of the commodities should be shipped under the American flag.
It is estimated that the net proceeds of the Loan, after allowing "for all expenses and for' repayments. of principal up to March' 1, 1935, will amount to about $38,000,000, including approximately $9,844,000 paid and to be paid for duty and surtax. The estimated cost of the entire loan. about 85 per cent. per annum. The Proceeds of the loan are being devoted to productive purposes. Up to February 25, 1935, the appropriations. have been as follows: $3,800,000 for repatriation of farmers in the communist-bandit affected areas. Kiangsi; $200,000 for relief of famine in Szechtien;, $12,600,000. for reconstruction work of the National Econo. mic Council; and $15,000,000 transfer red to the Central Bank of China for currency reform. The National Cou cil, at its plenary meeting held at Nanking on March 26, 1934, decided pen uttizaton of funds for various constructive purposes, including highways, reconstruction in Kiangsi. and the North-west, health enterprises, improvement of the silk, tea, cotton and fuel industries, and research, Reform of the Tael The Report describes the abolition of the Tael in 1988 as a notable re-"For some time past the pose, and its continuation as a matter of habit and inertia had become a source of complication and needless confusion and expense to the public.
Discussing the London Agreement regarding the stabilization of silver, it is now revealed that China made reservation in ratifying that agree~ ment, The terms of the reservation this Agreement, the Government of China declared, Silver is. the. basle. monetary of China, the National Govern ment wu) consider Iiself at Mberty. 10 take whatever sation it-may deem propriate, if, in. its opinion, changes In the relative values of gold and saver adversely affect the economic condition of the Chinese people, contrary" to the tahuaing the price of silver embodied in the Agreement, Dr. Kung concludes with the view: that the problem of economic reconstruction in China is inexteleabl bound up with the problem of Gov. ernment credit. "Consequently _progress In dealing with the one problem depend largely upon progress ling with the other.
'A programme for accomplishing the sired ends must involve: (1). Ratablishment' of a more effective budgetary system, embodying articular definite' control of expenditure, (2) Settlement of debte arrears. (3) Reform of salt revenues, eliminating surtaxes, standardizing rates, improving the quality of salt, and imposing more effective control over the production and movement of salt. (4). Adjustment of tariff rates to produce the maximum of revenue, without Une ady interfering wath' the trade articles essential for industrial and personal conrenption, Export trade should be encouraged by, reducing or even waiving export duties wherever possible and desirable, (8), Continued effort to regularize and moderate provincial and local taxi Won and to develop it in harmony with national taxation, (6). Encour=
Text read from the printed page and cleaned; old type leaves the occasional error.