Nanking, Oct, 3.
Various proposals recently put forth by the Commercial and "Industrial Revival Committee of the Shanghai JChinese Chamber of Commerce, alming at facilitating the financial stand jing of business corporations, formed the subject of an interview granted to the Central News Agency by Dr.
Yin-chu, the well-known "Chic Jnese economist and chairman of the Finance Committee of the Legisla-june Yuan, Flotation of corporation bonds in Jexchange for nanelal bonds, which constitutes one of the major pro-Jposals advanced by the committee, considered by Dr. Ma as impractic= Jable. Many dimicultles "would confront such a step.
According to the Corporation Law, the liabilities of a company" may Jexcced its capital, "To exchange cor oration bonds for financial' bonds, Jas current capital, would place the JGovernment in the position of eredifor. This, in turn, would hold the Joublic back from establishing investment and other" business relations with such a corporation, because, should such a corporation go. bank: upt, the Government. automatically would become the preferred creditor, Jand the interests of private bond: holders would be prejudiced, Further more, "the Government would involved in heavy losses should the [Corporation declare insolvency,
Text read from the printed page and cleaned; old type leaves the occasional error.