5
HONGKONG DAILY PRESS
FRONT
CHINA'S FINANCIAL
AFTER FOUR YEARS
for the revenues that should have been remitted from areas control!- ed by the Japanese.
CABLE
LOCAL PROGRESS |
IN SYRIA
CAIRO, July 6 (Reuter)-A Bri- ush communique announces local progress on all Syrian fronts.
In the Jimma area in Abyssinia. 15,800 prisoners have been captur- ed of which 12,000 Italians were captured since June 21
and
DAMOUR CROSSED
FADE-OUT
OVER AIR CAUSED
BY SUN
structure in protracted hostilities budget. Since the outbreak of the of obligations, contracted during seven miles north-west of Jezzine, Saturday night was due
MONDAY, JULY 7, 1941.--PAGE 7.
China's Destiny Linked With The Democracies, Says Dr. Quo Tai-chi
CHUNGKING, July 4 (Central)-That China's destiny is in- timately linked with that of the Democratie Powers and there can be no Far, Eastern settlement till there is a general world According to Mr. R. P. Morris,
settlement of which the Far Eastern settlement must form " A. M. I. E. E. (Chartered Electrical
part is the conviction of DR. QUO TAL-CHI, MINISTER OF FOR- JERUSALEM, July 6 (Reuter Engineer), M. 1. R. E. Engineer-
EIGN AFFAIRS, who broadcast over the OGOY this morning at Benior The Allies have crossed the River In-Charge,
Wireless Ex-
the invitation of the British Broadcasting Station in London. The Post Office, the
talk was rebroadcast over the BBC home and Er wire services. have also occupied Rharif, sudden fade-out over the air on to the
Dr. Quo said:"I welcome this viction that China's destiny is intimately linked with that of while a column from Palmyra 18 sun's actions, an occurrence which opportunity to have a few minutes' chat with my friends in Great Bri- now on their way to Homis
happens periodically.
You all lave About six or eight months back,tain and elsewhere.
been much in my thoughts since 1 Morris related, there FIRING PRACTICE Mr.
left London two and half months a similar fade-out over the atr Light gun firing practice
will during the night, but this often to on my long homeward journey De carried out on July 7, 8, 9 and happens in the daytime. 11, between the hours and midnight.
amounts, but the proceeds of taxa
on amounted to less than 30 per Continned from Page 1,
icent, of the total war expenditures.
On the other hand, in respect o "In the presen: hostilities, China British war finance was singularly
and stable. Its systein of the customs alone, revenues for- and Japan are poies apart in both sound
taxation proving highly cibly detained by the Japanese their military strategy and finan- direct cin) policies. Being primarily an elastic and productive and yet the had accumulated to the extent of agricultural nation with abundant total amount of tax receipts oc- inore than $750.000.000 by the end Damour, 10 miles south of Beirut gineer, General hudden wealth. China's economic cupled only 17 per cent of the war of 1940. In the meantime, services
war have all been met fully is more conducive to the conser-present hostilities, China has had the
China's wartime vative policy of military and fin- to depend on continued borrowing and promptly.
fulfiling its its war accomplishment in ancial resistance, and the chances to meet 70 per cent of
Thanks to the people's obligations. In contrast to Japan's of its ultimate victory depend badget
high-handed interference with mainly on playing for thne and on patriotic support and the banks'
that honourable performance, 18 the co-operation.
Govern.
which record
China's Creditors the co-ordinated development of loyal personal and national productive ment has been able to carry out may not soon forget power. For China, this is the the borrowing programme smooth- logical wartime policy from the ly and, up to the end of 1940, has internal loan Issues standpoints
both military authorised
equivalent to the total of $4.750.- strategy and finanelal power
000,000. PATRIOTIC RESPONSE
کرده
"A noteworthy fact in co- nexion with China's war fin ancing is the patriolle support The whole na- of its prople tion has responded readily to the Government's call for need.
