The herald., 1894-08-18
THE PROPOSED CHINESE LOAN,
European Financiers Anxious
to Place 1t.
Lively Competition Between Berlin
and London.
The Amount Wanted ObtainAbIe Twenty
Times Ovsr-The Price of silver
Stimulated by tho Me-
gotintions.
Dy the Associated Press.

BY the Associated Press.
LONDON, Aug. 1.-THE fnanclers OF
this city, Berlin and other capitals Of
Europe are eagerly discussing the pro-
posed Chinese loan. Inquiries made by
Q reporter of the Associated Press at the
Office of Jardine. Mathieson & Co., Lon
don and China merchants. and at the
Offices OF the Hong Kong and Shanghai
Banking company, show that the loan
which the great banking institutions OF
Berlin are said to be floating for China,
amounts to 10000, 600 tsals and not to
E10,000.0 900 40 previously announced
here and in Berlin. A teal ia estimated
to be worth about one and one-third
ounces OF silver. or, roughly speaking,
shillings sterling or $l.40, supposing
that these amounts represent the value
OF silver OF the weight of one teal.
1t appears that q month ago China
inquired through the Hong Kong and
Shanghai Banking company for the rate
at which such loan to be made in sill
yer could be effected. The bank at once
offered to loan the Chinese govern ment
Gl,000,O00. Jardine, Mathieson & Co.,
who mad also been consulted in regard
to the proposed Chinese loan. offered to
lend China another 91,000,000 or as
much more as the government should
both offers at that time, saying there
was no immediate necessity for the
loan, as China had plenty to go on with.
Later, however. it became known that
the present and 6 per cent gold bonds
due to the Hong Kong and Shanghai
Banking company in January, 1895, and
in view also OF the war noeds, China
desired to increase the amount OF her
available cash. A syndicate OF German
bankers was at once informed in Berlin,
end their agents at Tien Tsin were in.
stlucted to ask Viceroy Ii Hung Chang
for an option on the loan. Dozens OF
Landon and other promoters followed
the example of the German bankers,
and Ii Hung Chang and the Chinese
minister here were besieged with offers
from responsible and irresponsible
parties anxious to have share Of some
description in the Chinese loan. AS q
result, it is probable that over G6, ,000,-
600 was offered to China, and this pro-
duced the result that China was not in
cined to pay over per cent for her
loan.
There is no doubt that Ell, 800, 600 gold
will be issued here early in September.
The loan Will probably consist OF per
cent 30-yesr bonds, and at least two
thirds OF this amount will be payable to
China in silver. For this loan there ia
no special security like the customs re-
ceipts, but only general faith in China.
1t is not believed that Berlin will have
any controlling hand in the issue OF the
loan, although probably Berlin will be
compelled to take portion of the loan
on the ground floor of the terms.
There is q great scramble among
financiers. including London brokers oi
oil ranks, to get on the inside of the
operation, and there is no doubt that
the loan ia obtainable in London 20
times over.
The negotiations for the loan have
already affected the prios of silver, and
there is no question that silver will 20
higher. Some financiers predict that it
will 60 as high as 32d per ounce. The
hardness of the silver market ia most
pronounced. and it has alphabetically
hardened the price of copper.
AMSTERDAM, Aug. l7.-Silver in the
open market today advanced from AZ to
AZ guilders per kilo tine.