In ce-operation with American bankers, they had agreed to enter into a contract for a loan of 10 million sterling, one-half to be floated in London and the other half in America, though if there was any delay im the latter country, they were free in this country to proceed on the five million sterling basis. Questions had been asked as to how the present note-holders would be situated who might not be able to subscribe for an equal portion of the new loan. The present quotation for the existing notes was about 50 per cent. and it was reasonable to suppose that this would rise very considerably in case of success of the new loan and would probably reach about 80-85 and even higher. If the holders of the present bonds elected to underwrite a proportion equal to their holdings, they would receive a certain sum cash which would do something towards assisting, them with the proportions specified. The balance of the loan not taken up by the existing note-holder would be offered at 974 to the public, and it was reasonable to suppose that the latter would subscribe for it if it was properly secured. If any note-holder found himself unable to exercise his whole option, he would ex-excise it as far as he could go and then he would probably sell the balance in the market. He ventured to say that this loan, or any other loan, which might be introduced by the Consortium, would be secured either upon the Customs or upon the Salt Tax. The Customs duties were the prior security in China and later on the duties would be raised from an effective 5 per cent to seven and a half per cent. and on the increased revenue could be based a loan of anything from 80 to 100 million sterling. The debt of China.was' very small indeed, and since 1912 it had been much reduced by the operation of the Sinking Funds. If, therefore, the revenue available were used either for the Consortium or for themselves he thought the public could be relied on to receive the prospectus of a new Loan with confidence. They would not reject the prospectus of the new Loan merely because it was not issued by one set of persons, or by another. If the new contract were made, it would be made in the face of the whole world and any failure in respect to it, would, in the future be destructive of China's financial credit.
The various speakers were by no means unfriendly to China, but very critical of the Consortim, and eventually a Resolution was adopted in the favour of the appointment of a Committee of five of the largest bondholders, two representing the Marconi interests and three representing the Vickers' interests, to be presided over by the Chairman, Mr. Crisp. To ascertain the largest holdings, those pra-sent were supplied with postcards requesting them to send in full details of their various holdings.
Text read from the printed page and cleaned; old type leaves the occasional error.