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Extract: FINANCE & COMMERCE, AUGUST 7th, 1940.

CHINA MILITARY SUPPLIES LOAN.

The regulations governing the military Supplies loan

of the 29th year of the Republic (1940) are announced as

follows:-

Article 1.

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The National Government, in order to taxrex increase military supplies, shall issue a loan to be known as the Military Supplies Loan of the 29th Year of the Republic.

Article 2. The total amount of this loan is fixed at $1,200 millions, national currency. The loan shall be issued in two instalments: on March 1 and September 1 of the 29th Year of the Republic (1940). Each instalment shall amount to 8600 millions. The bonds shall be issued at 94 per cent. of

their face value.

Article 3. The Loan shall bear interest at 6 per cent. per annum. Fayment of interest shall be made at the end of every six months.

Article 4. During the first two years from the date of issue of this Loan, only interest shall be paid. Repayment of this principal shall begin in the 32nd year of the Republic (1943). The loan shall be completely redeemed within 25 years. Fublic drawings shall be held for the partial redemption of the loan at the end of every six months.

Article 5. For the redemption of principal and payment of interest on this loan, the Ministry of Finance shall, in accordance with the Amortization table, remit funds in monthly instalments from the income of the National Treasury to the Central Bank of China as a sinking fund for this loan.

Article 6. - The Central Bank of China, and certain banks specially designated by it, shall act as the agents for the payment of principal and interest on this loan.

Article 7.

The bonds of this loan shall be divided into five demominations, respectively, of $10,000; $5,000; 81,000; %100 and 810. The bonds shall be bearer bonds.

Article 8. The bonds of this loan may be freely bought, sold and mortgaged. They may also be used as official security and reserve funds of banks.

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