The Archive · 1923

The Reorganization Loan of 1913

Yokohama Bank's Claim: Russian Bonds which Soviet Stole Peking, Feb. 2.

The "North China Standard" states that the Yokohama Specie Bank sent a Note to the Chinese Government demanding a settlement of its account relative to the payment of coupons of the 1913 Reorganization Loan and announcing the seizure of a portion of the Salt Gabelle funds placed in the Bank's custody in case China should fail lo settle her account. According to the paper, the Chinese Government has sent a reply to the Bank, refute ing the Bank's points and proposing a postponement of the settlement.—Reuter.

Peking, Feb. 3.

semi-officially reported that the Ministry of Finance has _protested to the Yokohama Specie Bank against its detention of a portion of the Salt Surplus of the last two months for the declared purpose of jPweeting coupons of the 1913 Re. organization Loan.

The Ministry affirms that the coupons in the possession of the Bank are advance bonds which should have been replaced! by actual bonds but the outbreak of the war prevented the Russian bankers withdrawing the advance bonds while the actual bonds were retained the Petrograd Treasury pending better exchange conditions.

Subsequently, the Ministry continues, the formal loan honda were taken possession of by the Bolshe-vis, who attempted to dispose of them in the London and Paris markets but both Governments entered a caveat. Now, somehow or the other, duplicates have come into the hands of the Yokohama Specie Bank. These coupons are said to amount to £197,- 585 but the Bank is detaining $2,000,000.

The Ministry of Finance points out that as the advance bonds issued by the Russo-Asiatic Bank have not been withdrawn the Chinese Gov-

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