funds and ed
relief war materials. The loyalty and generosity of China's sons and daughters abroad is particular- ly praiseworthy. They have contributed hundreds of mD- lions of dollars to the Nation- al Treasury. subscribed en thusiastically the National War Bonds, and invested con- siderable sums for the wartime development of mining and in- dustries in China's hinterland Moreover, thel remittances home increased from $300,000,- 000 annually in the pre-war years to $600,000.000 since the hostilities began and have been a helpful factor in reducing China's adverse balance of in- ternational payments
the
The low per capita wealth of Chinese people, coupled with
Same
"During
the
period loans issued In Japan amount- ed to about 17,670 million yen In other words, Japan's new debt due to the "China Inci- dent," is about four times as large China's
24
(at official rates of exchange), and the per capita debt is increased by about $10 in China and 250 yen in Japan, the ratio being
KEMARKABLE EXCHANGE
STABILITY
Firing Areas "D" and "E"
"A most significant factor in the be affceted.
Was
| to Chungking. I arrived just a week ago today amidst the bomb- ing season and in intense surDiner heat very warm welcome home
1. As a result of the fade-out on Saturday night, ZBW was unable will to relay the London news either Indeed.
successful management of China's Heavy gun anti-aircraft practice
the
Democratic Powers and there can be no Far Eastern settlement till there is a gen- eral world settlement of which the Far Eastern settlement must form a part. Good night or I should rather say good morning."
ANOTHER BROADCAST On the night of July 7, General TOIL AND SWEAT
Ho Ying-chin, Minister of War and concurrently Chief of the "Perhaps you might Care of hearing what life is like in Chung-ah over XGOY for ten minutes General Staff, will speak in Eng- king by comparison with life in London. Here much toll and ever through an Interpreter at 11.30
at 8 or 10 p.m. and equally affect- ed were aly the incoming morse war finance, likewise of import-wil; be carried out between the
news services. ance to foreign business interests, hours of 4 and 7 p.m. on July 8, Manila and Tokyo were available. is the maintenance of exchange. aud 10.
Shanghai came through poorly, but Like any country at war, Chuna has
Firing Area "C" will be affect all European short-wave stations had to meet certain currency diff-
pn. Hongkong Time. There will were completely dead. culties that are the necessary ad-¦
in an audience the studio Reception from London last night | friend the British Ambassador Sir besides a company of fully armed juncts of warfare, and has found
was again poor.
Archibald Kerr Clark Kerr the it necessary to enforce certain
and fully equipped soldiers stand- other afternoon, we both lost noing in attention and, after dieneral time taking off our coats but even 130's speech, sing a few war songs
menares
permit
eq.
Of exchange control to foreign controlled areas of Shang adjustment to economic ha and Tientsin and in the terri
and trade conditions. Because of tories where Chinese guerillas are the existence of extra-territorial-active. ity and of foreign settlements and trol is Lender concessions, and in view of the ex-
Where the Japanese cor- really effective, the legal
being notes,
prohibited
tent and importance of the areas from circulation, are in effect in- affected by Japanese Interference, mobilised and not in active circu particularly in Shanghai which is lation at all.
Besides, there has
either
on
Loyalty To Chiang
Continued from Page 1,
more sweat. When I received my
so we continued to perspire pro-
be
fusely. I must say that I admire as they march round.
Sir Archibald for the way he has
ON WIDE SCALE
stuck it out here despite the fact SINGAPORE, July 8 (Reuter) that his Embassy has been ré-The Malayan Chinese are observing peatedly bombed by the Japanese. the Double Seventh Day on the
"As for myself, I fear
I widest scale.
that
China's commercial and financial been large export of notes th the cast last night a message from must have been spoiled by nine Contributions towards the Chi- centre, the Chinese Government hande of the people,
Hongkong Chinese to Chungking years pleasant summer climate in nere Relief and continue to pour has found it difficul to enforce Goverment or private account.
on the fourth anniversary of the England and the process of read-in. rigid measures of financial control Insofar as these notes are export
outbreak of War in China. haveed and particularly when they are
Mr. Lu said: kept in the vaults, they amount in effect to hoarding because they are no longer in active circulation
Increasing activities 111 rapidly
as
sach adopted.
