New-York tribune., 1909-06-10
AMERICAN CAPITAL
TO DEVELOP CHINA
j. p. MORGAN IN SYNDI-
CATE FORMED HERE.
Ready to Supply 4ny AmOuHt Of
Honey for Which Profitable EN-
pLOymeHt Can Be Found.

syndicate has been formed. consisting OF
the National City Bank, the First National
Bank, Kuhn. Loeb & Co and J P. Morgan s
Co. which will supply capital for the develop
ment Of China, to the amount, however large,
for which profitable employment can be found
An agent Of the syndicate will lie sent within
about two weeks to China. with the object OF
ascertaining what opportunities there are in
that country for the investment Of the syndi-
Gates funds.
There is reason for believing that negotia-
tions are already in progress which relate to
certain investments which viii not require in
vestigation ard report by the agent, but which
will be arranged in tile near future. The field
to be covered by the syndicate's activities is q
wide one. embracing among other things the
bringing out OF provincial and state loans, the
financing Of projected railway lines and proba-
bly, the establishment of banking institutions
There have Iong been English. French and
German syndicates with China their field OF
operations but the syndicate now announced
is the first 10 be formed as a representative Of
American finance. Its organization is under
stood to meet with the APPROVAL Of the state De-
partment at Washington. as another evidence
Of the cordial relations between the United
States and China. which the action Of the
Roosevelt administration. in returning S110H-
$40 Of the S2OGO0OO0 Boxer indemnity strength
ened so greatly
The plan. should it be carried cut viii be a
direct and important result Of Secretary Hays
action in obtaining the open door" in China
The only considerable American exploitation
in the past IN China was about ten years ago,
when the Anerican-China Development Com
pany was formed by. the late Calvin 3 Brice
and twenty-sfx associates. They obtained Ger
tain railway and coal concessions The COM
v-lri- Ia mol Chinese
Railways Syndicate. undertook the construction
of the Peking- Haukow Railroad one OF It's
enterprises. this road being afterward turned
over 70 Belgian interests
In January of this year Thurlov Weed
Barnes obtained a verdict in this city against
the Brice syndicate for $f91GG on his claim
for services in obtaining the Chinese coal con-
cessious ,n 1S.S; and in March a new trial was
ordered by the Appellate Division
The late Wharton Barker. OF philadelphia
about 1SS7 had on foot extensive Chinese devel-
cpment plans which. however. came To nothing
In these projects he was associated with Count
Eugene DE- 1Iitkievicz \ telephone concession
was secured from Vieeroy Ii Hung Chang. and
il was planned To exploit it through the Ameri-
can Telephone Company. with S6.0o0o00 capital
stock of this S5.0000o0 was to be held by an
other company to be formed by Barker. which
was 10 control and own all other concessions
y hich might be obtained from the Chinese gov
eminent. Among the concessions secured was
one for a large institution to be known as the
Chinese American Bank
Until recent years investments by foreigners
in China. except under the protectorates. have
been attended with great r.sk. and have as
rule turned out unfortunately. but conditions
have changed and the square deaT' is now as
sured for foreign capital Handsome returns
on the capital ventured aye 70 be expected by
the syndicate for the natural risks incident 70
the unieveIoped state - the country are neces-
sariIv considerable. even with the protection OF
the Chinese government assured Interest rates
in China rule higher than here. the rates on
certain classes Of loans being. it was said yes
terdav by "A banker doing business with ths
Far East as much as L per cent
one American Institution is interested IN
banking in China. the International Banking
Corporation w ich IS the fiscal agent Of the
United States in that country. It has branches
in Hong Kong. Shanghai and Canton. The
banking system OF China was placed last year
under government control and two government
banks were established
The United States government has long CO.
operated with the Chinese government in the
endeavor to work out a plan for a fixed ratio
between gold and silver coinage for the silver
using countries. including China and Professor
7 W jerks and Charles \ Corant have repre-
sented this country in the conferences Al I'm
periaI ediCt was issued in October ordering a
uniform silver coinage for the entire Chinese
Empire and directing the board of revenue TO
fix the date at which that coinage should be-
come the sole legal tender in the empire
1t is necessary first adopt uniform sfl-
Yer currency" the edjct said and thereafter
the next step forward may be taken with care
and after mature deIiberation, and it is to be
hopad that the gold standard may be established
firmly and without resulting evils"