Chinese Banker's Views on Possible Remedies (Br Lx 3x)
Mr, LA Ming, the General Menager of the Chetan' Industriat Bank, and uihority on finance and currency 770 Stems, contributed valuable apprecia~ lon of the position fu regard t0 the Se" mortgages tu China, fle makes #uy~ gossies £5 nich attention hes aieady allan or the rect Gran and he cies the practice ther countries. a Real estate has Tong occupied a very important gestion in the finan markets "The confidence whi Clvestors. placed in real estate was Sue not only to the stable nature of GINS property. "but also to the case dating éredit.on it, There was Tube when mortgage of real estate Gran preferred even to debentures Mar fonds: Holding real estate, was Te'a way tantamount. to. holding Money'in the form of cash. The Butem of submerigage was also Prevalent. The foreign banks were Ereays ready to extend cans on Security of real estate either bY way of mortgage or sub-mortgage, and fhi'paved the way for the ullizalion the Chinese of the silver, stocks paid "by foreigners. "Along. with the Increase in the silver price, after the Tunching of the United States sllver~ purchasing policy, there was Un-Precedented exportation of the silver Rocks eld, by. foreign. banks Seanghal "The. aller consequently sere not ina position to extend any Joan' on real estate, nor to. accept any renewal. of exiting - mos\gage aTreoul, the market became con gested with a tremendous amount of Sesteslate seeking, mortgages Sie. thus making. inevitable a Crewe in the value of land The {and in Shanghai being mostly owned Cly Chinese. nationals, the loss incur P2aCby the "Chinese interests ha been the greatest. The tightness of Jeredit resulted in the decreased [Value of land, which in turn ravaged the tightness of credit, thus forming a vicious circle. AS a remedy for the present. every encouragement Should be given to the extension of foams, secured by the mortgage of Feal estate—iess for its palliative Tnfuence on estate owners than for ihe "thet credit aystem ad tect it would have in protect
encourage such mortgages, efforts Should be made to ensure" ease in Sbiaining satisfaction upon maturity of the Toan under mortgage, and such case could not be expected without mortgagees rights could be exercised Introducing some system whereby
Gennitely, effectively and. with reasonable dispatch.
Text read from the printed page and cleaned; old type leaves the occasional error.