other
Countries
1 to 25. Comparing the total national indebtedness of the two countries outstanding at the end of 1940, the Agures would be roughly $9,250 million for China and 28,250 million yen for Japan. That is to say. Japan's present nations) debl 15
than more
three times China's burden, while the pre- sent per capita debt is about $20 in China and 400 yen in Japan, the former be- ing only about 1/20 of the lat-
the appropriate wartime connexion with the economic re-happened in four years of war, 50 ter During 1941. new bond management China has been able construction of the interior, such that our people, fortified and en- to maintain the exchange stability as the building of railways and lightened, may march forward to issues are expected to reach
roada
the and
development of final victory. considerable Migures
of is currency to a degree gen- in both
countries.
erally regarded as remarkable. The mines and manufactures, also re- quire a large amount of currency "China is highly appreciative of people's sustained confidence in
the National Currency has enabed for pay-rolls and retail transac
"Nevertheless, thanks to the strong foundation laid in the Cur- rency
Reform of November 1935 and
justment which includes beginning Newspapers, including English, are work at 6.30 a.m. is by no means issuing special editorials for the As China enters her fth year of easy. Actually It is now only 5 occasion. resistance against aggression. It is am, here but I don't regard talk natural that the nation shoulding to you work.
"Toll and sweat, pause to take stock of all that tas
Yes, Learn. But people carrying on with an amazing cheerfulness. I have been
Here In the Brush Crown Colony of Hongkong. the gateway
All to China.
Chinese, with or the already heavy hardships the friendly assistance which dil-the Government to combat with tions. Finally, increases in the
without a double allegiance and brought upon them by the war's ferent countries have extended to notable success Japanese schemes level of prices have in themselves living under the British flag, wish ravages, the Government's lack of her in the form a crealls during to undermine it. During the Arst required a large volume of hand- Radequate system of direct taxa the present hostilities. These bi eight months of hostilities, Chi-to-hand currency.
tion, and the enemy's occupation |clude the вечета! Commodity nese
means
raising War
funds.
Government banks freely
of many important elles, has pre- Credits and the Currency Stabili- bought and sold exchange at the cluded any large relance on in-zation Loan extended by America; official rates. Although since then crease of taxation as an effective the Export Guarantee Credit and the Government has been obliged
t
Currency Stabilization Fund Cre-to modify the procedure of cx Keeping in mind the necessity of dits extended by Great Britain; (change operations and to allow conserving the people's economie the Nan-Cheng Railway Loan ex-downward adjustment of exchange strength, the Government has for-tended by France: the Barter Trade from time to time to a more rea- to the mulated its wartimie taxation Credits extended by Soviet Russia, sonable level according
needs of the national economy, policy se
and large amounts of private cre- hardship to the people's burden dits for purchases of materials nsistently adhered to its
yet it has persistently and con- declared Aside from the institution of the
exen-policy of maintaining the National arrange-Currency.
the
undue as not to add
ак
At the Eighth Pienary Session
of the Kuomintang held in March
improve
different countries.
Japan.
The
CREDIT INTACT
currency.
"It is important to note that, fundamental y speaking, whe- ther or not there is an exces. sive note-issue depends not on statistical figures but on the saturation point at which na- tional currency requirements The are adequately provided. present total volume of China's note-issue cannot be said tu have passed the point of saturation.
"All in all, the surprise of the
CONFIDENT OF VICTORY
sonie
and
are
greatly impressed by the ex- cellent spirits prevailing in Changking from Generalissimo and Madame Chiang down- ward.
;
“INCIDENT" NOW TOTAL WAR
TOKYO, July (Reuter)-The political commentator, Mr, Makoto Komura, in an article surveying the China War in the newspaper Hochi Shimbun. laments the fact that peace in China seems still a on the eve of their fourth war
long way off. He declares that anniversary to pledge again their loyalty and wholehearted support cause of frequent air raids by the the China War has taken on the
status of a prolonged conflict. That mine enemy. Compared with London for their motherland.
