The message from our Peking correspondent with reference to Chinese Internal Bonds of the First Year has been received with a great deal of interest in Shanghai. The statement that it will be optional on the part of holders whether they retain the bonds as originally issued or accept them at a revaluation of 40 per cent. on a ten years' basis has attracted the utmost attention, as from the original _report the conclusion was inevitable that the Government were attempting arbitrarily to reduce the value—a virtual repudiation.
It may be mentioned that holders of these bonds took the perfectly natural attitude that they would consent to nothing of the kind, and that they would hold the Chinese Government to the original terms of the loan, as they were entitled to do. While the report of our Peking correspondent is reassure ing, it is felt that the matter will not be put upon a satisfactory basis until a definite statement has been issued by the Government confirming this feature.
Text read from the printed page and cleaned; old type leaves the occasional error.