Arizona republican., 1900-07-26
THE DIVISION OF CHINA
Its Present Government a Men,
 ace to Civilization
Effect of the Trouble in the Orient
 on the Stock Market-The United
 States Alone Has a Surplus for War Loans.

unsettled state ever since the b5gin-
 ming of the Transvaal war. Germany
 and Russia have lately been passing
 through the thrOes of an ''industrIal'
 panic, France alone of the continental
 powers exhibiting at present any finan-
 cial strength. But comparatively high discount rates at all European centers,
 Paris included. would act unfavorG>s,s
 upon the placing of any necessary war loans therz. The United States alone seems. through extraordinary prosper
 out conditions. in position to furnish q
 portion of the needed funds in case of emergency. While the loss of the en-
 voys and others in China is to be very
 deeply deplored, the common cause of
 rescue and retribution is serving to emphasize the fact that the very high est self interest of each and all of the
 interested nations lies in mutual good faith and cooperation. Caucasian civ
 ilization must unite as a matter of self preservation. Petty differences and
 jealousios are being eliminated, and a certain brotherhood. which in the end cannot fail to be of benefit, is being established among the western na- tions. One fact seems to be clearly Eu. hazard of any holding by foreigners of interior towns or districts in China.
 Any further acquisitions will no doubt be confined to points on the coast. where the superiority of European naval power may be joined in defense
 against MongOlian uprising Any in- terior settlement among this vast az
 gregation of 400, ,OOO.O .O00 people is simply at their mercy through mere force of numbers and might be wiped out over night. The time seems ripe for a di- vision of China into a number cf prin- cipalitfes with distinct governments. The continuation of this vast nation under one central government is a
 standing menace to the rest of the
 world. Although the prejudice against western civilization may never be over come, still division of the Chimes
 government as suggested would pro- vide a greater measure of safety for
 other peoples. as intern cine strife
 would serve to keep the Chinese pretty
 well occupied with their own affairs,
 with consequently l=ss time for foreign
 aggressiOns. This situation suggests
 an anecdote of the great Louis XIV. who. when asked if he were aware that his stable of fine horses was much
 given to the kicking of each other. re- piled that he was and that he should do nothing to correct the habit. as the horses were thus less likely tp kick the coachman. As I have indicated above. the partition of Ckina into European holdings appears far from desirable and indeed more remote than hereto fore. The problem of settlement re- quires the ablest stat5smanship and a far look into the future.
 The iron and steel trade presents a more encouraging aspect this week. | Several good western orders have been placed: and while large consumers in general are still hesitating. being as yet | little in doubt as to whether the market has reached bottom, indica- tions of a revival of business are not 1 lacking. The lower level of prices has ] brought many inquiries from abroad covering a range of material from pig ! iron to the most highly finished steel products. pointing to an early increase in an already flattering foreign trade. The advance in the Bank of England's s discount rate to four per cent and the drop in cOnsOlS und5r 9S, are due to the more acute state of affairs in China, as well as to the prolOugation of the | South African struggle. One effect may not unlikely be to induce Euro pean selling of our stocks Cor at least
 to defer buying for the present. which. in conjunction with the more serious view of the situation taken here. is
 likely to bring about hesitation. if not
 a lower range of prices.
 The stock market, while relatively | dull, shows unexpected strength Strong inside support and dividend
 rumors were the chief explanations, i Union Pacific. Baltimore & Ohio, Illi- nois Central. Missouri Pacific and l sugar being tha chief features in this 1 connection. There is also a strong
 undertone to the market. based appar- i ently upon the expectation of a trad.. | revival in the coming fall and a sat | isfactOry result of the elections. As yet. however. few are bold enI1gh to, | buy stocks on a large scale. on tn , | prospect or another victory for the 2oUnd money cause: the vicissitudes of
 campaign naturally operating to | check speculation until the worst that may happen is almost positiva'y known | Surprises are always possible in q | l residential campaign. and the coming
 ore $ not likely to prove an exception. 1 The Chin SC difficulties eyerted little | effect, because it is well \ und.rstlod | that the sending of whatever Amer 1 icau soldiers to China may be n-ccs-
 gary will not be a rious expenditure
 t2 this government. The present rate l of surplus revenu1 would permit OUT | carrying on military operations If l considerable magnitude wftHout any | embarrassment whatever la our l finances. China, on the otf CT hand. is not in any position to conduct a pro- | ion@ed war, having but very limited
 military CT financial resources She.
 may keep up a long sustained rebel lior. but that would be less costly to | others than a long and savacaIy con
 'iucted war. There is the possibility If ! the otber powers getting into difficult
 ties. and what the effect wou!I then be
 upon the European money markets it 1 is impossible to say. The United