INFLATION IN CHINA MOUNTS

Chronicle (Levin), 2 May 1947, Page 5

INFLATION IN CHINA MOUNTS

Boceived Thursdav, t>.40 p.m. NEW YORK, April .10. Tlic cconomic situation in ('hina J tiu'catcns to break complctcly out of eoniro] again, reports the New York ; Tiuics Nanking' correspondent. The maia cause of the increasing state of ' cconomic collapse is continucd infiation. This will confinue while civil war y drains the national budg'et. The Govcrnment has refused to reveal any note issue figures bul it is reliably estimated that intlation is mounting at Ihe rafe of (100, 000, 1)00, 000 Chinese dollars monthly. j Alilitary cxpenditures are consuming mosl of the amount. The priees of many basic commodities have increased as ii'iuch as 100 per cent in the last few wccks. The blackmarkets, temporarily su])]nessed by the new eeonomie policing' inauguratod in February, are sprcading rapidlv despite rigid supervis'ion. United States dollars are now sclling at up to 00,000 Chinese dollars , in the Shanghai blackmarket compp,red witli the official exchange rafe of 1^,000. Commodity priees in January were 12,000 times tlie prewar level but, . have since increased to 20,000 times Ihe rates ruling in 1937. Little apparpntly has been done about phases of the ' Eebrnary pfogramme calling for nmrc eirectiv'e tax eolleetions from tlie P

wealthy and mobilising the assetS poSsessed by Chinese citizens abroad Which are known . to total severn] hundred million United States dollars.