1927-06-03 — Page 8

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JAPANESE & SOVIET NOTES

FRIDAY, JUNE 3, 1927.

VOLCANO "GOLF.”

EASY HOLE-IN-ONE.

Volcano, Hawaii-Secretary of the Interior Hubert Work, and Governor Wallace R. Farrington

of the territory of Hawall, recently In view of the possiblo upset in starred in one of the most singu- North Chinn, following the adlar golf games known to history, vance into Shantung of invading They made the Volcano Hole-in-

One Southern armies, and the big Japanese and other foreign inter- esta involved, as well as Marshal Chang Tso-lin's vital" concern in events, the following extracts from an article on the currency situa

the tion in Manchurin, from

Chinesa Economic Journal are of special interest:

During the visit to Hawall Na- tional Park, following the Pacific Educational Conference held in Honolulu, the officiate played golf on the lava covored floor of Kilauea Volcano with the enorm ous fire-pit of Halomaumau as the only hole on the course.

According to eye-witnesses, Sec.

two

The currency of Manchuria is even more complicated and diver-retary Work became a member of the "hole-in-one-club" when he sified than that of China proper drove the ball far into the space Broadly speaking, it consists of over the gigantic pit. The Gov. three independent elements. (1), ernor, however, required metallic currency, that is silver strokes to make the "hole," which bullion, silver coins of various is a quarter of a mile in diameter. weights and value, copper coins Both players stood ten feet from and strings of cash; (2), paper the rim when driving. money, of which there are many independent issues of different de- nominations, sources and separate- ly fluctuating rates of exchange; (3), foreign money; coins and

notes.

The metallic money in Man- churia has no such peculiarities as are found in other parts of China. However, one of the characteris- ties of the present-day currency of Manchuria is the scarcity of metal, which during the last quar- ter of a century has been gradual. ly driven out of circulation by the paper notes.

Silver bullion calculated in tuels, which are still predominant in the upper financial strata of China proper, does not occupy any prominent place in Manchuria. But this system of currency is used in trading with Mongolians in the less populated northwest ern and western parts of Man- churia. It is also popular in some of the South Manchurian ports, such as Newchwang, where it operates, or used le operate, only nominally, the unit being a "trans- fer tacl, which is the standard basis for the settlement of ac- ouats, but cannot be cashed otherwise than by drawing on sóme other place,

Shoe-Shaped Ingots. The bullion in question consists usually of shoe-shaped silver in- gats, each weighing from 50 to 63.6 Tsaoping taels. Whenever a smaller quantity is needed, the in got is cut into pieces in a kind of blacksmith's shop. The crude pro- cess employed results in much lone

Other prominent mon In the "game" were Dr. J. J. Tigert, U.S. commissioner of education: Ste- phen T Mather, director of nation- al parks, and others in the Pacifte conference party.

Delegate Islay MeOwan of Fiji, drive, registered the longest smashing the ball far beyond the centro of Halemaumau, which is the heart of Kilauea volcano.

politi-

In accordance with the cal vicissitudes of Manchuria, these were represented first by the Russian rouble and later by the Japanese yen.

The rouble appeared in Man- churian marketa simultaneously with the construction of the Chinese Eastern Railway (1896- 1897), which enterprise gave the first impetus to the development of the waste land of Northern Manchuria and, together with the C. E. R. zone, stood politically and financially under complete Russ- ian control. Upon the construc tion of a branch-line-leading to Liaotung Peninsula (the the present South Manchuria Rail- way), the rouble penetrated into Manchuria ad 'well. Southern The Boxer Troubles of 1900, and the subsequent occupation of strategic points In Manchuria' by Russian military forces, further strengthened Russian Influente, political

as well

as financial.

