registe=tton
as do .it reeuire a change of the eetlificet. reFistratiolL.
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Article 52.
A oom:. erode]." business shall, when applying for its
registration, pay regiatration tees as provided below; "
1) In the case of registratlan of the establishment of the
prinaipal elore,, one mi_le of thc, total amount of its
oapital.
2) In the ease of r.,bistr,tian of the establishment of branch
stores;
a.. ..'here their -.7.epital is separate, one per mi-lie of the
amaunt of the capital;
b. lhere their capital is not separate, two thousand
i.ational Currency dollars each branch store.
3) In the case alteration in a registration:
a. Where the capital is increased, two per mile of the
amount of increase.'
b. there there is no incr:.-ase of ospit41, one thousand
zati.-ne.1 Currency dollxs each time.
4) .or the cancellation of a registration, one thousand
Mational Currenoy dollars.
5) kor any other registration, ,Aie thousand iiational Currency
dollars.
Article 53,
There tte registrl-,tion of 4 emieroial business
reluires the isslie of - certificate of registration or a ch:,nge
therein, one thousand Natiom,1 Currency dollars shell be pid s
fee for ech certificete; the same shall apply when a certificate
of registration has been lost and an applic-Aion is mede for the
issue of new one.
Article 54,
Ihe competent authority A' municiplity or dsien
snail keep the following registers in which to inocribe the various
parti,culare of registration:
1)
2)
-33
Register
ReLister
Register
of
of
of
the principal stores of commercial businesses
the branch stores of commercial businessee4
the power of transacting business of persons
under partial legal disability.
? The forms of the above-mentioned registers shall be
determined by the central competent authority, anJ eaoh of the
competent authorities of the various municipalities or Helens shall
make its registers accuruing to the fixed forme.
Article b.?
Persons interested in a com.ercial business may
ask permission from the dompetent authority tdf the munisi,ality or
Haien to examine in the registers mentivned in the preceding
Article, the particulars of the registration of that comiercial
business and .the documents annexed thereto; they may further ask
for the issue of a do--; ',2t.:.4:u'Ier the particulars
registered have altered, or whether a certain particular has
been registered, and also for full or abridgel :--opies of the
. Without legitimate reason, the registering autWority
shall not reject the requests mentioned 2n the preceding paragraph.
Zech time any pelson rAquests permission of the registering
authority te examine the regi cra and the annexed dpouments, h,1
shall pay one thoueand-PatiOnal Currency dollars as examination fee;
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12
any person who asks for the issue of a certificate, shall pay two
thousand National Currency dollars as fee for each certificate;
and any person who requests that copies should be made for htm,
shall pay a fee of two thousand National Currency dollars per
thousand words'oopied.
Article 56.
The competent authority of each ordinary municipality
or Haien shall every half year prepare two lists of oases of
coee.erciel xegistration and submit thom for reference to the previneial
competeet authority, whioh shall transmit one last to the central
competent authority for reference.
The competent authority of eaeh municipelity under
the direct jurisdiction of the Central :iovernment shall every month
prepare a list of cases of coemercial registration and submit it to
the central cobpetent authority for reference.
Chapter VI.- Penalties.
Artiele 57.
Any person Who oreetes illegitimate competition by
using a name the saae as or resembling that of another commercial
business which has already been registered, shall be sentenced to 11
penal servitude or detention not exceeding one year or to-a ea Chin '
fine-not exeeeding twenty thousand dollars.
article 58.
The responsible persons of a comaercial business
who fatl to apply for the registration of its establiehment according
to the provisions of Article 9.10 or 61, shall be punished with a
ea Huan q) fine not exceeding ten thousand dollars; where the
application is made after thi. expiration of the time limit, ea Huan
fine not exceeding two thousand dollars shall be imeosed.
If after being penalised, the responsible persons
of the Comeeroial business still fail to apply for the r egistration
of establishment as mentioned above, the competent authority of the
municieality or Haien may order them to file the application within
a prescribea period, failing which the business shall be closed down.
Article 59.
The responsible persons of a oomhereial busin6as
who fail to apply for alteration in or cannellation of its
registration in conformity with the ,rovisione of erticlee 1:5 to 17,
-may be punished with a :it Huan fine not exceeding five thousend
dollars.
Article 60.
The responsible persons of a commercial business
who oontravene the provisions of Articles 26 and 18, shall be
punished aith o ea Chin fine not exoeeding twenty thousand doluers.
IDITOR'S NOTES;
line term Fa Chin is used for a strictly penal fine
under n criminal law; that is, a peouniery punishment imposed by
a lawful teibunel on e e6ze,ea,?eicted of crime or diedemeanour.
2) The term Pa Huan is used for a fine of a civil
character, impoeed fer breaches of taxation laws; in 1,0tfl oases it
is imposed for offences which do not oome under the penalties of
the criminal law.
?
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13
Chapter V41.- Supplement.
article 61.
All commercial buainesses which have not been
registered before the enforcement of this Law, shall, within one
year after its enforcem,_nt, apply for the registration of their
establishment acoording to the provisions of this Law.
?
Article 62.
Any regiatration wade before the enforcement of
this Low, and In conformity with the Commercial Registration ..w
then in force, shall have the same effect as registrations made
according to he. present Law; but if the particulvre in the
ori6in,1 regletration do not conform with the provisions of the
present 4.aw or are incomplete, than an application shall be made
for ..lteration in the registration within oneyeer ante the
enforcem:At of the present Law.
Article 63.
promulgation.
This Law shall come into force on tha day af
( .End )
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-
-tv"mlr'
B.13.A.XLXVII. -
UNItf-RSITZ
-Shanghai-
BUREaU Vel"LOWAeLthTaTiOla
(Economia Chinoise)
280 Chunking min Lit (Dubail)
Telz8b7b1
Regulations for .Controlling the
Rate of Interest
Promulgated by the Neti,..mal Government
on the 19th. of December 1947 1)
Published in Ta Niing Pao
Dela. 19th. 1947.
Annex HO.s XXXVII
Number of pages! 2
Remarks) Translated
. by Our legal
Department.
WilailaTION8 FOR CONTROLLING THS R4TE OP INTXRDST
Article 1.
The control of the rate of interest shall be
governed by the provj.sions of tl'ese Regulations.
Article 2.
The rate of interest on deposita in modern and
native banks shall not exceed the rate of interest on loans. The
local L:cdern and Lative Bankers' Association shall every day,
taking into consideration t'ne conditions .f the finaneial market,
determine the daily interest rate on loans between bankers and on
loans, and submit them to thd Central Bank ter confirmations They
shall then be announced for enforcement as the maximmm interest
rate on loans.
Article 3.
In plaoes where the Central Bank has no office,
the interest rate on loans granted by Modern and native banks
shall be based on that in the nearest place where it has been
announced by the Central Bank.
Article 4.
Where the_inereet rate on_a_lean_granted by a
modern or_native bank Vceeeds_the_kaxiMmel daily' interest rate
anneunced by the Central Sank"for-the same day, tfie oreditor shall
have no right to claim the eart in excess.
1) EDITuRIS WOVE; The stave or,lie7..nc.:: wbieh eromulgated. the
- Regulations =!:tre7ltne.the Rate of Interests simultaneously
announced the abrogation of the former Regulations for
Controllin-, the Rate of Inte,.est on Deposits and Loans through
Banks.
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5.13.A.YIXVIT. 2
Article b.
The interest rate on monetary obligations undor
agreement by persons other than modern and native bankers, shall
not exceed the daily intereet rate fixed by the local Office ef
the Uentral Ik;nk at thv tib.c when the agraement is reached;
otherwise the cr.eiter shall have no right to claim the part in
excess?
Article C.
idiere no interest rato he been agreed upon for
a monetary obligation on which interest should be paid, the
creditor mey request that it shall be computed according to one
half of the daily intrest mate on loans fixed by the local office
of the Central 13ank.
Artcle 7.
These Regulations
day of promulgation.
?
shall come into force on the
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U N I
VANSITL LIA
"Shanghai-
BUBBAU DS DOCUMSeTATiON
(Lconomie Chinoise)
280 Chungking Nan Lu' (Duball)
Telt 85761
Measures governing the Affixing of Revenue
Duty 6-tamps on Sales invoices Issued by
Factories Ihich Aave'..lready Paid
the Commoity Tax -
. .
Promulgated by the ministry of Pinance
on the 25th. of Uctober 1947y
Published in the deekly Review of .eaws
(Na ling Chou /Clan)
Oot. A9th. 1947.
URORN
Annex No.: XXXVIII.
Annexes oonierned Nos.
XXV and XXVI.
Number of pages: 2
Remarks: Translated by
our legal Department.
MAASURES GOV-SRN/NG TR& AlSaING OF
MENUS DUTY STATS
ON SALES IIIVOSCAS 'SSW.) BY FACTORINS IHICH HaVS AIRAADY
PAID THE C0gii0DITY TAX
Article 1.
Factories undertaking to produce goods subject to
the eommedity tax (hereafter briefly mentioned as-faotoriesj shall
pay the commodity tax on their products according to the Law; when
making out invoices for the sale of theee products, they shall
affix revinie duty stamps thereon. in conformity with the provisions
of these Measures.
Article 2.
When selling their prodUcts, factories shall make
cut separate invoices in accordance with the Business Tax Law 2)
and the Special Business Tax Law a); it it is necessary to make
out a separate warehouse receipt 'for the delivery .of the goods,
revenue duty sekraps shall be Affixed thereon separately.
ED.XTORIs NoTzo:
1) Reference may-'oe made to the hevenue btamp Duty law
now in force, which was revised promulgated by the National
Government on the Eith. of Jueic 1947 and to its itpplication Rules
promulgated by-the Axcoutive Yuan on the 3rd. of July 1947 (see
gonthly Bulletin No. X - An7.-Sept, 1947. Annexes XX'! &
2) The T(1..;-eess Tax La!! was revised and promulgated by
the National Goverrn- on the lat, of i.fay 1947 (see itonthly Bulletin
No.VIII. 01..y 2.V47. Annex XIX) and it Applinatldn Rules promulgated
by the Executive Yuan on the'4th. of August 1947 (see gonthly
Bullc.in No, X - Aug.-Sept.1947. Annex XXV//).
5) The hpeeiel Business Tax Lew was promulgated by the
Rationed Uovernmcnt on the 1st. of ;kw 1947 and its Application
Rules by the Executive Yuan on the 11th. of Juno 1947 (see Monthly
Bulletin No. June-July 1947. Annexee XXII & XIII).
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A.X1XVI
Article 3.
The eelling prices of the produits, as listed fa
tho invoices iesuea by rectories, shall be the 4tua7 selling Weal.
If commodity tax has elready been paidp'the whold amount .of this
oommouity tax may be dedueted. Thels suet be stated on the Invoida
and revenue stemps affixed according to the law. The following shalt
also be et-loped on for purposes of examinations *Certifigate of
commodity tax inspected and "er deducted-for sommodity tax
already
Article 4.
An invoice on whish revenue-dUtro are affixo4
in accordance with these geasures, shall have the =floats of
payment of the commodity t&x attached to Lt they shall not be
sepLrated. But, where no certificnte of tax payment has been legged
for the oode, the resident.commodity tux collector shall stamp On
the words: ."CoLamodity Tax eareody paid", for purposes of proof.
Article 5.
Any C.ctory using imshinery, to whish resident
commodity .L,x investigcLtore and collectors ir:ve been sent, ick;y sply
to use the Simplified Zeesuree for Affixing Revenue Duty 8t4.mpg" 1).
Artiole-O.
Bo factory shall use a warehouse reseipt for the
delivery of goods, a certificate of payment of the cOmmodity tax or
convey,nca certificdte as a substitute for the invoice.
Article 7.
there a faotory also undertekes retell sales, the
prow/seens of these Aisaoureo shall not bo applied to itsretail
depertment.
Article 8.
If the provisions of these Measures hove been
contravened, the emount of commodity tex already paid shall not be
deducted from the invoice.
Article 9.
promulgation.
These Xeasures shall-come into fore on the day of
( end )
1) BIJIT-:,R68 190111: The Simplified gOasures for Affixing Rortnua
Duty Stamps were promulgated by the Ministry of Tinance on the
8th. of may 1947.
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*0- B.13.A.XXXIX.
,Ulif
b X :e ..c; L. A
BUItUBi-: :3'
(conie Chin:A.8e)
280 Chungking Lan Lu (Dubdil)
Te1185761
Regul:tions governinn the- Renting
of Houses
Promulg:Ae6 Oy the ecvernL(nt
on the 1,t.of ...ecember
.i,utlished in the ,eekly Aeview Li,ws
(rr.
Lecemoer :)rt.. 1947,
rinex No. =CU.
Documnt conoirnedsNo.30.p.p.
4 to 8.
Ainnex concernol:-NO,XXV.
?
Amber of p,ges:
Reml,rks; Tr5tnel,ted ay :.er
-LegL1 Lepf-rtment.
RAGULATIONS OOVERNIM THE
R2NTLHO 02 HOUSES
Article 1.
The provisions of these Regulations shall govern
the renting of houses in pl:Ices where provincii.1 tpr municiv.1
governments :.lre loctec :.nd in other .densely populoted
and regions where it is difficult to le:.ae houees, e design-Cld by
the ?)rovincinl governmer4., In coses not gliovred by these Reguli-tions,
those of th ivii ;ode 1), the Lz.nd L!-,w 4) ind other litws nd
ordint-nces sh-11 be applied.
Article 2.
If anyone is ncithix himself using . house wiz:al-151c
eor dwelling nor 1e.1:sing it out, the competent aovernment may order
him to lese it within the period if one month. ,
dhere ccording to the provisions-of
th Lc..ne L-w 3), the rooms used by a person himself exceed his
require..ents, h. 'buy be ordered to 1se within prescribed
period, the rJures in axe:a...5 of hie requirements.
