893.516/720: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received 6:06 p.m.]
633. Nanking’s 139, December 20, 4 p.m.62 The Vice Minister of Finance informed a member of the staff of the Embassy that no anxiety is felt in official or banking circles here due to the establishment of a new central bank at Nanking. He stated that he is confident that the new bank is not going to be in a position to cause any harm to the national currency. He also added that he is certain that the exchange rate of the Chinese national dollar will not be affected by the issuance of the new notes. According to this official, Chinese [Page 564] currency is in a very strong position since the American and British loans were made. The note issue at present has a 70% coverage and, according to the above mentioned party, the entire cost of conducting military operations for the next year can be met by merely increasing the note issue without the coverage falling below 40 to 50%.
- Not printed.↩