Now, with regard to the Chinese monetary situation, with every admiration and sympathy for their capacity to take a world of suffering, one must view the malaise in its physical limits, in order to arrive near to the truth.
Let us use as our parallel the American monetary situation in 1933. The wei-wah system here is for all practical purposes a banking moraicrium. As against the fall in prices in America then, which melted securities there, we have here an outright wholesale destruction of value. This meang that. it is physi cally impossible Yor debtors in China to meet their obligations to creditors because in so many cases everywhere the securities have been destroyed.
Let it be taken for granted that the Chinese currency reserves are fully intact, There is then first to consider the Government's other obligations such as\bonds and loans, the current deficit on the budget, war expenditure, and, lastly and most important of all, as in the case of the American Government in March 1933, the Chinese Government will be faced with the problem of relieving the debtor class by devalue ing the currency so that the unbearable load on debtors may be relieved.
Text read from the printed page and cleaned; old type leaves the occasional error.