From our present point of vic that of the British bondholder, the result is that on one line after Janother the revenue is failing and the loan going into default. In the ease of some of the earlier loans the railway itself including the permanent way, is actually mortgaged as security, but it is say that in the prevuing condition of China the right to foreclose on, [the properties could only be exer ed with the help of armed support.
'A more practical consideration for the bondholders is their further Jguarantee under the loan contracts, Jconsisting of the Government's Pledge to pay from their general! Fesources whenever the revenue of particular railway should fail to provide for its loan charges. In. /some cases the Government revenue from certain taxes was also specifically pledged as supplementary. security. On these guarantees the bondholders sre now thrown back.
The present state of the Central Government's finances and control of fixation is such that their only Jgeneral sources available are the revenue from the Customs and Salt. Gabelle. So far fiom meeting any, of the railway bondholders' claims from the Customs or Salt revenues the Government is regularly pledging the available surplus of these revenues to Chinese Banks for! years ahead in order to raise fresh loans for the benefit of the military Farty which happens to control the! capital, Railway Loans and Tariff Revision Formal and barren notes of protest to the Chinese Government are the lonly means whereby the British Gov-fernment has found itself able to support the bondholders' rights. If [China's claim to be freed from the tariff disabilities which distinguish her from more Highly developed nations are to receive satisfaction, it is a fair demand that she for her Part should live up to international standards in the matter of paying regard to her contracts, and that her Government " should" accordingly address itself to the state of the railways and misappropriation of railway revenue and. should make provision for supplying defaulted payments from the other resources sivan as collateral security.
Text read from the printed page and cleaned; old type leaves the occasional error.