Explaining China's going off the silver adopting paper as the exchange, Dr. chairman of the Finance, addressed reasons for standard and medium—of Ma, former Committee the members Jor the American University Club at their monthly luncheon in the Amer tean Club on Tuesday, Jan, 21.
Dr. Ma stated that the American silver policy had caused China's move due to the fact that it tied up Thdustry, created unemployment, and in addition was disadvantageous to China financially.
'Two roads lay' open to China, said, Should China sacrifice indus {ey by remaining on the silver standard, or should she abolish silver for prosperity? The decision, he con~ Hinued, was not hard to choose, Tt was at once seen that it, would be advisable to model China's finan Joes after those of Great Britain, and shortly afler Sir Frederick Leith: Ross "arrived In China, China went loft the silver standard, it being considered the only way' to save the Dr, Ma made three points in his speech that were of interest to his audience, First he said that lpsycholozy of the Chinese was dil Jerent from that of the British, The British, he explained, had never had to consider the pound sterling feom, although it was used as the medium of @xchange, and that there fore the British had never felt any misgiving about going off the gold As regards the Chinese, however, Ihe pointed out that silver has always been revered in this country, and that the people had definite metallic superstitions, one of them being that the metal was always safer than paper.
Dr. Ma's second point was whether jor not the Chinese banking system [Was comparable to the British bank-Ing system. "He said that it was Jdefinitely not. He pointed out that British banks are governed with per fect discipline and are under one head, the Bank of England, China, on the other hand, he continued, "had any number of banks, few of which worked in conjunction with others. The result was that there were different rates of interest charged, and that one bank might Jadopt a banking procedure of its own with entire disregard of any other bank, Cohesion and unity in Chinese banking was necessary, he main= tained, Dr. Ma's third point dealt with the prospects of paper as a medium Jot exchange.
Text read from the printed page and cleaned; old type leaves the occasional error.