New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-07-23
INTEREST IN CHINESE CURRENCY.

The Chinese appeal to be permitted to pay
the indemnity to the powers in silver is par
ticulary interesting-apart from the funda-
mental principle of the case-for its revelation
of the varying interests of the powers in Chi
nese currency. Those interests are different
ated and grouped upon lines practically fdentl-
cal with those which were developed during the
protracted dispute over the fixing of the amount
of the indemnity and the determination of the
methods by which 1t was to be raised. 1t VIII
be remembered that at that time Russia ana
other powers having small commerce with
China urged that China should be very heavily
mulcted and should be permitted to increase
her tariff rates enormously to enable her to pay
the indemnity promptly, while the United
States. Great Britain and Japan having each a
large commerce with China, opposed any con-
siderable increase of the tariff and favored the
exaction of smaller indemnity on easy terms.
On the face of it these different policies were
dictated by self-interest, yet it has come to be
pretty generally recognized that on general
principles the latter was the wiser of the two,
and the better for the powers as well as for
China.
We explained the other day the point at issue
in the currency dispute. China wants to pay
the indemnity in silver at the rate Of tael value
which prevailed when the amount of the In
demnty was fixed, 742 cents, while some of
the powers insist that it shall be paid in gold
reckoning the silver tael as worth only 500
cents, while the gold tae is fraction more
than 100 cents. 1t is obvious that in the half
yearly payment Of nearly 100000 taels It
matters a great deal to China whether the for
mer or the latter rule Is followed Now. the
further development Of the case is this: China
argues that as the powers pay their customs
duties ut her ports in silver, she should be per-
mitted to pay them the indemnity in silver
which is logical. Thereupon Russia, having lit
tie commerce with China and therefore little
10 pay in customs duties, proposes that here
after both duties and indemnity shall be paid
in gold while Great Britain and the United
States, having u vast commerce with China and
therefore much 20 pay at her custom houses,
prefer TO continue paying duties in silver and
10 accept silver in payment Of the indemnity
Both OF these latter proposals are logical II
China receives silver she should pay out silver
and IL she receives gold she should pay out
gold. Great Britain and the United States pre-
fer TO maintain the silver system, because that
will be 10 the advantage OF their large COM
mercial interests. Russia on the other hand,
is Indifferent to commercial considerations. since
her sea borne trade with China Is inslgnlicant-
ly small; or, II she has any interest in IT, IL is
in seeing the Chinese trade OF other countries
impaired and destroyed, so as to let in her own
trade and an accompanying political influence
Let us grant that the two sides to the contro-
versy are equally selfish. Yet as before, It
will on the whole be best for all concerned to
treat China generously. Any policy which
would lessen Chinese commerce with the rest
of the world would be bad for all. 1t is for the
profit Of the powers to increase their trade
with China. 1t will even be best for Russia. in
the long rum to have American commerce with
China maintained and increased and there can
be no question that It will be best for China to
come into the closest possible relations with the
rest Of the world. The Chinese Viceroys are
quite right in saying that it is not to the inter
est of any nation 10 impair the purchasing
power Of China In this case as in the former
one which we have cited, the policy of the
United States IS the one which shoud-and
which we may hope wil-prevail