Peking, Sept. 23.
An internal loan, with the Russian indemnity service as security, wilt probably be placed on the market on Monday, at 90 and bearing 8 per cent. interest. The loan will be for a total issue of $10,000,000.
By an agreement between Sir Francis Aglen and the Government, the loan will take the same position of priority in the sequence of Customs liens as the Russian Boxer Indemnity. A Presidential Mandate approving the hypothecation of this security is expected to be issued to-night. Local sales, in anticipation of the issue, already exceed $1,000,000.
Chinese Bankers' Demand for Clear Statement of How Money Will be Spent Peking, Sept. 26.
The Chinese Bankers' Association yesterday evening issued the following communique The Ministry of Finance recently verbally proposed to the Chinese Bankers' Association the issue of an Uth Year Lean of $10,000,000 at 8 per cent, interest with 10 per cent. discount with the assurance that the Bankers' Association would receive a certain commission to be arranged later as was done in the case of the 3rd and 4th Year Loans. Both the principal and the interest would be secured on the deferred portion of the Russian Boxer Indemnity, the said security being kept in custody by Sir Francis Aglen as was done with the 7th Year Short Term Loan, the security of which. was also the Russian Indemnity and which is about to be redeemed. The regulations and details were fully explained at a meeting of the Bankers' 'Association on September 23 by the heads of the Treasury and Loan Departments of the Ministry of Finance. After a long discussion the Bankers' Association decided as follows:
GoverNMeNnr's WeaKensp Crepit.
The Government in recent years has lost credit with regard to redemption of loans and Treasury notes, which has resulted in the market values of various loans and notes depreciating until the purchasing public has practically Tost all faith in the Government's credit. It is proposed that the loan shall be issued at the great discount. of 10 per cent. but even then we cannot guarantee an easy sale of bonds. However, it would be unsafe policy to allow the Government to be kept in the position of drifting here and there for money particularly at this critical
Text read from the printed page and cleaned; old type leaves the occasional error.