FINANCIAL BEDROCK

New Zealand Times, Volume XLVIII, Issue 11046, 1 November 1921, Page 6

FINANCIAL BEDROCK

OUTLOOK ID CHINA CREDITORS MAKE ASSAULT ON TREASURY. A STORM BREWING. Telegraph—Press Aero.—Copyright PebUnhert In ••'Hie Ttmee” PEKIN, October 39. The Chinese Government has reached financial bedrock, and is besieged BT foreign and Chinese creditors on *ll sides? Short loans for 50,000,000 Mesacan dollars were contracted for at 30 to per cent., and the interest is ;Vh‘ to native banks. The salaries of Ministers are many months in arrears, and funds are not available to pay the expenses of the delegation to Washington. The Government’s cheques on local banks have been dishonoured, and the troops continually and fruitlessly demand payment. It is more ■ than hinted that the Government mnv oeas© to function, and that some Ministers will disappear to escape the storm. The position of the native banka at Dakin, Tientsin, and Shanghai is. preoanoue owing to the Government’s inability to meet its obligations. A crisis seems imminent. Frantic endeavours are being made to raise fresh local and foreign loans at usurious interest. The financial difficulties, combined with the political chaos, are so serious that a fundamental collapse is inevitable unless unexpected aid is forthcoming.