The San Francisco call., 1909-10-05
MINISTER CRANE
IS CALLED BACK
TO WASHINGTON
Chinese Envoy Is Summoned by
Secretary Knox on Eve of
Departure for Post
Speculation Rife as to Cause
and Unsettled National
Loan Is Recalled

I TEDGED around with mystery is
II the sudden recall to Washington
a - d. C. of Charles r. Crane, recent
ly appointed minister to China, who
was TO have sailed on the transport
Thomas this morning for his new post
but who on receipt of telegram from
Secretary of State Knox yesterday
changed his plans and will leave for
the east tomorrow.
The telegram from the secretary of
state was brief and vague. 1t declared
that Knox wished to discuss certain
phases of the eastern situation" more
thoroughly with the new minister and
which he did not have an opportunity
of doing before the latter left Wash
ington.
Proceeding Is Surprise
The proceeding is so strange to Of
fetal circles that query has arisen
as to what is the phase in the eastern
situation that demands such prompt
action. That it is not a trivial affair
is generally undersood, the theory be-
ing that ministers to foreign posts are
not recalled on the eve of their sailing
and made TO travel across the continent
for the purpose of discussing petty
matters. Crane was as ignorant of
the cause as any one else.
i have no further knowledge than
the contents Of the telegram" he said.
Secretary Knox was out of the city
when I left Washington and from what
] can gather he wishes to discuss and
advise me personally on some matter
which was forgotten when was in the
east AS to what that matter is I am
in complete ignorance. I win stay in
Washington day or two and return
Immediately TO sail on the Korea"
The vital question between China
and the United States at the present
time is the Hankow-Cze Chuen rail-
way loan Of s27 100000. When this
loan was proposed first. British, Ger
man and French bankers agreed TO
share it among themselves. The ef-
forts of the American bankers to get
a slice Of it proved unavailing and ul-
timately President Taft sent a per-
sonal cable to Prince Chun, advising
him rather emphatically that America
was 10 be considered in the loan.
Loan Vital issue
AS the European bankers refused to
recede the matter was finally brought
down to a basis of the loan being
raised one-third and the four nations
,-1oos-.s,--~ eo,,s+,1,1a ,,o-+;o1s of -
Though this seemed to be perfectly
satisfactory TO everybody, the loan
was not carried through and is still
pending.
After matters had thus been COM
promised and the world was expecting
the loan TO be put through at any mo-
ment Russia appeared on the scene
with a request that the Russo Chinese
bank be allowed in the financial game.
The Slav received poor encouragement.
None OF the interested nations wanted
him to play. The British, German.
French and American bankers were
very well satisfied with the compro-
mise and did not like the idea Of hav-
ing fifth party coming in at the last
moment It was understood that in the
circumstances Russia would withdraw
its request.
The telegram recalling Crane has,
however, brought the question TO the
fore again. There is belief among local
Chinese businessmen that Russia has
taken some new step within the last
few days and that Crane has been re-
called for the specific purpose of meet
ing the new difficulty.
Chinese Toast Minister
Mr.. and Mrs. Crane were the guests
Of the Chinese chamber Of commerce
at banquet last night. Speeches
were made by numerous Chinese mer-
chants, requesting that Crane take
steps to have modified the existing
Chinese exclusion laws.
I'VE have confidence in the United
sates." said one speaker. because it
is the only country which has not tried
to take portion Of Chinese territory
Crane replied briefly. thanking the
Chinese for the honor given him and
saving that he would do all in his
power to cement the friendship CT the
two nations.
Taft in ignorance