1) Ink-, Chinese Civil Coda contains 5 Books, eeptely
promulgi.ted and enforced by the OLtisml Uovernment on different
dates. Special reference m:zy be mr,do here to 3o4 II. "Obliv,tions"
(pr)mulg.-:ted on lov.22nd,1929 & enforced on :4ay 6th.1930). ChLpter
Section 5. "Renting" (Art. 421-463).
2) The .L.:11d Law now in force wc.s revised end promulgct;.4
by the .NdtiJnal G3vernmt,nt on the 29th.of April 1946 (see jonthly
Bulletin Yoz.IT.January; V...Februry in-ISPrch 1947; Documents 23,
30 a 36 "The inew L.nd Law Compred with the Old" by Prof. Sung Chi.o.
hued.
3) Art. 96 of th Lend Law reads;
"A munieip"1 district government may, trl.king
considerti)n 100,1 oJnditi)no, impose necussr!ry restrictions
the nukiber of r:).rmr -.coupled by e. ch inJividual J,s his personiil
dwelling blce in val urban vre; but this shall be done with the
dppr:,vEll %f thc ::rgri of public .opinion."
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3.1h.A.AAKIX. 2
If enyune disrev.res the arders mentioned in the te.-
/greceding TIraerLphs, their leasing shall be made compulsory -nd
Fft
Hun fine 1) nc.t exceeding five theusand dollers eley furthcr be
imposed.
Article 3.
When a heuse is leased, besides the rent, o cash
security may he received. The maximum cash security shall not exceed
the total rent far twe mnths.
If an agreament_is mede cantaining h cash security
which centravenes the :aesvc pruvision, the -p-rt in excose shell he
refunded to the lesscu, and El Pit Hun fine Ir.:t exceeding Amieo the
umunt in execs:: mey furti_r be imposed.
Article 4.
Bents shEll be peid monthly; the eompetent
govornwA mly, with the cpproval ,f the lsel rgn f public opinien
end :sc.,rein?. t_ cconemic c-:41ditiens, restrict them to _ given
neximum.
If egreement iu made in which tho rent exceeds the
meximum as restricted in 'tht preceAng parsgraph, tha part in excess
shall be regereed ee undue increment; the lessee my, within six
months z.:fter its peyment, a refund.
Article 5.
Apart from rent, the lessor shall not take money .8
'key-money' 21 or under any other title.
Article o.
A lessee shall "sub-let all his rooms to others;
where some of the rooms are sub-let, if the contract contains
stipulations opposing this, then 4ritten consent shall first be
secured 'from the lessor or the sub-letting contract shall be sent
over to the lessor to be signed by him.
The rent for sub-letting shall be computed in
proportion to the part sub-let ane the original rent, ane shall nat
exceed twice the original amount of. rent. If u cash security
originally existed, the cash security shall-be computed in the sem,
way. FUrthermore one half of the part in excess of the original
amount of rent and of cash security. shall.be paid to the-lesser.
- 'filen sub-letting rooms, no /key-money' 3)or money
under any other title shall be taken.
.alTuR'S BeT4,6%
1) The term Fa Huan is used for a'fine of a civil
character under civil law, or of a fiscal character. Imposed for
breaches of taxation laws; in both'easee it is imposed for offences
which do not come under the penalties of the criminal law.,
2) Xhe Chinese expression is THsiso;lreit, literally
meaning: small fee.
in the originel text of the Law; two txpreesions
'Ting Pei' and 'Hsiao Reit are used here to mean the same thing:
Key-money. Literal1y, 'Ting means: take-over money.
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B.13.A.XXXIX.
Article 7.
:there before the enforcement of these Regmlations,
a lessee had sub-let all ins room.; to others, the present leasees
and the person who has the rightto rent them out, shall conclude
another centreet within six months; if without the consent of the
lessor some of the rooms hae been sub-let to others, unless he gives
his signature as provided in the preoeding Article, he may take
back those rooms which have been sub-let and least them out again.
But the original sub-lessee shall have a preferential right to rent
them.
The lessor shall not refuse to give his signature,
as mentioned in the preceding paragraph, without an adequate reason.
Article 8.
4sny contreveotion of the provisions of ,irticle 5 end
- paragraph 3 of erticle 6 shall be punished with a It Huan fine not
exceeding three tims_ the amount of money received.
"Article 9.
A lessor shall no terminate a (renting) oontract
except on one of the following conditions
1) If the lessee puts the premises to illegal uses.
2) If for rees._ne for which j is responsible the lessee owes
an amount of rent equal to the amount of the cash security
given plus at least two months' rent.
3) If the lessee has intentionally or throug^ h^ \nogligence damaged
the lessor's house and reale to make repairs or pay adequate
compensation.
4) If the lesseecontravenes the provisions of paragraph of
Article ti.e
6) If proof is furnished that the lessor is taxing baok his
house for his own use, in accordance with the provisions of
-Article 11.
6) If the term agreed on for the lease has expired.
7) If the lessee has closed up the house and has eeasedeto use
it for more than six months.
0) When the house has to be rebuilt; and the lessee has been
? notified three montha in advance, and furthermore a building
lioence has been secured.
9) ehen the lessee violates the restrictions laid down in the
lease.
The provision of Item 6) of the preceding paragraph
shall not apply to a fixed term lease of less than two years or one
containing a speciel agreement.
Article 10.
Where a lease bas 'been concluded for a term of more
than one year, if a coasiderable change has taken place in local
economic conditions, the party concerned may request that the increase
or decrease of the rent be considered. The aame shall apply to a
lease of indefinite term.
1) aDiTOR16 Wale Compare with Land Law, art. 100 and its Mew
Interpretation issued by the Judietal Yuan June 24th. 1947 (see
aonthly iiLYc. . - June-July 19476 Annex 0UV).
?
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a.la.A.)C(XIX.
Article 11.
If after a lease of indefinite tertibas been in
force for We years, the leseor fat aaequate reasons has to take
back the hoase for his own use, he shell furnish definito proofs
of his need, and further give the lessee three months notice of
the cancellation of the lease.
Article-12.:
If without legitiaate reason the lessor refusee
to accept rent paid to him by the lessee as provided in the lease,
the lessee may deposit the rent in a bank or post office in. the
name of the lessor, and then notify the lessor.
Artiole 13.
The provisions of the four preceding Artacles shall,
mutatis mutandie, eply to the transferee mentioned in Article 425 -
a
of the Civil Code 4,.
Article 14.
If after beanie rebuilt a house is still to be leased
out, the original lessee shall have a preferential right tO rent it.
Article 15.
If anyone who bee taken back a house tot his awn
use, keeps it vacant for three months or again lessee it within
one year, tbe original loesee shell have th: right to olaia for taa
continuation of his leases he may furthermore ask for compeneation
for damage or injury.
-
Article 16.
The respective competent governments of the various
localities or regions as mentioned in eatiole 1, shall, accoadine to
the provisions of articles 94 2) and 96 a.1 of the land Law.construct
'residential houses for the inhabitants and encourage the inhabitants
to build residential houses.
article 17.
In the localit:es and regiOns detignated in Article
1, institutions which furnish dormaitoriee to their employees shell
hMt receive any rent from thea s those which furnish no dormitory.
shall give them an appropriate sum of money as a grant-in aid.
EDITCAV6 OOZES:
1) Art. 426 of the Civil Code roads us follOwss
If after handing over a leased property, the lessor
transfers his right of ownership to a third person, the lease shell
still hold good on behalf of thliktransferee.
? 2) Article 94 of the land Law reads as followss
? *In urban areas, the Government shall oonstruct an
apptopriate number of reserve houses to be-leasied as residences te
the inhabitants. 'The rental of the houses mentioned above shall
not exceed an amount equivalent to an annual interest of eight per
cent on the value of the land and buildings".
3) Artiole 95 of the Land Law reads:
min order to relieve housing shortage, a municipal er
district government may, with the approval of the EXsoutive Yuan,
reduce or suppress the land taxes and improvement tax on newly ereoted
house, and prescribe a time limit for suoh reduction or exemption.
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CONICIDE-2TIAL
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
China
Analytical Index to Monthly Bviletin 1 to 22, Departme
Of Economics and Politinal Sc-iences,Aurova Univeroity.
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UNIVERSITL LAURORE
SHANGHAI
--604AditiArcictmENtlitiott
mcomomuc cmmoiso
2110 CHUNGKING NAN LU MUSIAIL/
7614 65741
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UNIVERSITE L'AURORE
FACULTE DE DROIT
SECTION DES SCIENCES
POLITIGUES ET ECONOMIQUES
SHANGHAI
BUREAU DE DOCUMENTATION
lECONOMIE CHINOISE)
280 CHUNGKING NAN LU
TEL 15711
Shanghai, January 26th 190
It is with Very sincere regret that I have to
announce to our readers, on behalf of the BURLAU OF DO-
CUMENTATION, that ming to circumstances the publication
of the MONTHLY BULLETIN will be suspended after this
issue.
To allow fuller utilisation of the mass of do-
cumentation contained in the Documents, Studies and An-
nexes published over more than two years in the Bulletin,
the present issue consists of a detailed Analytical Index
1, of the subjects covered. We hope that this may enable
the Bulletin to take a permanent plaoe as a work of re-
ference on economic questions in China during a transition
period of more than ordinary interest.
The suspension of the Bulletin will not in any
way,Affeot the other work Of the BUREAU OF DOCUMENTATION :
the methodical filing of economic flaws and articles and
the researoh work on Chinese economic problems and legis-
lation,.oarried on for the last ten years, will continue
as before. If our former subscribers and friends wish to
make use of our files it will give us groat pleasure to
answer their enquiries as we have done hitharto. We hope
also that we shall still be able to put at their disposal
careful and accurate translations of any new laws or re-
gulations seriously affecting economic life in China.
In conclusion, may I take this opportunity;
again in the name of all the staff of the Bureau, of ex-
pressing our appreoiation of the cooperation we havo re-
ceived and of the interest shown in our Studios and trans-
lations?by Research Institutes, business .cirolos and many
teohnioal Reviews abroad.
E.8. do Brouvary
Director
BUREAU OF DOCUMANTATION
P.3. Those whose subscriptions were paid at a
?
later date than January 1948 are asked to lot us know
whether they wish the outstanding amount to be returned
them or if they would prefer to roaeiva bank
the Bulletin to carry back their sot the corresponding
numbers of months.
. IMPORTANT NOT ON NEXT PAC....
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UNIVER3ITE L'AUROR A
-Shanghal -
BUR.LAU D. DOCUMENTATION
(Economia Chinoiso)
880 Chungking Nan Lu (Dubail)
To1:85761
Re: Annox No.LXXIII in MONTHLY BULLETIN No.XXII (Nov. 194E)
"Projooted Rovision of tho Trade Mark Law".
Through a printer's slip , Article 15 has boon omit,-
tod. Our readers aro roquostod to add the follow-
ing toxt of the Article on pogo 4 of Anflox No.LXXIII:
Artiola 15.
If the same merchant inserts his rogistered
trade mark as a part of another trado mark, he may apply for
1/ its registration. But, if tha two trado marks are used on the
same kind of commodity, they shall not be separately transfer-
red to others after tho registration has boon granted.
(End)
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.UNIVERSITE L'AURORE
SHANGHAI
FACULTE DE DROIT
SECTION DES SCIENCES
PcLITIOUES ET ECONONICIUES
BUREAU DE DOCUMENTATION
(ECONOMIC CHIN015E)
ISO CHUNGKING HAN LU
TEL 05761
MONTHLY BULLETIN
Dean
A. BONNICHON
THORNTON,
A. aum Ch/A.HUAI
MICHAEL W.T. LEE
JOHN T.S. OBEN
THIRD YEAR
S. S. de BRLDURY
of the Department of Economics
and Political Sciences
Editor
Advisory Board
Dean of the Faculty of Law
Dean of the Department of Sociology
Professor of Chinese Civil Law
Rebearch Assiataht. BUT-eau de Documentation
Research Asaistant. Bureau de DocUmentation
ANALYTICAL /NDEX
From Bulletin No.1 (Oot.1948)
TO Bulletin No.22 (Nov.1948)
-Decebber 1948
EXPLANATION OF RAFIRENGS3
B ? Bulletin, D s Document, 3 s Study, A s Annex.
'p' or 'pp' refers to the separate paging of each
article.
'P' with Roman figures, refers to the introductory
pages of Editor's Notes.
Oubjeots ere listed with cross referendes, e.g.
,a Regulation corloarning Income Tax may be found
Under-Thema Tax, Tow or Taxation.
In most oases, subheadings are arranged in alpha-
betical order; but Laws and Regulations on the
same subject are arranged ohronologioally.
MONTHLY BULLETIN - Decombcr 1948 - Analytical Index - Page 1
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ACCOUNTING Law, Commuscial (Jan,7.1948) B14 A40
_ Note: corraotion of mlatak in rt,3 ...., 317 PXI
830 also BU3M3.3 TAX LAW und,:ir TAXATION
ACIDS, Commercial: sae CHLMIGA:, 1ndustri3s.
Production in 3hanghal. . , . , 510 810 pp5-7
AGRARIAN reforms: coo LAND reforms.
AGRICULTURAL Cooperatives: see GOOF.LRATIV, AGRICUL-
TURAL loans, oto.
? Loans in China B8 D47
Loans grantod by Farmers' Bank_ 819 D102 p41,
Products! 833 3RDTLE3, COTTON, FIBRES,
STU., 3w,a, Ti, oto.
Producti in Sh.ms, . B14 D82 24
AGRICULTURE, Crucial situati6n of. in China .. 39 D50
In Sinkiang ,.. . .. 52 D14
ALKALI industry in Taiwan ...., ...... ... ......... .,... B18 D100
ALTAI Mountains, gold mining in . 310 D61
ALUMINIUM industry ...... .. ... B14 D79
ALUN"riLE clay, as_sourca of aluminium and fertilisers B14 D79 p0-8
AMMONIA. sulphate of 4 B2 D12 p3.4
AM, of total Chinos? imports and exports via,
(1947, 1948) ...,.......-.....,... ... 321 D105
ANHWEI, AlUnitO minos in .,. 514 D79 -?
