The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-07-27
TO JOLT THE EARTH
MONEY CRISIS PENDING WHICH
WILL BE WORLDWIDE

China, with its Stupendous Population
and Diversified Industries, the Western
Continents will Undergo a Prodigious
Draw Upon Their Money Metais-Effect
If it should be Gold or Silver, or Both
What DeImar Thinks.
New York, July 2s.-"I do not believe
that the Chinese war indemnity and the
circumstances under which it is being
exacted from China are clearly under
stood in the western world" said Hon.
Alexander Delmar, formerly director OF
the United States bureau of statistics,
mining commissioner of the United
States monetary commission. and the
author of several treatises on financial
science, in an interview with reporter
at his apartments in the Hoffman house
yesterday afternoon.
Mr.. Delmar then explained the prob
bable effects Of the payment of the war
indemnity by China as follows:
"By the treaty of Shimonoseki, be-
tween China and Japan, the former
country mas agreed to pay the latter a
war indemnity amounting substantial
~ to eight million pounds sterling, or
1900 600 600. OF this amount the first
fifth has been issued, amounting to f16,-
100000, or sS0.0Go,000. This loan is TO
run thirty-siX years, and bear interest
at the rate of per cent per annum,
payable in gold coin. The interest on
this loan amount to f640, 900 per annum.
''This interest the Russian govern
snent, under the imperial ukase of July
z, has agreed to pay in case of default
by China. 1t has also agreed to re-
deem all drawn bonds. or such bonds as
may be drawn for payment previous to
the expiration of the loan. For the pay
ment Of the interest of this loan the
maritime customs revenues of China
are mortgaged, and the interest on the
loan is declared to be first lien on such
customs revenues after the interest
which is payable on several small loans
that China had previously fioated in the
European market.
"TheSe small loans were three million
per cent gold loan and ore million
per cent silver loan, and a one million 6
per cent gold loan. so that down to the
present time the loans issued by China
since the war with Japan amount TO
f2l,000,000 sterling. I may be wrong to
the extent Of a million or two, because
I am only quoting from memory.
"The 16.00GS0G war indemnity loan,
though guaranteed by the Russian
government. was not advanced by it. It
was taken up by six French and four
Russian banks, the agents or collee CUES
of the great gold trust Of Paris, Lon
don and Berlin. Another instalment of
the war indemnity, amounting to 15.
boo 900 sterling, will soon be issued, and
II is to be presumed that this will be
guaranteed in a similar manner. 1t is
announced that this loan viii be divid-
ed between the London, HongKOng and
Shanghai banks and the German banks.
h. foly ~
D00.0 900 loan, the French master of fin
ance. NJ. Hanotaux, called together the
principal bankers Of Paris and asked
them upon what terms they would he
willing to lend their assistance and
that Of their allied banks to the rising
Of this loan.
Their terms were that China should
adopt an European system of money,
meaning thereby a system of gold, or
gold and silver coins.
This condition forms one of the most
important financial events of the pres
ent century. To understand 1t proper
ty one must divert to the monetary
system at present in vogue in China.
The Chinese currency consist Substan-
sially of copper coins, called in China
"chuen," and by the English cash"
They are the familiar brown coins, with
a square hole in the middle. The ennis
sion of these coins is party imperial and
partly provincial but the imperial gov
eminent exercises a certain control
over the whole emission and that con-
troll is in the direction of Limitation. the
effort being to keep the emission of
coins so limited that each coin becomes
worth more as money than the value of
the metal Of which it is composed In !
other words, It is a sort of greenbacks |
printed on copper. il is true that sur
Teptitious emissions have greatly low |
cred the value of the cash. Neverthe- !
less. they still circulate at a value SUI !
perior TO that of the metal of which |
they are composed
The tributes are collected partly in |
rice and partly in these coins. but when |
paid over to the imperial government |
by the collector of taxes. the latter are |
required to pay in silver metal. on |
which they make a very considerable |
profit.
ITO introduce a European system Of |
money into China. it will be necessary /
10 coin a very large amount Of gold or |
silver, or both. according to the terms |
which the French and Russian banks !
have seen fit to impose. which terms, |
however. have not yet TRANSFERRED
THE population of China is comon- |
ly estimated in western books of ref |
erence at something like four hundred /,
millions This is based upon the figure /
Of three hundred and thirty-siX millions /
given by the Chinese mandarins to 1
Lord MacCartney in 1875. and upon the /
assumption that the population Of /
China has increased since that date. 4
There are many reasons for believing /,
that the figures given to Lord MacCart- /
ney were hoastful and imaginary, and /
that no increase has taken place since |
the last century.
Many circumstances contribute to 1
support the belief that the population /
of China at the present time does not /
exceed 10000. COO Among these cir /
are the censuses taken dur /
ing the last century by Adam Schan /
and the other Jesuit priests who had /
control of the Chinese census at that /
period 1t is also based upon the Guilt /
waited area. the rice crop and rice trib- /
ute and on other reliable data.
ITO provide a currency Of gold or sill
yer for population Of 100 600 GOO. even
Al the low level prices prevailing in /
China. would occasion a very great /
Drain for these metal upon the western
world.
ITO understand the force and effect Of
such drain il will be useful to- vert
10 like circumstances that occurred in
India century ago. The currency Sys-
lem Of India at the periods Of its CON
auest by the British East India COM
pdhN Was similar 10 that which now
prevails in China
THE bulk of the currency consisted
81 copper coins. with which the people
conducted their daily transactions and
m which they paid their debts and trih-
ntes. When these We're paid into the
treasury Of the grand moSu1. the farm
Prs of the revenue were obliged n nav
them in silver metal. or else in silver
coins OF the rupee type, but the amount
y silver and silver coins thus employ
ID was comparatively small. as Is now
the case in China