Finance of the National Government of the Republic of China, in order to reorg finances, hereby issues short term loan bonds to the amount of $30,000,000 of the national currency under the title of "The Short Term Reorganization of Finance Loan of th 11th Year of the Republic of Chi Article 2—The said loan shall bear interest at the rate of eight per centum per annum.
Article 3—The said Joan shall be issued in October of the 17th year|2 of the Republic of China.
Article 4.—Interest on the loan shall be paid semi-annually, on March 31 and on September 30 of leach year.
Article 5.—The principal of the toan shall be repaid twice every year, in March and September, respectively. For the first three years 7 per cent. of the whole amount of the loan shall be repaid each year, 3h per cent. at each time of repayment, From the 4th year of the 6th year inclusive 20 per cent. shall be repaid, i. 10 per cent, at each term of reimbursement. During the 7th year 19 per cent. shall be repaid, i.e. 10 per cent, and nine per cent. at each term of reimbursement, The balance shall be redeemed at the end of September of the of the Republic of China, Repayment shall be effected by drawings, to take place on March 10 and September 10 every year.
Article 6.—The loan shall be secured on the surplus funds appropriated by the Ministry of Finance from the German (Boxer) Indemnity Fund, after the payment of the 14th Year Loan and the Public Safety (Peace Preservation) Toan. 'The Ministry of Finance shall' instruct the Superintendant of Customs to have the said funds transferred monthly to a designated bank for safekeeping as sinking: fund for amortization of the loan The proceeds of the loan are to be employed for reorganization of the country's finances, according to the official text of the regulations. Naturally: this does not imply that the amount of money realized from the 17th Year Loan would suffice for, or would be applied to, the reform of China's currency system. The largest part has, however, been apportioned to the establishment of a Central Government Bank with fan initial capital of $20,000,000, a plan which may be considered a first. and vital step towards the realization of the major and ultimate aim. The issue price of the new Joan bonds is to be 92 per cent. which figure, after deducting underwriting commission and incidental expenditure, will Teave net proceeds of about $0 per cent. to the Government.
About $2,000,000 from the proceeds of the 17th Year Short Term Loan have been earmarked for the completion of the Shanghai Mint Secured on German Indemnity.
The following notification in connection with the above loan has appeared in the local press: and payment of interest when due. AS soon as the Board of Trustees for amortization funds of national Joans has officially been established, the Ministry of Pinanee will in: struct the Superintendant of Customs to hand over the aforementioned funds to its (the Trustees) care, Article 7.—The said loan shall be issued at 92 per cent. of its face value.
Article &—The said loan shall be issued as bearer bonds, but can be registered upon request.
Article 9.—The par value of the Joan bonds shall be classified into three categories, vis.: (silver) $100, $1,000 and $10,600.
Article 10.—The said bonds can he held as banks reserves and also ral_and securities in with the Government. it shall be rigidly prosecuted i accordance with the law.
Article 12.—The above Regula tions shall be put into force on the he funds available from that portion of the Customs Revenue formerly assigned to the service of the German share of the Boxer Indemnity, after service of the Fourteenth Year Loan: of the Republic and of the Continental Bank Loan of 1926, are sufficient to meet in full the interest and redemption payments of the 17th Year Term Currency Bonds now advertised, These available funds Year Month March will be paid by me, on! of the Minister of Fi ce, to the account of tne 23 per ut Bonds Sinking
Text read from the printed page and cleaned; old type leaves the occasional error.