In Section III Mr. Padoux gives a summary of the unsecured debts, which boils down. to the following:
Debts in Silver Dollars or Taels (converted) Debts in Sterling (converted $9) plus Austrian loans 75,024,000 Debts in Francs (converted at Frs, 7) 23,927,000 Debts in Yen (converted at $0.90). 146,389,000 Debts in Gold Dollars (converted at $1.90) 23,468,000
Total $503,396,000 Interest up to December 31, 1922 41,000,000 Interest from January to June, 1923 25,000,000
Grand Total $569,396,000
The unsecured Japanese credit appears to be lower than most of us have been estimating, while the debts in silver, largely domestic, appear high out of all proportion to the others, These latter figures Mr. Padoux reduces later with the explanation that many bonds and treasury notes were issu with the understanding that they would not be redeemed at face value.
Following the figures summarized above, Mr, Padoux goes on to explain that consolidation would maam the redemption of the existing debt through the issue of new bonds and the substitution of the new bonds for the old ones. This would involve:—(1) an extension of time for the short term debts, (2) a reduction of the interest in every case where excessive rates have been charged, (3) as a. comp<ssation for such extension of time and reduction of interest, the granting of adequate' securities.
In Section IV it is pointed out that the better the security the better. the terms China could secure under a funding scheme and that the Customs is the best security available.
The Customs nett revenue (over and above administrative expenses of the service) was in 1922 $77,- 00,0000, in round numbers, For 1923 Mr. Padoux estimates that trade increases will yield an extra $3,000,000 in revenues and that the increases due to the imposition of the. effective 5 per cent. ad valorem duty will amount to another $8,000,000, giving a total nett revenue for 1923 of
Text read from the printed page and cleaned; old type leaves the occasional error.