Canton, Sept. 4.
Toa merchant in Canton, a Nanning merchant has telegraphed to say that the Kuangsi capital was captured last Saturday by Commander-in-chief Chen Chi-tang's troops, and asking that cargoes be sent immediately. Only the: Kuo Daily" has printed this report! among all the vernacular organs, with the exception of the "Canton Gazette," which is printed in Eng-_ lish, and has government backing. The "Min Kuo Daily" speaks for the Kuomintang. Nevertheless, would not be surprising were the report correct, for the Yunnanese have been waging relentless warfare against the defenders of the capital.
From a reliable source, the writer has learned that the march on Lau-
Jchow, where the main body.of the enemy has been stopping, has stopped. After getting into Pinyang, cutting the Nanning-Lanchow highway, a force of Kusngsiites appearing in the neighbourhood of Wuchow, the ground s0 gained had to be given up, and troops brought back to meet the threatened thrust towards the West River port.
Notwithstanding that casualty replacements have been sought by re-emiting, the going north of General Tsai's Goth Division and General Chang's 61st has left the Kuangtung provincial army in rather a weakened condition. Two divisions to be added. General Wong, will head the 60th, but the Gist Commander has yet to be! named, For several days, the Commander: in-chief has been in Canton. The spokesman for the Yunnan military came from Wuchow with him, and he has been given the assurance that $250,000 will be waiting every month for the Yunnanese leader in the field. Seven regiments make up the allied force.
It has reached Chen Chi-tang's cars that the Eighth Route par-chasing department in Canton has not been doing right in its dealings with sellers. of commodities which' have been purchased in large tities by the military. Only 60 to 80 per cent. of the proper price has Deen tendered the merchants, it has been charged, squeeze that has been di the higher-ups in the pure ing department.
It was the chief of this department who told General Chen about or nine others are being held for examination, and also under' arrest] is the head of the Sam Wai Ca., which was formed only for the pur-rose of acting as middleman' in bar tering with the dealers on behalf of the army's commissariat.
For the sake of economy, some salaries in the Eight Route Headquarters are being cut. In fact, all who draw their pay through the military branch of the government, but the pocket-books of all who not face to face with the enemy wi have to suffer. And in addition to the salary reductions, part of what is paid will be in bonds which, if sold right away will oblige the hold-cer to lose part of the face value.
Text read from the printed page and cleaned; old type leaves the occasional error.