The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-12-06

been China.
1t Is gratifying to note that the ne
sotiations for a loan TO the Chinese
government for the construction Of
the trunk railway lines from Hankow
southwark to Canton and westward
through the Yangtse valley. known as
the Hukuang loan. were concluded by
the representatives Of the various
financial groups in May last and the
results approved by their respective
governments. The agreement already
initiated by the Chinese government, is
now awaiting formal ratification. The
basis of the settlement OF the terms Of
| this loan was one of exact equality be-
tween America. Great Britain. France
and Germany in respect to financing
the loan and supplying materials for
the proposed railways and their future
| branches.
| The application of the principle I'M
DERIVING the policy OF the United States
in. regard to the Hukuang loan-yiz.
that. of the interna tiona lization of the
foreign interest in such Of the railways
of China as may be financed by for
eign countres-was suggested on n
broader scale by the secretary Of state
in proposal for Observation-Disclosures
and commercial naturalization Of all
the railways Of Manchuria. While the
principle which led to the proposal Of
this government was generally admit
ted by the powers to whom 1t was adj
dressed. the governments of Russia and
Japan apprehended practical difficult
Ties In the execution of the larger plan
which prevented their ready adher-
| ence. The question of constructing the
Chinchow-Aigun railway by means of
an international loan to China is, how
ever. still the subject Of friendly dis
cussion by the interested parties.
The policy OF this government in
these matters has been directed by
desire to make the use Of American
capital in the development Of China an
instrument in the promotion of China's
welfare and material prosperity with
out prejudice to her legitimate rights
as an independent political power.
This policy has recently found fur
Their exemplihcation in the assistance
| given by this government to the nego-
tiations between China and a group Of
American bankers for a loan Of $5O,-
100000 to be employed chiefly in cur
rency reform. The confusion which
has from ancient times existed in the
monetary usages of the Chinese has
been one Of the principal obstacles to
commercial intercourse with that peo-
pie.
The United States in its treaty Of
1903 with China obtained pledge
from the latter to introduce a uniform
national coinage. and the following
year. at the request Of China. this gov
the international exchange commission
to discuss with the Chinese govern
ment the best methods Of introducing
the reform. In 1908 China sent a COM
missioner to the United States to con-
suit with American financiers as to the
possibility Of securing a large loan
with which to inaugurate the new cur
rency system, but the death Of their
majesties the empress dowager and the
| emperor OF China interrupted the ne
| gotiations, which were not resumed I'M
til few months ago, when this gov
eminent was asked to communicate to
l
China for a loan Of $5O, 100000 for the
purpose under review. A preliminary
agreement between the American group
and China has been made covering the
loan.
! For the success Of this loan and the
contemplated reforms which are Of the
greatest Importance to the commercial
interests Of the United States and the
civilized world at large it is realized
that an expert will be necessary. and
this government has received assur-
ances from China that such an advis-
err, who shall be an American, will be
engaged.
1t is a matter Of interest to Ameri-
cans to note the success which is at
tending the efforts of China to estab-
lish gradually a system Of representa-
tive government. The provincial as
semblies were opened in October.
1909. and In October of the present
year a consultative body, the nucleus
Of the future national parliament, held
its first session at Picking.
The year has further been marked
by two important international agree
ments relating to far eastern affairs.
In the Russo-Japanese agreement re-
lating to Manchuria. signed July 4.
1910. this government was gratified
to hote an assurance of continued
peaceful conditions in that region and
the reafiirmation of the policies with
respect to China to which the United
States together with all other inter
ested powers are alike solemnly COM
mitted.
The treaty annexing Korea to the
empire of Japan, promulgated Aug.
%. 1910, marks the final step in a
process Of control Of the ancient en-
pire by her powerful neiehbor that has
been in progress for several years past.
In communicating the fact of annexa-
ton the Japanese government gave to
the government Of the United States
assurances Of the full protection OF
the rights Of American citizens In 10
rea under the changed conditions.
Friendly visits Of many distinguish
ed persons from the far east have been
made during the year. Chief among
these were their imperial highnesses
Princes Tsai-tao and Tsai-Hsun of
China and his imperial highness
Prince Higashi Fushimi and Prince
Tokugawa, president Of the house of
1 %