elsewhere from "Finance and. Come An admirable article is reproduced
merce" on the subject of land values Shangal ay arising from a recent application to the ig Court' London by the Glen Line Company for a reduction of capital. Reinfore. ing the view put forward consistently these' columns, It is there: pointed out how important itis that the mortgage problem should be viewed Inthe light of the extraordinary effect of the courts' treatment of fennnt defauitersOn the relations between landlord and tenant depends the value of the mortgage deed as a security. Tt ig common knowledge in Shanghat that the fantastic decisions ofthe encouraging. the ion of their "obliges tons by tenant have directly blocked the liquidity of mortgages. time and again would-be mortgages have been Fendy to advance substantial sumo of money on property of good standing, were it not for the knowledge that the regular payment of rentals could for be guaranteed" and that tong term default for which the landlord hind not been able to obtain hie legal Fedress had been "made, with the delinquent tenants defiantly: In oe: cupation supported "by" the kno edge that' the courts would not set the usual "processes, "at work "to viet them. is vital for th stabil-Hty-of Shanghai-and for taking full advantage ofthe more favourable ign of economic recovery 10 which Feference. war made yesterday, that the present unsalistaciory site the aw should" be" promptly. tex medied," The matter ig extremely Ungont for thousands. of dollars are boeing lost by Chinese and foreign re sents owng Ca the complete slogan tion' of the land: masker which ati from. conditions "enabling. unserue nous tenants to live rent tree. Format trading <faclitiey are Fevtored {his abuse must be cleared out of the way." The Government should. give "to" this "matter, more tingent attention than hitherto for it Affects the prosperity of the. whole lly. and. go. directly embarrasses Ehinowo "banks-nas well as. foreign Inatitutions—with, whose _wellsbelng the 'Government's finances are closely veoncerned, Moreover" the problem's solution shrewdly." tou thes the Government' prestige, Tne abolition of the former Provisional Court wae agreed to with the clear Understanding that. proper. judlelal administration, would be set up in the Courls into whose hands the import= fant commercial interests of this city Would be entrusted, '0 tong as the courte interpret the law 10 break down' the. contractual relations bee tween landlord and tenant, ths con dition must be regneded ay flagrantly breached. Shanghat—and the Governe ments finances, to say nothing of there of the International Sellement Which suffers heavily by' the loss. Fevenue entailed in' this widespread Fentdofaulting with its" attendant failure to pay the' house tax—re-Gulres a revival of confidence, De: mand are being made for improved fand extended housing. accommoda: tion, "'Neither conBdence nor better Housing' nor the elimination Slumeay slums" too—can be. exe ceted to materialize until the land-ford can be sure that his legitimate rents are duly paid and the would-be mmarlgagee "consequently convinced that the mortgage fs ts sound 0 form of investment 45 it has ever been uring the, long period in. which it hag acsistdd 10 bulld "up" the come mercial stability of Shangoal, Wheth-the legislation requires" amend tent or the courts beller instructed in procedure or the laws interpreta-{iop, is a mater for experts 10 sty The fect Temuins. that milieus chare in Shanghai are. "froze with al the calamitous bankrupt (Continued on page 308.)
Text read from the printed page and cleaned; old type leaves the occasional error.