FINANCIAL CRISIS

Rotorua Morning Post, Issue 5330, 18 February 1947, Page 5

FINANCIAL CRISIS

(Press Assn.—

government boosts united states dollar

-Rec. 9.30 p.m.)

NANjCING* Feb. 17. The Chinese Government has boosted the offieial - exehange rate of^the Chinese dollar from 3350 to 12,00 6 for one United States dollar. The. new rate will be effective from to-day. The Government has also banned the cir-culation jf foreign currency and ordered Chinese nationals abroad to report "on pain of severe penalties" their foreign and domestie hbl-dings in 'oreign exehange or securities at the offieial rate. Announcing the emergency measures, Generalissimo Chiang Kai-shek said the Government's foreign exehange resources, including gold, would be conserved for raw materials and machinery so that communication and factories could operate. . The new exehange rate, while much higher than the old rate, was no higher than the prevailing domestie price level. Generalissimo Chiang Kai-shek detailed other moves aimed at relieving the crisis, including the removal from Government ownership of all indus-' tries except 'those needed for national defence, the reduction of government expenditures, improved tax collection and the elimination of usuiious interest rates. "We are not facing a question oi' political parties, but a problem even of the survival of the Chinese nation." he added. "I call on all patriots to join me in working out the salvation of the country and pledge loyal cooperation. We must now take stock of the situation and meet it realistically and sieadfastlv."