The St. Louis Republic., 1903-01-03
Washington Officials Regard 1t
the Most Menacing on Horizon
of World Politics.
GRAVE CRISIS SEEMS AHEAD.
It Is Feared That Russia, Germany
and England Will Become
Oyerexacting-Gold Pay
ments Exorbitant.
REPUBLIC SPECIAL

REPUBLIC SPECIAL.
Washington, Jan. 2-Administration ofi-
cials have been forced by the discomfort OF
European Powers at China's refusal to pay
the second installment of the Boxer indem-
nifty in gold. to regard the Chinese question
as one Of the most menacing now obscur1ng
the horizon Of the world politics.
The United States have always held that
the protocol signed by the Powers provided
for the payments OF the instailments Oh the
indemnity at the rate of exchange prevail
ing In April. 1901. The European Powers
insist that each payment shall be made at
the rate Of exchange prevalent at the time
Of payment
No secret is made Of the fact that the ad-
ministration regards the situation as eS-
tremely serious. 1t is feared that the impa-
dence of the European Powers, Russia,
Germany. England and others. will develop
into something moro threatening to China.
These Powers are the heaviest creditors
OF China. Their claims have always been
regarded by the United States Government
as extortionate and they have always been
credited with desire to squeeze every cent
possible from the Chinese Government.
A high official said to-day:
There is no question but that the Powers
foolish though that may be. for China is in
dire straits financially and commercially.
1.-THE United States have always been
China's friend in this matter. simply be-
cause China Is right in refusing to pay the
indemnity at higher rate Of exchange than
prevailed In April. 1902.
'.Just when the Powers will take 1t upon
themselves to threaten China with partition
or attempt some other drastic measure re-
mains to be seen. They will choose time
which they think will be most advantageous
and most promising of success to them
selves. It may come at any time. Moral
sentiment Is unquestionably on the side Of
China
when coercive mea sures are undertaken
by the Powers against China she will have
an excellent opportunity to make appeal
for the entire indemnity question to be re-
ferred to The Hague tribunal, with the OBJ
1ect of settling forever the question Of the
rate Of exchange at which the indemnity
shall be paid. The United States favor this
solution of a threatening problem. But the
United States cannot suggest now 10 the
Powers that the matter be referred to The
Hague.
"Anairs must be allowed to run their
course until the issue in the dispute shall
have been sharply outlined. Then the
United States may. with all propriety. ex-
press to the other Powers signatory to the
protocol their belief that China is in the
right, and suggesting recourse to The
Hague
Omcials here fear that the Powers may
deem the present an advantageous time to
squeeze China. The United States hereto
fore have always been vigorous in advo-
eating Justice. which the Powers were not
always anxious to accord the Oriental 1t
is thought here that the Powers may take
action now. feeling that the United States,
already engrossed with Germany and Great
Britain in the Venezuelan question, may
not be SO keenly disposed to enter into rep
reservations in Chira's. behalf for fear of
embarrassing the effort to settle the South
American dispute peaceably.