The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-08-23
THE BIG CHINESE LOAN.
HE EMPIRE Is OFFERED ALL
THE MONEY SHE WANTS.
So Much Money Is Offered That China
Is Able TO Dictate the Rate of
Interest-A Million and
Half Pounds Wanted,

LONDON, Aug 1.-THE tinanciers of
this city, Berlin and other capitals of
Europe are eagerly discussing the
proposed Chinese loan. Inquiries
made by representative OF the Asso.
ciated Press at the Office of Jardine,
Matheson 81 Co., London and China
merchants, at the Office of the Hong
Kong and Shanghai Bank company
show that the loan which the great
banking institutions of Berlin are laid
to be floating for China amounts to
100000 900 taels, and not e10,00O,0OO as
previously announced here and in
Berlin. A tael is estimated to be
worth about one ounce and one.third
of silver, or relatively speaking 6
shillings sterling or 81 40, supposed
that these amounts represent the
value of silver of the weight of one
tael. 1t appears that about month
ago China inquired through the Hong
Kong and Shanghai bank for the rates
at which such loan, to be made in
silver, could be effected.
The bank Immediately offered to
loan the Chinese government el,000,-
600 or $5,000,000 Jardine, Matheson
IL Co, who had also been consulted in
regard to the proposed Chinese loan,
offered 20 lend China another l,000,-
900, or as much "a the government
should require, But Viceroy LII Hung
Chang declined both offers at that
time, saying that there was no imme-
diate need for the money, as China
had plenty to go on with. Later,
however, it became known that in
view of the repayment of the last por-
tlons Of the present and 6 per cent
gold bonds due at the Hong Kong ard
Shanghai banks in January, 1896, and
in view also of the war needs, China
desired to increase the amount of her
available cash.
A syndicate of German bankers was
at once formed in Berlin, and their
agents at rien Tsin were instructed to
ask Viceroy LII Hung Chang for an OPP
ton on the loan. Dozens of London
and other promoters followed the ex.
ample of German bankers, and Ii
Hung Chang and the Chinese ministers
were besieged with offers from re-
sponsible aud irresponsible parties
anxious to have q share of some de-
scriptlon in the Chinese loan. AS @
result 1t is probable that over Gl00,-
100000 were offered to China, and
this produced the result that China
was not inclined to pay over per cent
for the loan.
There is no doubt that o Gl,500,00
gold loan will be issued early In Sep
TENDER. The loan will probably con-
sist of per cent 30-year bonds and at
least two-thirds of the loan will be
payable to China in silver. For this
loan there is no special security like
the custom receipts but only general
faith In China. 1t is not believed that
Berlin will have any controlling
hand in the issue of the loap,
although probably Berlin will
be allowed to take portion
of the loan on "ground," or "terms."
There Is great scramble amorg
financiers, including the London
brokers of all ranks, to get on the iE-
side of the operation and there is no
doubt that the loan Is eoverable in
London 20 times over.
The negotiations for the loan have
already affected the price ofsilver and
there Is no question that silver will go
higher, some tinanclers predicting
that it will go as high as 32d per
ounce. The hardness OF the silver
market Is most pronounced and 1t has
hardened the price
of copper.