"Though neither Japan or China should be the voice chosen for this our air defences are very meagre formally declared war, there is no happy task is an honour of which indeed and enemy raiders are able doubt that the Ching Incident is
I am deeply sensible.
become
The Hongkong
FAVOURABLE FEATURE
"Blood too I am sorry to say be.
We
Nazi
"This development has a 180 strengthened my personal con-
BIG ATTACKS
Cont'd from Page 1
BIG ATTACK
MOSCOW, July 6
(Reuter)--A
to bomb more or less at will, But
a war and it is being carried on there is a feature wherein
with the entire national strength DOUBLE ALLEGIANCE
compare more favourably. We Not long ago. B distinguished have strong
and safe air raid on both sides.
The conflict also Involved Chinese, speaking before a gather-shelters hewn out of solid rock French Indo-China and Burma and ing in British Malaya referred to and they are sufficient to take care it has in fact taken the shape of the double allegiance his Chinese of the city's entire population
total war as defined by the late audience owed to China and Eng numbering about half a million.
German military leader, Luden- He safe that some might land.
"Well, I am now in the saddle excess income for war profit takı sion of these credit
last four years' management to not consider this difficult. but the and events forced pace right from dorff. It is no doubt a struggle of
life and death to Chungking. and the inheritance tax, which are ments has been helpful in
that China's currency bas been strong sense of family in every the start. The day after I took up
"In the case of Japan also, it is regarded universally
"Throughout the period of hos sound
made it simple for subjected to severe tests but that Chinese
an office, it fell upon me to take swift stabilisation of China's war fin taxes, the Government has made ance while at the same time bene-
titles, China has maintained both it has withstood 80 well the
to overseas Chinese regard his steps leading to the severance of a war being fought with her en- tire national strength even though In "occupled" and unoccupied enormous strains imposed upon it ancestral land various taxation adjustments cal-ncial to the economies of the end-
with and the land of diplomatic relations areas an acceptable medhum of ex-by the hostilities and
and enemy his birth
adoption £18 culated
his Germany and Fascist Italy. This the military power being exerted reduce the people's Lo
ing countries themselves. It he-
change which has consistently onslaughts. Little wonder
to be loved that parents-both
and has clarified still further the in- it may be said to be only one- burden, particularly
those of
speaks confidence in China's fin- been demanded by the people in such a showing has inspired con-respected.
ternational situation wherein the fifth or even one-tenth of her total living in ог adjacent
fighting strength. to the ancial future and presents a strik preference to the issues of notes ndence both at home and abroad I think he was right, and belleve world is rapidly dividing into two war-torn areas, to encourage ex ng contrast to the fact
"It is not common in world his.. that in the Japanese and their puppets in China's financial outlook. we have proved it here in Hong-opposing groups, the Axis Power- port trade, to assist industrial the world's financial capitals the have attempted to circalate at the production and to promote thrift doors of borrowing are closed to point of bayonets,
keng. The law abiding trait in the Germany, Italy and Japan-with tory for such total war to last China's legal
more than four years. It is in- satellites and the anti- "At the outbreak of the Sino-Chinese character has been praised their and economy.
Tender has the distinct advantage
the China Incident to enter a ol free conversibility into foreign Japanese hostilities in July 1937, in whatever country our people aggression bloc, notably the ABC deed a remarkable development for
have chosen to reside in; likewise, Powers - America, Britain and
status of prolonged war.” Although there have China under the National Govern
of this year. It was deelded among "Outstanding
Country have in China's wai been marked changes in the value ment was continuing unprecedent their loyalty and patriotism to the China and now Soviet Russia
the ed achievements in its financial Mother other things that Land Tax, hi-tine Rinancial record is the Gov-1 of the National Currency in
foreign exchange market, due and economic development, It was household words. therte administered by the local ernment's scrupulous anxiety to
associate myself, with this no exceptions. governments, should be taken over live up to its obligations. China's largely to speculation, the Govern-my singular privilege and fortune Chinese. I versture to believe, are under the That we have the sympathy and by the Central Government for re- determination to uphold its creditment has continued to make ex-to
change available w legitimate significant movement, organization in order to unify and has been such that for well over business requirements.
