The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-12-28

holding the place she should have in
n tar east and the world. We need
a strong central government; and to
that end must be able to send troops
from one part of the empire to another
by rail, on Geographic notice. After
we have once built our trunk lines,
branch ines and feeders will rapidly
follow. The traffic will be large. and
the roads will soon become profit
able. AS soon as our people realize
that money can be made from rail-
road enterprises, there will be no
trouble in raising the capital neces-
sary to carry them on. SO far they are
a new thing to us. and as we are a
conservative people. we are cautious
about embarking in hem
Foreign Capital for China.
Your excellency was among the
first to advise the government that it
should secure foreign capital for build
ing It's railroads, were you not?"
Yes. But that policy became un-
opular The cry Of China for the
Chinese, and for the Chinese alone
was raised, and for a while our people
were inclined to build everything with
the1r own money and to accept no help
from outside. The cost of railroad
building, however. is SO great, and cur
people understand it SO little, that they
hesitate to invest, and are now COM
ing to favor foreign loans"
And. indeed, 7 still believe in for
eign loans for railroad building con-
timed Sheng Kung Pao. L hin it
will pay US to borrow the money. and
let the roads earn the interest. The
situation in regard to such loans has
changed during recent years. IN the
past the roads were n~Ortgaged as Sc
cur1ty for h bonds: but the govern
ment is now guaranteeing them, and
the roads, to q certain extent. are free
from C1lPh jncy11n hra n NV ~ +oo
by the Chinese government is bette~
than that of any railroad. It has all
China back of it, and the interest is
absolutely ~sncure.'
"Rut, l understand you want to Dor
row some millions of dollars to extend
your steel works at Hanvaug. and that
you are asking the Chinese to put up
the money. Why do you not go
abroad for a loan of that kind %
we do not him it advisable. SINH
lar OBLIGATIONS which we have entered
into during recent years have caused
international trouble. The men who
borrow the money!, in case of a dis
pute as to the settlement. are likely to
call in the government to which they
belong to enable them to bring things
their way, and that without regard to
Justice or rie hit. The mOrtga ging Of
private enterprises and public works
has, in certain cases, given the control
of such works over to the foreigners
who made the loan, and that we can
not permit. We feel that we Chimes.
ehonld control our own mines. and that
in the present conditions of affairs il
is not safe for us to go outside for
capital SO secured"
China's New Banks.
Your excellency is connected with
the Imperial Park Of China Is that a
government bank ?"
No. It is a commercial institution
with Headquarters at Shanghai and
branches at Hankow and Peking. II
has a capital of 5000. 600 taels, over
half of which is paid in. The onlv gov
eminent hank we have is the Hu Pr
Park. which has its Headquarters in
Peking, and branches scattered here
and there over the country
will China eve have a national
banking system, such Is Japan or the
Eyes. I think so. although it will hi
some time before it can be establish
ed. IT is one Of the crying needs OF
the empire, and would be Of enormous
good. not only to the government, tbut
to all industries.
will you ever have postal savings
banks?
Not soon Put I should like to
see them established. and thew are
bound to come. They are Invaluable
in the teaching Of thrift. and in maxi
ing a place for the small savings of
the people. With a stable govern
ment such institutions will be very
popular. and they would enormously
increase the national wealth. They
would make US the richest people of
the world, for u savings depositors
would hc millions in number. ]
should like to see industrial banks
such as the japanese have. establish
ed in China. and we shall probably
have a~gricu1tnral banks
I'VE New MirtS and RanknoteS.
CHOW about your new c~Oinage?'
"There is a movement on foot to
s~tandardiZe it. We are sadly IN need
of a uniform coinage. and it is bound
to come"
"Vill the unit be the silver dollar
or the tap17o