Once introduced, the rouble be came very popular, thanks to its advantage in respect of stability and handiness, and at the begin- ning of the Russo-Japanese war of 1904, it had already occupied of metal dust. Here, as everywhere a predominant position in curren-.

in China, a tael is, of course, noty circulation not only of the

a coin, but a theoretical unit repre- senting silver of a certain weight nd flaeness. Despite its incon- veniences, this silver bullion is sometimes used by the shrewder. peasants as means of saving and hoarding, being much preferred to the depreciating and uncertain

paper currency.

railway zone, where it was made legal tender, but also of many parts of the interior.

Political Influences,

The balance of influence of « the

Russian rouble and the Japanese. yen was disturbed first by the World War and then the Russian Revolu- tion and subsequent political events, which brought about a complete col- lapse of the old Russian paper rouble. Consequently, the Japanese you has gradually invaded the former Asphere of the Russian money and established itself in Northern Man- churia. However, this penetration is far less profound than was that of the former Russian rouble.

Silver dollara used to have an extensive circulation all along the railways, but so far as Norther Manchuria is concerned, this is already a thing of the past. Here they serve as an instrument of trade only in exceptional cases. certain quantity of dollar coins of different mintage is, however, still circulating in Manchuria, some of them of full weight and value, some debased and accepted only at As to the former Russian rouble, discount. Besides these, there it is.at present, met with in Northern exist in Manchuria the so-called Manchuria only in the shape of small dollars, that is, subsidiary gold.cains (5 and 10. roubles' worth), silver coins of smalles denomin of which a small quantity has r tions..

mained in circalation. The 'budzet It is nearly impossible to de- and all the transactions of the Chi- scribe in detail all the numeronese Eastern Railway are still cal different issues of paper notes circulated in "gold roubles but this culating within the Three Eastern is a fictitious unit, the rate of which Provinces, but the following three is based on daily quotations of the kinds of paper money are predo-pound-sterling and of the American minant: the Harbin tayang-pivo, dollar, actual transactions being the fine and the feng plao; and in conducted in Chinese and Japancso fact constitute the principal in- trument of the currency circula- tion of Manchuria.

currency.

Soviet notes are finding a difficulty in becoming established.

Entry of Foreign Coin,

It goes without anying that the Foreign money penetrated into circulation of foreign paper money Manchuria at the very beginning on Manchurian soil has not been of the modern development of the based on any specific agreement. country, this is, more than thirty The Contract for Construction and years ago. This penetration has Oporation of the Chinese Eastern- ever since been closely connected Railway of 1896 invested the conces with the peculiar political condi- sionary with the absolute and ex tions in Manchuria, where foreign clusive right of administration of influence political and economic the Railway's land." This stipula -has. always predominated. tion was interpreted by Russin in Manchuria more than any other the widest possible sense, and thus part of Chian has been developed led to the adoption of an independ by foreign capital, which here as ent polley in currency matters. The everywhere in China used to rely Japanese, according to the stipula upon some kind of money having tions of the Portsmouth Treaty, International value and quoted in acquired in respect of the South the financial centres of the world. Manchurin Railway all the rights The unwillingness of foreign in and privileges which Russin possess- vestors and merchants to convert ad on the Chinese Eastern Railway. their capital and means into the Despite official regulations to unstable and intensively localized the contrary, the transfer of native currency resulted in China moner is again effected not at the Proper in the extensive use of the official, but at the current, market silver bullion or ayece, which is price on rate, the Chinese money still the standard medium of ahons are again doing business, wholesale transactions, and which and money Japanese and Chinese has an international value as re- alike--is once more accepted by gistered by regular quotations of the traders indiscriminately. silver in London, New York, etc. Even the strict order to keen ac In Manchuria (because of the counts in 'tayang, is not, enforced scarcity of metal on the one hand any more. And the tayang- and the intensity of foreign pouc-ailver rnté, although improved, a tration on the other) the same little over the rate quoted in the cause brought about the situation middle of December, was in the that all the foreign trade as well | middle of March still about 20 per as the activity of foreign con- cont below par, and is further cerns is directly based upon and weakening under the stress of calculated in foreign currencies. political érente.

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