The papers are now beginning to devote long articles to the exact. position, and T append one from the "Daily Mail"
What precisely is stimulating interest in Chinese railway bonds at the moment would be difficult to determine. But one reason probably is that, as business firms report, trading conditions in China are slightly better than they were. There is a better demand for goods of certain classes and more movement of merchandise in consequence, some extent, no doubt, thi additional "traffic for js—eertainly when the goods have to be moved up country.
One must not exaggerate the beneficial effects of cooling political heads. But the mere fact that factious violence has subsided creates a more favourable background to a discussion regarding the rights of the railway bondholders.
And these rights, it may be recalled, have been Kept pretty well before the Chinese authorities.
Take, for instance,' Chinese Goverament Tientsin-Pukow Raitway 5 per cent. Bonds, which have risen several points in the last few days. Repeated representations have been made regarding the claims of holdfers of these Sonds to the British Foreign Office, while the Chinese Minister of Railways has given serious consideration to the special rights attaching to these bonds.
The prospectus contained a_provision for the transfer of certain internal revenues to the Chinese Maritime Customs in the event of default of the regular service of the Joan. The transfer of revenues has ever taken place, partly, no doubt, because the state of the country has made their collection too dificult.
Still, the mere claim of the bondholders is worth something.
The Tientsin-Pukow Railway is, as I wrote when advising people rot to sell the 5 per cent. bonds in June last, one of the best in China.
Coupons are in default as from [April 1926 on Tientsin-Pukow 1908 Bonds and from November 1925 on the 1910 Bonds.
Text read from the printed page and cleaned; old type leaves the occasional error.