The Birmingham age-herald., 1910-12-07


 Canton and westward through the Yang tse 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 respec- tive governments. The agreement, all ready initiated by the Chinese govern ment 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 prinsiple under lying the policy of the United States in regard to the Hukuang loan, viz, that of the internationalization of the for eign interest in such of the railways of China as may be financed by foreign countries, was suggested on a broader scale by the Secretary of State in pro- posal for internationalization and com mercial naturalization of all the railways of Manchuria. While the principle which led to the proposal of this government was generally admitted by the powers to whom it was addressed, the governments of Russia and Japan apprehended prac- tical difficulties in the execution of the larger plan which prevented their ready adherence. The question of constructing the ChinchowAigun railway by means of an International loan to China is, how ever, still the subject of friendly discus sion 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 uf China's welfare and ma terial prosperity without prejudice to her legitimate rights as an independent po- litical power.
 This policy has recently found further exemplification in the assistance given by this government to the negotiations be- | tween China and a group of American | bankers for loan of $50 900 to be em- ployed chiefly in currency 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 people. The United States in its | treaty of 1903 with China obtained a l pledge from the latter to introduce uni form national coinage, and the following year. at the request of China, this gov ernment sent to PelSing a member of the | international exchange commission, to | discuss with the Chinese government the | best methods of introducing the reform. | In 1908 China sent commissioner to the United States to consult with American iiioiiSlSiS dS tO tuS pOSoiblilty Ol Sctuiih6
 a large loan with which to inaugurate the
 rev currency system, but the death of 1 the Empress Dowager and the Emperor | of China interrupted the negotiations
 which were not resumed until a few
 months ago. when this government was | asked to communicate to the bankers con.
 cerned the request of China for a loan oi $50 100000 for the purpose under review
 A preliminary agreement between the lNAmerican group and China has been made | covering the loan.
 | For the success of this loan and tho contemplated reforms, which are of tht | greatest importance to the commercial | interests of the United States and the civ. 1 ilized world at large, it is realized thal | an expert will be necessary, and this gov | ernment has received assurances from | China that such an adviser, who shall bt an American, will be engaged.
 l It is a matter of interest to Americans l to note the success which is attending tho | efforts of China to establish gradually . | system of representative government. Th' | provincial assemblies were opened in Oc | tober, 1909, and in October of the present
 year a consultative body, the nucleu:
 of the future national parliament, held it' l first session at Picking.
 1 The year has further been marked py | two important international agreementi | Russo-Japanese agreement relating tt | Manchuria signed July 4, 1910, this gov ernment was gratihed to note an assur ance of. continued peaceful conditions 1T that region and the reaffirmation of th'