Budget for 1945 59 D51 i..:
Coal mining in .44u.nood ..... 4 ...... 316 D90 ,.
Copper mines in 4 52 D13 p4
Cotton production ani collJotion in ... ...... B12 D70 r4
Cotton textile mills (6th. District) and
. , number of machinos .. ... 520 D103 p6
Iron minas, prospecting of. 52 D13 p4
Silk output and"loane (1947) B20 820 pp3-4
Silk producing areas in . _ ,. ., B10 1)57 ;3
Teamn Bl D3 p2
36 36
ANHWEI-K/ANGSU-CHEKIANG area, factories in B2 DQ pp2-3
ANTIMONY xport B15 Dea p9
Mines in Hunan B3 DOO pp3-4
ANTHRACITE: see COAL, passim, and especially B4 D26 pp2-4
ARTIFICIAL FIBRE industry, creation of, in China B5 84
ARTIFICIAL 311,X import (1937-1939) B5 34 pp1-2
ASSESSMENT of capital of pofit-secking enterprises B12 D72
.,a4s3 Of Profit-scokinr Enterprises, ilethods of
Evaluating ,11.11y 3, 1946) B8 A16
Fixed, of Industrial, Lit'AUg and Transporta-
tion Enterprisos, aavaluation of
- (Deo. 28, 1946) .. . B7. 37 pp6-8
Note: revision of formula for computation B16 PII
Valuation of, Methods of Readjusting
(Feb. 21, 1947) 58 A17
. -
MONTHLY BULLETIN - December 1948 - Analytical Index - Page 4
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r I
BALANCE of payments (193771947): see INT3R1ATIONAL
payments.
BAhe00 export in 1946 ,,,, B10 D60
BANE/NG Business and motary circulation .,.,..., 813 D73
Credit, inflation of BI4 D80
Institutions, Regulations for tn..) Control
of 040 000000000 cr.cle B3
A4
Law,
projeotad B3
D21
Law,
projected Revision of tha Chinosc , 83
A3
Law
(Sept. 1, 1947)
88
A15
B9
A20
Notes: 1) Application of rt.46
temporarily suspandad B10 PII
2) Nam.Ds of banks 813 PIII
3) Restritiens of bank
invastmants
4) 3aparate business lioance ? 813 rra
for oach branch or sub-
branch o 813
5) Opening of provisional -of-
fices by banks and removal
of Saving!: C.:2 Trust Depart-
mants from tha original
business location B14 FII
6) Explanation of soma terms
given by Ministry of Finance 816 PII,III
Law, oriticiem of 812 D69
Private, crucial pocition of after the War B9 D50 p5
BANKS, Accounting in: sac ACCOUNTING Law B14 A40
Business tax on; rate of' 85 p3
B10 A28
It ". 3 in Shanghai
It II
(Oct. 1948) B22 A71
822 A72
Business tax on, special g: .422
.423
Business licenoe tax on 87 Al2
811 A31
B12 A33
819 A60
820 pII
Conmercial: see Chapter III of Banking
Law (3opt.. 1, 1947) B8 '1.15 pp7-6
Commercial, how to induce, to invest in
productivo antorprises 82 Dll
Abolition of restrictions on
such investments Dll p3 Note
Commercial Guild Law applied to, as
profit-seeking enterprises B16 AAS
A49
Deposits in, under monetary inflation
Excess profits tax, special, on 7'13 D76 p4
. B6 A10 pl
Note: abro-.ation B17 PII
Foreign: go. Uhapiar V:Il of 7art:i.i g Law
(Sept. 1, 1947) B9 A20 p6-10
Incraasa of capital B21 A64 p5
Government,: Bank of China, remittance
sarvices in foreign eountris ,. B1 D2 pp2-3
MONTHLY BULLETIN - D(30.3mb6x. 1948 - Analytical Index - Pagc? 3
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HAIM (cOntinuod)
Govammont:
Govornmont:
Govornmont:
Govornmont:
Govarnmunt:
Govarnm,nt:
Governm4nt:
Govornm-nt:
Govornmont,
Govornmont,
Hsion
Bank of China, r,mittanoos
through, in firs,t heGf of 1945 B1 C2
businoss tax, )2corx?-:tion from .B5 A8
Contral Bank, Frojod R,vision
of Law Govorning (July 1946) and
Logis1ativTirinciplas for this
Rovision (Fab. 14, 1947) ....., 37 A14
Cantral Cooporativo Troasur B14 314
Noto: corr.oction of misprint B17 PII
Sao also B18 D99 pp6-6
Contra]. Trust, silk trado undor-
takon by . BIO D57 p11-12
B20 820 0-9
Farm-rs, Bank, activit of,
sinco Victory B191)102
Joint Haad Cffico 01. 4 Govorn-
mont Bank,1; anl industrial loan
policy ..
and agriculttual loan policy
Posta/ Rarattanca & Savings Sank
unsound comptitica from
unsound practicos of le
Immo tax on, as prorit.-saokini enterpriles .
Industrial: see Chapter IV of Banking
rolw (3ept. 1, 1947)
Interest., ations for Controlling the
at, (Deo. 19, 1947) B13 A37
Native: see Chapter VII of Banking Law
(Sept. 1, 1947) 39 A20 p8
Private: Regulations Governing the Readjust-
ment of Capital (i:, 6, 1948) 1
Notes: 1) Change in the 2-117, .tT
computation B22 PII
2) .pecial measures for Banks
unable to increase their
capital 322 PIII
Private; RaadjUstment of Capital, Order/of
Prot:el:lure (.71opt. 21, 1948)
Note: Zxtmn9ion of time limit g A66
B21
PIII
Privet: Utilisatioi3 of Readjustaa Capital
daposited as cash (OcL.8,1948) B21 A67
Private!z Reglaatfuns for Readjustment of
Capita,, explanation of,
IA, 1946) B21 A65
Regiatratio oso Chkpter IX of Par111.ing
loo (Sept. 1, 10'L) B9 WI
Bagistratt.ol,. ul profit so4,'sing entar,:,24se': Pl" au
3131436
B19 1459
322 D108
1470
31.8 D97
B6 D47
19 D55
313 D73 p5
B14 D80
;1.0 D58 pp2-3
31 A1,2
BC .416
1417
B12 D72
B14 1441
B15 1442
1443
B17 1450
1451
B18 PIII
B18 A53
320 A61 pp5-6
B21 A63
B9' 1420 ppl-C
_
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BANKS (oontinued)
Revenue stamp duty on documents and pass
books o'" ,.. 34 A6 p9
, 310 A25 pll
318 A56 p10
380 A61 p12
Savings: 3G6 Chapter V of Banking'Law-
- Sept. 1, 1947) 39 A20 pp3-6
Trust -0CoMpEA33: see Chapter VI of Banking'
Law (Sept. 1, 1947) 39 A20 pp6-7
Velocity of ciroulatiOn ,.:1 deposits in,
in ShanEhai B13 D76 pp2-3 .
BARIT2 ore in litangsi ,.. 821 322 ppl-11
BARIUM . .. . .. .7 B2 D13 p5
-BAUXITE in China: sor, ALT:VaNIUM .
BAYER METHOD for refininz aluminium, in Shantung B14 D79 p13-16
BEVERAGES in KWangtung El E p8
in Taiwan PP2-3
BITUMINOUS COAL; see COAL
BLACK MARKET and idle capital B13 D??
BLEACHING POOL, Produotion- in Shanghai . B10 310 p5
PTeauction and requirements
in Taiwan 318 D100 pp3-5
BORDER AREAS: soc LAND, enforced 0a13 of,
3ORNEO, trade with: sea SOUTH 9BA3 '
BREWING in Kwangtung B5 D29 p8
BRISTLES export in 1947 .. ... 315 D83 pp8-9
BUDGET, See FINANCE, Publio
General, of Central Government for 1947,
Measures Governing (Aug. 5, 1946) B3 A5
BUR1U.,,trade with: -see STIPH 16.3
BUSINESS LICENCE TAX: sea undor TAXATION
BUSINESS TAX, SPECTAL: see under TAXATION
CAMPHOR in Taiwan B6 D37 pp1-2
_CANDLE industry in Shanghai B11 311 p3
CANTON-HANKOW RAILWA.Y 316 D91
Bituminous coal along B12 D71
CANTON, % of total Chinese exxrts and imports
via (1917-1948) 321 D105 p3
Rubber industry in B19 318
? Silk exports via (1946-1947) B20 320 p6
CAPITAL,Demand forr and its effect on interest
rates ' - B2 31 p3
Flight of B20 319 pp13-14
Idle, and black market B13 D77
Of private banks see BANKS, Private
Of profit-seeking enterpsides, assessment
of, for income tax . *-
D12 D92
Registration'of: see- REGnTRATION
CASH MARGINS on Stock 3xohange
313 D77
CAUSTIC SODA: see SODA
CELLULOID inAlzstry in Shanghai 311 311 p5
MONTHLY BULLETIN Deoember 1948 - Analytical Index - Page 5
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CEMENT Industry in Chine
Import (1933-1937
In Hunan
In Rwangtung
35 D32
315 315
B5 D32
315 315. p9
B5 D29 p6
B16 D92, p2
In Northeast B12 068 p5
In Tangshan tHopeh) 315 315 pp5-6
In Taiwan B15 315- pp7-8
CENTRAL BANE: Projocted Revision of the Law
Governinz the (July 1946), and the
Legislative Principles for this
Revision (Fell 14, 1947)
B7
Al4
CENTRAL CHINA, mineral deposits in
32
D13
p113-4
C.XTRAL CO0RZATrV4 7113URY
B14
314
Note: oorrectien of misprint
317
PII
See aloo
318
099
pp6-8
CENTRAL TYCO, silk trade undertaken by ?T
B10
06?
pp11-12
320
320
pp8-9
CHAMBER OF CONLICE LAW, Draft of the (Jan.19,1948) B16
A47
cHalANQ Alunite minas in B14
D90
P7
Barium in
32
013
P5
Budget in 1946 and 1947
39
D51
Cotton production and collection in
312
070
P4
Number of machines in cotton textile
mills in (1948-1948)
B20
0103
P6
Hydraulic power resources in
322
824
B16
089
P3
3ilk output and loans in (1947)
320
320
PP3 -4
Silk producing areas in '
310
06?
P3
Tea in ??? ? ? i
31
D3
P3
B6
35
Tung oil in
32
015
P4
CHERIANG-K/ANG3U-AAHI area, factories in
32
D9
PP2
CHEMICAL Fertilisers loans granted by Farnwrs'
Bank since Viotory
Industry in China
Industry in N.E. (under N.E.Production
Administration)
Industry in Shanghai
319- D102 p8
32 D12
B12 068 p5
B10 310
B11 811
Industry in Taiwan
B18 0100
Products of timber.im?orted in 1946
310
060
CH'IENT'ANG RIIUR Projecs
.B22
324
PP3-8
CHILUNG: see KEELUNG
CHINA CLAY in ahansi
B4
026
p9
CHINA MERCHANT'S STallaHl'i COMANY, tonnage of
ships owned by
B3
D18
CHINA SILK CORPORATIU:
Plan for increased output in 1947-1948
B10 067,
pp13-15
Silk trade undertilken by
320 320
pp8-9
CHINA TEXTILE INDUSTRIES, INC. (o" 7:h!ra Textile
De-7,11crt Oca.z.ion):
Output of cotton yarn and piece goods
(Jan. 1946-Apr. 1948) ,, .
320
0103
lo of spindles and looms in operation
320
0103
Reflections on government management of
B7
D40
J??
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CHINA GTABLE OIL CORPORATICU 59 1)53
CBINCHAI, area and f.. of forest lana in .. B4_ D27
CH'INHUANGTAO, f. of Chins toted- imports ens
exports via (1947-194S) B21 D105 P3
CIGARETTE Industry in 5hanghei B19 S17
raper, supply and demand of B17 D94 p6
CIRCULATION, MOMTARY, Traffic condition of
(Dec.1947)
B13 D73
. Velocity of
B13 D76
See also CURFUNCY
CLAY: see CHINA CLAY
CLOTHING imported
B2
D16
P5
GOhL In China and its policy (1938-1)4C)
Note: correction crf misprint
515
B19
D87,
518 D90
PIII
Bituminous, alone Canton-Hankow ;;ailway
B12
D71
P3
In North China, production. traneport and
price .,
B1
D6
In Hunan
B3
D20
pp1-2
In Kiangsi
Bl
D5
B20
321
/n Shansi
B2
D13
In Tat'ung, Shansi
B2
D13
pp1-2
B7
D43
In T'unEkuan, Shensi
B9
39
In Taiwan
B21
D107
COMRCE INDUST1IL3 :.fter the Honatary Reform
.of Aug.1Y,1948
522
325
Crucial situation of
in China
59
1)50
pp3-5
CONMERCIa Banks: see BZ1C3'
Locounting Law (jan,7,1948)
514
A40
Documents: see RE'V.NU..; 3T.;.111, TUYY L.
Guilds: see CH../IB:,jt
Guild Law: see GUILD, Commercial, Law
' Registration: sae REGI3M-TION
COMMODITY PRICES ,ind currency inflation
B13
1)95
.aid rate or interest
B2
31
pl
Since Victory
B13
1)75
3ee also .
B20
319
,p6-8
B22 323
PP6,7
COMMODITY T.a In China, study of B7 1)44
88 D46
Reaction to the enforcement of B2 32
Regulations (-pril 2.1948) B19 A58
Notes. 1) Revision of rt.14 B19 PII
? 2) Revision of Art.3,4 &
. 5 of (July 30,1948) B20 A62
COMMUNISTS' LAND RLFORN B? 1)41
Note: correction of a misprint , B8 PI
Draft Regulations on the Znforced
Sale of Land by the Land-Owners
in the Borcler Areas of 3h3nsi.
