CHINA: Rice or Bitterness?

Clutching $20,000 (Chinese) in his chubby hand, a small American boy went into a Shanghai candy store to buy his regular afternoon popsicle. The shopkeeper shook his head, said popsicles now cost $30,000. Running home, the boy got an additional $10,000 from his mother. But in the few minutes he was away from the store, the price of popsicles had risen to $40,000.

The boy's howl of dismay was only one in the millions that made up the screaming wake of China's jet-propelled inflation last week. In two days, while Chiang Kai-shek was desperately trying to bolster the morale of his...

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