Peking, July 14.
Considerable mystery still surrounds the issue of the $96,000,000 funding loan to which Wu Pei-fu has frequently taken exception and some part of which was actually issued and is on the market. It is estimated that bonds to the value of $10,000,000 face value are actually on sale or for sale. During the last few days a few transactions have been made at about 36 cents on the have lots under half a million to dollar, {\Beme big holders (very few dispose of) are trying to mortgage their holdings for ten cents on the dollar face value. This offer no one will take.
For the edification of the general public it may be interesting to know what is printed on these bonds, since they are still more or less a curiosity. They read as follows:
Chinese Government 8 per cent. bonds for refunding Internal and Foreign short term debts.
Total, $96,000,009.
of principal and interest, January 3st and July Slst.
Redemption begins in the second year of issue, the issue to be entirely redeemed in six and one half years.
Two drawings for' redemption will he held in each year.
4% to be drawn in first drawing.
7% to be drawn for next four drawings.
8% to be drawn for next four drawings.
9% to be drawn for next four drawings, Dates of drawings January 10th and Tuly 10th.
Loan service $12,000,000 for Ist year.
$20,000,000 per year for ensuing years from the surplus Salt Revenue.
The above appropriations shall te made from the surplus Customs Revenue upon the enforcement of the effective 5 per cent. tariff.
In case the said Surplus Customs Re venue is insufficient for the purpose, the deficit shall be made good with funds from the surplus Salt Revenue.
Uses—for reserve of banks for the guarantee fund required in Government service.
Matured bonds may be used for payment of government taxes other than Customs and Salt dues.
(Signed) Chang Hu (Dated) February 11, 1922.
The reader is invited to make what he can of all this. The writer is not responsible for the translation, though it is reliable. For those who follow the mysteries of Chinese finance this is probably instructive; for those who do not it is only bewildering, which perhaps only helps in our single track Occidental minds to engender more respect for the sallow gentleman with the abacus.
Text read from the printed page and cleaned; old type leaves the occasional error.