Kansu and NinehRigi. (Doo.21,1946) B7 A13
COMPANY: foreign companies and the Chinese Company
Law of April 12, 1945 . B8 1)45
"CONSOLIDATLD TAT' ... B2 32 pp2-3
B7 D44
MONTHLY BULLETIN December 1948 - .Analytical Index - Page 7
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CONVERSION OF CAPITAL into Gold Yaan, lbasures
Governini.? ChanEeL in the
R9gistration of the Capital
of Profit-seeking Enterprisos
after Oct. 25 1948) : 822 A70
CODPLRATIVE FARMS, Organisation andproblems Big ERR
P6
85 D30 p2
Note: correction of error ., 817 PII
In Shensi 814 822 p12
COOPERATIVE TREASURY, CENTRAL 314 314
Note: correction of misprint B17 PII
See also 818 899 pp6.8
COOPERATIVES since VI Day . BO 34
COOPERATIVES, tea p8
GOBVSR WINE$ In Anhwei 1318 Br p2:.3
821 322 912
In Kiangsi
In Shansi . 84 1)26 pp12-13
COTTON, American, seed, in China 815 1)84 ppa-3
. in Bonen . 819 817 p10
Collection 212 4170
817 316
Control Commission, aotivities or % 820 plo p$
its difficulties 817 316
Cultivation in Kiangsu, before and after
the War ? 1 B4 1)25
Fabrios, Chinese, and the reopening of
? private trade with Japan 813 813 PP4-6
Ginning and marketing B10 1)84 p6
Goods exported in 1047 . . 1115 D80 p9
820 D103 p3.0
Bo
Imports and official exohange rate B11 o PP2,5
Imports: l'& in the total Imports for 1947
::1 :11:5 P p:
and Zan.-Apr.. 1948
' Improvement Offipe, Central China 24 825 ppb-6
IndUstry 815 D84
Loans 819 D102 p5
815 D84 p5
Wills under N.E.Produotion Administration 812 1)68 pp3-5,7
Production and requirement B11 1)86 pp1,2,6
312 D70 pp2,5
B13 413 p6
B1584 p2
817 316 0
320 1)103 pp2-3,8
production in Shensi B12 D70 p4
214 D82 p4
COTTON TEXTILL "4NDIBTRY 812 D70 p5
. 8$0,D103
lb of yarn spindles and looms in operation B20 D103 p4
Conditions, prospeots and difficulties 86 85
Assooiation of 6th District, output of
ootton yarn and piece goods (1946-
In Shanghai, present conditions and 820 1)103 p3
Apr. 1948)
prospeots of 81 D7
In KWangtung 816 1)92 p3
Mills, equipment in 1947 . B20 1)103 p5
See also CHINA TEXTILE INDUSTRIES INC. '
MONTHLY BULLETIN - December 1948 - Analytical Index - Page 8
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CREDIT INFLATION and itE remedies B14 D80
ORI3I3, economic in China and :iow to avert .
disaster ;May 190: 89 DOO
CROP RETUEN3 B2 D14 in Sinkiang .
CRYOLITE, use in refining aluminium . B14 D79 p9
CURRENCY Circulation, velocity of 213 078
In N.E., effect of cLvil wt on B9 052
Inflation and banking business B13 073 p7
and commodity prices 813 075
and money market B13 073 p7
B22 823 pp5-8
Issue (1945-190) B10 D58 p2
Reform of Aug, 19, 1V48 B20 819
822 -323
Reform of Oct. 31, 1948 B22 323
See also ansis
CUSTOMS TARIFF: suggested reform and its a-oplioa-
tion B2 010
D
DEraNTURES, Land, for encouragement of owner
farmers in pacification areas B17 093 .
DEPOSITS In banks under monetary inflatton B13 076 p4
And loans, policy of Joint Head Office of
the 4 Government Banks B5 051
DIESEL OIL import and its * in the total imports
for 1947 and Jan.-Apr. 1948 821 0105 p2
DOLOMITE 84 026 p10
DYEING with indigo, process of 84 028 p4
DYESTUFFS Export in 1946 310 080 p3
Raw materials: see BLI;ACHING POWDER;
SODA, Caustic; SULPHUR BLACK; etc.
DUTCH LAST INDI2S, trade with: see SOUPH SEAS
?
it?
ECONOMIC CRISIS in China (May 10, 1947) B9 050
ECONOMIC REFORM Of Aug. 19, 1948 820 819
822 823
Since Oct. 31, 1948
B22 323 pp7-8
Measures, suppltmentary
(Oct.31, 1948) 822 823
ECONOMIC REFORM PLAN (Aug. 1, 1947), a criticism
of the B10 D58
ELECTRIC rum In Chine, development of network 88 058
In Chekiang, hydraulic 322 324
In Hainan Island B7 D42
In North-eastern Provineas B8 D48
Hydro-, development in China B18 089
B17 095
818 098
BRAM industry in Shanghai Bll 811
EXCE83 PROFIT, controversy on the taxation of 88 38
^
MONTHLY BULLETIN - December 19,z8 - Analytical 'Index - Page 9
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EXCESS PROFIT TAX LAU, Special (Jan. 1, 1947) B6 A10
Application Rules of (Fab.5,1947) 86 All
Note: abrogation B17
EXCHANGE RATE: see FOREIGN EXCHANGE RATE
EXEMPTIONS FROM INCOME T',.1 B8 A18
89 A21
811
B17
EXPENDITURE, Publio, in China, sinoa V-J Day 83 D17
See also FINANCE
EXPERIMENTAL DISTRICTS: sea PACIFICATION AREAS
EXPORT of Antimony
Bristles
Cotton goods in 1947
Intestines
Mak
Oils undertaken by the China Vertable
Oil Corporation (1936-1946
Raw silk (1914-1946)
Silk and silk products in 1946-1947
Silk products via Shanghai in 1946
Tea in 1946
315 .083 p9
B15 De3 pp8-9
820 8103 pp10-11
B15 863 p9
83 819
. 89 853 pp5-6
310 D57 p-11
820 320 po,10ff
310 D57 p13
BIO 860 pp3-4
811 865 pp4-6
B15 883 Pg
310 860 pp3-5
B15 883 p9
B10 DOO pp3-4
B15 863 p8
322 8109
815 883 p9
B2 810 p3
B21 D105 pp6-7
320 319 p12.
B22 323 Rp4-5
B21 8105 p2
B13 313 p8
Textile fabrics
Timber products in 1946
Tin
Tung Oil
Tungsten
EXPORT TARIFF, Customs, suggested reform of
EXPORT TRADE, Concentration of
'After Currency Reform of
Aug. 19, 1948
EXPORTS, COmperison between 1936 and 1947
Japan, value of, to
le representing various ports (Jan.-My 1947
and Jan.-May 1948)
Shensi, from
Smuggled in 1947
Values between 1937-11347
Values in 1947
B21 D105 p3
814 882 p10
B12 86? p4
B15 883 p12
Bll 863 p2.
B12 D67 pl
IARMRS' BANK, Activities since Victory 819 D102
' See GOVaNI'LLNT BANKS
FARM LOANS granted by Farmers' Bank sines Victory B19 8102 p5
FARMS, cooperative Rig RV
Note: correction of error B17 PII
FORTILISERS in Taiwan B18 8100 p6
MONTHLY BULLETIN Deoember 1948 - ALlytioal Index - Page 10
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FIBR3, Artificial, creat.on of Andustry in China B5 34
Production in North42atrn 7:,:ovinces ? B8 D49
See COTTON, ::ILK
Wood ......,.......... ...... B10 D60
FINANCL, Local, difficult condition:1 o-25 in China 39 D51
Postal, in China . B. D55
'Public, and long-tern stability B20 319 pp9-11
Public, in China since V-J Day 33 017
See also BUDG1T, U3LIC )NOWXDtTUi atc
ReadjUstment of. ,i1p,5...lamentary Measures
for (Aug. 2.948; B20 461
FIXED A33,M, on the Ect,a.lres Govcrninr, the Per
valuation of, ancI Readjust-rent of the
Capital of IndwArie,l. Mining and
Transportaticn*iiinterprises
(Dec. 28, ic.i B7 37
FLAVODRIUG INDLIMY in 3hanghsi , B11-811 pp2-3
FLOUR, production and requiremnt of 311 D66
FLUORM mines in 3hansi 34 D26 p6
FLUORITL used for Cryclite in refining aluminium B14 D99 p9
FOOCHOW, of China's total imports and enorts
via (1947-1948) 321 D105 p3
FUDSTUFFS imported . B2 D16 p5
FORZIGN BAN.U; see DANLS
FORBIGN C01TAIIIL.3 and the Chinese Company Law of
Apzi), 12, 1946 B8 D45
FORLIGN LICHANC, and trade in economic crisis
(1947) B9 050 p4
Regulation and tea trade 311 D65
Requirement in 1947 B12' D67 pp2,4
Rate for importing cotton, rice,
wheat and flour B11 D66
Rate since the Victory 315 D83
FORZIGN LOANS during the '4ar B11 D63 pp4-6
to Irivate .-eiterprises, Measures
Governing the Jixamination and Approval
of Applications for a Government
Guarantee on (3en.24,1948) B16 A45
FORLIGN TRADL And .exchange .89 350
During 1937-1947 911 063 p2
Main trends after the 'ier 321 0105
After the Currencr Reform of
Aug.19,1040 322 323 pp4-5
Of Hongkong ..,... B6 D39
also ,;XPORT, IIOT, IWnrCUTIONAL
FAY3L3NT3, 3OUTH33A3
F0RIaG1ER3, Commercial buAneeses operated by.
-?
registration of B13 136
322 3108 p19
Land rights in China Bll 062
Note: Revision of Art.7 of the points
which all Local Government must
take into ::onsideration when
dealing with cases on Foreign
Rights (7eb.25,1947) 318 PHI
.FOP1E.3T PROTT^7 analysis of the trade in
- (1C/6) - B10 D60
MONTHLY BDLLTIP, - December 1948, - Analytical Index - Page 11
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FORESTRY In Northeast, problar cf 134 D27
In Northwsst, nroLlan of B4 D27
In Taiwan .. .. .. B20 D104
FORMOSA! see TAIWAN
FRUIT, marketing of, in 3inlftang B2 D14 p10
FUKIEN, Alunite mines in B14 D79 p8
Barium in B2. D13 p5
Silk producing areas in 1310 D57 p4
Tea in 31 D3 p4
FU1CIEN-EIANG3I RAIWAY, projecte.;. 317 D96
FUSHUN, coal outputin 31 D6 pl
316D90 p2
GASOLINE Import and its (A. in China's total imports
for 1947 and Jan..-pr. 1948 321 D105 p2
GLASS INDUSTRY In Shanghai Bll 311 pp6-7
Under N.11;.Froduction .,dministration 1312 D68 PP6-7
GOLD Mines In Altai Mountains 310 D61
In Hunan B3 D20 pp?-8
In Shansi 34 D26 p12
In Shantung Bl D13 pp4-5
Placer, in Liangsi Bel 322 pll
Quotations since-Victory B13 D75 pp6-7
Smuggling on Canton-Hankow Railway 1316 D91 p5
GOVERNMENT BANES!
Bank of China, remittance servioes in
' foreign countries B1 D2 pp2-3
Bank 'orChina, remittances through, in
first half of 1916 131 D2 p3
Business tax, exemption from B5 A8 p2
Central Bank, Projected Revision of Law
Governing (July 1946) and'Logis-
lative Principles for this Revision
(Feb. 14, 1947) B7 Alt
Central Cooperative Treasury . 314 314
Note: correction of misprint B17 ' PII
See also 818 D99 pp6-8
Central Trust; silk trade undertaken by 310 D57 pp11-12
B20 320 pp8-9
Farmersi Bank, activities since Victory . 319 D102
Joint Head Office of tho 4 .3overnment
Banks and industrial loan policy 318 D97
And agricultural loan policy B8 D47
Postal Remittance & 3avings Bank B9 D55
Unsound competition from 313 2113 p5
Unsound practices of B14 D80
GOVFANYMT 4ANAGLD LI4LAChI:3;.3;
Reflections on their transfer to private
interosts with special reference
to the China Textlie Industries
Inc. B7 D40
See CHINA =ILL INDUST:U..0, INC.,
. CHINA 3I12 CORPOATION, CHINA AUG:3-
TA3LE OM CORPCIATION
' MONTHLY BULLETIN - Docombor 1946 - Analytical Index - Page 12
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GUARANTZE, Government, on foreign loans to private
enterprises B16. MS
GUILD, Commeroial, Law (Jan. 14, 1938) B15 A48
Application Rules of (Oot.6,1938) B16 A49.
See also CHAMER OF COMIERC LAI
Industrial Law (Oot.27,1947) B12 A32
Notes: 1) Transitional measures B15 PPII,III
2) Correction of mistaken in
. Art.18,31 & 44 B10 PIII
Application Rules (Mar.25,1948) B17 A52
GYPSUM In Hunan 815 315 pp3-4
In Hupeh B15 815 pp3-4
? In Shansi B4 D26 pp7-8
HAINAN nun Electric power conditions in B7 D42
Iron mines in B2 D13 pp2-3
HARBOUR OF TANGKU B11 D64
HONAN, American seed tobacco plantation in B19 817 plc)
Coal in Bl D6
B15 D87 ppU-11
Cotton production and collection in B12 D70 p3
Flue-oured tabacoo in (1946) 35 D33
Provincial budget B9 D51 p3
Silk produoing areas in B10 D57 p4
HONGKONG, market conditions and foreign trade of 36 D39
HOPEH (or Hopei)
Gement industry B15 815
Coal mining in B16 D90 f-6
Coal in Chingohing Bl D6
Cotton production and oolleotion in B12 370 p3
Silk produoing areas in B10 D57 p4
Tangku Harbour . B11 D64
HOUSES, Lease Of, New Interpretation of Land Law B9 A24
- Renting of, Regulations Governing the
(Deb.1,1947) B13 A39
Renting of, analysis of the Regulations
Governing the (Deo.1,1947) B14 378
?
