582
•
CHINA
1918, Feb.-Nankin Railway Loan, between Nanchang and Kiukiang.
Made by Tao Kogyo Kwaisha
1918, April. Sino-Japan Exchange Bank to Telegraph Administration
for extension of land lines; interest 7 per cent., discount 1 per cent., secured by all telegraph property not previously pledged 1918, April.---Wireless loan, probably for construction of wireless stations, materials to be purchased from Mitsui Bussan Kaisha.... 1918, May, 16th.-Chihli Provincial Loan made by the Bank of Chosen... 1918, June.---Bank of Chosen to Ministry of Communications, for con-
tinuance of Kirin-Changchun line to Korean border. For 40 years at 5 per cent.
Yen
100,000
1918, June.---Bank of Chosen to Fengtien Province for redemption of small-coin notes, one half to be repaid in two years, and one half in three, interest 61 per cent., issue price 95, secured by stock in Penhsihsu collieries owned by Fengtien province
......
1918.-Loan on Yu Kan Iron Mines, Kiangsi Province 1918, July.-Yokohama Specie Bank, Third Advance of the Second Re-
organisation Loan
C
20,000,000
3,000,000
1,000,000
$20,000,000
3,000,000 3,000,000
....
10,000,000
1918, July.-Kirin Forestry Loan made by Japanese Banking Group. Period ten years. Interest 7 per cent. To Chinese Govern- ment at par. Security: Gold mines and Government Forests at Kirin and Heilungkiang and revenues therefrom
...
1918, Oct.-Advance for four railways in Manchuria and Mongolia. 1918, Oct.-Tsinanfu and Kaomi railway loans advance 1918, Oct.-Establishment National Foundry.
LOANS TO HANYEHPING COLLIERY COMPANY:
1903.--Industrial Bank of Japan, 30 years at 6 per cent.
1906.-Mitsui Mining Cosemi-annual repayments, int. 7 1/2 per cent. 1906.-Okura & Company, 7 years at 71 per cent.
1908.-Yokohama Specie Bank, 10 years at 71 per cent.
1908.-Yokohama Specie Bank, 10 years
1909.-Yokohama Specie Bank, 10 years
1910. Mitsui Mining Company, 2 years at 7 per cent.
1912. Mitsui Mining Company
•
30,000,000
20,000,000
20,000,000
10,000,000
1
3,000,000
1,000,000
2,000,000
1,500,000
500,000
6,000,000
1,000,000
2,000,000
15,000,000
1913. - Yokohama Specie Bank, 40 years; 7 per cent. to 7th year, there-
after 6 per cent.
The aggregate of the national indebtedness is no greater than that of some other countries with less resources, but the danger is that, without foreign supervision, the resources will not be husbanded, but frittered away on useless expenditure. Towards the close of 1918 the Powers agreed that no further advances should be made to China until a settlement between North and South has been completed. The observance of this undertaking has rendered administration during 1919 extremely difficult. Innumerable private sources have been approached for financial accommod- ation with unsatisfactory results. National bonds have been hawked about until they have depreciated lower than previous below-par quotations. First year bonds are now quoted at $18. Redemption of the 4th year Domestic Loan should have been commenced in 1918, but was not commenced till 1919. Likewise the principal of the Premium Bonds should have been returned, but was not. The notes of the Govern- ment Banks in Peking are, at the moment of writing, standing at about 50 per cent. The feature of 1919 was the announcement that America, Britain, France and Japan would form a new Consortium. Associated with this proposition was a plan for the unification of China's railways. Japan, however, disapproves of both schemes.
This chapter on finance would be incomplete without a reference to the preposterous currency reform promulgated in August, 1918, which contemplated the establishment of a gold currency with the Yuan or dollar as basis. A gold note issue was to follow, the reserve for which was to be furnished by Japanese notes held in the banks. All this was to be accomplished by the decree promulgating the scheme. Naturally, the Group Banks protested, and the scheme was dropped.
Budget Statements in China have yet to become the precise documents that they are in other countries. The last published was for the fiscal year ending June, 1916,