Measures Claimed to Be Absolutely Sound and Will Enable Citizens to Fulfil Patriotic Duty FULL TEXT OF DR. H. H. KUNG'S STATEMENT
Shanghai, Feb. 3.
\HE regulations governing the proposed issuance of a Consolidated Loan and a Recovery Loan are expected to be passed at a meeting of the Executive Yuan next Tuesday, the Central News Agency was reliably informed yesterday. After approval by the Cabinet, the regulations will be submitted to the Central Political Council for confirmation, and later be referred to the Legislative Yuan for enactment. Dr. H, H. Kung, Minister of Finance, will leave for Nanking to-day to report the conditions leading to the proposed flotation of the two new loans.
Commenting on the scheme, Mr. Sun Fo, President of the Legislative Yuan, in an interview with the Central News Agency, hailed it as a wise move. He also considered the measures governing the issuance of bonds by the Government from now on will need modification.
'According to the regulations passed vy' the Legislative Yuan, Mr. Sun said, all bonds ace to be issued at price of 98, which is the Jegol price Rxed by" the legislature, "However, past. experience tells that bonds heretofore issued by the Government often wore discounted at 30 to 60 oer In order to Issuing public bonds, therefore, new bonds floated from now on should stick strictly to the tegal value fixed.
Mr. Sun further pointed out that although the nominal interest of, Government bonds is six per cent, the aelual rate comes to about ten per cent,, in view of the depreciated Value of the bonds, This not only means heavy lotses ta the Governing economic recovery through self reliance. If, in accordance with {the statement' issued by Dr. Kung fon November 4 last, measures are adopted to consummate the enforcement of legal tender notes, per-feet the financial organization, ald productive reconstruction, and balance the receipts and disbursements of the national treasury, with a view to the orderly development of the social economy, the future benefits to society will be manifold. As citizens of the Republic, we should each bear our share of responsibility, and, with one} Heart and mind, ce-operate with the Government in the successful enforeement of the legal tender notes, so a {o stabilize the monetary situation and restore activity in the market. We should assist' the Government in the ance vith their duration, and exchanged for bonds of the Consolida-Vion Loan. as follows:—"CA)-—Government securities, such as the 22nd Year Patriotic Treasury Notes, Short-Term Treasury Notes. Ish Year Customs Treasury Notes. Short-Term Loan for Relief Work in the North China War Zone, Public Safety Loan. and 18th Year Customs: Treasury Notes, are to be exchanged for bonds of Class "A" (12 years).
™(2)—Government securities, such the 19th Year Rehabilitation Short Term Treasury Noles, 24 Million Treasury Notes (secured on the AUs-Gian Boxer Indemnity). 24th Year Szechuan Currency " Readjustment! Treasury Notes, 23rd Year Customs Treasury Notes, and the 20th Year Treasury Bonds secured on the Roll-Tobacco Tax. (th issue), are to be exchanged for bonds of Des 'B* 5 years).
"(G)—Government securities, such as the Military Reorganization and Disbanament Treasury. Bonds of the Yeth Year of the Republic, 20th Year: Consolidated Tax Bonds, 20th Year Short-Term Currency Bands, 20th Year Salt Revenue Bonds, 20th Year Kiangsu and Chekiang Silic loan, 18th Year Famine Relief Treasury Bonds, 8 per cent. Internal Loan of the 17th year for Military Purposes, 18th Year Troop Disbandment 8 per cent. Inter-Loan, and the 20th Year Customs Short-Term Treasury Noles, are, to be exchanged for bonds of Class 'C*
(D)—Government securities, such me 16th Year Customs Revenuz Bonds. 7th Year Lena-Term Loan of the Republic of China, 20h Ye Flood Relief Loan, Italian Indemnity Pund Certificates, 24th Year Currency Loan, 23rd. Year Customs Re-Venue Bonds, Russian Indemnity Fund Gertifteates, and Consolidated Taxes Gertifieates, are to be exchanged for Financial observers believed that Japan would not be affected by the compulsory conversion of domestic bonds, but expressed a fear of alarming developments" in China, They pointed out that the Nanking Government falled to pay interest on domestic bonds in January because of '2 sharp drop In customs and other Fevenues, and also to the recent suppression of the "Chen Pao," a Shang-hal dally, alleged "to be for the publication of editorials. eritictzing! Nanking oMelals for speculating in Government securities.—Domel,
Text read from the printed page and cleaned; old type leaves the occasional error.