CHINA: Soong’s NRA

China’s militarists last week again had China’s bankers on the run. The famed budget of Finance Minister Dr. T. V. Soong—a Chinese marvel because it balanced last year for the first time in the history of the Republic (TIME. Jan. 2)— teetered as the Government admitted a $10,000,000 current deficit and Generalissimo Chiang Kai-shek demanded of his brother-in-law, Dr. Soong, an additional $18,000,000 to pay his troops.

“Sell $18,000,000 of bonds at once!” urged Generalissimo Chiang, according to Shanghai gossip. “I must have the money now!”

When Japan was bombarding Shanghai last year the Chinese Government promised to issue no more bonds for three years, if China’s bankers would subscribe their uttermost then. Subscribe they did. Last week they looked to Dr. Soong to make the Government keep its promise. Abruptly the promise was knocked galley-east when Premier Wang Ching-wei announced that the Government will issue $100.000,000 of Treasury notes “repayable in 150 monthly payments”—i.e. long-term securities, virtually bonds which will not be fully paid off for twelve long years.

Quick to create a diversion was smart, Harvard-graduated Dr. Soong, fresh from representing China at the World Economic Conference, after which he called on President Roosevelt. With appropriate fanfare Dr. Soong published a Government decree creating an NEC (National Economic Council) declared to be “modeled on the NRA.”

Dr. Soong will be China’s General Johnson, assisted by his sister’s stepson, potent Sun Fo (son of China’s “George Washington,” the late great Dr. Sun Yatsen) and Premier Wang Ching-wei. These three, according to the Chinese NEC law gazetted last week, will have “power to improve economic conditions, control and plan productive enterprises and protect the interests of workers.” Just how they would do this Dr. Soong & colleagues were not quite sure last week, but they thought they might start by imposing some sort of code on China’s cotton mills, predominantly owned by Japanese. “Both employes and employers who refuse to abide by our regulations,” announced the NEC, “will face drastic penalties.” Another aim of the NEC will be “to urge the Chinese people to buy Chinese.”