The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-08-19
THE sINEws OF WAR IN ASIA.


Evidence that China is in for long war
with Japan is supplied by the rumors Of
the negotiation of a loan in Europe. The
present story is that the empire has asked
for loan Of $4,000, 600 at Berlin, the
money to be paid in silver and the rate Of
interest to be per cent. Such intelligence
must be received with caution. Berlin Is
quite unable to furnish China with the
money she wants. What the Germans
lend they will have to borrow from Lon
don or Paris. Nor will a loan of fifteen
millions go far to defray the cost of great
national war. Ten times that amount
would only pay the bills for few months.
It chances that China has never engaged
in a war on the odern scale. Her fights
with foreigners have been mere border
forays. When Lord Elgin and Baron
eros invaded Chilli and CAPTURED Picking
the Chinese offered no resistance. and, Of
course, were put to no expense. Nor was
much money spent in beating off the
French in 1888. Thus at the present time
the total foreign debt of the empire is sup
posed to be under S25 100000 About half
of this sum was borrowed in 1874 and 1873
and is represented by bonds which bear
per cent interest. Since then money has
been offered to the Chinese in large
amounts for the construction of railroads,
but the Government OF Picking has steadily
refused TO avail itself of the offers.
1t is pretty certain that China will be
able to borrow very large sums in Eu-
rope. The credit of the Government is
first rate; no default was ever MADE In the
payment of interest on its bonds. The
public revenue is about $780, 000, 900 a
year. but this could be raised almost in
definitely without oppressive taxation.
Over two-thirds of the revenue is de-
rived from customs and octroi, which do
not touch the people Of the interior; the
balance of income is drawn from a land
tax, which is about 81 an acre in the
north and something over So an acre in
the south. These saxes might be trebled
without exhausting the paying capacity
of The people. La times of war or famine
the Government has been accustomed TO
rely on forced loans from rich mandarins
like the "benevolences" on which the
Euglish Tudors fell back when their
treasury was empty. tits difficult to set
limit TO the sums which might be realized
from this source Altogether it is fairly
probable that if the war goes on China
Will be able to collect revenue which
would enable the empire to float debt OF
$500. OO0, 600 or more. II is on the cards that
Chinese fours and fives may become the
popular fancies on the financial exchanges
of the world.
Japan occupies different footing. Her
debt amounts to S273. 100000, of which
one-half bears per cent interest. The
foreign debt is under S5.OOO,0OO; the rest
Of the debt is held at home. But the ma
tionai revenue of Japan is only
S84. 900, 900, and though this may be
increased by resiliating the foreign
treaties which limit customs duties,
the increase from this source cannot be
very large. The receipts from land tax are
about one-half the present revenue, and
are probably as large as the people can
bear. Thus it is not certain how foreign
fnanciers would receive a new issue of
Japanese bonds. Japan is a Door country
while China is rich; Ia the financial sys-
tenn of the former there does not seem to
be any backlog on which a new foreign
loan could rest.
Money has been described as the sineWs
of war. bet as a matter of fact many of the
most obstinate wars in history have been
conducted without money. If the Japa-
nese effect a Judgment in Korea with
well-armed and disciplined force of fifty or
sixty thousand men they can go on fight
ing for long time with an empty treas
ury; the troops will live on the country
and Will wait for happier times for their
pay There are arsenaIs and factories In
Japan which arc capable of keeping the
army supplied with arms and munitions of
war for an indefinite period. As to the
naval operations they are mere skirmsh-
ing; the defeat of a Japanese feet by the
Chinese or vice versa will not bring the
war any nearer to a close.