The secret of success in finance is to have more public bonds subscribed to and the revenues proper-The result of the present 25 per cent,—Nationall Bonds indicates a popular government on the one hand and stability on the other. Tam told that the Wuhan "Government has seized several million dollars in hard cash fand that it has issued paper money to the extent of ten times the amount. From this it is evident how the people have suffered. In view of] the imminent fall of the northern militarists and their lack a definite policy, bonds issued by Poking have dropped considerably. These were issued by the militarists and the majority have fallen into the hands of the people, most of whom are not wealthy, and to the bankers. If they are fundamental-shaken, stringency of the money market is unavoidable and society in greatly endangered. Therefore, we can say that the maintenance Of the credit of public loans is equal to protecting the lives of the people, or saving China. More-lover, since the Nationalists have occupied some two-thirds of Chins 2 large percentage of bonds issued the northern militarists have fallen into the hands of persons under the Nationalist fag. Therefore, I, feel it my duty to ask] the Natignalist Goverrmen ts iba uly steps to maintain public bonds of all kinds, Many people say that the ups downs in public bonds are the result of manipulation by speculators. This isnot true, Fluctuation in bonds is merely part lof the psychology of society. Some View them as good and others ust the reverse. Every commodity in the market is bound to fluctuate in face value but the market, value] never is too wide apart. This regulated by the law of supply and Gemand. Te is the purpose of the Government to have the 23 per cent, surtax bonds disposed of in the market like. ordinary merchandise, This not only means enlightening the public but also the improvement fof the government credit, Increased duty does not necessarily mean a bad policy. The levying of heavy taxa~ Zion on luxuries is a common policy adopted by afl the Powers.
A Wise Policy who taxation of luxuries is a wise policy. But if we increase the taxation of necessities, it merely] -|rieans a heavier burden for: the jeonimon people and increased duty! fon export means a check to national trade. Of all these facts the Government must take due notice. When the Nationalists were still in Canton, all, excepting the people of Canton, were enemies but now it is different. A great majority are under the Nationalist Government and what territory, still remains in the hands of the northern militarists will soon come under our sway.
In falfilmiont of the late President! Sun Yat-sen's principle of people's Jiving, we must remember that finance. is most important. In Shanghai, during the Manchu dynasty, the money market was in the hands. of the foreigners. After the establishment of the Republic, it slowly but surely reverted to the hands of the Chinese. Hence, hereafter, the development of the China's banking business depends public. most important point is that which states that "the ists' propose to dismiss all Yangchow? trict Inspector of Salt Revenue of
The foreign control of the Salt strict inspectors within their Revenue and that of the Customs jurisdiction."
Revenue exist for precisely the Te has since been ascertained that same purpose, namely, the protection ion of the of the interests of foreign pur-District of Salt chasers of bonds emitted by the Revenue in. the areas under the Chinese Government, bonds for effective control of the Nanking which tens of thousands of foreign-Nationalist Government were issued ers have given their good hard cash, by the Ministry of Finance of that of which cash the Chinese Govern-Government onthe 2nd instant, ment has had the use. was intimated in those orders that District should There is nothing unusual in the Inpectorate agreement of a nation to appoint subjects of another nation or na-and that no funds for the salaries tions to supervise the collection and fof the Foreign and Chinese disposal of a national revenue which spectors and their staffs, or for has been pledged for a loan; ex-other purposes connected with the amples of this kind, in the present work of the Inspectorates as such, day, are to be found in European would be provided after that date. countries, In the case of China As the collection of revenue has for the foreign superintendents of some time not been controlled by revenue are actually appointed by the District Inspectors affected by the Chinese Government itself, and, the order, "this means that the as individuals, are subject to Inspectorates are abolished. missal by her, as witness the recent 'The District Inspectorates of ease of Sir Francis Aglen. 'Thus Salt' Revenue were created in there is no question of the infringe-accordance with Article 5 of the ment of sovereign rights."
Reorganization Loan Agreement between the Quintuple Group of Sovereign Rights Uninfringed Foreign Banks and the Chinese China wants to borrow money; Government, which was signed on she invites foreign bankers to make April 26, 1913, the Banks concern a loan; conditions are discussed, one ed being the Hongkong & Shanghai of which is that the be shall Banking Corporation, the Deutsch-Asiatische Bank, the Banque de offered as security, the supervisors TIndo-Chine, the Russo-Asiatic to be regarded as the employees of Bank, and the Yokohama Specie the Chinese Government and to he Bank. subject to dismissal for good cause; Without a "By Your Leave"
One of the principal conditions of was that there should be Central Salt Administra-the infringement. of rights?
As a matter of fact it has never tion at Peking, under a Chinese Chief Inspector and Foreign societe Chief Tispeetor, while at: each salt-producing centre there should be a District Inspectorate, under one Chinese and gine foreign District Inspector, who are jointly responsible for the coMecoit and] deposit of the salt revenues. These organd -were duly. set up, and by Ghiversal acknowledgment. have rendered magnificent services China. It is some of these "Inspectorates which the Nanking Government has, without so much "by. your purported to have Jure 30. The offices affected are' those of Kuangtung, Fukien, Ché- Kiang and Kiangsu, This action manifestly constitutes a flagrant violation of the Reorganization Loan Agreement, which even inthe immensely superior state of Chinese finances in 1913 would never have been made without provision for a measure of foreign supervision of the salt revenue. While the District Inspectorates in the areas controlled by the Nationalists have been interfered with to a greater or lo extent, they had up to the date of this order, remained in existence, and were available at any moment to resume their full function their present actions. the alists are not only breaking a legal international contract, "but are destroying delicate machinery which, if allowed to remain in existence, even though not working capacity, could nevertheless render invaluable services to the Chisese nation.
Text read from the printed page and cleaned; old type leaves the occasional error.