1928-07-07 — Page 5

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31.

THE HONG KONG DAILY PRESS, SATURDAY, JULY 7th, 1928.

CANTON CURRENCY. CHINA'S 84 ARMIES. SOUTH CHINA AIR

#

SUCCESS OF NEW ISSUE.

OLD NOTES AT 1 PERCENT.

MINT NOT TO OPEN YET AWHILE.

(VROM OUR CHINESE CORRESPONDENT.)

CANTON, July 6th.

COST OF UPKEEP.

RESOLUTION OF ECONOMIC CONFERENCE.

CIRCULAR TELEGRAM TO MILITARY LEADERS,

Conference to the Chinese military leaders on the subject of the die bandment el troops.

SERVICE,

CANTON'S KEENNESS.

PLANS GOING FORWARD.

According to the Canton Gazelle the proposed organisation of a com- mercial airplane service" between the principal cities of Kwangtung and Kwangsi has been make good progress and the promoters are now visualising air services that will reach out to all the principal cities of China, and even connect UP with Siam, Singapore, and Philippines.

The Chinese News Agency an. nounce that a circular telegram has The financial situation in Cantonen sent by the National Economis is auming 2 much brighter aspect. The Central Bank of China notes are to-day quoted at between 91 and 92 cents to the silver dollar. Of the $2,000,000 banknotes drawn from the scaled vaults to be used as a special issue $1,000,000 have already been stamp- ed. The stamping is done by machine, each banknote bearing the characters Chung Yang Chown Hong which, means, the Head this suma has to be appropriated or the formation of

to meet the charges on foreign and

The

The telegram points out that China has 4 armies (279 divisions), 19 independent brigades and 21 independent regiments.

The

The annual cost of this huge force is over $660,000,000. whole revenue of the nation is 40,000,000 and $150,000,000 of

domestic loans.

The Economie Conference passed the following resolutions:

1. That the nation's army should. comprise 30 divisions, each division consisting of 10.000 men.

2. That military expenditure should not exceed $183,000,000 an aualls,-$120,000,000 for "the fifty divisions (presumably 820 a month for each man) and $79,000,000 for military organisations, navy, sir force, areena.a, military schools and military factories.

Office of the Central Bank. whole work is delicately done and is hard to imitate. The colour of the,, stamps for each denominatiou is different. Thus on the one del ar denomination it is red; on the five and ten dollar denominatione, blue; and on the fifty and hundred dollar denomination notes, the seal of the Vice President of the Cens tral Bank of Chian, Mr. Ip Tsing, is stamped. On the back of each of the hotes of the fifty and hun- dred dollar denomination, the seal of Mr. Wong Lung Shang, the Pre sident of the Bank, is

For the purpose of demobilisation The one dollar denomination billsit is recommended that an Army. have no such special seala. In ad- Labour Reconstruction Committee dition to this, the characters Yim be appointed in the Capital, won Chit (baving been examined) are likewise stamped on the back of paru of representativee from the Reconstruction Committee of the every banknote in question.

stamped.

fol..

The $1,000,000 of banknotes thus stamped are apportioned as lows: the bundred dollar denomina tion, $300,000; the fifty dollar de- "nomination, $440,000; the ten dol- lar denomination, $120,000; the five dollar denomination, 803,000; and the оде Hollar denomination $49,000. The other million dollars of banknotes are being eimilarly stuntped.

Those stamped banknotes are now circulating in the market at face vahie. According to finance authorities, some $100,000 of such notes are how in the hands of the Canton merchants and people. The big companies here, ike the Sin- cere, the Sun, the Oriental Hotel, the Asia Hotel, etc., have gone eo far as to put up large sign boards in front of their establishments atating that they gladly accept these stamped banknotes at face value. The smaller merchants, however, are still hesitating over their acceptance. They say that they will accept them later on, but not now! An exception to this is found in the restaurant keepers, who quietly accept them from cus tomers who have eaten their meals. However, acceptance of these stamped banknotes is increasing day by day, and it is expected that before long they will be fully ac cepted. They can, of course, be exchanged at any private bank in the city for silver money at the cost of one cent per dollar.

'Demobilisation,

Members of the Canton Chamber of Commerce are keenly interested in the project. At a recent meet ing, four members of the Executive Board of the Chamber of Commerce were appointed to draw up plans a company and the premises of the Chamber of Commerce are being used as the temporary offices.

INSUFFICIENT EVIDENCE.

CASE AGAINST ACCOUNT-

ANT DISMISSED.

