The Farmville herald. [volume] (Farmville, Va.) 1890-1934, 1910-02-25
Styled MOfgan's Agent For AID
ing American Bankers.
CHINESE LOAN EXPLAINED
Secretary Of State Believes the on''eo
States Action Paved the way ro'
Reforms In Flowery Kingdom

Secretary of State Knox resents the
criticisms of his conduct OF the s'a'7
denartment and may issue state
ment giving notice that II the peopie
conf like his kind of diplomacy he Is
ready 10 lapse into a dO-nothing ruI
or give way TO some one else.
Mr. Knox believes in mixing com
mercialism and diplomacy. and IL IT
ritates him when he is accused OF run.
ming the department for the oeneh' OF
Pierpont Morgan and other Dig
fnanciers 49,
Some of the inside history OF the
I1ankow railroad loan was given ou'
and throws new light on the part
taken in that transaction by the UNIT
"a states tt seems that big world poll
tice are involved This government
steDned in Iust in time TO prevent an
acl that would have retarded for many
years the plans fOr Che national pro-
ggess OF China
The $50 900. 0os Hank0w railroad
loan had been practically AWARDED 10
rho German FNench and English syn
dicate. At the eleventh nour the INV
cd States interfered and demanded a
share of the loan. The European dlplO-
mats laughed al cur representations
The real reason the United States
took a hand in 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
nrovinces This tax Is regarded as one
of the most archaic institutions Oh
China and a great deterrent to its de
velopment 49,,
The United States plans to abolisi
this tax and at the same time put 'h'
Chinese currency on modern Dasi'
and reform the customs service. Thes'
reforms would have been Impossible
or at least delayed for many years J
the Hankow loan had been put through
in its original shape as the lien O
tho ukin taxes would have perpetuate
the ancient customs.
The United States insisted on on
riobt 70 share in the loan because q
our treaty obligations with China an
our prestige in that part Of the worl'
oui mart i'm establishing the open doc
policy and other valid reasons. Alto
a long end bitter controversy the I'M
ed States won out
Secretary Knox regards this as h
bit of craftsmanship. 1t save
nneA further setback. and enhance
emma ence of the United States
the ln"t 81 the same time stipulatic
the EAST 1T part Of the supplies Il
was mace u should be purchased
America turned over TO
secretary NhoA duty OF handliI
Pierpont Morgan tn m awarded
tho share of the 10, .,nrIa,aa ~.
America. He merely o. s,nd,oa
the nrms taken into th tor 80
should be Of such a charA tho n
carry absolute confidence to
- Wow Of the larger politics
volved IN these transactions, secretar
wrov grows very weary when he hesI
~ charge that ne Is running u
state department in the interest
Morgan and other bankers =,
He believes his policy fur'ners u
80, ,rterests OF the United eta'
D oy He is becoming urea
the continued criticism. based, % y,
believes. on a wrong understand ,.l !,
Of the situation, and is seriously {,
.tasr,ng issuing q statement VIM
LII show that If the people don't we Y.
this sort of thing ne VIII De con. 80 :
20 = c,t his activities simply u