"Disbandment Bonds"

Most nations start recruiting at the threat of war, but China has had too many soldiers for so long that last week, as Red Russia menaced her from the North, she girded for battle partly by cutting out wasteful soldier deadwood from her armies in the South, which is not likely to be threatened.

Even to disband a horde of China's motley, half-dressed, rapacious hired troops costs dear. Dismissed soldiers must be given work and a modicum of pay or they will revert to banditry, a profession which most of them forsook to join the colors. Last week Finance Minister T. V. Soong, efficient Harvard graduate, announced a bond issue of $30,750,000 to carry out his economy program of disbanding half China's 356,500 troops (TIME, Aug. 26).

"Disbandment Bonds," secured by a lien on customs revenues, will be issued within the next fortnight, are earmarked to be retired by the Nationalist Govern-ment "within 100 months" (eight and one-third years).