June 29, There will be no dissent, in ible at least, from the policy laid down by Mr. Li Ming at the second meeting of the National Economic Conference on Wednesday, as the only one that will set China's credit on a sure basis. A foreign newspaper, in such a question, may he thought by some to be prejudiced. But after all, facts are facts. As Mr. Li Ming justly pointed out, Great Britain and Germany have met their obligations, which exceed those of China many times over, and their credit is unimpeachable; Soviet Russia has repudiated hers and not only cannot raise sixpence in any market, but has the utmost difficulty in buying any commodity abroad for which she cannot pay on the nail. Nor need China go outside her own history for cogent examples that credit and confidence are inseparable, Not so many years Jago Chinese securities "were reckoned among the world's gilt-edged investments. Only the uncertainties of recent times and chaotic finance have caused them to be looked on with misgiving. Even now it is found that the loans lately issued by the Nationalist Government, properly secured on the Customs surtax and well controlled as to interest and amortization by an independent, non-political board of trustees, stand high, short, if Nationalist China wishes to restore her credit so that she can go into any market and borrow money other countries, thera is, as Mr. Li Ming and his fellow committee men all agreed, but one way, namely frank and unequivocal recognition of all public debts. The total amount is actually not great for a country of China's resources: but, if it were much greater than it is, the future gain of such recognition would far out-weigh the cost. It is the answer that any business-man would give, and one r see that Chinese bankers, on the first occasion of their being call Jed to take a practical part in the reshaping of China's offal have spoken with so much den and frankness The desired recognition is the more necessary because the official declaration to the Powers issued from Nanking on June 16 contained a phrase which immediately awoke misgivings. The Nationalist Government, it was said Iwishes to "make to the friendly nations the further declaration that it will not disregard nor has it disregarded any international re sponsibility in consequence of agreements and understandings properly and legally concluded and on the basis of equality.
It was naturally asked at once, What agreements will be con-into on a basis of equality? Since it is a great part of the Nationalist contention that in all dealings with the Powers China has been placed on an unequal footing, how shall monetary transactions. escape?
Text read from the printed page and cleaned; old type leaves the occasional error.