315 D86
,
Subletting of B14 378 p8
HSIKR BANKS B10 D58: pp2-3
HUAINAN?ooal mine (Anhwei) B16 D90 pp?-6
HUNAN Coal 312 D71
B15 D87 p9
Cotton 812 D70 p4
Gypsum B15 515 pp3-4
Minerals B3 D20
Provincial budget in 1946 39 D51 p2
Silk producing areas 310 D57 p3
Tea Bl D3 p2
orm Coal 316 390 p8
Cotton production -B12 370 p3
Gypsum B15 515 p.f.,3--1
Iron mines in Tayeh 32 D13 p4
Silk producing areas B10 D57 p3
Tea 31 1)3 p2
Tung oil 32 D15 rci
MONTHLY BULLETIN - December 1948 - Analytioal Index - Page 33.
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HYDRAULIC POWLR resources ix CAskiang . .. , . B22 324
HYDROCHLORIC ACID production in Shahai ...........1310 310 p6
HYDRO-ELECTRIC alicaL011.2112 B16 D89
B17 DS5
813 D98'
See also under ..iLSOTRIC P0WR
ICE FACTORY in rwangtung
g7.3 ,1; P8
IDLE CAPITAL ant black market ... .
IMPORT-EITORT LIFiKING :_inTLM 322 323 p112
IMPORT QUOTAS For 1947; b2eaown of tha figures 315 1363 1-...4,-,?
For the first 6 clerters
(Jan.194?-Tu1y 1948) 1121 13105 p4
For the 7th & 8t'a quarters
(Aug.1948-5an.1949? B20 319 p12
321 13105 pel
IMPORT TRADE In 1947 312 1367 pl
315 1383 ];!J
Smuggled
Sacrified to Government finance gli 25 'X-5
Currency Reform of Aug49,1948,
after the B22 223 ;p4-
IMPORT TARIFF, Customs, suggested reform of B2 1310 p3
IMPORTS, Classified (1946) - B2 1316 pr2-5
B15 1383 pp1-2
Comparison between 1936 and 1947 321 13105 p2
Value of (1937-1947) Bll D63 p2
Consequences of, on China's national
industry 92 1316
Currency Reform of Aug.19,1948, influence
of, on, B20 319 p12
From Japan, value of B13 313 p9
Artificial silk (1937-19391 B5 34 pp1-2
Cement (1933-1937) 35 D32 p3
Cotton 32 1316 p3
211 1366 pp2,5
B21 13105 p2
Flour . B11 1366 pp2-3
821 3105 p2
Forest products (1946) 310 1360
Gold 311 1353 p15
Mineral oil, 5. in China's total
(1947, Ian.-Apr,1948) B21 D1C5 p2
paper (1931-1945) B10 1360 p4
Paper, drawing and banknote, 5. in China's
total (1947,Tan.-Apr.1948) 321 13105 p2
Rice 311 1366 pr2-3
313 D75 pa
321 D105 p2
Rubber goods -B19 318 pp8-9
Silver (197,0-1947) 913 1374 ;;.-24-5
Tropical product:, "o--- s BR, 06 70-'
- IL. Wheat -3
B2i -:lt 11-,..
5 iZ
Wool, 5'. in China's total t1947. Jan.-
Apr 1948) - 321 13105 p2
See also AvZGN TRADL, I14T,,TI0NAL
1-AY11,14T5.
MONTHLY BULUTIN - December 1948 - Analytical Index - Pate 14
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INC= AND EXFa,NDITULL, PUBLIC, In China since
V-U Day B3 D17
i.atio::catween (1936 -
-1947) B20 319 pll
Sae also .0INANCL,
Tubic
INC= TAX .LAW Of Apr. 16, 1941- B1 Al
:Enforcement Aules cf (July 3,1946) B1 A2
Of Apr. 1, 194L 317 A50
For Revisions, Thltailed Regulations,
Amounts o3' Tax .1xem;:tions, Scales
of Taxs.Con, etc., see under
I1DEMNITU3 from Japan . Bl D1 p5
INDIGO of Lop'ing in Kianpsi frovince 34 D28
INDIVIDUALLY OWNSD BU3D1,633ES, trado name .J and
registration of 322 D108
INDO-CHINA, trade with: see SOUTH 'SEAS
INDUSTRIAL ENI.WRI325, Revaluation of fixed? assets &
readjustment of capital
of B7 37
3ee also INDUSTRY
INDUSTRIAL GUILD L471 (Oct.27.1947) . 312 A32
Notes; 1) Correction of mistakes in
Art,16,33 and 44 316 'FIII
2) Transitional measwes B15 PFII,II/
Application Rules of (Mar.25,1948) B17 A52
INDUSTRIAL LOAN policy of the Zroint Head Office
of the 4 Government Banks B18 D97
INDUSTRY, Chinese, since the conclusion of Year B2 DO
' And commerce in Ghina, crucial situa-
Lior. a 39- D50 pp3-4
After Currency Reform
(Aug.19,1948) 322 823 pp2-4
KWangtung, Provincial B5 D29
Developments in 1947 B16 D92
In 1948 322 D110
In Northeast B2 DO. pp4-5
Under N.E.Froduction Administration B12 D68
In 3hanghai 314 D81
In Shensi B14 D82
See also-ALEALI, Auralaum, ARTI2ICIAL
CH;NICAL, COTTOY,
JOTTON TxrIL, 2hflL, FLOUR,GOVERN-
VNT EALTAG:Z aNTaFRI323, FAELR,R;TBBSR,
SUGAR, TIYBER, TOBACCO, IOW FIBR11;,
etc.
INFLATION, And banking business B13 D73 p7
And commodity prices B13 D75
And money market B13 D73 p7
Causes of B3 D17 p4
Of credit B14 D80
In Taiwan B3 D22 p8
See also OURR3N0f.
INHERITANCE TAX LIC,c (Apr.16,1946) . Bll A28
4TO'at:1 7"?A1-1 of (Stay 12,147) Bil A29
Revises. ?ical%...cLe, .7,:11 of TS17-
atior. and Dduction c=rmted
1948) 320 A61 pp6-7
EONTHLY BULLETIN - ,Decomber 1948 - Analytical Index - Page 15
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INSURANCE,. Business tax on, asocial 89 4122
B9 1,23
: Inflnence of stam:;, duties and Govern-
, %ant .;ontrol on deva.puent of in
.China Oi V ? - 84 D24
Life, simplified 39 D55 pp5-6
INTEREST, Rata of, in postwar Chira 82 31
310 D58
Regulations for Controlling Rate of,
(1er-19,194.71 813 A37
INTERNATIONAL PAYMNT5 . . O . . . 811 D63 pp16-17
B12 D67 pp,:-4
B15 D83 ppl,:.=-1.3
oblomz or Jhina's poJtwar B1 D1
And Currency Reform (iale,.19,1940) 320 319 P11
Sec also OVERSE.-.3 CHIME REMIT-
T,NCEO, TR4101:, utc,
INTESTINES, export ot B15 D83 p9
IRON MINES In Anhwo 32 D13 p-'..
In Hainan Island 32 D13 p1:2-3
/n Hunan 33 pao, rp2-3
In Kiaugsi 321 522 P1:1-4
In Kiansu 82 D13 p4
In Ehansi . 84 D26 p:---7
IRON WORKS in Rwangtung ? *, B16 D92 p2
In Shanghai B15 D85
Under N.L.Production Administration B12 D68 pp2-3
IRRIGJ-.TION in .hens B14 Dee
a.
JAPAN, reopening of private trade with 313 813
JAPANESE Competition in South Seas trade 89 D56 pp2-3
821 D106 pp5-6
Mineral prospecting during occupation of
China , 82 D13
War reparation to Chine B11 D63 p10
TEHOL, Coal in if6 B80 PP2-4
Vanadium in B2 D13 p5
JOINT READ OFFICE OF THE FOUR GOVERMENT BANKS:
Policy concerning deposits and loans B5 D31
Agricultural loan policy 38 D47
Industrial loan policy 818 D97
See also GOVERNMENT BANKS
KAILAR (or Klailuan), Coal- in B1 D6
See HOPLE
KANSU, Area and 9; of forest land of DI D27
Coal mining in 815 D87 p13
Hydro-electric .-:.=17r -art in B16 D89 p14
Hydro-al.ctric power projEwt in 518 D98 p3
Teamn t Bl D3 p5
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?
KAGESILVG, ;, of CLiaa',.. zotal skl.ortri vid.
(194', and 1948; .,, ? 221 D105 0
Deo also TATIAN
KAOLIN in 3hansi . ? ? ? 34 D86 p9
KLELUNG, ;', of China's imports and ext:orts via
(1c47 and 1948; ,. 321 D105 p3
3ea also TAIWAii
KEY MOM . 314 D78 p5
3ee RZNTiNG OF AOU3i.,3
KIANG3I, Budget. Provincial, in 1945 *39 D51 .0.
Coal mining in Bl. D5
B15 D87 p10
B20 321
Coal mines at :o Loh, ic.)rthern B1 D5
.Indigo uf Lop'ing in B4 D28
Metallic oros in .. _ 321 522
Railway, ieukien-, ?rojeoted 817 D96
Tea in B1 D3 pp2-3
26 36
Tung oil in . 22 D15 p4
KIANG3U, Budget, rrovincial, in 1946 and 1947 89 D51 p2
Cement 17actorrs.an in 215 315 p7
Coal rifling in . . 816 D90 p8
Cooperative farms in Northern 216 D88 p6
Cotton cultivationin, before and after
. the War B4 325
ProauTtion and collection in B12 D70 p3
Textile mills in (6th District),
number of machines in (1946-1948) 320 D103 p6
Iron mines in, prospecting of B2 DI3 p4
Silk output and loans in, (1947) B20 320 123-4
Tee in 31 D3
aee also SHANGHAI.
1CIANG8U-0H2KIANG-ANHW2I area, factories in 32 D9 pp2-3
KILIN (or Kirin), Forested area and timber
reserves of B4 D27
3ee N0RMA3T.
KOWLOON, of China's imports and exports via
(1947 and 1948) .321 D105 p3
KWANGSI, Coal mining in 315 D87 p8
Hydro-electric project in Liukiang B18 D98 p4
3ilk producing areas in 810 357 p4
Teamn . 21 D3 p4
Tung oil in 82 D15
RWANGTUNG, Canton-Hankow 7tailway. B16 391
Cement factcries in 315 315 p9
Coal mining in B12 D71
B15 387 pll
316 392 p7
Hydro-electric project in. 'dengkiang B16 389 p4
318 398 0
Industrial and minia(; developments in
1947 B16 392
in 19.48 322 D110
Industries, Provincial B5 329
. IL... Rubber industry in Canton
Paper mills in , 317 394 p5
219 318
311k -)reducing areas in . -.. 71.1^ '.)57
01.:-..-.7t. 71-, 1.-,-,onl in (1947) . . a4U o20
2xporte via Cantr,-. (19,:,-l'W,) B20 320
Tea in 21 D3
P4
"3-
p6
P3
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KWEICHOW, Aluminium in 814 D99 pp2-3
Alunite mines in B14 D79 p8
Coal mining in B15 D87 pp?-8
Hydro-eleetric project in B16 D89 p16
Rubber industry in Eweiyang 819 318 p7
Silk producing areaa in B10 D57 p3
Tea in Bl D3 pp4-5
Tobacco, American-seed, plantation in B19 317 pll
LAKE SALT in 3hansi B4 D26 p11-l2
LAND, Compulsory purchase of, for cooperative
farms 816 D88 p6
Expropriation (in Land Law) B6 D36 pp10-11
Enforced Sale of, by the Land-owners in the
Border Area of Shensi, Kansu and
Ninghsia, Draft Regulations on the
(Deo.21, 1946)B7 A13
Reforms conducted by NationalistsCand
Communists B7 D41
Note: correction of a misprint on p.2
of D41 B8 PI
Registration ( in Land Law) 84 D23 pp12-15
Use of (in Land Law) B5 D30
See also LAND DEBENTURZS, LAND LAW, LAND
RIGHT3, LAND TAXES, li,.INTING OF
HOUSES, etc.
LAUD DEBENTURES for encouragement of owner-farmers
' in Paeifioation Areas B17 D93
LAND LAW, New and old compared B4 D23 '
RE Big
Note: oorreotion of a misprint on
p.10 of D36 B7 PI '
(APr.29.1946): lease of houses, new inter
pretation from Judicial Yuan
(June 24,1947) of the provision
of the, co:learning B9 424
Lip RIGHTS B4 D23 pp3-12
Of foreigners in China 811 D62
Points which all Local Governments Mist
Take into Consideration When Dealing
with Cases on. Foreign Land Rights
(Feb.25,1947). Bll D62 pp5-7
Note: revision of rt.7 818 PIM
LAND TAMES B6 D36 pp4-10
Levy of land increment tax in Shanghai B20 PII
LAWS & REGULATIONS:
ACCOUNTING LAW, Commoroial (Jan.7,1948) 814 A40
815 PII
Note: correction of mistake
in Art.3 817 PI/
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LAWS & REGULATION3: (continuad)
ASSETS Of Profit-seekihg Enterprises, Methods
of Evaluating (Tu),y 3,1946) B8 A16
Fixed, of Industrial, Mining and
Transportation Enterprides, Measures
Governing the Revaluation of
(Dec.28,1946) 87 87 pp6-8
Note: revision of formula for com-
putation . 816
Valuation of, Methods of Readjusting
(reb.21,1947) 38 Al?
