893.5151/511: Telegram
The Consul at Chefoo (Roberts) to the Secretary of State
Chefoo, October 4, 1938—4
p.m.
[Received 5:15 p.m.]
[Received 5:15 p.m.]
Referring to my telegram of August 26, 4 p.m., regarding currency situation:
- 1.
- The Federal Reserve Bank at Chefoo is withdrawing Chinese national currency from circulation as quickly as possible, creating shortage of currency (old currency).
- 2.
- The Hong Kong [and] Shanghai Banking Corporation unable to import fresh supplies of Chinese national currency is refusing to purchase bills of exchange covering exports and to fix forward exchange contracts. This measure has been taken to conserve existing stock of bank notes for its depositors. As the Yokohama Specie Bank still adheres to its policy of dealing only in Federal Reserve bank notes at the arbitrary rate of 29 American cents for one dollar Federal Reserve Bank currency, the action of the British Bank increases difficulties of exporters shipping to the United States.
- 3.
- Federal Reserve bank notes are not accepted in interior of Shantung where export products originate.
- 4.
- Repeated to Peiping, Chungking.
Roberts