The Washington herald., 1910-01-10

ZION or washington mas al aIucie on the
American possibilities In the far East.
In the article Mr.. TAFT clearly indicates
lines open to Western enterprise In
Asiatic commercial markets.
The article follows:
The terms OF the Chinese railway loan
FOR the construction Of the Hankow-
Szechuan Railroad remain unsettled at
the close OF the year.
There have been various causes Of de-
lay extending over the past nine months,
but the matter which is delaying negotia-
lions now is the failure OF England 70
come to some agreement with France as
TO their relative share OF control over &
portion Of the Szechuan Railroad.
Peace May Reign.
As England has shown every disposition
TO meet France. It may be that this mat
ter will be adjusted very shortly.
It may also be that the bankers are not
hurrying the settlement, for ths reason
that the present condition OF the money
market, both here and IN Europe. does
not make a per cent Chinese loan at
par very attractive. and even if the dis
pute were adjusted. the issue Of the Sc
curities would undoubtedly have 10 be
postponed. Meantime. doubt IS arising in
the Chinese mind as TO whether foreign
capital is desirable IN her railroad enter
prises.
Her past experience IN connection with
the Hankow-Cant0n Railroad and foreign
banking institutions has caused her 10
distrust outside aid OF the kind. For
this reason. China Is using every effort
10 finance and manage her own railroads.
and it is interesting to notice that enc
OF the points Of dispute between France
and Great Britain. O.. their relative
share IN the proposed extension Of the
.SzechUan road from Ichang to Chengtu-
is being solved by China herself, as she
has begun 10 build that road with her
own money.
Delay "A Misfortune.
The protracted delay in completing ar
rangements for these railroad loans has
been a misfortune TO the foreign coun-
tries interested IN them, as it has weak
ened their hold on China
There are railways IN China already
constructed and IN operation to the eK-
tent Of 415G miles. British and Chinese
capital was employed IN 7CS miles of
these, British capital alone in 81 miles.
Chinese capita! alone IN LBS. Russian
capital IN loss. German capital in 80
miles, French capital IN 40 miles. Bel
gian capital In 40 japanese capital in
IS miles, and American capital IN ~
miles.
In the case % the roads under con-
struction the nationality Of the capital
employed is as follows; British. Is miles:
British and Chinese. SO miles; British
and German, 723 miles; Carbohydrates.
% miles, japanese, 80 miles, and Chi
nese, 10 miles.
American Capital Small.
OF the railways projected, the national
fly Of the capital TO los employed IS.
British. $50 miles French, sc miles; Chi
.nese, !. 40 miles, Chinese and. falling Chi
nese, AngIo-French, German, and Ameri-
can, 1900, m addition TO which there are
700 miles OF which ;he source Of capital
Is undetermined.
Thus, out Of a total railroad mileage OF
1856 constructed, under construction, and
projected, American capital only repre-
sents thirty miles, independent Of our
share IN the 300 miles in the protected
Hankow-Szechuan road. Germany. on the
other hand, is interested IN 1858 miles In
dependently Of her interest IN the
Szechuan road. Russia in Loss miles,
Great Britain in 1910 miles. irrespective
Of the Szechuan loan, and France IN 4s6
miles. It VIII be seen that our existing
interest IS smaller than that Of any other
country. and that we have narrowly
escaped having no interest az all.
Taft Could See.
President Taft's experience In the Phil
ippines and his intimate knowledge Of the
Orient enabled him to see at a glance
the possibilities for American commerce
IN China, coupled with the country 5
present foothold in the Philippines.
He also recognized in a practical way
that the present generation owes some
thing 10 those who are to come after us
in the way Of securing valuable foreign
markets while yet there is time. Europe
made a great cutlery when America
a agreement OF 1893.
This country was accused OF having
allowed European countries to do all the
hard work and then at the last moment
Of having claimed a share in the reward
Of their efforts.
First I'm Field.
It is, however, clearly established that
in reality this country was first in the
field for this particular loan, and that
instead Of having refused to cooperate
with Europe IN these loans as was con-
tended, prominent American interna-
tiOnal banking company had on three
separate occasions. between January and
April. 1909, pointed out to British banking
interests that It would be agreeable 10
China and itself to have American and
British capital work together in China.
and that on each occasion the Co-Opera-
ton was declined by Great Britain, al
though German and French cooperation
was awaited Of shortly afterward. An
extraordinary amount Of misunderstand-
ing appears to have existed in some of
the European chancelleries as to Ameri-
cas- position, and yet the situation was
In itself easily to be understood.
An Entering Wedge.
II has probably surprised Americans
that there should be such a to-do about
a mere loan OF $4,000. 900 when domestic
t,-o .. ,tgors of tbaf ronouituda uaas with
out comment. AS matter OF fact what
the different powers were lighting for
was the entering wedge In China.
The profits derivable from these loans
are not large. The bonds are bought at
a certain price and sold for g slight ad-
vance Then there is a commission Of
5 per cent paid TO corporations closely af-
hiiated with the bankers for the purpose
OF railroad supplies. and. furthermore.