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The Earliest Forged-Note Case in Shanghai

The Earliest Forged-Note Case in ShanghaiChinese first domestic-capital bank-Chinese Tong-Shang Bank had the note-issuing right. Up to 1902, more than 1 million Yuan was issued. On February 4 1903, one staff of bank carried the banknotes to exchange cash in Tong-Shang Bank. After checking, there were several 10-yuan forged notes. The whole financial market was vibrated as this message released. Some local banks in Roman holiday selected notes of Chinese Tong-Shang Bank for use with an appointment; hence many customers were scared of the notes in hand becoming the waste paper and came to Tong-Shang Bank successively for exchanging cash at once.

One day later, the bank found out more forged noted in 10-yuan notes and 5-yuan notes. The bank staff ripped these forged notes into pieces at present and marked with the sign of forged notes. As the message expanded, the note-holders of Chinese Tong-Shang Bank were all more sacred and required for exchanging all the banknotes.

Chinese bank-founder, Sheng Xuanreng learned of this message in Beijing asked the authorities of Shanghai to try their best to conquer the difficulties. To customers, all the exchange requirements should be met. The shortage of cash could be solved by the craft brothers. Meanwhile, the forged-note makers would be severely punished.

To deal with the exchange crisis and regained customers’ trust, Tong-Shang Bank broke the routine and operated at the weekend and ruled that each time for 20 people for cash exchange. One day off, cash exchange was over for 200,000. To keep the ordinary order, the bank authorities invited the policemen. When the people rushed in crowd, the policemen had to fire-fighting hydrant to dispel them. 
The Earliest Forged-Note Case in Shanghai
Although it was a cash-exchange crisis happening in one bank, the financial crisis probably entirely appeared. Those foreign bankers understood that. At that time, someone suspected that the some forged notes also existed in HSBC and other banks. If the interlinked cash-exchange would happen, the result was too bad. Therefore, when Tong-Shang Bank wanted to borrow millions of cashes with the stored silvers and gold as mortgage. HSBC agreed unconditionally.

Later, a Japanese-man held the banknote of Tong-Shanghai Bank to exchange cash in HSBC. As a result, 4000 Yuan notes were all forged ones. So these forged notes were suspected all from abroad. For China at that time did not have the technology to forge cash. They also found this Japanese carried a large sum of cash, so they ran after this Japanese secretly and recorded the address. Subsequently, they reported to the policemen, and policemen arrested this Japanese.

According to the confession of this Japanese, these forged notes came from Japan. Later these forged notes and the note-machines were both destroyed by Japanese authorities. This forged-note case connived by Japanese was the earliest forged-note case happened in modern Shanghai.