Milford chronicle., 1910-02-25
KNOX May HIT
BACK AT CRITICS
Styled MGrgal'S Agent For AId-
ing American Bankers.
CHINESE LOAN EXPLAINED
Secretary Of State Believes the United
States Action Paved the Way For
Reforms In Flowery Kingston.

Reforms In FIowery Kinqdom.
Secretary Of State Knox resents the
criticisms Of his conduct OF the state
department and may issue a state
nent giving no.ice that ID the people
don't like his kind OF diplomacy he is
ready to lapse iaIo a doHj ns rut,
or give way to some one else.
Mr.. Knox believes in mixing com
nnercialism and diplomacy and it ir-
Titates him when he is accused OF run
ming the department for the benefit of
J. PierpOnt Morgan and otner 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 the Unit
ed States. It seems that big world p0li-
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-
gTess OF China.
The $300e00o0 Hankow railroad
loan had been practically awarded to ,
the German, French and English syn
dlcate. At the eleventh hour the Unit /
ed States intarfored and demanded a
share Of the loan. The European diplo-
mats laughed at our representations.
The real reason the United States
took hand i'm the proceeding was the
knowledge that the foreign syndicate
was TO be secured in its loan by a
lien upon the likin 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 i,
and reform the customs service. These :
reforms would have been impossible, !
or at least delayed for many years. II !.
the HankOw 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 our
right to share in the loan because Of =
lHr treaty obligations with China and =
our prestige in that part Of the world. y
'ur part in establishing the open door q
)Olicy and other valid reasons. After
] long and bitter controversy the Unit
ID States won out.
Secretary Knox regards this as his ir.
NEST bit OF craftsmanship It saved NJ
'hina a further setback. and enhanced tb
he influence Of the United States in n
he East. At the same time stipulation nC
rae made that part Of the supplies for or
he railroad should be purchased in a.
merica
Secretary Knox turned over to J. M,
ierpont Morgan the duty Of handling bv
le share of the loan awarded to do
merica. He merely stipulated that "a
he firms taken into the syndicate
iould be of such a character as to
lrry absolute confidence to the for. He
gners
In view of the larger politics in. Mr.
lived in these transactions. Secretary les
nox grows very weary when he hears ala
e charge that he is running the in
ate department in the interest Of me
organ and other bankers. daI
He believes his policy furthers the IL
st interests of the United States sen
vernment. He is becoming tired Of ian
continued criticism. based. as he froi
leves. on wrong understanding file
the situation. and is seriously con. ter
.ering issuing a statement which
u show that If the people don't want
s sort Of thing. he will be content
limit his activities simply to pro
ting the lives and properties OF yeri
lericans in foreign lands. hot'
rt,~