New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-04-16
Four Powers to Supply Money for
Currency Reforms and Man.
Churian Development.
IMPORTANT L0MATICFEAT
svmpathetic and Practical Co.
operation of Powers in Main
tanning Political Integrity
of Empire, Says Knox.
LErom The Tribune bureau. ]

,,ost important achievements Of recent
,ears i'm the field of Far Eastern diplo-
macy was consummated to-day by the
action Of the Chinese government in
signing and ratifying. by imperial edict,
tho contract for a loan of SJO,O0O,OOO
f,om the group of American, British
German and French banking interests
information Of this successful outcome
of the negotiations. begun last August
was received in dispatches TO the De-
rartment Of State from the legation in
iekins.
As a result Of the loan, the proposal
for which was originally made to the
American bankers alone. the Chinese
government will be in position TO re-
form its currency system, which has
been the greatest obstacle 10 the COM
lnercial development Of the empire. The
interests of the four great nations. the
United states. Great Britain. Germany
and France i'm preserving "the admin
istrative entity" and territorial integrity
Of China viii he more closely cemented
in a common enterprise guaranteed by
imperial revenues. The loan also marks
on important step taken in accordance
with the policy of the United States as
cpunciated by President Taft--"the pro-
motion Of China's welfare and material
lrosperity, without prejudice TO her
legitimate rights as an independent po-
htical power"
The loan is to run for forty-five years.
Is 10 be issued at - and Will bear in
terost At > per cent; At the suggestion
O. the United States China has agreed
to appoint a financial adviser TO assist in
the currency reform, a representative Of
some country not interested in the loan.
lie VIII probably be from one OF the
smaller European nations-Dcnmark. the
Netherlands or Switzerland. 1t is also
understood, although no decision on this
loint has been reached. that in addi-
ton TO reforming the currency the loan
viii be used TO establish an industrial
hank, which may in time serve as the
nucleus for modern financial system.
The credit for bringing about the
agreement between the imperial govern
ment and the financial groups of the four
great nations is due 10 the United States
and especially to Secretary Knox. The
proposal was originally made. 10 the
American bankers interested in the HUI
Kuang loan. which has not yet been
definitely arranged
They agreed TO raise the SjO.000,00O
.f
DO asked to take part. To this the Chi
Iese government assonted. The diplo-
matte significance Of this course is made
Gear in the light OF Secretary Knox's
statement Of the declared policy Of this
government with respect to China.
This" he said, has been to secure d
sympathetic and practical cooperation
Of the great powers in maintaining the
political integrity Of China by making
II 10 the interest Of each to support such
d policy Where the nations invest their
capital there they are intent on preserv-
inc rcace and promoting the develop
ment of natural resources and the pros
lerity Of the people
Poking. April 1.-THE four-poW SO
$4,000 loan 10 China, negotiations for
which have heen going on for some time,
was signed here to-day.
The loan is secured by the provincial
revenues. According TO the terms Of the
agreement the banking groups represent
ing the United States, Great Britain.
France and Germany will pay to China
S5VDe0 Immediately. SJ.O00.OOO when
the powers have approved of the cur
roncy reform and the Manchurian de-
Nelopmont schemes and the remainder of
the loan in instalmonts covering some
months
"The significance of the agreement just
concluded declared Mr.. Calhoun to-
Cay after the loan had been signed. zig
that America for the first time enters
the financial council OF nations regarding
Chinese affairs"
The loan 10 china which was signed yes
terday has been hanging fire for a long
uine. II WAS at FIRST projected as an
american enterprise purely. and under the
o'is'hai agreement, which was signed on
Oc'ooer q last, the loan was TO he foated
y syndicate composed Of J. p. Morgan &
~ NUM- Loeb * Co. the National City
hshk and tho First National Bank WI
ara - Straight formerly Consul General
~ me United States at Moukden and now
me agent Of the syndicate in the Far East
''hHucted the negotiations which were IN
fdlf way 10 be consummated when the
LhshSh French and German bankers de
Hehded that an equal participation with
the American bankers in the proposed loan
be allotted them.
or a While IT looked as though the loan
"0"ld fall through, but after long negotia-
uohs' M which the American syndicate was
represented by Henry i. Dawson, Of j. j.
morgan Co. and Mr.. Straight, an agree
nent was signed in London on November
" Dy which American. English. German
ana French bankers were made equal par
ucipania IN the loan. The foreign houses
interested in the loan arc tho Hong Kong
ana Shanghai Banking Company. the Bank
Z" indo-Chna and the Deutscho East
Asatic Bank
Just when the bonds Will be brought out
could not he learned YESTERDAY II is ex-
pected that lhe American allotment OF
";oo9c'o VIII be offered 10 investors here
81 around par. The big banks and insur-
shce companies. IT is believed, will quickly
absorb the offering.
10 INSPECT BONDING COMPANIES.
Washington. April IL Bonding com
he