Enclosure No. 3.

21

Translation.

(Extract from the Kwok Man San Man, Canton, 7th Feb., 1927)

Conversation between T. V. Soong and a Japanese

Reporter on Financial Proiects.

(From the Chung Wa She)

News from Hankow dated the 22nd states that T. V. Soong

the Minister of Finance, has given an interview to our

reporter on the financial projects of the Nationalist

Government. The particulars are as follows:-

"The immediate intention of the Nationalist Government

is to put into circulation Currency Improvement Loan Bonds

to the amount of $20,000,000 and Treasury Improvement Loan

Bonds to that of $15,000,000. Of the Currency Improvement

Loan, $7,000,000 will be used for the improvement of the

banknotes in Hupeh, and $3,000,000 for the repayment of the

loan which was borrowed in Hupeh before the occupation of

Wuchang and Hankow. The remaining $11,000,000 (?) together with the Treasury Improvement Loan of $15,000,000 will be used for military and political expenses. A Central Bank has been established in Hankow by the Nationalist Government

with a specie capital of $5,000,000, and has redeemable

notes to the amount of $4,000,000. Any further amount of notes that may be issued by the Bank will be limited by the specie it has. The banknotes issued by the Bank of China,

the Bank of Communication, and other banks, now in circula-

tion in the market amount to about $8,000,000 or $9,000,000.

These banks all have specie enough as security and are on

a strong foundation, and therefore the Nationalist Govern- ment has not made any interference with them, and hopes that

they will carry on their business as usual. The Central Bank in issuing notes in Canton, has taken $1 sub-coin as

the

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