The value of Chinese national bonds has in recent years been declining continuously. The Shanghai Chinese bankers, secing the: deplorable state of the national finances, called a bankers' conference in' October, 1920, when a resolution was passed recommending to the Government a scheme for the consolidation of the national debts. The scheme was duly proposed to, and accepted by, the Government. Asa result, a committee for the consolidation of national loan service was formed and a_new issue called the "Chinese Government Short Term Loan for the Improvement of the Money Market'? was made to take the place of the bonds of the First Year_6 per cent. and of the 8th Year 7 per cent. national loans. A committee was formed for the purpose of supervising the issue and controlling the sinking fund of the new bonds and thereby public confidence was greatly stimulated. The prices of various national bonds began to go up and it was for the Government to maintain the stimulated credit by refraining from further borrowings.
Text read from the printed page and cleaned; old type leaves the occasional error.