A TROUBLESOME WITNESS.

A New Witness, Mr. Bennett said that that was the case for the prosecution as far as he could go that day. He ask ed, however, for an adjournment to enable him to call a foki of the Kwong Cheung Lan fruit stall who had made out the bills in respect of! two of the charges, and that this witness would say that he took them to a shop in a Chinese street and that on the sum mentioned on was different to the the bill which book entry was paid to him." This witness was at country, but Mr. Bennett bad sent for him.

present in the

Af the Central Magistracy yester- day afternoon, Major C. Willson, O.B.E... discharged the Chinese accountant who appeared on three charges of alleged embezzlement from the firm by which he was pro- yiously employed. The Magistrate

Mr. Sheldon objected and said remarked that there was insufficient evidence to establish a prima facie that the case had been adjourned case against the defendant, and from day to day. The defendant that the two letters which he wrote was facing charges of embezzle to the manager of the complainantment in support of which no cogent firm were in his opinion written in evidence had been enlied. a state of alarm.

Mr. T. G. Bennett prosecuted on behalf of the complainants-The Kwong Cheong Lan firm, and Mr. H. G. Sheldon instructed by Mr. F. H. Loseby appeared for defend

aat.

Taking the three charges Counsel pointed out that although evidence had been given that the sums entered in the book were not paid, the evidence of the books alone was not sufficient to convict the de- fendant.

man

The capital of the company is The charges related to entries in

With regard to the other two tentatively set at $900,000, made Lee Kes Bra's books to the affect charges of charging too much with up of 10,000 shares of $20 each. that he had paid out certain sums regard to a fruit stall account, Mr. Shares will be paid for in four into the firm and various other firms, Sheldon said that the books con- stalments, with three months in which had not been paid at all but taining records of the transaction terval between each call.

embezzled by defendant. Some of were the only evidence which could the charges went back as far as be brought against the defendant, March, 1000, and, in round figures Mr. Sheldon described the defend

ant 25 the

who paid $3,000 were involved.

on vouchers handed

him." The manager of the firm, and com- plainant, had testified that it was possible that falls from the fruit stall had on ·several occasions brought along the vouchers and had charged too much. Misdeeds which others have committed have nothing. to do with the defendant, and can- not be brought as evidence against him," anid Mr. Sheldon,

It is proposed to purchase two planes first, to serve cities in Kwangtung. The projected service will cover Fatahan, Chan Chuen, Yuen Kee, Kongmoon, Tai Leung. Sheklung, Shekki, Sainam, Kung Yick, Tek Hoi, Shiching, Shiu- Kwan, Pakhoi, Hoihow, Swatow and other centres

The second route, to be started Military Council and representatives when the second call on shares is of public industrial bodies. Branch received, will serve Hong Kong. Army-Labour Reconstruction Com: Macao, Kwangchauwan Anoy, mittees should also be appointed Shanghai, Nanning and Wuchow.

in the provinces, these committees The third route, to be inau- to be composed of local military gurated when funds are available authorities,.. Commissioners of from the third call on shares, will Bureaux of Industries and repre- cover Nanking, Hankow, Chang sentatives of local industrial bodies.hn, Wuhu, Chiakiang Tientsin,

It is urged that some of the dis... | Tsingtao, baruted soldiers should be re-organ and other northern ports

Newchuang, Yingchow ised as armed police and that A fourth route is planned to ollers should be employed us communicate with more distant labourers for colonising outlying ports, such

as those in Siam, for read construction French, Indo China, Philippines, territorier, and for conservancy work.

and Singapore.

THREE BRANCHES TO

OPEN.

The three Branch Offices of the Central Bank of China.in Canton, which have been closed since the

CANTON'S MINT.........

AWAITING DECISION ON NATIONAL CURRENCY:

Communist holocaust of December

The Canton Gazette states that hat, have been ordered to open for work of preparing and renovating business by Mr. Tong Lung Shang, the mint in preparation for minting the President. These three Branch a new silver dollar currency for the Offices are respectively on the West two Kwangs is being pushed for- Bund, in Honam and on Wing Hon ward, actual production of coin Maloo. The personnel has already | will not be started until the finan- en selected and the buildings have cral conference in Nanking closes. been cleaned and replastered. The cact date for their reopening has as yet not been announced.

THE MINT.

uniform system of currency

An Hostile Witness. The former accountant of the

firm, a brother-in-law of the de. fendant, appeared on a sub pœna issued on the application of Mr. Bennett, and continued his evidence being cross-examined by Mr. Ben-

nett.

