New-York tribune., 1910-11-30
CHINESE LOAN MAY FAIL
American Offer of S5O,OOO,OOO
Nav Not Be Accepted.
OPPOSE FOREIGN CONTROL
Banker Here, However, Insists
That Negotiations Are Pro-
ceeding Smoothly.

pekfne Nov es--SeTious doubt tnat ehe
rroiectes loan of $50. .e90.ee0 70 emma oy al
American financial syndicate viii be nnai4S
co,cfu6ed Is expressed in Peking- Numerous
6iscuIries have arisen. among them beng
The Guwiliagness of the Chinese to accepe
q foreign financial adviser Without sueh
control Il is said that the promoters are
unwilling 10 proceed
The present is recognized as a crucial
period IN the history OF China Ii Dor
rowed millions are squandered any calan1-
itv viii be possible, even a revolution and
the partition of the empire.
The Chinese never have been more sensl-
rye 10 foreign usurpation Of authority than
they are now. and they look upon the prop
ssjrson 10 give the foreign financial group
control Of the currency reform to which
-ha loan was TO be devoted as further
a,c-oaehnent upon their integrity Of
which the new Senate and the Parlia-
r,eptary party throughout the country are
especiaIly jealous.
The opposition OF the Chinese people.
however. IS not the only barrier 10 the con-
summation OF the agreement European
banking groups who have been invited 70
ra-ticipate with the Americans are not
expec.ed 10 agree 10 an American adviser
10 the Chinese government
Furthermore while the preliminary
agreement stipulated that the Americans
were 10 retain control Of the bond issue
the British. French and Germans are eX-
pected 10 demand an equal participation,
requiring also that they become sigma
tories 20 the final compact.
II eventually successful the loan is not
likely to take the form Of an American
sntarprise. much 10 the disappointment Of
the American community
A member Of the banking syndicate in
feTested III the projected s50.e0O,00e Chinese
Loan said yesterday that there was no truth
81 the cable dispatches from Peking that
there had been q hitch IN the negotiations
due 70 the unwiIIingness OF the Chinese 70
accept q foreign financial adviser, and that
everything was proceeding smoothly so FAR
ss the bankers here had been Informed
The preliminary negotiations fer the pro
posed loan and for the appointment Of q
foreign financial adviser TO the Chinese
government had been practically con-
GUIDED he said and no objection had been
raised by China 70 the plan
An imperial edict issued on October g
authorized 3 loan OF So, ooo.ee0 from group
Of American dnancieTs. who were 70 take
& bond issue 10 cover the loan at 30. The
bonds were 10 mature at a period Of from
forty 10 forty-fve years from issuance and
70 bear per cent interest.
The leaning syndicate was made up Of
P Morgan d Co. Kuhn Loeb & Co.
the National City Bank and the First
National Bank all OF New York City
An agreement was signed IN London on
November 70 by which English, German
and French banks were made participants
IN the loan The banking houses con-
c0rned were the Morgan houses, the Hong
Kong and Shanghai Ranking Company, the
Eank Of Indo-China and the Deutsche East
A-iaric Bank. The agreement provided for
--e cooperation Of the signatOTies in the
matter Of future loans 70 the Chinese
-a~arnr1eut and mutual participation
herein.