As will be seen in the statement lof accounts in your hands, the result lof the company's working ha: not been at all favourable; this your directors attribute to the limited liquid funds at the company's disposal and to the high rates of interest to which our mortgages. have been subjected, The cost of management, all told, even including repairs ete., did not amount to more than Tis, 98,076.57 whereas interest paid period was no less than Tis 190,118.95 which was a very heavy charge against revenue. Unless cheaper and more reasonable rates of interest are available it will be difficult to hope for attractive results, and we shall be fortunate under these circumstinces if the working does not show Times have changed, due to the uncertain condition of this city and to the possible change in th of Shanghai. Foreign moneys, which were once abundant at reasonable rates of interest for financing real estates, are now searce on account of this, because much of these moneys have been directed to other fields for investments. It may also be due to the fact that whatever moneys that have remained here are now only financing real estate to a limited extent on account of the proportionate rise in value, for the same property can command 4 larger loan thereon that in former times.
Hard Terms from Chinese Lenders Financing is, therefore, of Chinese sources of which a certain group demand exorbitantly high rates of interest leaving the operators a very small margin of Profit if there be a margin at all, While loans in most instances, would not be granted unless a brokerage is allowed the lenders, and in cases management of the security insisted upon at the borrowers' expense be: les the furnishing of guarantors is essential, These in-Vestors in mortgages are very likely and ready to inflict the unusually hard and expensive terms just out-ined, sometimes almost impossible conditions are the only alternative. What can the borrower do when funds are urgently needed, but reorder to tide over temporary difficulties, hoping to secure better terms later.
'That is how many of the property owners have been placed. unscrupulous methods on. the Such part of these lenders' are nothing but selfish measures to exploit the proerty interests, especially the smaller holders who have less means for financial facilities. They are unlike fo ign interests who do so. for common The moment a mortgage proposition is put forward the lender advances his terms of the loans, which are tantamount to foreclosure for the owner, immediately upon the execution of the necessary documents for the transaction. terests of small property holders and to my knowledge several have already gone unde T have learnt that the National Government is about to promulgate law limiting the gross return of property in Nanking to 12 per cent, per annum whereby rents shall not be permitted to exceed 12 per cent, on cost of the property. This sounds indeed very reasonable even the proposed law be for Shanghai, ut if one is to look into the out oings and interest charged on mortgages, there is very little lett for the owners. What is now urgently required to be done to correct. the situation, is the promulgation of a law for the limitation lof rates of interest allowed by the bankers, particularly Chinese, who in their competition for. fixed deposits and savings and current accounts, grant ridiculously high rater of interest to depositors; in some cases as much as nine, ten or even 12 per cent. They must charge their customers extremely high rates of interest for overdrafts and facilities in order to make a Profit, The prospects of the small traders who have to depend on their bankers, cannot be at all inviting fand helpful, In the end, of course, the public suffers
Text read from the printed page and cleaned; old type leaves the occasional error.