In these dark days of depression through which China, and particularly Shanghai, as its commercial metropolis, are now passing, it is essential that we should recognise and appre-date any portents of encouragement, which may lead us to hope for. the eventual development on a solid basis of this vast and potentially rich country. These portents in my opin-fon are not lacking and the fact that, during the past year, consider able progress has been made in the face of extreme dimculties Is a happy augury for the future, Politically the country has been more stable then for several years and Gen, Chiang Kai-shek appears to be firmly established as the national leader at Nanking. The great strides in road-making and improvement in communications have enabled him. not only to extend his sphere of activity, but to break up the stronkholds "of the Communist bands in 1. X. suiver Dollars from India #2000,00 Chinese sliver Dollars rom Chinese _stiver Dollars 'Kwongehowwan, Chinese silver' Dollars from mae Southern Kiangsi. Unfortunately, has not as yet been possible to exterminate them entirely, owing to the vast areas open to their retreat, but the campaign against them is being} pursued most vigorously, and with nereasing success. Unfortunately. this entails the use of important military forces and a very large percentage of the national revenue which is so badly needed for other constructive measures.
Stiyer subslétary coins from Kwongchowsan Silver subsidiary come from Macao.
The necessity for developing and improving railway communications, throughout the country has also been recognized by the Government and a genuine effort has been made to 194481 improve the financial position of the Narlous lines. In several instances, payments against interest long over-
Total sliver imports for Feb, 2.453.004 due on foreign loans have been made and, in consequence, both Chinese government and railway loans have shown a marked appreciation on the London Stock Exchange. The realization that outstanding commitments
Text read from the printed page and cleaned; old type leaves the occasional error.