The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-08-18

Loneon, Aug. 1.-THE tinanciers of this
city, Berlin and other capitals of Europe
are eagerly discussing the proposed
Chinese loan.
inquiries made by a reporter OF the
Associated Press at the office of Jariine,
Mathescn & Co., London and China mer-
chants, and at the offices of the Hong
Kong and Shanghai Bank company show
that The Loan which the great banking
institutions of Berlin are said to be float
ing for China amounts to 100000 taels
and not to flO,O0o,OOO as previously an
nounced here, and in Berlin.
A tael is estimated TO be worth about
one ounce and one-third of silver or.
roughly speaking, six shillings sterling. or
Sl.4O, Supposing that these amounts repre-
sent the value of silver of the weight of
one taei. 1t appears that about a month
ago China inquired through the Hong
Kong and Shanghai bank for the rate at
which such loan, to be made in silver,
could be effected. The bank Immediately
f1,0OOO00 sterling or $5,0OOC0G. .Iardine,
Matheson & Co, who have also been con-
suited IN regard to the proposed Chinese
Il an, offered to lend China another Il OOO-
co., or as much more as the government owe iipsEi
should require, but Viceroy Ii Hung
Chang declined beth offers at that time.
saying there was no immediate necessity
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 portions Of the present and 6
per cent. gold bonds due the Hong Kong
and Shanghai Banking company, in jan
uary, 1885. and in view, also, of the war
needs, China desired to increase the
amount of her available cash.
Scramble Tor the Loan.
syndicate of German bankers was at
once formed in Berlin, and their agents
at Tien Tsin were instructed to ask Vice
roy Ii Hung Chang for an option on the
loan. Dozens Of London and other pro-
motors followed the example of the Ger
man bankers, and Ii Hung Chang and
the Chinese minister here were beseged
with offers from responsible and irrespon-
sible parties, anxious to have a share of
some description in the Chinese loan. As
a result, it is probable that over $4,000, 600
was offered TO China, and this produced
the result that China was not inclined to
pay over per cent for her loan; There
is no doubt that &, 500 900 gold will be is
sued here early in September The loan
will probably consist of per cent thirty
amount will be payable TO China in silver.
For this loan there is no special security
like the customs receipts, but only general
faith in China.
any controlling hand in the issue of the
new loan, although probably Berlin will
be allowed to take portion of the loan
On the ground floor terms.
There is a great scramble among In
anciers, including London brokers of all
ranks, to get on the inside of The opera
ton, and there is no doubt that the loan
is obtainable in London twenty times
over. The negotiations for the loan have
already affected the price of silver. and
there is no question that silver will go
higher. Some financiers predict that it
will go as high IS 32d. per OF.
The hardness of the silver market is
most pronounced and it has sympathetic
Cally hardened the price Of copper.