The Sun.
London, England, 1870-07-21 00:00:00

THE CHINESE INDEMNITY FUND.

The committee on Foreign Relations, to whom was re-
ferred the message of the President of March, 1870,
covering a report of the Secretary of State and correspon-
dence concerning the Chinese Indemnity Fund, say, in
their report made to the Senate, the origin of the fund is
this :—" The British and French expeditions of 1858,
which, after capturing Canton, turned their combined
forces toward Pekin and and ascended the Pei-ho as far
as Tien-tsin, opened the way to the presentation of claims
of our citizens, which were promptly recognised by the
Chinese Government. Though taking no part in the war
our people profited by the result. ' The convention that
ensued was born of the war." In the draught of the con-
vention, first submitted to the Commissioners at Shanghae
the amount stated was 525,000 taels, with a provision that in
case of excess beyond the claims and interest it should be
refunded to the Chinese government, on which our Minis-
ter remarked :—" They preferred, however, the small
sum, without such provision, evidently thinking that it
was their best policy to get rid of the matter for ever.
The language of the Commissioners was : —" We acknow-
ledge the consideration and kindness of your Excellency
in this matter, in that you have, of your own accord,
reduced the first amount of claims, and now place the
total at 525,000 taels. We have taken the matter into
full consideration, and propose that, if a further redua-
tiod of 25,000 taels be made, fixing the total amount of
500,000 taels, the Custom House certificates can be issued
at Canton, Shanghae, and Foo-choo, dating from the first
day of our next year, Feb. 3, 1859, which can be succes-
sively applied to the gradual payment of the entire sum.
After all the payments directed by the Commissioners, a
large surplus was found in the custody of the Legation at
Pekin, which was subsequently transferred to the United
States. This surplus, with accumulations of interest and
gain by exchange, less an amount paid under authority
of an Act of Congress approved January 22, 1867 (15
Statutes at Large, 440), has been invested in ten-forty
bonds, which are now held by the State Department,
amounting at par to $386,000. Another amount of
$206 87c. in cash is also in the possession of the depart-
ment, and about $2,000 remain in the custody of the Mini-
ster to China, who has been directed to make remittance
of the same." The committee is brought to the conclu-
sion that, in equity, this sum does not belong to us.
Whatever may be our technical title, in conscience the
money is not ours. "In returning to China the fund in
question and its accretions, the United States will relieve
themselves of an embarrasing trust, while they render
unto the distant Cmsar what
tit is his own and. set an
example by which Republican insutions will be elevated.
The question of its application, which has occupied the
attention of successive Presidents, which has been pre-
sented to successive Congresses and is still undecided,
will be at rest. Schemes for the bestowal of the fund in
such a way as to harmonise our sense of justice with
our obligations to China, if not with Chinese proprietor-
ship, will cease. There will be nothing for " dis-
appointed claimants "to pursue. China will receive her
own—if with astonishment, it will be only because
nations have so rarely lived according to the golden rule.
Such an act cannot be otherwise than honourable to the
United States. It will be a victory in a new field making
us first in a new order of conquerors. China with infinite
resources, will be more than ever open to American enter-
prise. Thus, while doing right, shall we benefit our-
selves. So is justice to others the way to national
advantage. But whatever this advantage, it must be
borne in mind that the first inducement is the essential
equity of the case. The measure now proposed will be
valuable in proportion as it is spontaneous. Thus far
China has made no demand or suggestion even. A year
hence the venerable empire may appear before the youth-
ful republic with a formal claim. The very fact that we
deliberate about this fund will spread the tidings of its
existence. Better anticipate a demand than wait and at
last yield an ungracious compliance, urged by a foreign
plenipotentiary in the serviee of the ancient government
whose money is now in our hands."