The Emmett index. [volume] (Emmett, Idaho) 1893-1925, 1909-09-16
OUR LOAN TO CHINA.
Significance of Sharing With Eu-
rope In Financial Transaction.
A BIG DIPLOMATIC STROKE.

Capital, Trade and Governmental In,
fuenee In the Celestial Empire-Prin
eipIe involved In tho Transaction Il
Considered Of Worldwide Importance
The entering wedge of American
predominance IN the awakening of
Chinn 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 Hankow-Sze-
chuen railway. The total amount OF
the loan is S3O000,0OO. Of which ST.
100000 Is TO be taken by an Amer
lean syndicate composed of the Ma
tlonal City bank, First National bank.
j. +. Morgan & Co.. and Kuhn. Loeb
a. Co. The sum, so small for Wall
street, Is truly a mere wedge. but the
principle involved Is considered Of
worldwide importance aud opens the
door for things far greater.
Formally Confirm Terms.
Dispatches from Pekin say that Mt
the offices OF the foreign board there
LANG Tun Yen. president of the board,
met Henry i. Fletcher, the American
charge d'affaires, and formally con
frmed the participation of the New
York syndicate on equal terms with
the semlodicial syndicates of London.
Paris and Berlin.
The Chinese government likewise
gave assurance that Americans are to
have equal opportunity 70 supply ma
terinl for both the Canton and SEE
chuen lines. with branches, and to
appoint subordinate engineers. They
are To have one-balf OF all future loans
on the Szechuen railroad, with CORE
spending advantages. The formal
edlct will be issued IN a few days after
the arrival IN Pekln Of Willard ID.
Straight. representative OF the Amer
lean financiers.
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
and exploitation. They
have maneuvered 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
fan into their imperiallstic laps.
We Stand by China.
The United States government has
stood by China MS her friend. Eight
years ago john Hay. MS secretary of
state. laid down the policy OF this gov
ernment 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-
plre should not be exploited exclusive
~ 10y any other nation to its own ma
terial advantage.
This relatively insignificant railway
loan has proved to be the critical
TO bring to focus the In
ternatlonal diplomatic game that pow
erful nations have been playing with
the vast unknown Flowery King.
dom as the most magnificent spoils at
stake since the days when Rome was
practically all the world to
pay II tribute,
Great Britain has been In the Chi
nese game with her gold. Germany
st,,.,
training and armlng the Chinese sol
Iliers. 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 10 be let into the game, All the
handed deal. and this little loan. that
marked the beginning of
Thlna's entrance on railway construc-
Ion and all the commercial progress
10 follow along the lines. was to be
held closely among the three Euro
pean countries.
Tho Presidents Prompt Action.
This was the situation two months
Igo when President Taft Instructed
he American ambassadors In Europe
nd the charge d'afaires IN Pekin to
odge protest and to demand this
participation In whatever af-
ected the welfare of our peaceful ally
cross the Pacific The affair at once
ras lifted above mere financial trans
elton into the realms of International
diplomacy.
II was an unprecedented act for the
'overnmeut nj Washington to involve
tself In the transactions of n group of
rlvate bankers. but President Taft
ED that the conditions warranted the
move The recent action OF the for
ign hoard indicates that the Chinese
overument has turned toward Amer
"a as its friend aud believes in the
policy OF the United
'tates
In European diplomatic and financial
ircleS the success % the American iu-
erventiou IS looked upon as meaning
more than u simple one-fourth partici-
ation in the game The new partner
nther assumes the command and by
Ne pecuiiar conditions surrounding Its
atrnnce takes the leading position OF
aaaeuce in the future Development Of
rade In the dormant Kingdoms awak-
ming. IL Is especially Disappointing to
sngiand. which was counting on the