The Caucasian. (Shreveport, La.) 1900-192?, 1909-08-24
OUR LOAN TO CHINA,
Significance of Sharing With Eu-
rope In Financial Transaction.
A BIG DIPLOMATIC STROKE.

Considered OF Worldwide Importance
The entering wedge of American
predominance in the awakening Of
China was securely put In place the
other day In Pekin and the door of
the far east opened to American cap
ital, trade and governmental influence.
This wedge takes the form of an
allotment to New York bankers Of
one-fourth participation in loan nego-
tiated by the Chinese government for
the construction of the HankowSze-
chuen railway. The total amount OF
the loan is S30,000,000. of which ST.
100000 is to be taken by an Amer
lean syndicate composed of the Ma
tional City bank, First National bank,
J. P. Morgan & Co., and Kuhn, Loeb
& Co. The sum, so small for Wall
street, is truly mere wedge, but the
principle involved is considered Of
worldwide Importance and opens the
| door for things far greater.
Formally Confirm Terms.
/
the offices of the foreign board there
LANG Tun Yen, president of the board,
| met Henry p Fletcher, the American
| charge d'affaires, and formally con-
] firmed the participation of the New
York syndicate on equal terms with
the semiofficial syndicates of London,
Paris and Berlin.
The Chinese government likewise
| gave assurance that Americans are to
have equal opportunity to supply ma
terial for both the Canton and See
chuen lines. with branches, and to
| appoint subordinate engineers. They
are to have one-half of all future loans
on the Szechuen railroad, with CORE
spending advantages. The formal
edict will be issued In few days after
| the arrival in Pekin of Willard ID.
Straight, representative of the Amer
lean tinanciers.
For years Great Britain. France and
| Germany have been automatically
| struggling for the controlling influence
| over China when that vast country
| should have its awakening to western
| civilization and exploitation. They
| have Unanswered in every way to
bring about conditions that might re-
suit In the partition of the empire so
that vast slices of its territory might
fall into their imperialistic laps
We Stand by China.
The United States government has
stood by China as her friend. Eight
years ago John Hay. as secretary of
state, laid down the policy of this gov
eminent as insisting on what was
| called the "open door," meaning there
| by that all nations should stand on
equal terms with China and that en-
| pire should not be exploited exclusive
" by any other nation to its own ma
terial advantage.
This relatively Insignificant railway
loan has proved to be the critical
incident to bring to focus the in
terhational diplomatic game that pow
i erful nations have been playing with
the vast, unknown Flowery King
| dom as the most magnificent spoils at
/ stake since the days when Rome w"s
| annexing practically all the world %
pay 1t tribute.
/ Great Britain has been in the Chi
nese game with her gold Germany
| has been working the military end.
training and arming the Chinese sol
| diers. France has been let In as their
helpful ally. The United States. stand
| ing for fair play. for the open door.
| for the best interests of China. was
| not to be let into the game All the
| cards had been stacked for a thre.
handed deal, and this little loan. that
/ practically marked the beginning of
| China's entrance on railway construc-
| ton and all the commercial progress
to follow along the lines. was to be
held closely among the three Euro,
| pean countries.
The Presidents Prompt Action.
This was the situation two months
ago when President Taft instructed
| the American ambassadors in Europe
and the charge d'affaires in Pekin to
| lodge a protest and to demand this
| country's participation in whatever af-
fected the welfare of our peaceful ally
across the Pacific. The affair at once
was lifted above mere financial trans
action into the realms of international
diplomacy.
1t was an unprecedented act for the
government at Washington to involve
| itself in the transactions of a group of
private bankers. but President Taft
held that the conditions warranted the
move. The recent action of the for
/ eign board indicates that the Chinese
government has turned toward Amer
lea as its friend and believes in the
disinterested policy of the United
| States
/ In European diplomatic and financial
| circles the success of the American in
PREVENTION Is looked upon as meaning
more than simple one-fourth partici-
patton in the game. The new partner
rather assumes the command and by
/ the peculiar conditions surrounding its
entrance takes the leading position of
| influence in the future development of
trade In the dormant Kingdoms awak-
ening. 1t is especially disappointing to