Hongkong, Feb, 25.
The Hongkong public who hold bank notes of the Central Bank of Canton have some hope of their returning to face value, Altogether, there were about $20,000,000 these notes in South of which $2,000,000 are held by local merchants and native bankers. The reason why Hongkong has so many of these notes is that, before their depreciation, the merchants in Canton paid for all goods in these notes Whenever a Chinese firm in this'
Colony had any dealings with the Canton Government, Canton banknotes were invariably the consideration for all contracts, Reports stating that the Chinese officials are making serious efforts to bring these notes back to par do not stem to have any stabilizing effect, because rumours are current that the Canton government is not deere in attempting to restore the credit of these depreciated Hotes. This indifference, it is said, is due to the fact that General ' Chang Fa-kuei and his colleagues had in their possession about $7,000,000 of Central Bunk notes, and if the paper money is restored to its former value, it means that the result will benefit the enemies of the present Canton regime, However, the value of this paper currency has increased a few points this week, and one dollar note worth 82 (H. K,) cents.
In spite of the foregoing account, itis stated that the Instone Banking Corpokation, a new local concern, fa interested to a considerable extent in a big loan advanced to Li Chi-hsin's government. Verbal negotiations have been going on, and it is said that the Bank will come to such terms with the borrowers as they may appear satisfactory. The parties virtually agree that the money advanced must be used directly for the stabilization of the paper currency and not for other purposes. connection with this_matter, Mr. Feng Cho-man, Canton Commis: sioner of Finance, was until a few days ago again in Hongkong where he interviewed leading merchants 1d bankers. The local bankers are willing to render what assistance they can to Mr. Feng provided that whatever he gets here, the money obtained shall not be squandered for military and personal expenses as in the previous loan of $6,000,000 forced upon the Canton public. A reassuring factor in the present instance is said to be the participation in the loan by the Chamber of Commerce of that city.
From banking circles, it is learned that General Li Chi-hsin, the head of the Canton administration, may shortly pay a visit to Hon Kong in connection with financial negotiations. His pretext is to give 'a return dinner to the local mer chants and British officials for the entertainment and hospitality extended to him on his recent passage through Hongkong from Shanghai to Canton.
A prominent banker points, out to the writer that the Hongkong bankers and merchants are taking more favourable attitude than a month ago towards assisting the Canton regime to tide over the present financial crisis because—the ation has somewhat imthe Canton government, under the virtual dictatorship of General Li Chi-hsin, seems to have a stable existence.' This apparent stability is attributed to the fact that Kuangtung has now cleared off all military factions antagonistic to Li Chi-hsin.
Notes Reviving Shanghai, Mar. 5.
A special Canton message states ince the withdrawal from cirulation of $2,000,000 of Central Bank notes in Canton in the latter part of last month by the Canton Branch of the Central Bank; the value of the Central Bank "notes has gradually gone.up from 28 to 51 per cent. Bankers in Canton, believe that farther withdrawal of these notes from the market wi bring about a complete restora! of their full value—Kuo Mir
Text read from the printed page and cleaned; old type leaves the occasional error.