The morning call., 1894-10-22
The WAR IN KOREA.

The reported capture of Port Arthur by
the Japanese turns out to have been a
canard, and matters seem TO be in the
same condition as they were after the
battle of Ping Yang. On Thursday or
Friday the japanese ara reported to have
crossed the Ialu, attacked the Chinese
works on the right bank and retreated
after some loss of life. All the Chinese
vessels which were engaged in the naval
fight off the mouth of the Yalu except two
have returned TO Wei-Hai-Wai, at which
point the vessels Of the southern fleet have
begun to arrive. As this port with its
fOrtiications, coupled with Port Arthur
on the north, constitutes the gate of the
gulf of Pechili. the Japanese claim that
that sea is in japanese control would
appear to be the expression of a hope
rather than the averment of fact.
The war has now reached that point
where botn bellgerents require to con-
slder the question of ways and means.
China has been in the market for some
time for loan of fifty millions. 1t is said
to have been taken at Vienna. The Aus
TRAN capital is one of the most delightful
places in the world. but 1t has not thus
far been regarded as a financial center.
In Europe large sums of money can only
be got at London, Paris or Frankfort.
The story of the Vienna negotiation may
thus be held over for confirmation. SO
may the stories that the Chinese appi-
caDts for money were rebuffed by the
ROthschilds and other bankers. China's
credit is good, and il she Is willing 10 pay
the price she ought TO be bile to get all the
money she wants. Her national debt is
tri1ing. If, of course. she proposes TO pay
per cent she will encounter difficulty.
Nations which indulge In the luxury of
warfare must expect to pay something
over the market price for money. Five. or
even six, per cent would not be an out
rageOus rate for Chinese loan. We were
glad enough in our war to borrow money
at per cent, and even at 7.30. But at 6
per cent few hundred millions ought to
be easly raised by Ii Hung Chang
The Japanese Parliament met on Fri
day. and in response to an appeal from
Count Ito 1t declared its willingness to
vote all the money required. But its case
differs from that of China. Japan is
poor, China is rich. Japan owes $273.-
100000, on much of which the rate of n-
terest is per cent. The recent foreign
loan of four and half millions bears
per cent. 1t is certain that the European
bankers would want Per cent bond for
any new money, and as the credit of Japan
is not generally known In the money
markets the sums which could be raised
even at that figure might not be large.
Misapprehension appears to prevail in
the minds OF some writers on the subject.
They talk as If bankers went down into
their clothes for money 10 lend to foreign
governments. and were guided in lending
or Withholding loans by their likes and
dislikes. The fact is, bankers are middle
men, who will take line of bonds which
they can sell TO the public at a small ad-
vance. and will reject bonds which would
be likely to remain on their hands. The
trouble with japanese bonds is that the
average investor knows nothing about
them and would not buy them without
further acquaintance.
The reported land battle on the right
bank of The Yalu will probably prove to
have been a mere reconnaissance. 1t Is
hardly to be supposed that the japanese
commander would instij ute serious at
tack upon the Chinese in an entrenched
position with a deep river in his rear.
Such step would be to court destruction
in the event of defeat. Having ascer-
tanned that the Chinese are prepared to
hold their side of the river the natural
course for the japanese general to pursue
would be to move north by forced marches
and to cross the Y Yalu higher uD. His OBJ
jective being the possession of Moukden,
ne would then be nearer il than his Chi
nese opponent at the mouth of the river.
A general like Napoleon might succeed in
such an operation; but most soldiers
would hesitate before they placed them
selves between two fires, the garrison at
Moukden and the army cn the Yalu:
----=@