At the previous hearing Mr. Bennets produced and put to the witness a book which he asked the witness to identify.

This was strongly objected to by Mr. Sheldon, and the case, was the Magistrate's adjourned for decision.

At the outset of the proceedings yesterday, the Magistrate upheld Mr. Bennett on the ground that the book had been proviously identified by Mr. Yuen Yat Togg, the com plainant, in his evidence-in-chief.

Mr. Bennett then questioned the witness regarding the books of the Hang Lee and Lee Kee firms which were under his charge. Witness said that he was in charge of the books but was mainly concerned with the books of the Len Kee firm. He also told the Court that the books were audited once a year,

to

Refreshing Evidence." The question of "refreshing eri- dence was then argued. Mr. Bennett quoted a passage from Taylor on Evidence" which said 'that a witness could refresh his memory and that after seeing his own writing could give evidence which would support and vouch for the particular lact in question.

Mr. Sheldon replied that Mr. Bennett bad quoted a passage which had the words "his own writing.' The entries in the books were not written by the witness.

Mr. Bennett, replied that the paragraph added writing which the witness had supervised was also Receptable."

The Lee Kee firm," said Mr. Bennett, is a limited liability firm, and must have a correct set of books which are audited." "There is no question as to whe- ther kept."

The Tag Letters.

the books were correctly

The Magistrate said that the in- cident had occurred in 1993 and The design of these new coins was Leing carefully considered as it was

it was necessary for the witness to When the value of the Central not wished to produce a coinage and that the person in charge of refresh his memory. As the books were under his supervision, the Bank of Chinn notes has reached which might form an additional the book in question would be residence could be accepted.

difficulty in the problem of unify- parity, the Government will redeeming the currency system of China.

ponsible for any error which might its long overdue bonds. These bands

Mr. Bennett went on to say that amount to more than $6,000,000, Marshal Li Tei Hsin was of have been committed. and are largely in the hands of opinion that work on the premises

Mr. Bennett: Who was in charge not only had the defendant a case to answer on the evidence already noney changers, merchants and cer- and plant of the mint should con of the book

tinue, but that actual production

given, but on two letters which he wrote to the manager, and com. can othersis.

should not be begun until the national conference had decided on

plainant. Following those letters the measures to be taken to secure

the defendant was aware of the warrant issued for his arrest and had he been innocent he would throughout Chins. The design" of the new coin could then be adapted

have faced the charges as an in- nocent man. He had not done this, to conform to the decisions of the

but had run away and stayed away conference.

for over two years. In the course of these letters defendant admitted that "something was wrong with the accounts" and asked the com plainant to be generous and to overlook the matter. Ed also agreed to pay back the sums in question where the entries were in his own hand writing but refused to accept responsibility for entries made by others. He asked for an extension of the time given to him to repay, and suggested that his shares in other business firms be sold to settle the matter..

Many people are of the opinion "that the stamps on these banknotes could be easily imitated. Our cor- respondent went the Central Bank of China and asked one of the offi cera.there about this. He was told that by the time imitations could be made, the value of all the bank The re-opening of the Canton notes will have reached par. The Mint, which was supposed to have Government is therefore not worry-taken place two weeks ago, has been ing about this, he said, as no profit postponed, owing to the lack of could be made by so doing.

tunus. In conversations with the vernacular Press, Mr Ip Tsing, OTHER NOTES TO BE AC- Vice-President of the Central Bank

CEPTED AT PAR BY AUGUST 10TH.

!

CARGO JUNK SINKS.

820,000 CARGO LOST.

Report has been made in Canton

of Chine, said that it will be at least three more months before the Mint can be re-opened. It will be remembered that the Munition Ex- Continuing, the officer said that perimental Factory which had been the Bank has definitely decided to occupying the Mint has been order- reopen its department for the ex-ed to leave and even the silver change of banknotes for silver bullion was reported to have been of the sinking of a big cargo junk money at par on August 10th. Any ordered from abroad. Central Bank of China note, whe ther stamped or not, may be ex changed for silver money at that time. But between now and August 10th only the stamped bankhores are exchangeable for silver money at par value at the Bunk.

motes.

