The resolution, as submitted by Dr. Kung to the Executive Yuan and passed by that body to the Central Political Council, follows:—
"In the announcement on Novem: ber 4 of a managed currency, the Ministry of Finance declared that efforts would be made to improve the organization of the Central Bank, in order for it to fulfil the functions of a bank. In order to facilitate the early carrying out of that programme, the Ministry of Finance, in accordance with Article VII of the Central Bank Regulations, communicated with the Central Bank suggesting the early subscription of commercial capital, The Central Bank replied that a meeting of tt Board of Directors had decided to set aside $40,000,000 out of a oral of $100,000,000 capital, for subseription by commercial capital, which proposal had received the approval of the Board of Control, end which had already been submitted by the Central Bank to the National Govern.
"in view of world, as well as Jdomestic, conditions, Dr. H, H. Kung feels that, following the enforcement jof a managed currency, the p-sition jot the Central Bank should se one ore or less independent, thereby increasing Internal and foreign confidence and exercising to the full Jextent its capacities, so that it may contribute to the stabilization [Chinese currency and finances. Apatt from careful and immediate.cvision jof the Central Bank Regulations for approval, it is felt that Article VIE fof the regulations, which stipulates: that commercial capital be tinted to, 40 per cent of the total capital, should be revised, raising the limit to 60 per cent, Economic Development the course of future economic development, the Chinese Gover ment, following the demand for ondivons: may consider on tnereaye fu the amount of commereal capital and may allow private banks, provinela and municipal. governments, as felt ae individuals, to subscribe comfrerciol capital, to show. tat the {Central Bank also. belongs 0" the public and' to prove the good faith the Chinese Government'
The text off Artie VIT rends:—
The Central Bank, when necessary, jwah'the' decision "ofthe Board. of Birectors and approval by tke Board for Control, may propose. tothe Na float "Government an increase "of capital and solicit commercial capital.
the amount of commereat capital hall not exceed 49 percent. of the total capital. tu the subscription of commercial capital," Chinese banks shall'be. given' fest preference. and, Itwnen thei subscriptions reac 30'pe? Sent of the. total capita. Chines? eltzens maybe permited Yo subserbs and such subscriptions shall receive {he Spprval et the" Minter "The orignal revised text of ArUsle vit reads "When necessary, the Central Banis [may, with the decision of the Board Direclors and. approval by the Board of. Control, propose tothe National Government for approval on Inerense inthe total" amount of Capital, and may solicit commercist opltal, "but "the total. commercial splat shall temporarily oe ime fo'00.per cent. of the total capital. But, im future economic development, the' Chinese Government may, in ae? cordance with conations farther me Crewe the. amount of "commercial capital. "AN! Chinese Barks, provincial nese citizens, may subscribe the above "the "amendment effected by the
Text read from the printed page and cleaned; old type leaves the occasional error.