Finance, interviewed by ative of the "North-China Herald" fon Monday evening. regarding lite question of the issue of $500,000,000 in bonds, stated that he had not yet considered the matter, Several prom-Ment Chinese bankers stated" that in view of the huge amount involved, the realization of the plan appeared to be dificult.
Mr. Chang Kia-ngan, managing director of the Bank of China, rave the view that the circulation of this huge sum of bonds in the market Would affect the financial policy of the nation. He regarded the scheme as one imbued with the principles of Inflation, and doubted if the Govern ment would subscribe to such an 'Another banker held the view that the five relief measures recently. drawn up by the Chinese Chamber of Commerce, the Shanghai Civie Asso-elation, the Chinese Bankers' Association, and the Native Bankers' Assosation were more practical than the lu sue of bonds, and if these were faith-lly acted on, the monetary situation would be eased. He pointed out that one of the measures was to alow the ings banks to deposit title deeds snd land certideates in place of Government bonds and debentures, ete, with the Central Bank as security.
450,000,000, Although only 60 per Cent, sliver reserve 1s necessary, that $270,000,000, deficit of $20,000,000 silver exists," The imports of rice and wheat for March amount to $40,000,000 ard even this would be met with grest dimeulty.
Tolal cash' deposits in Shanghai amount to $1,000,000,000. In order to ut these into circulation, a negotiable medium Is necessary." Property mortgaged here algo amounts 40 '$1,000,000,000, therefore, it was in-ended to approach the Government to establish a title deeds depository where $500,900,000 bonds would be. sued in exchange for mortgages. These bonds were to be circulated in the market 40 that the frozen deposits could be released and the monetary situation eased. "Tt was reposed tha; the bonds should be for a five-year term at an interest of 5 er cent. per annum. Although there no question of the 40 per cent. litle deeds security, the procuring of a $200,000,000 cash reserve to back up the bonds wag exceedingly dim The secretary further explained that the present stagnation is due to the lack of a medium of exchange. Besides sliver, banknotes, Govern ment bonds and title deeds are also used in Shanghai og such. But the last two are really subsidiary media since they cannot be circulated and negotiated as freely as silver and banknotes. "Banknotes also must be backed by silver. The recent drainage of "silver has affected these mediums, especially Government bonds and title deeds. To relieve {hy ttuation, this meeting had been Lengthy discussions followed and as "no solution of the problem. of securing the huge cash reserve was in sight, the members were advised to send' in their suggestions in this connection in three or four days. The secretary then announced that a petttion to the Government leaders had been drawn up and would be elr-
Text read from the printed page and cleaned; old type leaves the occasional error.