It was conceded (the Judge continued) chat in Ching, there was no Jaw of general application pre-Seribing the legal He of interest }for contracts in writing between Chinese and the nationals of various Jeountries who are temporarily residing in China. If, therefore, the laws of the various countries which Jenjoyed extraterritorial rights in [China were to become operative it this jurisdiction, they must necessar-fly have a great number and variety lof laws operating upon the nationals lof the various countries in China in their business relations and dealings with one another.
The American Shanghai fore entering into such a contract, the legal rate of interest which wa recognized by the country of the such legal rate of interest, he} would run the risk of being compelled to forfeit all interest when he applied to the court of the de-Hfendant for the purpose of recover-_ ing his money.
The most superficial consideration Jot the matters above stated disclosed a situation which would soon become intolerable, if various rates lof interest must be recognized and incorporated in the written contract, ]s0 that no contract-could be enforced as to interest unless it was in harmony and in. strict accord with the law of the land of which ithe borrower was a citizen.
An examination of every import-fant consideration which could suggested for discussion only strengthened the conviction that the limitation contained in this law, with reference to 8 per cent, interest. jin written contracts, was totally inapplicable and unsuitable to! [business conditions in China. Ie] iwas obvious that nothing was' to bbe gained by its enforcement and application in this jurisdiction, and there could be no justification in its extension to American citizens jin China, auloss such action were required by the plain dictates of
Text read from the printed page and cleaned; old type leaves the occasional error.