has been slipping steadily down- ward since the beginning of this year, so that one gold dollar will buy two and a half silver dollars, whereas the previous average has Bankers heen around two for one.
in Peping predict that the silver dollar has not yet reached its low level, and may go to three for one before many months have passed.
that the This means, of course, Chinese must pay more of their dollars for foreign goods-and so
long as manufacturing remains so poorly developed as at present, the Chinese must continue to buy large quantities of foreign goods.
From the foreign point of view, the most interesting portion of Mr. KEMMERER's report will doubtless be that touching upon foreign loans, are in default. many of which Bankers in Peping believe that the Financial Commission has been working upon a scheme by which the Chinese Government may repay the defaulted portions of these loans as rapidly as possible, in order At pre- to restore credit abroad.
sent, the bankers point out, the Chinese Government has no credit whatever abroad, and is rapidly reaching the point where it will be almost impossible to float domestic This is perhaps the most loans. serious problem facing the Govern- ment, and one upon which the KEM- MERER Commission has doubtless Bankers and spent much time. business-men, both Chinese and foreign, are anxiously awaiting disclosure of the Commission's re- commendations on this subject, being naturally eager for the Chinese Government to restore its credit at home and abroad, as business does not thrive when the Government is crippled by being dangerously near bankruptcy.
It is known that Mr. KEMMERER has already advised the Chinese Government to do everything poss- ible to restore its credit in the near future, and that the moves made in this direction during the past year have been based upon his sug-
The gestions.
Chinese Finance Minister, Mr. T. V. SOONG, has given the Commission every possible aid in their work, and has been eager to follow their recommenda- tions as quickly as circumstances permitted. The financial reorgani- sation of the Government, however, has proceeded with discouraging slowness on account of the numerous civil wars. When it appeared that the Government at Nanking was ready to begin constructive work of some kind, having an accumulation of money, some faction or another would start trouble, and the money on hand was used time and again either to
some threaten- buy off" ing War Lord, or to wage a “puni- tive expedition against a rebel- lious General or group of Generals who menaced the very existence of the Government. However, when Mr. KEMMERER submits his report at the end of this year, the Chinese Government will have at its dis- nosal a survey of conditions made by proved experts, together with recommendations of what they should do
rehabilitate the national finances. The Government may not be able to put the recom- mendations into effect for some time, but the report will serve as a guide to future changes,
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Hopkory Weekly
Press. 1-11-29.
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