In reporting an interview wit Dr, Sun Yatsen from Canton the writer omitted to quote several remarks made casually in the course of conversation which, while not touching upon anything very vita), are worth putting on record.
The subject of paper money came, up., Dr. Sun, after remarking that the provincial Bank of Kuangtung: was "all right," was led to discuss! the special paper currency which he has been putting into circulation in- northern Kuangsi and) southern Hunan..He admitted that there was no silver reserve) behind this note issue and that the) paper was accompanied by no promise to pay, bearing the inscription! "One Dollar' only.
"We have found," said he, "that! it is not essential to provide cash reserve nor to promise to redeem paper money on demand. Those notes are not immediately redeemable. The security for them is the work which we have done with them. We do not put them into circulation by paying troops) or campaign expenses with them but pay for labour on public works, such as roads for instance. The road built by the issue of the notes is then security for them and they can eventually be redeemed out of the returns to the community from such public works. We have found this to be thoroughly practical finance. The people accept our notes eagerly, they -come to us with their local paper and their small silver coinage to exchange for our paper."
When Dr. Sun left Kueilin he} took all troops with him, according to his own account, leaving) only 200 men to hold the city against hordes of bandits and dis-handed Kuangsi soldiery who were sitting ike vultures on the surrounding hill tops awaiting his, departure. Under such conditions what is to become of the note issues, the only security for which are the public works which were being) carried out under the protection; of the Kuangtung army?
As a matter of fact, while Dr. undoubtedly believes, on the authority of his intimate advisers, that the people were eagerly accepting his notes, these same bits of paper were at all times a caus) of bad feeling between the local, proletariat and the "Grand Army. The writer has seen a deal of cor-; Yespondence from foreigners in Kuangsi and southern. Hunan on this very point. A reliable resident in southern Hunan has indeed attributed the failure of the Kuang-! tung troops to acquire a right of way into that province to the intense local opposition to the circulation of Dr. Sun's unsecured paper with which the military, leaders were trying to buy supplies and pay for transportation. The same writer adds that the suspicion aroused by the attempt to use these notes made the Hunanese so chary that they would not even accept the Kuangtung subsidiary coinage, but insisted upon payment in good silver dollars.
Text read from the printed page and cleaned; old type leaves the occasional error.