BANEiNG LAW, Projected Revision or the (1946) 33 A3
(Sept.1,1947) BO A15
B9 A20
B10 PII
Notes: 1) Application of Art.46-
temporarily suspended..B10 PII
2) Names of banks 813 F/II
3) Restrictions of bank
investments 313 PIII
4) Separate business li-
cence for each branch
or sub-branch B13 PHI
5) Opening of provisional
offices by banks and
removal of Savings or
Trust Departments from
the original business
location B14 PII
6) Lxplanation of some
terms 6iven by Minis-
tr] of Finance 316 PII,III
BANKS, Private: Regulations Governing Read-
justment of Capital (3ept. 6,
1948) 321 A64
Notes: 1) Change in the for-
mula for computatibn 322
2) Special measures for
Banks unable to in-
- crease their capital 322 PIII
? Private: Explanation of Regulations
? Governing Readjustment of Cap-
? ital, (Oct.12,1948) 321 A65
Private: Order of Procedure for Read-
justment of Capital (Sept. 21,
1948) 321 A66
Note: extension of time limit B22 PIII
Private: Regulations Governing, the
Utilisation of Readju ted Cap-
ital.Depositel C
(Oot.8,1': ' - B21 A67
'BUDGET, Measore O.,v,ir_ling the General, of
? Central Government for 1947 (Aug. 5
1946) B3 AS
BUSINESS TAX LAW: see under TAXATION
BUSINESS TAX LAW, SPECIAL: see under TAX-
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LAWS & REGULATIONS: ;continuadl
CENTRAL BANK OF OdINA, Tirojectad Revision of
. the Law Governingt (July 1948) and
the Legislativa Principlos for this
Revision (Fob.14,1947) 37 A14
CHAMBER OF corTAla:, LAW. D:!aft of tho (3an.1948) B16 A47
COMMODITY TAX-REGULATIONS: SOJ under. TAXATION.
EXCESS PROFIT TAXLICi, SPECIAL: sae under TAX-
ATION.
FINANCE, Supplpmentary 1:Jasu:,,;s for tho Read-
justtant of (Aug.26,194B) B20 461
GUILD LAW, COMMJRCIL (San.13,193=' B16 A48
Application R-Ilos Of (00.6,1938) B16 A49
GUILD LA-1, INDU3TRIp.L (Oct7,1947) ....B12 A32
Notes: 1) Transitional moasuras 815 PPII-III
2) Correction of mistakas in
,,rt.16,31 & 44 B16 FIII
Application Rubs of (Mar.25,1948) B17 A52
INCOME so under T.,X-TION.
INHLRIT.11C T../C coo under T-X-TION? 6
rifT3R1,3T, Regulations for Controlling the at
of (Ddc.19,1947) B13 "37
1,"ND LI (..pr .29,1946) B4 1)23
B5 D30
B6 D36
?
LOD, Draft Regulations on tho Entorced Bale of,
by tho Land-ownars in tho Bordar ,.reas of
Shansi, Kansu & Ninghsia (1)00.21,1946) B7 ,.13
L.XD RIGHTS, Points which all Local Governments
must-Take into Consideration when
Dealing with Casas on Foreign
(Fab.25,1947) , Bll 1)82 pp5-7
Note; rovision of ..rt. 7 B18 PIII
LICENCE T-X L, BUSINABB: sae undar
LO"NS, Regulations Governing tha Provisional
Comrittoo for tha Examination and
"pproval of, Grantod to Froductiva
Enturprisas (Dec.1945) B5 D31 pp9..10
Moasuras Govarning tha Examination and
"pproval of -pplications from Private
Entarprisas for aovarnmant Guarantee
on thuir Foreign (Jan.24.1948) B16 ..46
PRODUCT R..;GUL"TIONS: Soo uncial'
T-X-TION.
REGISTR...TION COMM2RCLZ (Draft) (1947) 1)13 .',36
REGISTR-TION:
Measures Governing -pplication for Registering
Profit-saoking Enterprises and Business Of-
fioos of Parsons in Liberal Profossions
(Oct.28,1947) B14 Al
Rogulations Governing "pplication for Ragis-
tering Prorkt-ssoking Enterprisos and Bu-
siness Officos of Porsons in Liberal Frofas-
sions (May 16,1948; . B19 .-.59
Moasures,Governing Changas in tho Ragistration
of the of Yrofit-seeking .nter ins
after . Yuan (6t.
26, 1946) B22 A70
1
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L-WS & REGU.L-TION (contirn.:3d)
RENTING OF H.CU1.5n Intrp2...tation from th.3
riudiciaL Yuen (FA.25,1947) B9 124
.Regulaticns Governing the
(Dec,1,194c\ B13 A39
3ee also LAND LAW.
STAMP DUTY Li, 1131rzaili3; see under TAXAT,ION.
TRADL EARK LAI, rojected Revision of the (1948) 322 A73
LEAD MIN43 In Huna.:1 . B3 D20 p6
In Shan3i . ., 34 1)26 p15
In KianEsi 321 322 pll
LEASE OF HOU3E3: sec 77:ENTING OF HOL3A.
LEATHER, Commodity Pax en 32 32 p6
See also TAnINC. ,
LEND-LEASE materials obtained by China (1937-1947) 311 1)63 p4
LIAONING, Aluminium in B14 1)79 p6
Alunite Mines in .
B14 D79 p7
Cement .ndustry in
B15 315 pp6-7
Coal in ?,........., ................. , B16 D9Q 2
B12 D70 fd
Cotton in
,ilk prO.ucing crr...Ja in B10 1)57 p9
Soe also NCRM.EA3T.
LIBERAL PROF,l33RNS, business offices cf persons in:
, See REGIiTTION.
LIB:MATED AREAS, land question in B7 D41 pp5-6
LICENCE TAX LAW, 3USI1IE33 (Dec.5,1946) B7 112
LICENCE T1X LAW, ?..3,3INES3 (Nov.14:1947) B12 133
In :::hengh.ai, Rules governing the
collection of the (June 30,1947) Bll 131
In Shanghaf-, Rules governing the
collection of 7,11..e (1948) B19 A60
LICENCES & PERICTS, Stamp duty on: see REVENUE
STAMP DUTY 110.
LTIPE INSURANCE, Siaplified B9 D55 pp5-6
See' also INSUFIANCE.
LIMESTONE In Shansi 34 1)26 p10
See GE= .
LINGNAN REGION, Tea in B1 1X3 p3
fiee MANGTUNG.
11 LOANS, Agricultural, in China 38 D47
Agricultural, granted '.)57 Farmors' Bank
since Victory 319 D102 p4
Cooperative Treasury (Central) granted by 314 314 pp6-7
Chemical fertilisers, granted by Farmers' ?
Bank since Victo:7 B19 D102 p8 '
Cot.:,on 315 1)84 p5
Foreign, During 1937-1947 Bll D63 pp).-]8
n'77
Industrial, policy of Joint Head Office of
4 Government Banks p)P
Land, granted by Farmers' Bank nince Victo-,-..y 619 1)102 p9
.Pollcy of Joint Head Office of 4-'Lanka B5 1)31
Production, inc73'?s,e of . .. B10 D58
To Prodacti: .,,nte7rru1ations for
(Dec,116) B5 1)31 .p9
31.31 310 D57 p2
319 D102 p5
Tea 311 1)65 pp1-4
LOPIING IN KIANGSI, indigo of 34 1)28
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MACHINERY & TOOLS, Import of B2 018 p3
See also COTTON TEXTILL] INDUS-
. Tlin Mills, equinment.
MALAYA, trade with: see SOUTH
MANCHURIA: see NORTHEAST.
MANGANESE mines In Hunan 03 020 p5
In KianEsi B21 D107 pp1,4,5
- In .Shansi . 04 026 p14
MATCHES, Commodity Tax on 02 32 p5 "
3ee CO:770DITY TAX.'
Production in :lhanghai 810 310 pp7-10
Raw materials, annual requirements in
Shanghai B11 Sll pp10-15
In Taiwan B6 037 p3
MEASURES & WEIGHTS in Taiwan 06 D37 p4
MEDICINAL SUBSTANCES, Export .of (1946) B10 060 p3
See PHARMACEUTICAL INDUSTRY.
MERCURY- in Hunan 03 020 p8
METALLIC ORES In Kiancsi B21 322
See MET.U3.
METALS, Rare: niton, titanium, uranium, iridium,
etc. in Northeast B2 D13 p5
See ALUMINIUM, ANTIMUNY, BARIUM, COPPER,
GOLD, IRON, LED, E,,NGANESE MOLYB-
DENUM, SILVR, STEEL, TONGAO, ZINC,
etc.
MICA mines in Shansi 04 026 pp8,9
MINERAL PRODUCT T.. Regulations (Feb.5,1947) B21 .68
Rules Governing Collection of
(July 9,1948) 321 .69
MINES In Central China BE DI3 pp3-4
In Hunan 03 020
In Kiangsi B21 822
In Shansi .. B4 026
Japanese prospecting of, in China during
occupation B2 013
See ALUNITE, .annawc, BARITE, GO.Z, COPPER,
GOLD, IRON, LE.D, MERCURY,
METALS, rare: MICA, NIR-13IL1TE, MOLYB-
DENUM, SILVER, SULPHUR, TUNGaTEN, ZINC,
etc.
MINING Developments in Kwangtung in 1947 B18 092
In 1948 B22 0110
In Shensi - B14 082 pp7-9.
Enterprises, revaluation of fixed assets and .
madjustmant of capital of B7 87
See MINES.
MIRABILITE in Shansi B4 026 pll
MOLYBDENUM Mines in Hunan 33 020 p5
Ore in Kiangsi 1321 022 pll
MONETARY Circulation; INFLATION;
See CT7=_,-':- 7.
MDNET.:RY MARKi:IT: see S,FIi4G, COMLODITY PRICES,
CREDIT INFLATION, CRISIS,
CURRENCY, IDL. : CA.PIT.L, etc.
.MOKUEN (or 6ae
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NEWSPRINT, supply and 'demand of B17 1)94 p6
See also PAPER.
NINGHSIA, area and % of fOrest land of B4 1)27
NITRIC ACID Industry in China B2 D12 p2
Production in Shanghai B10 $10 p6
See also CHENICAL Industry.
NORTH CHINA, Cement industry in 815 315 pp5-6
Coal production, transportation and
price. in B1 D6
Bleotric power grid in 136 1)38
Production of electricity, coal, alu-
mina shale, cast iron, salt, oromine,
soda ash, gypsum, carbide of calcium,
cotton in B2 D9 pp3-4
See also HONAN, HUSH, SHANSI, SHAN-
TUNG, TIENTSIN, TSINGTAO, etc.
NORTHEAST, Aluminium in Liaoning 814 1)79 pll
Coal mining in B15 D87
B16 D90
Coal output in Fushun Bl 06 pl
B16 D90 p2
Cotton production & collection in
Liaoning
B12 D70 p4
Cotton textile industry in B6 85 pp2-3
Currency in, effects of civil war on B9 ,D52
Electric power in 88 1)48
Eleotric power network in 86 D38
Fibre production in 88 1)49
Forestry in B4 D27
Industries in 82 09 pp4-5
Industries under N.L.Production Adminis-
trationB 12 1)68
Metals, rare (niton, titanium, uranium,
iridium, etc.) B2 D13 p5
Power Bureau 818 1)98 p5
Rubber industry in 819 818 p7
Textile industry in B8 1)49
NORTH-EASTERN Production Administration, factories
under ? B12 D68
NORTHWEST, Problem of forestry in B4 1)27
See also KANSU, SHANSI, SINKIANG,
" TSINGHAI, etc.
NOTE ISSUE (1945.?-1947) 810 1)58 p2
After Currency Reform of Aug.19,1948 822 323 pp5-6
? And Private Holding of Gold, 3ilver &
Foreign Currencies, Revised Regula-
tions Governing, (Nov,11,1944 B22 823 pp8-11
See also CURRENCY.
?
0
OIL shales in Shansi B4 1)26 p9
OIL TRUST: Chlna 771LotAble Oil Corporation ios. B9 1)53
See also GO'/F;r4r'.-L:s7 71117.1tE:nronza
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OILS & WAXES, Export of B15 D83
See also TUNG OIL.
.OVERSEAS CHIN:CSE, Postwar conditions of Bl 02 pl
Rehabilitation of B9 056 p4
Remittances Bl 02
Bll 063 pp11-13
B12 067 pp3-4
B15 D83 pp11-19
B20 319 p13
supplies for B9 056 pp4-5
OWNER-FARMERS, Encouragement of, in Pacification
Areas B17 D93
See also LAND Reforms, DIND LA'.!,
LAND RIGHTS, LAID TJ-.XES, eta.
PACIFICATION AREAS, Cooperatives in B18 099 p9
Land Administration in B7 D41 p7
B17 D93
Land debentures for encourage-
ment of owner farmers in B17 093
See also LAND Reforms.
PAPER, Drawing & banknote, import & its c/o in China's
total imports (1947, Jan.-Apr.1948) B21 D105 p2
Import (1931-1946) B10 060 p4
Industry in China B17 D94
Mills in Kwangtung t B16 092 p2
Under the N.E.Production Administra-
tion B12 068 p7
B17 D94 p2
Newsprint, supply and demand of B17 094 p6
Products along the Fukien-Kiangsi Railway B17 D96 p4
PARTNERSHIPS, trade names & registration of ' B22 D108
PATENT LAW, analysis of B19 0101
PAYNENTS, balance of: see IN NATIONAL FAMNT3.
PEIPING, Rubber Industry in B19 318 pp5,14
See also HOPLH. ,
4: PERIODICALS, Chinese Economic: see list at begin-
ning of each Monthly Bulletin.
PERMITS & LICENCES, stamp duty on: see REVENUE
STAtl DUTY LKJ.
PERSONAL AFFAIRS, documents on, stamp duty on: see
REVEM STAMP DUTY LAW.
