To the Baltor of the "Norr-Cuina Datcy News"
Sin—In reply to Mr. Chung's letter of April 13 in your esteemed paper, T should like to say that the view held by the Chinese bankers that] there would be flight of capital Into foreign hands on account of the Chinese buying more foreign shares seems rather incorrect, On the contrary, I believe, it Is to the benefit of foreign nance only, and there Is no. sufficient ground to Believe that it is to the benet China's finance, as stated by Mr. Chung in his letter, that Chinese hold the interest of substantial foreign enterprises which are well organized and prosperous. 'There is no gainsaying that human beings are apt to look after their own interests first, that in case foreign enterprises prove! really 19 be well organized and pro perous, foreigners. are- rather' reluc~ tant to sell out, and that the shares of really substantial foreign enter~ prises are not easy to procure on the market, far as I know the amount of shares held in the hands fof Chinese being relatively—seanty, the Chinese have no of "con: trol as well as that of supervision over those foreign enterprises, and nor is there any Chinese allowed to participate in the management Those "enterprises. Hence it is incredible that Chinese holders foreign shares are equally treated, with those of foreign holders.
In fact, the investment in foreign shares helps to keep the capital foreign hands, instead of Keeping the some in the hands of the Chinese. Moreover it is by m> means a safeguard against wild fluctuation in foreign exchange, as when foreign currencies drop the value of commodities correspondingly decreases, and undoubtedly the value of shares will then decrease too.
If anyone wishes to give further! criticisms on my views, I am very' much obliged.
Sun, Shanghai, Apr. 14.
Text read from the printed page and cleaned; old type leaves the occasional error.