Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-07-16
Message From Viceroys.

"Cablegram from Viceroys Lin Kun-Yih
and Chang Chih-tung, dated July IL, 1902
received July -, 1902 at 10 p.m.).
According to reports of conferences 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 silver, 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 posi-
ton. The revenues of China amount an
nually to SO010O90 taelS, 81. 100000 taels of
which is set aside for the payment of the
national debt. How can the remaining
3oOoo,oO taels be made to satisfy the
administrative requirements of twenty-five
provinces in China?
Attempts to raise revenues from new
sources on the part of the provincial au-
thoritieS have in many cases created local
disturbances. In case heavier taxes be
imposed. an uprising of the people will be
the natural result. Since the various pay
me nts admit of no delay on the dates on
which they severally fall due, money has
tC be taken from other funds in order to
meet the pressing demand. 1t has already
appeared to be beyond China's ability to
make the payments even in silver in &C.
cordance with the treaty. The foreign
powers know full well the financial re-
sources of China. When the indemnity
question first came up for discussion the
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 appreciate 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 considera
ton for China we feel it incumbent upon
us to make renewed representations upon
the subject to the end that an arrange
ment which shall be both reasonable and
feasible may be found.
Manipulation of Gold.
Great Britain has at present a large
share of China's trade. 1t is natural that
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 payments in gold; and,
under the circumstances, China would not
obtain much relief But to make indemnity
payments in silver does not, even accord
ing to the present rate of gold, entail a
great loss upon the foreign powers, since
such loss, if any, is divided among them.
Moreover, when it is at once decided that
the indemnity payments shall be made in
silver, the price of gold will doubtless grad
ually become more equitable, and the pow
ers by exchanging silver for gold will not
suffer loss If the price of gold can be re-
there will be effected an even more advan-
tageous exchange for gold than the treaty
stipulates, 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
purpOsely raise it's price with a view to
their own advantage.
IF payments in gold required the
price of gold will undoubtedly rise to two
shilings to the tael Now all merchants
who import foreign goods into China have
already suffered great losses If the price
of gold continues to rise, the prices of for
eign goods will have to rise with it. Owing
to the empty treasury of China and the
poverty of the people, very few persons
Will be able 10 afford to buy foreign goods
at their enhanced prices. Thus TO demand
payments in gold only impairs the financial
power of China without benefiting the
financial condition of the foreign govern
ments in any way. Only a few bankers will
reap all the advantages, and commerce at
1t is certa inly 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 CONNER
cial needs, they cannot help knowing that
the making of indemnity payments in silver
according to the plan of amortization will
be the means not only of saving China from
heavy losses, but also of protecting CONNER
cial interests. This matter is worthy of the
serious consideration of the national legis-
latures and commercial bodies of the differ
ent countries"