To the Editor of the "NontH-Caiva Datty News."
Sim—In two recent issues of the "North-China Daily News" you have editorially commended the address Jot Chiang Kai-shek and. more especially his statement that the [communist-bandit problem was more economic than military. This is undoubtedly true but he might have made this statement far more in-elusive. Economic development on 8 sound basis must be the determining factor of China's progress politically, socially and in other Tespects. "How can any administrative. body function efficiently Jwithout'an adequate revenue which Jean only be. legitimately derived from the " surplus earnings Jemployment and production. ong asthe population generally can only earn a bare living sistence the immediate financial necessities must burden oppress sively capital and commerce. within reach of taxation and seriously handicap economic progress. I made this the subject of an a for a Chinese. ago entitled China taken advantage golden opportunities she would be tone of the most prosperous and influential of the great world powers 'These opportunities are." still knocking at" -her' door which' if Jopened to them would quickly give China that states. among' "the nations of the world that her geographical area and industrious and intelligent population and her 'unimitable natural resources. should entitle her to occupy.
'The adoption of @ more suitable economic "policy and' legislation Jencouraging and protecting capital and colmmeree Would result" in material progress at a rate probably unexcelled "by "any other. nation, "A well known. American financier who spent a few months China just before the war re-irked tome that he understood as never before why China was the object of so much concern to the trading nations of the world and expressed the opinion that while the nineteenth century belonged to America in respect. of " econom Progress the twentieth "century Would belong to China, 'This. jonly 18° years ago but China's teeming millions are still literally' starving in the midst, of plenty.
Apart from the fact" that all available testimony is to the effect that Government ownership in evei country has been inimical to. public welfare, the tendency in China to state owned and controlled public tilities—the most favoured form of investment for cautious—capital basic industries must Jan insuperable obstacle economic development. whic! Jadmittedly the most vital necessity to-day in the welfare of her people. In any event such a policy demands vast financial resources which the ]Government "does no" possess. Jean only have recourse to oontributions for these ordinary. revent from' loans. [China's ordinary revenue is scare ly sufficient to. cover ordinary ex-Penses after being, as the Minister of Finance has recently expressed it, "Cut to the bone" and it is scarcely feasible to place domestic bonds when previous issues, as well secured as is possible, are obtainable at far less cost. "Even if this Were riot so the investor" insists upon the control of the enterprise in which his capital is invested, China possesses in abundance all the essentials for economic develop ment and ample natural securities Yor the investment of capital which is available if facilities are afforded within the power of the Government to provide, There is plenty lof capital available for investment Jabroad in America and other coun-{tries where industrial development, for the time being, has about reached its limits. "Such countries would benefit by the emigration of their surplus capital. Moreover, the potential value of the overseas [Chinese communities in, the economic reconstruction of China must considered. It is estimated that there are 15,000,000 overseas [Chinese whose remittances to China im normal times. average about $250,000,000 annually. "A well known Chinese from British Malaya
for the purpose of investigating the visiting Shanghat of this time opportunities for capital investment in China and the formation of a League of Overseas Chinese to fu ther economic development in the Homeland.
At this early st reconstructive po in China's than to forbid the. formation of public utility companies and. to Permit the greatest measure of freedom of selection and control in he investment of capital with no other interference by the State than
Text read from the printed page and cleaned; old type leaves the occasional error.