Now the whilst on the way to Canton from Hong Kong Of Chek Wan Bay Lost Friday morning, a heavy storm was encountered, a strong gale from the South West suddenly developed, and the mast of the junk snapped, damaging the superstructure of the Vessel. The junk was soon in a BO the tow sinking condition,

plan is held in abeyance because of the lack of funds. We have determined not to borrow foreign money, for the re-opening of the Mint," said Mr. 1p. All the necessary money for the project will, in the name of the Central Bank of China, bo borrowed from the Chinese merchants"

The junk had a cargo of marine and goods, leather, coconuts," lumber, totalling sorc 6,000 piculs,

and valued at over 820,000. It is not known whether any of the cargo lost. Canton Gazette. was insured, but the whole load was

Witness: The man in charge, the clerk who did the copying.

Mr. Bennett (to the Magistrate): 'This witness' is hostile, your Wor- ship, and will not answer my que's tion.".

This remark was objected to by Mr. Sheldon who considered that the witness was saying what he knew.

2

The Magistrate asked witness who, at the time of the alleged embezzlement, was in charge of the book.

Witness: The book was merely left in the shop, and not locked up."

The Magistrate: Who was in charge i-The

who made the

2120

・

Mr. Sheldon disputed the inten- tion of defendant in this matter, but the Magistrate replied that it was obvious that the defendant had accepted responsibility.

Mr. Sheldon: "Oh, No. Only in a way."

entries.

The Magistrate: "Then who was Meanwhile the Government is

Iaunch took steps to take off the the chief accountant ? "-" I was." still continuing its deflation policy

Three which has brought the valua of The Canton market is still flood crew of twenty-two men.

Mr. Bennett then asked the wit the once badly depreciated banked with the unwanted twenty cent attempts were made before the

launch succeeded in notes to their present status. Yes pieces coined in the 13th year of

rescuing neas if he could say whether or not The Magistrate: But"would not

admission cover the charges! terday inorning saw the withdrawal the Republic. Though repeatedly everyone and in the process the the firm did receive the money.

Mr. Sheldon replied that the de- of 8801,000 of banknotes from cir- warned by the Government and the launch itself sustained damage, culation. The total amouns thus Chamber of Commerce, tho mer

Witness: I cannot say, but ac fendant wrote to say that what- cording to the book it was not re-ever was in his handwriting he was withdrawn and sealed in the safety chants are still cautious in accept Vaults of the Central Bank of China ing these coina. They declare that

ceived.

responsible for, but would not: has now reached the creditable most of these coins are not up to

Mr. Bennett: Has anything beenMy submission," said Mr. Shel accept the responsibility for others. figure of 210,300,000, thanks to the standard; and as it is very hard to combined efforts of the Government tell the good from the bad, they

paid to the Kwong Cheong Lan firm don, is that there has been no and people to resuscitate the bank- are, more or less rejected. The

in respect to these charges (2nd and evidence on the specific charges nor nierebants further declare that the

baa there been any evidence of ard)! The salaries of all Government | Government tax collectors are the

crime from the letters." oficials and school teachers are now | first to refuse these coins.

The Magistrate: "I think the order added. This does not cause paid in the stamped Central Bank Owing to the large proportion of any inconvenience to any one pos

The witness was closely question-defendant ought to explain the of China notes. They are, however, bad silver coin and the fact that the sessing foreign money who wishes ed as to whether he spoke to the still receiving only 80 per cent. of Central Bank of China notes are to buy from Chinese merchants, as

Mr. Sheldon replied that he would defendant on hia return from not call the defendant but if it was their salaries in this currency, not as yet up to their face value, it can easily be changed into Chi- the other 20 per cent. being in many people have been using for new money. This ordinace has Shekki about the charges which necessary he would take the case uastomped banknotes which are put sign money, principally Hong been in vogue for a long time, but were being brought against him.

to the Higher Court.

...The Decision. to the withdrawal funds, the money Kong notes. The Canton authori has not been strictly enforced. The The witness said that he being credited but not paid to the ties have yesterday issued an order Canton Police have been ordered to

saw the

After a brief review of the officials concerned. However, these forbidding anyone to use foreign keep a close watch on this. Here defendant at the Hang Lee firm evidence and arguments, the Magis people will be again getting their money for buying and selling after if any one is caught using but did not enter into any private trate discharged the defendant on, full salaries un soon as the bank goods. This is China, and Chinese foreign money in making purchases conversation of that nature. There the ground that there was in- notes are brought up to par valde. deney should be strictly used, the he will be severely punished, and were others present at the time, suficient evident to warrant a con-

(Continued on next Column). Continued at foot of next column.) his foreign money confiscated. and could corroborate his evidence.victio

Witness: I don't know."

letters."

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