Page:A Pocket Guide to China (1943).pdf/27

 At the time this book was written, domestic brands of cigarettes had risen from 8 cents per pack of 10 to $20. American cigarettes had gone from 40 cents a pack to $200. Throughout China you may find chicken selling at $20 a pound, coffee at $150 a pound, bread at $5 a loaf, gasoline at $70 a gallon. These prices refer to Chinese dol­lars. The normal exchange rate is 20 Chinese dollars for 1 American dollar, but purchasing power is something else again. At the end of 1942, the purchasing power of the Chinese dollar was about equal to three-quarters of a U. S. cent.

An explanation of Chinese currency is given on page 45.

YOU have probably heard a good deal about the "squeeze" system in China. It is there, as it is in every country in the world, but the Chinese, being intensely practical people, have recognized this human tendency to take a "squeeze," or a commission, and consider it legitimate. That is, you must expect anybody who does buying for you, however large or small, to add 5 or 10 percent to the price for himself. If he takes no more than 10 percent, he is within the Chinese law, at least the law of century-old customs. Once one accepts this custom, a good deal of fret may be 22