Rumour of No Drawing This Year Peking, Apr. 3.
It is reported from Chinese sources that Mr. Liu En-yuan, the Minister of Finance, has informed the foreign Legations that the Chinese Government proposes not to have drawings on domestic loans or, in other words, to suspend the amortization on them for one year.
It is understood: that this plan, if carried out, would mea that the Government would retain about $24,000,000 which should be refunded to the bondholders.
The Finance Minister is stated to be planning to us¢ $14,000,000 of this amount for the readjustment of foreign obligations and the payment of interest overdue on foreign loans, the remaining $10,000,000 to be used for administrative purposes.
These proposals have led to many rumours, some of the vernacular papers stating that the Government does not intend to pay interest on the bonds, but this is little credited and bonds to-day are quoted strong.—Reuter.
Peking, April 3.
It is understood that strong opposition is developing in business circles against the plan to postpone the amortization of the domestic loans. Therefore, the proposal may be dropped.
Text read from the printed page and cleaned; old type leaves the occasional error.