The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-07-17
CHINA ASKS HELP
OF UNITED STATES
Seeks Assistance in Settlement
of Indemnity
UNABLE TO RAISE REVENUE
Several OF the Powers Want Payments
Made In Gold, But This the Chin
csc Government Is IN
able to Do.

Washington, July 1s-Having practi-
cally adjusted the questions connected
with the surrender to the Chinese of the
control of the city of Tien Tsin, this
government has been asked to interest
itself In the settlement of the grave diff
ficulties growing out of the insistence of
some of the powers on payment of their
shares of the war indemnity in gold in
stead of silver.
The Chinese government is greatly dis
turbed over this question. and as Min
lister WI has been so successful in his
other undertakings connected with the
negotiations his government again has
called upon him to secure an ameliora-
ton of the demands. The minister came
early to the State Department roday and
had a long interview with Secretary Hay
in the course of which he presented
cablegram from the two leading mem
bers of the Chinese court, who are pri-
marily In charge of negotiations. The
message brings out for the first time that
1t is now a difference of method rather
than disposition that divides the powers,
and all seem ready to do what they can
possible for China to carry out her heavy
obligations. Secretary Hay will give the
subject his immediate attention.
The cablegram, which is from Vicerops
Liu Kun and Chang Chip Tung, is as fol-
lows:
Text of the cabIegram.
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 ac-
cordance with the plan of amortization
up to 1910, and Russia and France pro-
pose the collection of import duties in
gold. 1t Is also that Japan has not taken
any decided position. The revenues OF
China amount annually to SO,00O.O 900 taels,
50000,000 taels of which is set aside for
the payment of the national debt. How
can the remaining 100000 taels be
made to satisfy the administrative re-
quirement of twenty-five provinces OF
| China.
Attempts to raise revenues now on
| the part of the provincial authorities
have In many cases created local distur-
Dances. In case heavier taxes be imposed
| an uprising of the people will be the
natural result. Since the various pay
ments admit of no delay, money has to
| be taken from other funds in order to
meet the pressing demand. 1t has already
appeared to be beyond Chinas ability to
make The payments even in silver In ac-
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
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
IL, u. 70 Of fhn dtNror eraf1 pa
of Views. shows that ali appreciate the
fact that to make payments in gold is a
burden too heavy for China to bear. In
asmuch as the foreign powers have
shown such consideration for China we
feel 1t incumbent upon us to make re-
newed representations upon the subject
to the end that an arrangement which
shall be both reasonable and feasible
may DE found.
Great Britain Largely Interested.
Great Britain has at present a large
share of Chinas 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 according 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 ex-
changing silver for gold will not suffer
loss. If the price of gold can be reduced
to over shillings to the tael, there will
be effected an even more advantageous
exchange for gold than the treaty stipu-
lates 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 its price with view to
! their own advantage. If payments in
| gold are required the price of gold will
| undoubtedly rise to shillings 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 foreign
goods Will have to rise with 1t. Owing to
the empty treasury OF China and the
poverty of the people, very few persons
will be able TO buy foreign goods at their
enhanced prices. Thus to demand pay
ments In gold only impairs the financial
| power of China without benefiting the
financial condition OF the foreign govern
ments in any way Since 1t is the pur-
pose of the foreign governments to in
crease trade with their knowledge of
commercial needs, they cannot help
payments in silver according to the plan
of amortization will be the means not
only of saving China from heavy losses,
knowing that the making of indemnity
but also of protecting commercial inter-
ests. This matter is worthy of the Sc
rious consideration of the national legis-
lative and commercial bodies of differ
ent countries"