The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1910-02-24
CRITICISM MAKES
KNOX RESENTFUL
SECRETARY GROWS WEARY oV-
Err CHARGE HE IS RUNNING
STATE DEPARTMENT
FOR MoRGAN's
BENEFIT. ,.- al


Washington, Feb. 24.-Secretary |
Knox may issue a statement to the |
public within a few days indicating mis- |
resentment of the criticism of his con-
duct of the state department and con-
veyfng the notice blat If the people do |
not like his kind of. diplomacy he is |
ready to lapse into a do-nothing rut |
or give way to some one else. Mr.. |
Knox believes In mixing commercial |
ism and diplomacy. and it makes him |
tired when he is accused of running
the department for the benefit of j. |
Pierpont Morgan and other big fnan- |
ciers.
Some of the inside history connected
with the Hankow railroad loan was
given out today, which throws a new
| light on the part taken in that tran
saction by the United States. 1t seems
that big world politics are involved.
This movement stepped in just in
time to prevent an act that would
have retarded for many years the
plans for the national progress of
| China.
The 100000, 600 Hankow railroad
loan has been practically awarded
to the German French English syndi-
! cate. At the eleventh hour fhe United
/ States interfered and demanded al
share of the loan. the European dip
lonats laughed at our representa-
tions.
Real Reason For Interfering.
/ The real reason the United states
| took hand I'm the proceedings was the
knowledge that the foreign syndicate
was to be secured In its loansby a lien
on the liltin taxes of the various prov
inces. This tax is regarded as one of
1 the most archaic institutions of China
and a great deterrent to it's develop
ment, The United States plans to
abolish this tax and at the same time
put the Chinese currency on a modern
basis and reform the customs service
These reforms would have been impos- 4
/ sible Or at least, delayed for many
! years. IT,. the -HanlSew loan had been
4 put through in its original shape. The
i lien on the likin taxes would have
i perpetuated the ancient customs I'D
1 The United. States insisted on our
| right to share in the loan because of
our treaty, obligations with. China and
our prestige in that part of the world.
our part in establishing t4e open door
policy and other valid reasons. After
| United States won out. Secretary Knox
regards this as his finest bit of states
manship. 1t saved China further set
back and enhanced the influence of the
/ United States in the east. At the same
time stipulation was made that part
| of the supplies for the railroad should
be purchased in America.
Ready to Aid Others.
Secretary Knox turned over to ].
Pierpont Morgan the duty of handling
! the share of the loan awarded to
America. He merely stipulated that
the firms taken into the syndicate
should. be of such a character as TO
carry absolute confidence to the for
eigners. Morgan took in Kuhn, Loeb
& Co, the First National bank and
the National City bank Secretary
Knox regards this syndicate, as re-
/ sponsible as those which represent
France. Germany and England. They
4 are Banque de Hindu China, the Deut-
| sche- Asiatische bank and the Han
kow- Shanghai Banking corporation
i respectively.
i In reply to the critics who allege
that the Knox diplomacy is nothing
more than a plan to obtain foreign
bankers comes the statement that any
Americans can obtain recognition at
4 the state department by merely show
ling that they are in a position to
make good" and are as responsible
as the foreign syndicate
Heads OF English Syndicate.
i 1t is stated that the departments
II action In the loan to the Honduras
government was governed by the same
motives The refunding OF that debt
was turned over to the Morgan group
because 1t was standing before all
the world. The government iriterfered
to prevent the English bankers from
gobbling up that loan because 1t was
proposed TO take a lien on wharf at
Honduras port In which an American
had al arge interest. This deal, as
Il originally planned, was blocked .frst
by the. United States npinister, to Hon
duras on the representation of Aneri-
II cans that their interests were being
jeopardized. ss $500
IN view OF the larger politics in
lvolvsd in these transactions, Secretary
IKnox grows weary when he
j hears the charge that he Is running
the state department in the interests
/ OF Morgan and other bankers. He bo
llieves that his policy furthers the
best interests or the United states
D government He ID becoming tired
i Of the continued criticism, based. az
) ne believes. on q wrong Understanding
LOT the situation. and " seriously con-