of President Chiang co-operation of the British com- have given freely to the many flag The exist-leadership its administration and a year following the outbreak of ence of the so-called "black mar-Kai-shek and with the support of munity is shown by the splendid and flower days, theatrical per- increase its yield for war use. In the present hostilities, continued ket in financial centres is not an the nation.
The rapid progress work of the British Fund for Re-formances, concerts, bazaars, etc.. Soviet communique announces the It was organised for China reket. And it launching of a big Soviet attack June, 1941. the Third National to meet its debt service fully and uncommon phenomenon in eour achieved was yielding great bene-iel of Distress in China. Financial Conference was conven- regularly.
Maintenance of debt tries subject to exchange control, fits both to the Chinese nation organised in November 1938 by has not been the rich alone who on the Ostrov sector on the Lat- given. Even the humble vian frontier and adds that as a ed to consider practical ways and service, in spite of the enormous even in peacetime.
and to the foreign countries hav- both British and Chinese, the total have
raised to date, solely ricksha puller has been seen to result of an attack, the Germans ing friendly relations with It, Be amount means for giving effect to this and urgent demands on the National NOTE-ISSUE INCREASED
sides, China was fast becoming an through donations, reaching al- proffer his "widow's mite" of ten have been thrown back from the other fiscal reforms to meet the Treasury and enforced readjust- "There has been воде mia-unportant stabilising factor in the most Hongkong $800,000, including cents or more to buy a flag or town of Ostrov.
for his A recent donation of $10,000 from flower wartime needs of the nation. ment of the country's financial apprehension concerning the In.international situation.
Hundreds of German tanks and suffering
a large proportion of their motor- a result of crease of note-issue and its bear-
a patriots. "Obviously, It was.because China's the Hongkong, Government
ised infantry have been destroyed. SPECIAL TRIBUTE explains organization of the nation's fiscal China's credit in both foreign and rency. Indeed, the volume of cur- so rapidly that
why ing on the position of the car modern development was growing gesture of its sympathy for the
The communique also states that Japanese mili-suffering of the Chinese refugees.
Here I would like to pay a special the Germans made a fresh attempt system, the introduction of the domestic markets has remained rency in circulation has expanded tarists launched their invasion,
tribute to the various Chinese Wo- to cross the River Dvina in the Public Treasury System on Octo intact. That it imposed great considerably since the opening of Undeniably the war has been a Close as we are to the scene of men's Organisations. Day in and Poitsk sector. ber 1, 1939, is a distinct wartime
hardships on the Government hostilities. from $1,444,000,000 to severe strain on China's economy, warfare, much and often as this day out, when not carrying out
Fighting also Improvement.
The new system, and people to keep on
paying several times that Agure. Super-but in the madness of Japanese Island port, ita life and trade, has some money raising - campaign, which replaces the traditional de could not be doubted.
various points, including
centralized system
But with Dcially.
large increase aggression even the important in been subjected to the ebb and flow visiting refugees or presenting ami- Borisov sector, on the Beresina of handling out seizing upon some pretext for might easily be mistaken as an terests of western. Powers have of wide scale hostilities, we can bulances to the Red Cross-their River east of Minsk.
may be sten public funds by various govern declaring a general, moratorium, evidence of serious currency inte- been trampled upon with impuni-justly claim that we have tried to members
rolling
WIDESPREAD ACTIVITY, ita financial loins tion, but a closer analysis would ty. The interruption of China's do our bit, towards the life and bandages, cutting gauze, collecting
MOSCOW, July(Reuter}-- suggest the increase in note-issue progress is undoubtedly one of the death struggle our motherland is medicine and gifts, and doing the has been brought about more by greatest tragedies of history. engaged in. All these efforts, col-hundred, and one thing needed to Widespread activity in German- economic reasons than by fiscal Japan's slogan of creating 'New lective and individual, have been keep such war time activities go-occupied territory in the rear of necessities. Even before the war,Order in the Far East is but a animated by one thought: love of ing. Undoubtedly, their chief in the German armiies is reported by of hostilities to the end of
China's note-issue was not suffi-camouflage for Its twofold object country and desire to help her inspiration comes from China's First the official Boviet Agency, cient to meet the needs of the on-jof dominating China in its own her hour of greatest need.
