The Washington times., 1902-07-17
The Chinese Government
Wants to Pay lndem-
nIty in Silver.
RUIN IF GOLD is DEMANDED
Minister WI Presents Cablegram From
viceroys to Secretary Of State-Rsv-
enues Prevent Gold Payments-im-
portant Question to Be Settled


portant Question to Be Settled.
The Chinese government, through
Minister WI Ting-fang. has requested
the good Offices OF the United States to
secure the consent OF all the powers in-b
vclved. TO the payment by China of the
indemnity in silver instead OF gold.
Minister Wu has been so successful in
procuring. through the United States.
the surrender of the control of Tientsin
to Chinese authority that it IS believed
by his government he can do much
through the state Department in ar
ranging the more important matter OF
the payment CT the indemnity III silver. !,
Minister WI called at the State De-
partment early yesterday morning and
had long conference with Secretary
Hay. IN the course of which he pre-
sented a cabiegram OF considerable
length ne had just received from the
two most influential members of the
Chinese court. Mr.. Hay gave the mes
sage his careful consideration. and il
is understood that he will do all in his
power to assist the Chinese govern
ment in this very important matter.
Minister Wus cablegram follows:
The viceIoys' Cablegram.
"Cablegram from viceroys Lin Kun
Yih and Chang Chih-tung. dated July
13, 1902 received July 10. 1902, at 10
,. 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 amortiza-
tion " to 1910, and Russia and France
propose the collection os import duties
in gold. It is also known that Japan =,
mas not taken any decided position.
The revenues Of China amount annual
ly to SO.O5G.O0O taeIs. $4,000, 600 taels
CT which is set aside for the payment
Of the national debt. How can the re-
naming 10000, 600 taels be made 10
satisfy the administrative requirements
of twenty-five provinces in China?
Attempts to Raise Revenues.
Attempts to raise revenues from new
sources on the part of the provincial
authorities have in many cases created
local disturbances. In case heavier
taxes be imposed, an uprising of the
people will be the natursI result. Since ;,
the various payments admit Of no de-
lay on the dates on which they sew
orally fall due. money has TO be taken
from other funds in order to meet the
pressing demand. II has already ap-
peared to be beycnd China S ability to
make the payments even in silver il
accordance with the treaty. The for
eign powers know full well the financial
resources Of China. When the indem-
nifty question first came up for dis
cussion the total amount was repeat
edly 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 appreciate the fact that
to make payments in gold is a burden
too heavy for China 10 bear Inasmuch
as the foreign powers have shown such
consideration for China We feel it in
cUmbent up.n US to make renewed rep
resentations upon the subject to the end
that an arrangement which shall be
both reasonable and feasible may be
found.
Customs in Gold.
Great Britain has at present largo
share of China's trade. 1t is natural
that she should not like the collection
OF customs duties in gold The gain de-
rived from collecting customs duties in
gold does not by any means balance the
loss sustained in making indemnity pay
monts in gold; and. under the circun-J
stances. China would not obtain much
relief But 10 make indemnity pay
ments in silver does not, even accord
ing to the present rate Of gold, entail
a great loss nnnn the foreign powers,
since such loss IL any, Is divided among
them
Moreover. when 1t is at once decided
that the indemnity payments shall be
made in silver, the price OF gold viii
D lrubtless gradually become more equi-
able ard the powers by exchanging
silver for gold viii not suffer loss. II
ne price Of gold can be reduced to over
three shiliiEgs to the tael, there viii beI
effected an even more advantageous ex-
mango for gold than the treaty stiPu-
ates. for the recent sudden rise in the
,rice Of sold is attributed to the action
If bankers 9vho believe that gold will be
for indemnity payments. and
iurposely raise It's price with a view TO
heir own advantage.
Great Losses Suffered.
IF payments In gold are required. the
,ri9e CT gold viii undoubtedly rise 10
30 shiliilss to the tael. Now all mer-
.haLts who import foreign goods into
tCaHtiEurd on Third Pagc)