Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1910-02-26
KNOX MAY HIT
BACK AT CRITICS
Styled Mcrgan'S Agent For AID
Ing American Bankers.
CHINESE LOAN EXPLAINED
Secretary Of State Believes the United
States Action Paved the Way For
Reforms In FIowery Kingdom.


Reforms In FIowery Kingdom.
Secretary OF State Knox resents the
criticisms Of his conduct of the state
department and may issue n state
ment giving notice that II the people
don't like his kind of diplomacy he Is
ready 70 lapse into a doaothing rut.
or give way to some one else.
Mr. Knox believes in mixing com
mercialism and diplomacy, and Il ir-
ritates him when he is accused OF run
ming the department for the benefit OF
J. PierpOnt Morgan and other big
fnanciers.
Some OF the inside history OF the
Hankow railroad loan was given out
and throws new light on the part
taken in that transaction by tho Unit
ed States. It seems that big world poll
tics are involved. This government
stepped in Just IN time TO prevent an
act that would have retarded for many
years the plans for the national pro-
gress OF China.
The $4,000. 600 Hankow railroad
loan had been practically awarded TO
the German. French and English syn
dictate. At the eleventh hour the Unit
ed States interfered and demanded a
share OF the loan. The European diplo-
mats laughed at our representations.
The real reason the United States
took hand in the proceeding was the
knowledge that the foreign syndicate
was 20 be secured in its loan by
lien upon the likln taxes Of the various
provinces. This tax is regarded as one
OF the most archaic Institutions OF
China and a great deterrent to its de
velopment
The United States plans to abolish
this tax and at the same time put the
Chinese currency on a modern basis
and reform the customs service. These
reforms would have been impossible.
or at least delayed for many years. II
the Haukow loan had been put through
In its original shape. as the lien on
the likin taxes would have perpetuated
the ancient customs.
The United States insisted on cur
right 10 share IN the loan because Of
our treaty obligations with China and
our prestige in that part OF the world.
our part IN establishing the open door
policy and other valid reasons. After
long and bitter controversy the Unit
ed States won out.
Secretary Knox regards this as his
finest bit OF statosmanship. II saved
China further setback. and enhanced
the influence OF the United States In
the East. At the same time stipulation
was made that part OF the supplies for
the railroad should be purchased in
America.
Secretary Knox turned over TO ]
Pierpont Morgan the duty Of handling
the share OF the loan awarded 20
America. He merely stipulated that
the firms taken into the syndicate
should be of such character as 20
carry absolute confidence 20 the for
eiEners
In view OF the larger politics In
volved in these transactions. Secretary
Knox grows very weary when ne hears
the charge that he Is running the
state department I'm the interest OF
Morgan and other bankers.
He believes his policy fu-thers the
best interests az the United states
government He is becoming tired OF
the continued criticism. based as he
believes. on a wrong understanding
OF the situation. and is seriously con
sidering issuing a statement which
will show that Il the people don't want
this sort of thing he viii be content
to limit his activities simply TO pro
tecting the lives and properties OF
Americans IN foreign lands