The Birmingham age-herald., 1909-12-26

great manufacturing country, and that its people are naturlly fitted to be the chief industrial nation of Asia.
 ChIna's Railroad Era.
 here referred to the new railroads which China has projected. and asked him if their construction would he pushed He replied: We intend to hu'ld new rail- roads just as fast as we. cen. We need them, and tho imperial government re- aiizes that fact, and will do all 1t can to aid in the construction. The first roads to be built will be trunk lines, connect ing the chief centers of population. We must have them on political grounds, as well as for business development Rail- roads are military necessity to the ney civilization, and to Chinas holding the place she should have in the far east and the world. We need a strong central government: and to that end must be able to send troops from one part of tho empire to another by rail on telegraphio notice After we have once built our trunk lines, branch lines and feeders will rapidly follow. The traffic will be large, and the roads will soon become profita- ble. AS soon as our people realize that money can be made from railroad en- terprisss, there will be no trsuble in rais- ing the capital necessary to carry them on. So far they are new thing to us, and as we are conservative people. we are cautious about embarFing in them
 Foreign Capital for China.
 Your excenency was among the first to advise the government that 1t should secure foreign capital for building it's railroads, were you not?'
 Yes But that policy became unpopu- lar. The cry of China for the Chinese, and for the Chinese alone was raised, and for awhile our people were inclined to build everything with their own money and to accept no help from outside. The cost of railroad building however. is so great and our people understand It so little, that they hesitate to invest. and gre now coming to favor foreign loans"
 And indeed, l still believe in f~peign lesns for railroad building continued Sheng Kung Pao T think will pay us to borrow the money. and let the roads earn the interest The situation in re- gard to such loans has changed during recent years. In tho past the roads were mortGaged as security for the bonds; but the government is now guaranteeing them and the roads, to a certain extent, are free from such incumbrances. A guaran- tee by the Chinese government is better than that of any railroad. It has all China back of it, and the interest is abso- lutey secure"
 But I understand you want to borrow some millions of dollars 10 extend your steel works at Hanyang, 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 think 1t advisable. Similar obligations which we have entered into during recent years have caused inter national trouble The men who borrow the money, in case of a dispute as to the settlement, are likely to call In the government to which they belong to en- able them to bring things their way, and that without regard to justice or right The mortgaging of private enterprises and public works has, in certain cases, given tho control of such works over to the foreigners who made the loan. and that we cannot permit. We feel that we Chinese should control our own mines, and that in the present conditions of af- fairs 1t Is not safe for us to so outside for capital 50 secured"
 chIna's Now Banl<e.
 .sYour sxcellency is connected with the Imperial Bank of China7 h that . gov ernment bankf'
 ssNo It is commercial institution with headauarters at Shanghai and branches at f1ankow and Pexin. It has a capital of B,o00.00o taels. oyer half of whicS is paid in The only government bank we have is the Hu Pu bank. which has it's headquarters In Pskin. and branches