The report that the National Government is, owing to financial] difficulties, proposing to declare moratorium in regard to the payments on domestic bond issues has caused considerable anxiety in Chinese financial circles, On. Dee. 28, a Chinese" Bondholders Association was inaugurated for} the purpose of preventing the Gov-Jernment from carrying" out the moratorium plan, it, being pointed] out by the bondholicrs that the} common people constitute the majority of the bondholders and the enforcement of the ncratorium plan. will drive them into financial straits and greatly damage the] Government's credit. The Associ tion was formed following a gen-feral meeting of the bondholders the Chinese: Bankers Association, Hongkong Road, According to the Chinese banking] cixeles, the proposal for a moratorfum of. payments on domestic bond] {issues was made by the Chekiang Provincial Reconstructions Commis sioner, Mr, Shik Ying, who, in statentent the Central Executive] and Supervisory Committes now] holding their sessions in Nanking, suggested that the Government] should arrange with the financial and banking circles to enforce al moratorium of payments on all outstanding bond issues in view of the fact that the with a huge def for the next il wars, is not in a position to set aside' funds, for the payments on domestic bond issues, the total amount of which] runs into hundreds of millions of dollars. Therefore, the proposal suggested, the people should demonstrate a spirit of patriotism by Jagreeing to the moratorium plan so as to enable the Government to tide lover its financial crisis, Although the proposal has not} yet received the consideration of the C.E.C. and CS.C,, the report] has caused an un} nted fall local bond values with the result that there is considerable. nervousness and apprehension among. the i bondholders who fear that thei investment in this respect will be a {total loss if the Government's moratorium plan is enforced. They ldeseribe the Government's policy. in this regard as an unwise one which, if carried out, will result in the failure of many banks and possibly} gliaes throughout the country, they Following the inauguration of the Bondholders Association, a telegram was despatched by the Association to 'Nanking, requesting the Gover ment to give an explanation of the matter and to refute the rumour jeoncerning the moratorium plan so as to set the bondholders' minds at tease and to check the continuous fall in the bond values. Other telegrams of protests worded in a similar vein have also. been des present Duke of Westminster. patched to the Central Government ravious local commercial organ effects, "1981" in three places the room brought out vividly the closing period of the years. Pots, ferns and-other green effects added much to the general scheme:
Text read from the printed page and cleaned; old type leaves the occasional error.