893.515/570: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
[Received May 24—10:49 a.m.]
254. 1. Shanghai situation. Directors American Oriental Banking Corporation, American Oriental Finance Corporation and Asia Realty Company, closely allied American concerns, closed business this morning and will request United States Court for China to appoint liquidators. Action has thus far not caused much difficulty in banking circles but may as news permeates. National Industrial Bank (Chinese) suffering mild run. Official of Central Bank of China states that his bank supporting National Industrial Bank. Foreign banks not experiencing runs. Banking circles are somewhat nervous. Possibilities of situation briefly outlined in my despatch 9941 of March 13, 1935 and its enclosure No. 2.99
2. I understand China Banks are placing difficulties in way of persons wishing to convert notes into hard silver in quantities which might indicate purpose as smuggling. Foreign banks state they will pay silver against deposits at present, if demanded.
Repeated to the Legation.
- Neither printed.↩