The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1885-11-06
Where Bankers Missed r.

DSSA
A Washington correspondent, wri-
ting to The 81. Paul Pioneer Press,
says: The Pioneer Press printed a
cablcgram from London Monday morn
ing to the effect that the Chinese gov
erpment had placed a loan of $40, O0O,-
600 among the bankers of that city,
the proceeds of which are 10 be devot-
ed to the construction of a railroad
from Taku to Tung Chow, and that q
firm in Manchester. England. had Sc
cured a contract for constructing the
work. Three months ago the loan was
offered in New York, and the bankers
OF that city o regret that they did
not accept it. The Chinese govern
ment has decided to construct an ex-
tensive system of railroads through
out the empire, and the road from
Taku to lung Chow is the first of
several that are now being surveyed.
The Chinese legation at Washington,
together with a financial agent who
was sent over for the purpose. in June
last invited the attention of a syndi-
cate of New York capitalists to the
matter. to whom Il proposition was
made to accept the bonds of the en-
pire for $40, 000, 900 with interest at 6
per cent, to run twenty years, with
an option upon $500, 600, 900 ut tho
same terms, to be issued hereafter,
within a period Of five years. In case
the loan was placed, the proceeds were
to be invested in railroad iron, loco.
motives. and other supplies to the
amount of two-thirds of the total, and
the remaining one third. $l2,5 500, 900,
was to be paid in silver to the finan-
cial agent of the Chinese government
to pay the laborers required in the
construction of the road. A choice
was given between the proposition
and another which offered the New
York capitalists a contract for the
construction and equipment of the
road at the stated price per mile, the
Chinese government agreeing to fur
nish the labor and paying tho con-
tractors at intervals in twenty year 6
per cent bonds.
The capitalists to whom these pro-
positions were offered took several
days to consider, and then rejected
them both. The financial agent of
China, becoming discouraged, left at
once for England to repeat the mat
ter. A few days after his departure,
the fact having leaked out on the
street. a leading banking firm, which
was not admitted to the syndicate,
telegraphed to London asking that
they be given an opportunity to con-
slider tho matter. A member OF the
house left for London on tho first
steamer, but was too late, an English
syndicate having swallowed the
scheme as soon as it was presented to
them, and secured an option upon the
loans yet to be made. Had the Amer.
lean government possessed the fore
sight and courage to undertake the
business the iron industries of this
country would have received stimula-
ton to the amount of 1927, 600, 900, and
there would have been q shipment of
twelve and Il half millions of our vexa-
tious silver dollars to the Celestial
empire, with a prospect of much more
going the same way. Another oppor-
tunity is soon to be offered for the dis
position of some of our surplus by the
Mexican government, which is anxious
to secure a loan of S25, 00O, 600, and
will accept the proceeds in the dollar
of Il daddies. The credit of Mexico
in Europe is pretty well exhausted,
and the government having failed to
secure n compromise with the holders
of its debt in Europe, is willing to give
the exporters of the United States ex-
tranrdinary concessions in the shape
of reducing duties on goods of Amer
lean manufacture, providing this gov
eminent will lend its guarantee to the
payment of the interest and principal.
Agents of the Mexican government
are already at work in the United
States figuring upon this proposition,
and. if they meet with any degree of
encouragement, will make n formal
propos ton looking to the disposition
of some of surplus silver.