Aprit 20.
As the result of the Chinese Government's. currency reform scheme, especially in its nationalizalion of' silver, the so-called "silver jelauses" in various forms of contract have come under consideration. In the light of legal decisions in Lo don and Washington in "gold eases, as lately reported in these columns, there is apparently no doubt thet the protection which the clauses were expressly designed fo give cannot be obtained. The provisions of such contracts' therefore become untenable. The Shanghat Power Compniy. recognizing that it had voluntarily written silver clause into its contract with is debenture holders, has made offer with the object of ending this. unsatisfael 2 of affairs After consultation with its Trustees nel some of the larger holders it announces its desire to eliminate the silver clause from its "First Mortgage Debentures 5% per cent dollar series due 1973"-—to be call~ future t Mortgage Debentures 51 per cent, Chinese Dollar Series due 1973"—and to Fegularize the payment of sums due, under its obligations with the debenittre holders. in the number Chinese dollars "equal ber (0 the number of Chinese silver dollars formerly stated to be pay ible." This clfectively eliminates "and, in con= debenture holders the Company agrees payment of 3 per cent. (three Chinese dollars for each 100 silver "Chinese dollars principal), the offer to remain open until July 31, 1937. The effect of this will be to give the Company an equitable discharge of all its obligations under {he silver clause and to enable it in future to pay in Chinese dollars in fulfilment of} its legal dues.
This scheme affects debentures to the value of $28,000,000. consultation—including a two-day canvass—has enabled the Company to announce that holders of over 51 per cent. of the onl standing debentures—among them the Hongkong & Shanghai Banking Corporation, the Bank of China and the Chekiang Industri Bank, Ltd, and two of the largest Brokerage' Houses in Shanghai—have acceded to the proposal. A
Text read from the printed page and cleaned; old type leaves the occasional error.