New Plans Devised for Adjustment Peking, Feb, 20.
A meeting of the Cabinet yesterday morning drew up a general plan for the readjustment of internal loans. The following is a summary of the proposals All internal loans, except the third, fourth and. also the seventh year short-term loans, will be placed under one loan service, while the first and eight year bonds will be revalued at 40 per cent. of their original value, with redemption in ten years. The redemption -of the fifth year loan will begin in ten years, military loans being redeemed in four equal yearly payments. The redemption of the other loans will be unaltered.
In order to carry out the readjustment, $12,000,000 wil] be allocated from the salt surpluses, and 'a further $9,000,000 from the wine and tobacco revenues, but, pending the reorganization of the latter, the 'Chiaotungpu will provide $500,000 monthly, and, if the Chiaotungpu finds a difficulty in this respect, it may raise the necessary loans' in cooperation with the Bankers' Association and the Wine and Tobacco Administration, the latter, after the reorganization, being responsible for the Chiaotungpu's advances. All surpluses from the Maritime and Native Customs may also be utilized for the readjustment plan.
When these funds are secured, they will be handed over to the Inspector-General of Customs, who will. deposit them with the Chinese banks, the Chinese bankers working in cooperation with the Inspec-for-General, and keeping the public fully informed regarding the security of the redemption funds.
The plan was subsequently discussed between representatives of the Cabinet and the Bankers' Association. The latter approved the proposals, and congratulated the Government en the practical nature of the scheme, adding that the Government must now go on with plans for the disbandment of the soldiery.—Reuter.
Rarsine THE WIND ar 10 Per Cent.
According to the "Chita "Times," financial difficulties have caused the Minister of Finance to send a deputy named Li to Shanghai, with the object of arranging loan with "a certain bank." Six per cent. Government Debenture Bonds of the face value of $5,000,- 000, an issue of the first year of the Republic, are offered as security. Li is said to have authority to offer 10 per cent. interest and to negotiate the loan at '95. The bonds will be redeemed in three years, and payment of interest and the redemption of bonds secured by "a bank in which there are Chinese and foreign interests."
Text read from the printed page and cleaned; old type leaves the occasional error.