New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-07-17
CHINA APPEALS AGAIN.
CANNOT PAY INDEMNITY IN GOLD. AS
POWERS DEMAND
SECRETARY HAY ONCE MORE ASKED TO
EXERT HIS GOOD OFFICES IN BEHALF
OF MILDER TREATMENT.

Washington July 16-Having practically adj
tusted the questions connected with the surren-
der to the Chinese Of the control of the city OF
Ilen-Tsin, this government has been asked TO
interest itself in the settlement of the grave
difficulties growing out of the insistenCe of some
of the powers on payment of their shares of the
war indemnity in gold instead of silver. The
Chinese Government is greatly disturbed over
this question. and Minister WI has been so
successful in his other undertakings. his gov
eminent again has called on him to secure an
amelioration of the demands. The minister
came to the State Department to-day and had
a long interview with Secretary Hay in the
course OF which he presented a cable dispatch
from the two leading members Of the Chinese
court who primarily in charge of the nego-
tiations The message brings out for the first
time the fact that il is now a difference of
method rather than disposition that divides the
powers and that all seem ready to do what they
can to make it possible for China to carry out
her heavy obligations Secretary Hay studied
the message closely. and will give the subject
his immediate attention.
TEXT OF THE CHINESE APPEAL
The cable dispatch. which is from Viceroys
Liu Kun Yih and Chang Chih-Tungn, is as fol-
lows:
According to reports of conferences held by
the foreign ministers at Picking on the indern-
nifty question, the United States is willing 10
accept silver; Great Britain is willing to accept
silver, in accordance with the plan Of amortiza-
ton, up to 1910. and Russia and France pro-
pose the collection of import duties in gold 1t
is also known that Japan has not taken any de-
cided position The revenues OF China amount
annually to SO.OO0.0OO taels, 5OOOOOOO taels of
which is set aside for the payment of the ma
tonal debt How the remaining SuOOooOo
taels be made to satisfy the administrative re-
quirements OF twenty provinces in China?
70 rails fr0n
sources on the part Of the provincial authori-
ties have in many cases created local disturb
ances. In case heavier taxes be imposed an
uprising Of the people will be the natural result
Since the various payments admit of no delay
the dates on which they severally fall due
money has to be taken from other funds IN
order to meet the pressing demand. II has
already appeared to be beyond China's ability
to make the payments, even in silver in accord
ance with the treaty. The foreign powers know
full we'll the financial resources of China. When
the indemnity question first came up for discus
sion. the total amount was repeatedly reduced
Now the willingness on the part OF the United
States, Great Britain, Russia and France either
to accept silver or TO pay duties in gold, in spite
OF the divergence Of views. shows that all ap-
preciate the fact that to make payments in
gold is a burden too heavy for China TO bear
Inasmuch as the foreign powers have shown
such consideration for China, we feel ii incum-
bent upon to make renewed representations
upon the subject. to the end that an arrange
ment which shall be both reasonable and feast
BILE may be found.
Great Britain has at present a large share OF
Chinas trade. 1t is natural that she should not
like the collection Of customs duties in gold.
The gain derived from collecting customs duties
in gold does not by any means balance the loss
sustained in making indemnity payments III
gold: and, under the circums tanCeS China
would not obtain much relief But to make in
demnity payments in silver does not, even ac-
cording to the present rate Of gold entail a great
loss upon the foreign powers. since such loss. II
any. is divided among them. Moreover. when
it Is once decided that the indemnity pay
ments shall be made in silver 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 be
reduced to over three shillings to the tae there
will be effected an even more advantage ex-
change for gold than the treaty stipulates for
the recent sudden rise in the price of gold Is
attributable 10 the action OF bankers who be
Neve that gold Will be dema nded for indemnity
payments and purposey raise its price with
view 10 their own adv antage.
II payments in gold are required the price of
gold will undoubtedly rise to two shillings to
the tael. Now all merchants who import for
eign goods into China have already suffered
great losses. If the price OF gold continues 10
rise, the prices Of foreign goods will have TO rise
with It, Owing 10 the empty treasury Of China
and the poverty Of the people few persons Will
be able 10 afford TO buy foreign goods AZ their
enhanced prices. Thus TO demand PAYMENTS in
gold only impairs the financial power of China
without bene1ting the financial condition OF the
foreign governments In any way ONLY 4 few
bankers will reap all the advantages md com
merce at the same time viii receive a severe
blow. Ii is certainly not to the interest OF any
country to do this. Since It is the purpose OF
the foreign governments to increase trade with
their knowledge of commercial needs they can
not help knowing that the making OF indemnity
payments In silver according to the plan OF
amortization will be the means not only Of saw
Ing China from heavy losses, but also Of protert-
ing commercial interests. THIS matter IL vort nv
of the serious consideration of the national leg
1slatures ana commercial bodies of different