Directory_and_Chronicle_1927 — Page 597

CHINA

1905, Nov.-

19

91

""

1907, Sept.-

99

""

"

1907, Nov.-

""

""

1907, Nov.-

Loans to Hanyehping Colliery Company:

1901, Nov.-Industrial Bank at 6 per cent..

1905, June-Yokoliama Specie Bank at 74 per cent.

""

$3,000,000 1,500,000

500,000

830,158

612,730

614,395

at 7 per cent.

1908, Mar.-

"1

""

""

at 6 per cent.

1912, Feb.-

,,

""

""

at 7 per cent.

1912, Feb.-

25

""

""

at 8 per cent.

1912, Nov.-

""

"}

at 7 per cent.

1912, Dec.-

at 8 per cent.

1913, Dec.-

21

9)

و,

at 7 per cent.

1913, Dec.--Mitsui Bussan Kaisha

1914, June-

1915, Feb.-

""

1915, Feb.-

99

""

,,

6,000,000 3,000,000

Hk. Tls. 120,000

$500,000 Y.2,500,000 $6,000,000 $765,707 88,400 150,000

533

J

1913, July- Mitsui Bussan Kaisha

1913, Nov.- 1903, Feb.-

"

""

""

""

...

150,000

100,000

500,000

1,000,000

Towards the close of 1918 the Powers agreed that no further advances should be made to China until a settlement between North and South had been completed. The observance of this undertaking has rendered administration since extremely difficult. Innumerable private sources were approached for financial accommodation with unsatisfactory results. National bonds were hawked about until they depre- ciated lower than previous below-par quotations. 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 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, at first, disapproved of both schemes, but in 1920 changed her attitude. It is now the stated policy of the Powers to with- hold "political" loans from China but to help her in any constructive projects she wishes to initiate. As yet, however, China has not recognised the_Consortium, and the joint note from the British, American, French, and Japanese Legations at Peking, enclosing the Consortium dossier and dated September 28th, 1920, still remains unanswered.

China's foreign debts are in various currencies and, owing to fluctuation of ex- change and the paucity of statistical information in Peking, considerable difficulty is experienced in arriving at an accurate figure of China's national indebtedness. The generally-accepted estimate is $1,500,000,000, although some authorities put it as high as $2,000,000,000. The Ministry of Finance reckon it on the basis of $4 per capita, which, taking China's population at 400,000,000, would make the National Debt $1,600,000,000. The following statement is as accurate as any, and represents the result of the examination of many returns:-

1. General Foreign Loans

2. Foreign Railway Loans 3. Foreign Indemnities

.....

4. Internal Long Term Loans 5. Internal Short Term Loans 6. Treasury Notes, etc.

་

$268,978,252

334,802,631

482,841,744

275,226,738

69,101,978

18,640,000

$1,449,592,343

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. During the autumn of 1919 Parliament framed a Budget

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