Lady-Madame Chiang Kai-shek. Guerilla detachments, composed 1940, China pak out not less than $1,030,000.000
of the various organisations in tire country. As a consequence of interest and of expelling the in-
The students of schools must not of men familiar with the locality, for debt
penetrated deep behind services; $320,009,000 for extern-
hostilities, increased hoarding and terest and influence of western Hongkong engaged in relief work, be forgotten They have worthily have al obligations and $729,600,000
holding of cash balances by the Powers from the Far East.
I can give but a general idea. For emulated their olders, in raising enemy lines. "But, thanks to the strong
The Germans are foverishly re- public to meet emergency require-
instance, in the selling of various money for relief and nothing from "Tiscal theory recommends that
for internal obligations.
ments have ontailed a larger. vo- | foundation laid during the few national War Bonds under the which toll could be exacted has parom roncs mud bridges 'destroy- extraordinary wartime needs bo "This performance is all the lume of currency. Extended "clr- years preceding the hostilities Inspiration of the Hon. Bir Shou-been overlooked, In several schools, ed during the retreat of Soviet nanced largely out of revenue; more gratifying in view of Japan-culation of the National Currency and to the management of Uls son Chow, the Chinese Chamber the studenta each pay one cént a forces and are obliged to establish nevertheless, exportesice nas snown ese Interference with the Hon's in arens formerly served by local wartime finance and optrendy, of Commerce In co-operation with day for the refugee and I am sure thousands of guards everywhere. that where this is impossible the share of the customis arid salt re-currencies, notably in Yunnan, Chìng hàs been able to main- business groups and men's organi- that there is not one boy scout_or DNEIPER REACHED * emergency can be niet tút a const-venues-the two principal securities Bacchwan, Kwangsi, Blkong and tain a financial front stronger. derable period by relying largely of China's obligations. Between Binkieng, has likewise resulted in and more endurable than its upon borrowings. During the last July 1937 and December 1988, the a larger circulation. Moreover, enemy had conjectured, Com- World War, for instance, the Govertiment advanced for the ser- circulation of the National Cur- mitted to its dună polley of United States contemplated the view of customs-securad obligations rericy has continued "even “in-the -armed-roofiliate and national reconstruction, Chins la con«< raising of war funds by increasing alone a total of $175,000,000 from areas coupled by the Japanerd,
Adént of its willaakte victory”. taxes and ung bonds in equal other sources to order to make up especially in Central China, in the
*In connexion with the
ru-
and economic life as the hostilities
"During the three and a kalf years from the outbreak
ment offices, has the advantage of centralizing the receipts and dis- and pald.
China girded
bursements of public funds, at the same time of separating the two functiona It will necessarily re- suit in closer co-operation of the nation's political and powers.
financial
COMPARATIVE LOAN ISSUES
such อ
J
TRIED TO DO BIT
38
com-
continued
#1 the
sations, have raised millions for girl guide who does not have sanje. LONDON, Julyd (Reuter)—A the war chest. The New Life where at the back of their minds German communíque atates that Movement, the Friends of the a great dream of the day when the Dnelper has bANG TUWING Kand Wounded Society, and similar or- they can be serving more actively, the enemy is being mickgid in the ganisations have found fresh im- and living up to china's war time Buitis" "countries by mangkriáns petus here and solid support ilogan-Resistance and recón- | who have captured: Kolómék ·'usid
Atariisine. Everyone, Chiese and foreign, struction!!