Three Million Pounds to be Lent to Merchants upon Approved Security 4 From Ova Own Connesroxomr Hongkong, Aug.24.
'A Trade Loan Bill to be charged of the revenue of the Colony has been proposed and will shortly be brought before the Legislative Council for its approval. The Colony of Hongkong has recently borrowed a large amount of money for the purpose of making loans upon security to local merchants and others during the period of financial stringency. The amount of the loan in question does not exceed £3,000,000 sterling and is charged, upon and will be payable out of the general revenues and assets of the Colony. Under thie scheme, the Governor has the power [to appropriate out of the general revenues and assets of the Colony such sums as may be necessary provide for all payments of principal and interest that have already been or will be borrowed by him for the foregoing purpose, 'The loans lent to merchants with its interests due thereon and the repayment of such amount are always deemed to have been exempt from military eontribution, All principal moneys and interests' hitherto received or appropriated by the Government or here. after to be received or appropriated will be deducted from the Coloniat Revenue before the calculations of the sums payable to H.M, Government under the Defence Contribution Ordinance, On account of the financial crisis precipitated by the boycott, many merchants and firms have found bhard to raise money to meet the obligations, Taking advantage the then acute situation, money lenders, charged interest for loans high as $13 per 1,000 per month, Much hardship was sustained those in urgent need of funds to pay off creditors. As a remedy to such state of affairs, the Colonial govern. ment has secured a loan equivalent to £3,000,000 sterling to be advanced to merchants and others at a graduated rate of 8 per cent, per annum to 98 per cent, per annum, The applications for such loan are grant~ ed upon proper security.
As pointed out on several ocean sions in these columns, government finance remains In good shape notwithstanding the present trade depression, According. to the financial statement for the month of April alone, the balance on the credit side amounts to $7465,167.77. A sim equivalent to 20 per cent, of the Colonial revenues is appropriated yearly to the Imperial Government as a contribution for the defence of the Colony. But moneys under the proposed" arrangements wall not come under ssu eontsibution,
Text read from the printed page and cleaned; old type leaves the occasional error.