PHARMACEUTICAL INDUSTRY In Shanghai
511 Sll pp1-2
Raw materials, annual re-
quirerents ir Tierebai B11 -1] - -
Under N.E,1,:oduction 4.1r1-1:.s-
tration
B12 068 pp6-7
See also MEDICINAL SUM-
TANCE5.
PHILIPPINES, trade with: SP6 sr""" :1TAs.
PHOTOGRAPT-TIC ISIOCT- f:les in 'Shanghai Bll 311 pp5,10-
15
PLASTER INDUSTRY Under N.E.Productior Acblinistra-
tion 211 311 p5
See also GYPSUM.
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PORTS of Export, main, in 1947 & 1948. B21 D106 p3
5
Import, main, in 1947 & 1948 B21 D10 p3
See also CANTON, SHANGHAI, TANGKU,
TSINGTAO, etc.
POSTAL FINANCE, evolution of China's 39 D55
POSTAL RENaTTANCE & SAVINGS BANK B9 D55
See also.GozatruzT BANKS.
POTASSIUM in North China 32 D12 pl
POTTERY INDUSTRY Under N.E.Production Administra-
tion 312 D68 pp6-7
See also CHINA CLAY, KAOLIN.
PRICES: see COMODITY PRICES.
PRINTING PRS33 under N.E.Froduction Administration . B12 D68 p8
PRIVATE BANKS: see B.NKZ. Private.
PRIV,.TE ENTiPRISES, Government guarantee of
foreign loans to 316 .46
PRIV.TE HOLDING of Gold, Silver & Foreign Curren-
cies, Revised Regulations Govern
ing Note Issue and, (Nov.11,1948) . B13 D94
322 823 pp8-11
PRODUCTION LO.N3: see LO.N3.,
PRODUCTIVE ENTsRIRISS5, investment in, by Commer-
cial Banks B2 Dll
See also INDUSTRY, INDUSTRI.L
ENTERPRISLI.
PROFIT-SEEKING ENTERPRISES: see A3SETS, INC= TAX
(under TAX.TION), 7.iEGISTR.TION.
PROFIT TAX LAW, EXCESS,. SPECIAL (Jan.]. 1947) B6 A10
Application Rules of (Feb.8,1947) B8 All
Note: abrogation (Apr.1,1948) B17 PII
PROPERTY, documents of, stamp duty on: see REVENUE
STAT DUTY LAWS.
PROPERTY TAX
310 D59
PROVINCIAL BUDGETS in 1946 & 1947
B9 D51 pp2-3
PUBLIC INCUS AND EXPENDITURE In China since V-J
Day B3 D17
Ratio between (1938-
820 319 pll
See also BUDGET; FI-
NANCS, Public.
PUBLIC FINANCE: see FINANCE, Public.
Cc,
?
qUOTAS, import For 1947: breakdown of the figures 315 D83 pp5-7
For the first 6 quarters (Jan.1947-
July 1948) 321 D105 p4
For the 7th & 8th quarter? (Aug.1948-
Jan.1949) B20 319 p12
B21 D105 p4
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RAILWAY, Cant on-Hankow
Biturdnous coal along the 666
Fukien-Kiangsi, projected 6
RATE OF INTEREST: see INTEREST.
RAW MATERIALS, Import of
See COTTON, SILK, CHEMICALS, etc.
RAW SILK: see SILK.
READTUSTMENT OF THE CAPITAL OF PRIVATE BANKS:
see BANKS, Private.
READJUSTMENT OF FINANCE: see FINANCE.
REALGAR mines
REFORMS: see CURRENCY Roform, LAND Reforms, etc.
REGISTRATION, Cadastral (in Land Law)
Commercial, Law (Dra/t) (1947)
Of commercial businesses
Profit-seeking Enterprises and Busi-
ness Offices of Persons in Liberal
Professions, Measures Governing Ap-
plioation for Registering (Oct.28,
1947)
Profit-seeking Enterprises and Busi-
ness Offices of Persons in Liberal
Professions, Regulations Governing
Application for Registering
Way 18,1948) ...
Of the Capital of Profit-seeking
Enterprises after its Conversion in-
to Gold Yuan, Measures Governing
Changes in the (Oct.26,1948)
REGULATIONS: see LAWS & REGULATION'S.
RELIEF GOODS for China, from UNRRA
REMITTANCES, Overseas Chinese
B16 D91
B12 D71
B17 D96
B2 D16 p2
B3 D20 pp8-15
B4 D23 pp12-15
B13 A36
522 D108
B14 A41
B19 A59
Bank of China, services in foreign
522 A70
B11 D63
B1 D2
511 D63
512 D67
B15 D83
B20 319
Pg
countries
Bl
D2
pp 2-3
Through, in first half
of 1946
B1
De
P3
Postal, evolution
B9
1355
pp1-3
Postal AdminLstration, undertaken by
the Chinese
B9
1355
PP6-7
Postal Savings and, Bank
59
D55
RENTING OF HOUSES, Interpretation from the JudiCial
Yuan (Feb.25,1947)
B9
A24
Regulations Governing the
(Dec.1,1947)
Regulations, analysis of the
(Dec.1,1947)
See also LAND LAW.
REOCCUPIED ZONES, indnstries and mines taken over
in
REVENUE STAMP DUTY: see STAMP DUTIES; STAMP DUTY
LAW, REVENUE.
513 A39
B14 D78
B15 D86
52 DO
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REVIEWS, CHINESE ECONOMIC: see list at beginning of
each issue of MONTHLY,SULLETIN
RICE, Production and requirement ce Bll 1066
. Production in Sinkiang B2 D14 T5
Mills under N.E.Production dministration 312 D68
Import and its 5a in China's total imports
(1947, Jan.-Apr.1948) B21 D105 p2
see also FOODSTUFFS.
RUBBER Industry in China B19 318
Factories in Shanghai B10 310 pp10-11
B19 318 pp2-4
Under N.E.Production Administra-
tion , 312 D68
Raw materials annual requirements in
Shanghai Bll 311 pp10-15
.SALART OR WAGES, Rates of Taxation on Income of
Clasp II Section B from Pixed (for Aug.-Oot.
1947, Nanking and Shanghai) B12
See also INCWE TAX under TAXATION.
SALES INVOICES, 'Revenue Duty Stamps on (Oct.25,1947) B13
See also STAMP DUTY LAW.
SALT TAX 320
SALTPETRE in Shansi B4
SAVINGS, Postal: evolution 39
SHALL'S OIL in Shansi B4
SHANGHAI, Business Tax, Enactment concerning the
Simplified Investigation and Collection
of the (Oct.18,1948) B22
Business Tax, Notice concerning the Sim-
plified Investigation and Collection of
the, for Autumn 1948 (Oot.20,1948) 322
Celluloid industry in B11
Cement factories in B15
Chemical industries in B10
Chemical raw materials, annual require- B11
ments in 311
Cigarette industry in 319
Cotton textile industry in Bl
B6
Cotton mills of the China Textile Indus-
tries, Inc., nrmber of machines in,
(1946-1948)
Enamel industry in
Exports via, i of China's total (1947,
1948)
Export via, after Currency Reform of Aug.
. 19, 1948
Export of silk via, (194P-1947)
G1aso73ar tre.ust,7 in
Imports via, ?lc: of China's total, (1947,
1948)
Industries in, during 1947
Industries and oommerce in, after Currency
Reform of Augr19,1948
A34
A36
A61
D26
D55
D26
A71
P3
pll
PP3 -5
pp9 -10
A72
Si]. P5
815 p7
Sll pp10-15.
31?
D7
35 pp2,3
320 D103 p6
311 Sll pp8-9
BR1 D105 p3
322 323 pp4-5
B20 320
B11 Sll pp6-7
B21 D105 p3
B14 D81
B22 323 pp2-4
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SHANGHAI (oontinued) .
Iron and steel works in B15 D35
Licence Tax, Business, Rules Governing
the Colleotion of the (June 30,1947) ... 811 A31
319 A60
(1948)
Money market in, after Currency Reform
of Aug.19,1948 322 325 pp5-6
MUnicipal budget. in 1946 and 1947 89 D51 p3
Paper mills in B17 394 pp2-4
Pharmacoutioal industry in 311 511 pp1-2
Photographic blocks factories in B11 Sll p5
Rubber factories in . 810 310 p10,11
319 318 pp2-.
Soap industry in 811 511
36 D35
U g3
Stook Axohango
SHANSI, Coal in
Coal mines in Tatung
Forest land of, area and % of 84 D27
Mineral resources in 83 D26
Silk producing areas in 310 357 P4
SHANTUNG, Aluminium industry (Bayer Method) in B14 D79 pp13-15
Alunite mines in 314 379 pp2,7
Coal mining in B16 D90 p6
'Cotton produotion and collection in B12 D70 p4
Gold mine in Chaoyuan and Pingtu B2 D13 pp4,5
Silk, producing areas in 910 D57 p4
Tobacco seed, American plantation in B19'317 p10
See also TSINGTAO
SHENSI, Budget, provincial in 1947 B9 D51 p3
? Coal mine in B9 39
? B15 D87 p12
Cotton production and collection in B12D70 p4
Economy of, through statistical figures "Of B14 3e2
Hydro-electric protect in B16 389 p17
Irrigation in B14 D82 p3
Silk producing, areas in 810 357 p4
Teamn B1 D3 p5
Tung oil in B2 D15 p4
SHIPPING, Present conditions of Chinese B3 D18
Antorprises, Methods itr Investigation
and Collection of Business Tax on Blt A44
See also CHINA MIRCHANT'S STEAMSHIP
COMPANY, BU3M53 T.X.
SIAM. trade with: see SOUTH 5A.1.5.
SIKANG, Coal mining ill B15 387 p6
Hydro-eleotrio power in B15 389 p14
SILICA in Shansi B4 326 pp10,11
SILK Production and trade Rig To
Export (1946-1947) Ri8 EV a
Products, ports of export of
exporting agents
Loans
SILVAR In private hands, estimation of quantity of
B10 D57 p13'
B10 D57 pr11-13
B10 D57 p2
819 D102 1)7
320 320 p5
. Eis 3/4
9 p6
Surrender of, hold by the people (in the
Currency Reform of Aug.19,1948)
. 820
319
pp5-6
Private Holding of Gold, 3ilver and Foreign
Currencies, Revised Regulations Governing
Note Issue and (Nov.11,1949)
322
523
-pp8-ll
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SILVER (continued)
Dollars, free circulation of, Since Economio
Reform of Oct.31,1948 .
B22 323
pp10-11
Mines in Hunan
33
D20
p6
Kiangsi
321
322
pll
Shansi
24
D26
p12
Smuggling in 1934
3313
1)74
p5
SINKIANG, Agriculture in
32
1)14
Area and of forest land of
34
D27
Gold mining in Altai Mountains
B10
1)61
SMUGGLING Along the Canton-Hankow Itailway
B16
D91
p5
See also IMPORTS, EXPOaT3, INT2RNATIONAL
PAYMENTS, OVERSEAS mini's3,3 RelaTTANCE,
SILVER, etc.
30AP INDUSTRY In Shanghai
Bll 311
1*3-4
See also SODIUM SILICATE.
SODA and its 'by-products
22
1)12
pp2,3
SODA, CAUSTIC, rroduction in Shanghai
310
310
p4
In Taiwan
318
D100
SODIUM SILICATE Production in Shanghai
310
310
prb,3
3ee also SOAP INDUSTRY.
SOY B2AN chemistry in Northeast
B12
1)68
ppe-10
SOUTH SEAS, trade between China and
B9
1)56
B21
D106
SPECT.J., BUSINESS TAX LAW: see under TAXATION.
SPECIAL EXCESS PROFIT TAX LEJ: see PROFIT TAX LA4.
SPICES: export in 1946
B10 1)60
p3
STAMP DUTIES, influenoe of, and of Government
?
control on the development of insuran-
ce in China B3 1)24
STAN DUTY LAW, LEVENUJI (Apr.16,1946) . B4 A6
Enforoement Rules of (Tuly 12,1946) B4 A7
(Tune 6, 1947) B10 A25
Application Rules of (Tuly 3,1947) 210 A26
B13 PIII
:Revenue duty stamps on sales initoi- .
08S (Oot.25,1947) B13 A38
(Apr.3,1948) B18 A56
Notes: 1) Date of onfor.cement
In Shanghai B18 III
2) 3xplanatory examples
concerning 'documents
of principal debt &
aocessory debts' 319 PII
3) Correction of error in
Art.16 B19 riTI
4) Revision of duty rates B20 A61 ppe-20
Application Rules of (Apr.20,1948) B19 A57
STEEL wopm in Shanghai B15 1)85
STOCK EXCHANG3-in Shanghai 36 335
Cash margins and idle
capital B13 D77
SUGAR Industry in Taiwan Bl 1)4
Production in Taiwan as seen by the U.S.
Sugarcane rission % B9 D54
Refinery at 3hunte, kwanctung B5 1)29 p6
SUIYUAN, area and ;'0 of forest land of Pit b3172
SULPHAtL OF AMNIA P3 '
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,
aULIHDR mines In Hunan 4 - 33 D20 p7
In Shansi 34 D26 p8
SULPHDR BLACK B10 310 -2
SULPHURIC ACID Industry in China B2 D12 p2
Production in ahanghai B10 310 p6
SZECHUAN, Aluminium in B14 D79 pp5-6
Alunite mines in B14 D79 P8
Cement factories in B15 315 p9
Coal mining in B15 D87 p5
Cotton production and colleotion in B12 D70 p4
Hydro-electric power in B16 D89 pp3-14
818 098 p4
Paper mills in . B17 D94 p6
Rubber industry in Chungking . B19 318 p7
ailk output and loans in (1947) 320 320 pp3-4
Teamn Bl D3 p4
Tung oil in B2 D15
TAIWAN, Cement factory in
Chemical industries in; alkalis & ferti-
lizers
Coal mining and trade in
Cotton textile industry in
Electric power network in
Company
B15 315
B18 D100
821 0107
B16 D90
B6 85
B6 038
B18 098
pp.78
p9
p3
pp1,5-6
p7
Exports of
B3
022
p2
Finance in
B3
022
Forestry in
320
0104
Monopolies (camphor, beverages, tobacco,
matches, weights & measures)
86 D37
Paper mills in
B17 094
p5
818
098
pp7-8
Rubber industry in
319
318
pp6-7
Sugar industry in
B1
04
.Production in, improvement of, as
seen by tile U.3. Sugaroane Mission B9
054
Trade in 33
D22
with Japan.
