The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-03-15
chIna.. ca.h IndemnIty.

AnAmas IaHn Am0tmmAANs
Whatever other conditions may be i'm
posed upon China by Japan in the terms
OF peace. il is certain that a cash indem-
nifty viii be demanded and received. Ac-
cording to the present understanding the
sum 10 be exacted is S2j0.0000l0 in gold
Where viii China get the gold. or 9th
erwise stated, the money? How can she
raise that vast sum? The hnaRcial world
is discussing the question. and the sum
mary Of the best opinions so far ex-
pressed is that she viii have 70 80 away
from home for it and pay a considerable
rate Of interest. China, we have always
been told, is a very rich country. While
that may be true. it is also one Of the
poorest countries in the world. The old
families Of the empire and the manda-
rims may be the owners Of large amounts
OF silver. But fl is not available for public
purposes, even under stress Of a forced
loan That was proved only a few
months ago when the government de-
sired a small domestic loan. and failed
TO effect it. Opportunities for invest
ment in China are extremely limited;
the Chinese faith in banks is practically
nothing. hence almost all accumulations
Of money have for centuries remained
in the hands of private owners. Nor do
the owners preserve their wealth in coins.
They melt down the silver and the gold
into pigs and bury it under their houses
and in other places known only TO them
selves. Having no confidence whatever
in the government and no patriotism to
speak of, the governments demands for
silver are met with a bland smile and
the mendacious declaration that the mis-
cradle slave of the son of heaven" is a
pauper without a single copper cash"
Obviously it would be a waste of time
for the government to institute a search
for the hidden wealth. There may be,
and probably is. in the Chinese empire
idle silver and gold sufficient to pay the
japanese indemnity several times over.
But it isn't available.
Being obliged to go away from home
for the loan, where would China apply
and what security would she give? If
this country, or France, or England, de-
sired loan. the mere pledge Of the faith
of the government would be sufficient to
float it's bonds. But 1t is not so with
China. Europeans. who will have to pro-
vide China with the money have as lit
tie faith in the Chinese government as
have the Chinese people themselves. They
know that the government is corrupt
from top to bottom, and that it could
cations if a single loophole of escape were
permitted. The money lenders, therefore,
would proceed at the outset to make
their security perfect For that purpose,
and turning to the only apparent avail
able collateral security that China has
to offer they would probably demand
that China cede to them for a certain
term of years her customs system from
which to reimburse themselves for the
loan and interest. And being under the
stern necessity of raising money. China
would probably accede to the demand.
China's customs are paid in silver The
indemnity demanded is payable in gold.
At present prices, silver is worth about
half as much as gold, hence the silver
value of the $3.50, 600 gold indemnity
approximates $5OO,OOOO 900 in silver. At the
conclusion of the Franco-Prussian war
Germany levied upon France an indem-
nifty approximating ST. 100, 900, 600, or about
three times the annual income of France
a the time. The annual customs income
of China is estimated to be about 100000,
900 in silver. hence it win be seen that the
Japanese claim is some five times the
amount of the Chinese yearly income.
1t remains to be seen what effect this
will have upon the terms China may be
able to make with the money lenders.
Europeans in charge of the Chinese GUS
toms service might do a great deal to-
wards increasing the revenues and de-
veloping trade; still. it is not probable
that they would give the unfortunate
government much of the benefit of their
business ability.