Bonds Being Offered to the General Public Shanghai, July 14, Considerable "interest Is" being shown in the new twelve year City [Loan of $3,500,000 at seven per cent, underwritten by a local" banking group, of which Swan, Culbertson Frilz are acting as syndicate managers. The group includes the Bank lof China, The Chekiang Industrial Bank and the Iniernational Savings Society.
The price of the bonds, as adlvertised in to-day's issue, will be 98 Jper cent, plus accrued interest from Sune The loan is secured by the rev-venue received from motor-ear, motor jeycle and motor lorry leences and the City Government have concluded Jo very satisfactory arrangement with the National Loan Sinking Fund JCommission, a group composed of Jteading teca! banks and bankers, to see that the service of the Loan is properly carried out.
The loan is to be used to improve roads and bridges in the Civie Contre and Chapel areas. A museum will be constructed in which understood many old Pekin treasures, formerly in the Forbidden City, will be placed on exhibition, A beary will be built, as well as a stadium for the holding of athletic Jevents. Such institutions have been Jbadly needed in Shanghai for many Jyears and, being constructed in the Civic Centre area, will assist consi Jderably in the City Government' Jambition to develop that section.
Paying Agents The paying agents for the Loan, both coupons and drawn bonds, will be the Bank of China, Central Bank China and the Bank of Communi cations. Messrs. Seth, Mancell & Me-Lure have audited the pertinent ro-Jcords of the City Government and heir findings reveal that the average revenue from motor vehicle licences Hfor the past few years considerably more than covers the interest and amortization on the new loan, Negotiations for this loan have been carried on for many months between Mr. J. K. Choy, Commis: sioner of Finance, and the partners Jot Swan, Culbertson & Fritz, Every effort has been made to protect the investor and make the issue an altractive on It is interesting to note that this issue 1s probably the first local. curency Government issue, national or Jotherwise, in China in' which. both Chinese and foreign bankers have participated. Tt is a proof of the close relationship and working arrangements between Chinese bank-Jers and, in this particular case, an American banking house, Dependable Security Concerning the new $3,500,000, bonds of the City Government of Greater Shanghai to be offered 10 the public to-day for subscription, Mr. J. K. Choy, the Commissioner of Finance, states that the receipts. of motor vehicle licences as security for the bonds are most dependable. The reasons are obvious from an examination of the following mileage of motoring roads that a holder of a [Chinese rotor car licence could use Mileage of motoring roads of Great Shanghat 280 kilometres Kiangsu Province me, \Cheklang Province 062 jAnhwel: Province 1
Total mileage 2,140 Kilometres As a comparison, the International Settlement has a total of 270 kilometres of motoring roads and the French "Concession. 90 kilometres. From the above facts the taking out fof Chinese motoring licences by the public will naturally increase anually in the future, and hence the security of the new bonds will gather strength proportionally in the coming years. Regarding the numerical. figures of the security, Messrs, Seth, Mancell & McLure have gone carefully over the same for the Underwriters and they have been given in detail in the prospectus of the Loan.
Text read from the printed page and cleaned; old type leaves the occasional error.