B13
313
pp6-7
TANGKU, New Harbour of
811
064
TANNING /n ahanghai a..
310
310
;1)11-13
See also LEATH,22.
TAT'UNG Coal field
32
013
pp1-2
37
043
See also SHANSI.
TAXATION:
BUSINLSS LIC.:!;NG.'.. TAX; see under LMNOZ TAX LAW
below.
BD3IN3,1 TAX LAW (Apr.16,1946) .
B5
AS
Enforeemant Rules of (Aug.16,1946)
35
A9
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TAXATION (continued)
BUSINESS TAX LAW (May 1, 15vi) B8 A19
Notes: 1) Correction of mistake in
Art .16 Bll PII
2), Revision of Art.5 . B12 PII
3) Manufacturing enterprises
taxed at only i of the pres-
oribed rate B14 PII
4) Exporters oxempted.from the
tax B17 PII
Application Rules of (Aug.4,1947) B10 A87
Notes: 1) Tablo attached to Art.? B12 A35
2) Revision of Art.9 & 12 B15 PII
:Enaotments Concerning the Simplified
Investigation & Colloction of the Busi-
ness Tax in _Shanghai (Oct.18,1948) B22 A71
:Notice Concerning the Simplified Investi-
gation & Collection of the Business Tax
in Shanghai for Autumn 1948 (oct.20,
1948) 822 A72
BUSINESS TAX LAW, SPECIAL (May 1, 1947) B9 A22
Notes: 1) Computation of tax for im-
port-export firms B12 PIII
2) Computation of tax for. insur-
ance,Co. B12 PIII
3) Correotion of mistake in
Art.17 B13 PII
4) Businesses in Shanghai to in-
dicate subordinate.organi-
sations in submitting the
report for the taxation B18 PII
Application Rules of (June 11,1947) 82 A23
Notes: 1) Revision of Art.9 B11 PII
2) 'Interest and doposits' tem-
porarily cancelled in com-
puting business profits Bll PII
3) Temporary deduction of'remit-
tance charges' and 'fees'
in computing business pro-
fits ma PII
:Simplified Methods for the Investigation
and Collection of the (Special) Busi-
ness Tax on Shipping Enterprises (1947). 215 A44
COMMODITY TAX In 'China, study of . B7 D44
B8 D46
Reaotion to the onforoerqnt of B2 82
COMMODI1Y 1AX iknGOL&TIONS (tlx,P.1918) .....?.? B19 A58
Notes: 1T- Revision of Art.14 B19 PII
2) Revision of Art.3,4 & 5 B20 A62
EXCESS PROFIT TAX LAW, SPECIAL Fan.1,1947) B6 A10
Application Rules of Feb.8,1947) B6 All
Note: abrogation (Apr.1,1948) B17 PIII
HOUSES, tax on B6 D36 p9
INCOME TAX, Comparison of former and present Bl D8
Controversy on collection of B8 38
Assessment of capital of profit-
seeking enterprises for B12 D72
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TAXATIONt (continued)
INCOME TAX LAW (Apr.16,1946) , Bl Al
Notes: 1) Starting point for General
Income Tax and sums to be
deducted from it B12 PII
2) Amount of foreign Income Tax
. ? .
deducted B12 PII
Enforcement Rules of (July 3, 1946)
Bl 112
Note: revision Cf Art.6 & 7
B10 PII
Readjustment of Amounts of Tax Exemption
and Scales of Taxation, Regulations
Governing (Mar. 15, 1947) B8 1118
Amounts Exompted and Rates of Taxation
(Apr. 24, 1947) B9 1121
Bll PII
Investigation and Collection, methods of,
. for Class II, Section A (July 7,1947). Bll 1130
Rates for Class II Section B in Nanking ,... Bia
and Shanghai (Aug.-Oct:1947) 1134
Investigation and Collection. Methods of,
for Profit-seeking Enterprises (Feb.
? 3 1948) B15 1142
Starting Points and Rates of Taxation
(Feb.12,1948) - RIR A43
-.,
Formula for Computing, for Class II
' Section B (Feb.194C) B16 1145
INCOME TAX LAW (Apr.1,1948) B17 A50
B18 A53 ,-,
Notes: 1) Correction cf error B18 , /PH
. a) Revision of Art.10 B18 PII'
3) Revision of Art.101 819 - PII
Starting Points and' Rates for 1948
(Apr. 1, 1948) B17 1151
Note: retroactive effeot B18 . PIII
Starting Point and Rates for Income from.
Temporary Sources (Apr.a7,1948) B18 1155
Readjustment of Tax on Income from Fixed
Salary or Wages and from Temporary
Sources (Apr.27,1948) B18 1154 .
Rovisad Starting Points and Scales (Aug.
26,1948) B20 A61. pp5-6
Investigation and Collection, on profit-
seeking Enterprises, Supplementary
Methods (3ept.21,1948) 821 1163
Note: second part of Tax for 1948 B22 PII
INHERITANCE TAX .LAW (Apr.16,1946) B11 1128
Application Rules of (July 12,1947) 811 1129
Note: Revised starting point,
schedulo of taxation and ',..
deductiQua granted (Aug.
26,1948) 820 1161? pp6-7
LAND TAXES B6 1X36 .pp4-10
Levy of land increment tax in Shang-
hai 820 PI/
See elso :II:ND LAW.
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TAXATION: (continuod)
LICENCE TAX LAW, BOSINE33 (Dec.5,1946) B7 Al2
:Rules Governing the Collection of the
Business Licence Tax in Shanghai
(June 30, 1947) B11 431
[
:Rules Governing the Collection of the
Business Licence Tax in Shanghai
(1948) B19 460
LICENCE AX LAW, BUSINESS (Nov.14,1947) 312 A33
4' Note: Temporary postponement in
Shanghai B20 PII
MINERAL PRODUCT Ti 1-GUIATI03 (Feb.5,1947) 321 468
Rules Governing the Collection of the
(July 9,1948) 321 469
PROFIT TAX, EX1E33: see EXCEi33 PROFIT TAX LAW,
PROPERTY TAX 310 1)59
REVENUE 3TA12 DLTY: see under STAEF DUTY LAW.
STAMP DUTY LAW, REVENUE (Apr .16,1946) B4 46 -
Enforcement Rules of (July 12,1946) 34 47
STAMP DUTY Lica, REVENUE (June 6,1947) B10 425
Application Rules of (July 3,1947) B10 426
B13 PIII
:Measures Governing the Affixing of
Revenue Duty Stamps on Sales Invoices
Issued by Factories which Have Already
Paid the Commodity Tax (Oct.25,1947) B13
STAMP DUTY LAW, REVENUE (Apr.3,1948) B18
Notes: 1) Date of enforcement in
Shanghai B18
2) Explanatory examples'concern-
ing 'documents of principal
debt & accessory debts' B19
3) Correction of error in Art.16 B19
4) Revision of duty rates B20
Application Rules of (Apr.20,1948) 319
TAXATION, public income from
TAM iron mine
TEA, Geographical distribution of, in China
Production and loans
During 1946
Trade and foreign exchanEe
Marketing (1946,1947)
Export (1946)
Oil export (1946)
Products alonE the projectea Fukien-Kiangsi
Railway
Commodity Tax on
TEXTILE, Cotton, industry in China, present condi-
tions and prospective difficulties
Artificial fibre industry in China, crea-
tion of
B3
B2
Bl
Bll
B6
311
Bll
B6
B10
Bll
B15
B10
438
456
,PII
PII
PIII
461 pp8-20
A57
D17
D13
D3
D65
36
D65
065
36
060
D65
D83
060
B17 D98
32 32
36 34
B20 D103
B5 34
P3
p4
pp1-4
P7
PP3-4
PP4-6
P3
P4
P6
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TLETILE (continued)
Fabrics, export in 1947 .
Cotton, industries in Shanghai . .
Industry in Northeast
Under N.IL.Production Administra-
tion
Fibre production in Northeast
Factories in KWangtung
B15 DO3
91 D7
138 D49
B12 D68 p3
138 D49 i
1316 1)92 p3
B5 1329 p7
See also COTTM, SILL, etc.
THAILAND (or 3iam), trade with: see 3OUTH 33.
TIENTSIN,Cotton textile industry in
136.
35 1)12,1
China Textile Industries,Inc. in, output
of cotton rani and cotton piece goods
.of the (1946-1948)
920
D103 p5
Imports and exports via, % of Chi:la's
total (1947,1948)
B21
D105 p:3
Rubber industry in
1319
818 p:p5,11
See also HOREB, NORTH CHINA.
TIMBER In Shensi
1314
1)62 p6
In Taiwan
920
1)104 pp1.7.-11
Products along the projected Fukien-Kiangsi
Railway
B17
1)96 p4
Export in 1946
B10 D60 pp3,4
See FORESTRY.
TIN Mines in Hunan
1 13!:!0,
In Kiangsi 21 35 2
11
Export B15 1383 p9
TOBACCO, Problems in China 519 317
, InduStry under N.E.Production Administra-
tion B12 1)68 p7
In Taiwan 96 1)37 p3
Flue-oured, in Bonen (1946) B5 1)33
American, loans since Viotory . B19 1)102 p7
Import and its %, in China's total imports
(1947, Jan.-Apr.1948) B21 1)105 p2
See also CIGARETTE.
TOOLS: see MACHINERY & TOOLS.
TRADE And industries 1322 323
39 D50 pp3..t
Foreign, since Victory 315 1)83,1321 210E0
Between China and South 3ea3 B9 D56
1321 D106
With Japan, reopening of private B13 213
Deficit, prospects, China's B21 Dioe p3
In forest products in 1946 B10 1360
In Taiwan B3 1322
See also FOREIGN TRADE, IMPORT, EXTORT, INTER-
NATIONAL PAYMENT3, etc.
TRADE MARK LAW, Projected Revision of (1948) 1322 A73
TRADE NAME of commercial businesses . '2.2. D109
1313 312 p4
IL TRANSPORT in Shensi
TRANSPORTATION ENTPRISE"..3, Revaluation of fixed B14 D82 p9
assets of B7 37
3ee also SHIPPING, RAILWAY.
TRUST: see CENTRAL TRUTT, BANKS (trust companies).
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T3INGHAI, Hydrorelectric power plant in B16 D89 p15
See also NORTHW1ST.
ISINGTAO, Cotton textile industry in 26 35 p2
Cotton yarn and cotton piece Goods of
China Textile Industries,Inc.in, out-
pdt of B20 D103 p5
Rubber industry in B19 318 p5
Impbts & exports via,- 9. of China's
totul (1947,1948) 221 D105 p3
See also SHANTUNG, NOhTH CHINA.
TUNG OIL Production in China B2 D15
Tree cultivation in China B2 D15
Export 015 D83 p8
(1946). 010 D60 pp3-4
(1922-1946) . . . ... 522 D109
World Maiket.& Chinese problems B22 D109 pp4-5
Bee also CHINA VEGETABL OIL CORPORATION.
TUNGKUAN, coal mines in, Shensi B9 39
:See also 5BEN3I.
TUNGSTZN Mines in Hunan . B3 D20 p5
Nines in Kiangsi B21 322 p-11
Export in 1947 B15 D83 p9
UNRRA relief good's for China Bll D63 p9
URANIUM in Northeast 02 D13 p5
U.S. DOLLARS Quotations and commodity prices B13 D75 pp5-6
? Ses also FOREIGN EXCHANGE, .
U.3. SUGARCANE Mission, and sugar in Taiwan B9 054
U.S. AID Loans to China 1937-1947 B11 D63 p7
U.S. ARMY SURPLUS NL,TLRIALS sold to China Bll 063 0
V
?
VANADIUM B2 D13 p5
VEGETLBLit; OIL CORPORATION, CH Tq B9 D53
W
WAGES, Fixed, rates of taxation on Income of Class
II-, Section B: see INCOM TAX under
TAXATION.
WAR, Civil, changes in foreign trade caused by B21 D105 pp1-3
WAR REPARATION, Japanese, to China Bll 063 p10
WATER POWER In Shensi B14 D82 p6
In Chekiang t 322 324
See also ELECTRIC POWER (Hydro-).
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WHEAT, Production and requirement of B11 D66 p2
B13 075 p6
Production in Sinkiang 32 D14 p5
Imports 311 066 pp2-3
And its in China's total imports (1947,
Jan.-Apr.1948) B21 D105 p2
See also FOODSTUFFS.
WOOD Fibre industry B10 060 pp.5-0
Oil (See TUNG OIL).
Pulp, supply and demand of 317 094 p7
See also TINBLE, FORE3TRY.
WOOL Import and its 'i. in China's total imports
(1947, Jan.-Apr.1946) 321 D105 p2
WOOLUN GOODS, commodity tax on 32 32 p?
WOOLLEN RAGS for paper industry B17 094 p6
WOLFRAM: see TUNGJTEN.
YUNNAN, Aluminium in 314 079 p4
Alunitp mines in B14 079 p6
Cement industry in gig lo 15
Coal mining in
Hydraulic power in 316 089 p4
B17 095 p12
Projeot in B18 D98 p3
Silk output in (1947) 320 320 p3
Silk producing areas in 610 057 p4
Silk exports via Kunming and Hengtzu,
(1946-194?) B20 320 p7
Teamn Bl D3 p5
Tobacco, American aced, in B19 al? pll
ZINC Mines in Hunan
In Kiangai 321 322 pll
33 020 p6
(Erm)
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