The Washington herald., 1909-06-18
Advsncing Our Interests N china

The state Departments insistence on
the participation Of American financial
interests in a Chinese loan about to be
absorbed by German, English. and French
bankers marks an advance in our Ori-
entail policy Of great significance. With
respect 10 this particular loan an oppcr-
tunity was afforded several years ago
for American participation under an
agreement with the Chinese government,
and similar opportunities have been open
to American capital since. which. prob
ably owing to the heavy demand for
loanable funds at home. did not appeal
10 our investors. The situation in this
regard has changed. however. and we
have an abundance OF capital that can be
employed in the far East under proper
guarantees. Fortunately, an American
syndicate composed Of important New
York fnanciers has been formed in time
10 take part in the proposed Chinese loan.
To this enterprise our government has
lent its powerful support by demanding
Of China that the original agreement for
American participation be adhered 10.
The latest Information is that the Chinese
government has responded favorably to
his representation. so that the new loaa.
amounting to S275OOOOO. will be divided
among the bankers Of the United States.
England. Germany, and France. thus set
ting a precedent that is likely TO be fol-
lowed in the future
The significance OF our governments at
titude toward this loan is that our innu-
ence over the course Of events in the
Chinese empire viii be increased in pro
portion 10 the extension Of American in
terests there. European powers have
been particularly active in lending fnan-
cial aid, through private investments, 10
various public enterprises in China. In
view Of the peculiar nature of the Chinese
government and OF the shaky character
Of its financial and monetary system. it
is inevitable that foreign powers whose
citizens are most deeply concerned IL the
stability Of the empire and in the SOL
vency Of its finances viii exercise a pre-
dominating control over its political and
financial development. The entrance Of
American bankers upon the field of Chi
nese investment means that the American
government viii enjoy precisely the same
leverage on Chinese affairs. so far as they
affect our financial interests, as other
powers. We cannot be ruled out of con-
sideration on the ground that we have
nothing at stake. That the main purpose
Of the State Department in standing back
Of the American syndicate is 10 strengthen
our influence as an Oriental power is IN
questioned. AS much is officially indicat-
ed in an authorized statement declaring
that the department is encouraging the
undertaking OF our bankers because OF its
direct benefit to American commerce and
TO International relations thus confirm
ing the general impression in London and
other banking centers that the United
States purposes to become a more potent
factor than heretofore in the political and
material retuvenation OF China, a process
that may ultimately prove as striking as
the rise Of japan.
President Tafts personal acquaintance
with the Oriental situation will prove OF
great advantage TO him In developing an
active and intelligent policy in that quar-
ter. The move just made shows that the
administration is alive to American inter-
ests In the Orient and that these viii be
advanced by every legitimate means. Il
is a move that serves notice upon the rest
Of the world that we are not TO be el-
bowed out Of China by international
fnaneiering.