The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-07-17
CHINA'S SAD PLIGHT
SHE MAKES ANOTHER APPEAL FOR
OUR HELP.
INDEMNITY BURDEN is HEAVY.
DEMAND OF POWERS FOR GOLD
STAGGERS HER.

Leading ViccrOys State situation
Through Minister Wu-IncreaseS
Value of Gold Makes 1t Practically
Impossible for Her to Pay Indem-
nifty as Demande.I.-Great Britain
and United States willing to Ac-
cept SiIver-Russia and France
GOld-Latter Plan, Say VicerOys.
Would Destroy Foreign Trade and,
Raise Price of Gold to China's
Great Disadvantage.
Washington, July 16.-Having prac-
tically adjusted the questions connect
ed with the surrender to the Chinese
of the control of the city of Tien Tsin
this government has been asked to in
terest itself in the settlement of the
grave difficulties growing out of the
insistence of some of the powers upon
payment of their shares of the war
indemnity in gold instead of silver
Minister WI to-day presented to the
State Department a cablegram from
the two leading members of the Chi
nese court primarily in charge of the
negotiations. 1t is now difference of
method rather than disposition that di-
vides the Powers. Secretary Hay will
give the subject immediate attention.
The cablegram, which is from Vice
roys Liu Kun Yih and Chang Chih
Tungn, follows:
tAoanrHircy 70 be Of
held by the foreign ministers at Pekin
on the indemnity question, the United
States is willing to accept silver;
Great Britain is willing to accept sill
yer, in accordance with the plan of
amortization up to 1910, and Russia
and France propose the collection of
import duties in gold. 1t is also known
that Japan has not taken any decided
position. The revenues of China
amount annually to S0.00O,000 taels, So
00O,0 taels of which is set aside for
the payment of the national debt How
can the remaining 30,00O,000 taels be
made to satisfy the administrative re-
quirements of twenty-five provinces in
China?
Ohlnese Already ONertaxeu.
Attempts to raise revenues from
new sources on the part of the prov
incial authorities have in many cases
created local disturbances. In case
heavier taxes be imposed, an uprising
people will be the natural result.
Since the various payments admit of
no delay, on the dates on which they
severally fall due, money has to be
taken from other funds in order to
meet the pressing demand. 1t. has al
ready appeared to be beyond China S
ability to make the payments even in
silver in accordance with the treaty.
The foreign Powers know full well the
financial resources of China. When
the indemnity question first came up
for discussion, the total amount was
repeatedly reduced.
Now the willingness on the part of
the United States. Great Britain, Rus
STA and France, either to accept silver
or pay duties in gold, in spite of the
divergence of views, shows that all APP
preciate the fact that to make pay
ments in gold is a burden 100 heavy
for China to bear. Inasmuch as the
foreign Powers have shown such con-
sideration for China, we feel it incum-
bent upon us to make renewed repre-
sensations upon the subject to the end
that an arrangement which shall be
both reasonable and feasible may be
found.
Premium on Gold the Trouble.
Great Britain now has a large share
of Chinas trade. 1t is natural she
should not like the collection of Gus
toms duties in gold. The gain derived
from collecting customs duties in gold
does not by any means balance the loss
sustained in making indemnity pay
ments in gold: and, under the circum-
stances. China would not obtain much
relief. But to make indemnity pay
ments in silver does not, even
according to the present rate of gold,
entail a great loss upon the foreign
Powers, since such loss, if any, Is di-
vided among them. Moreover, when
it is at once decided that the indem-
nifty payments shall be made in sill
yer, the price of gold will doubtless
gradually become more equitable, and
the Powers by exchanging silver for
gold will not suffer loss. If the price
of gold can be reduced to over three
shillings to the tael, there will be eff
fected an even more advantageous ex-
change for gold than the treaty stip-
ulates, for the recent sudden rise in
the price of gold is attributable to the
action of bankers who believe
that gold will be demanded
for indemnity payments and pur-
poselg raise its price with a view
TO their own advantage. If payments
in gold are required. the price of gold
will undoubtedly rise to two shillings
to the tael. Now all merchants who
import foreign goods into China have
already suffered great losses.
If the price of gold con-
tinues to rise, the prices of
foreign goods will have to rise with it.
Owing to the empty treasury of China
and the poverty of the people, very
few persons could afford foreign goods
at their enhanced prices.
Would Not Help the Powers.
Thus to demand payments in gold
only imDairs the financial power of
China without benefiting the financial
condition of the foreign governments
in any way. Only few bankers
will reap all the advantages and com
merce at the same time will receive a
sever blow. 1t is certainly not to the
interest of any country to do this.
Since it is the purpose of tne foreign
governments to increase trade, with
their knowledge of commercial needs.
they cannot help knowing that the
making of indemnity payments in sill
yer according to the plan of amortiza-
ton will be the means not only of saw
ing China from heavy losses, but also
of protecting commercial interests.
This matter is worthy of the serious
of the national legisla-
h0dfau