The Detroit times., 1911-08-29
HOW CHINA WILL
USE 100000
Only About Half the Amount win
Be Devoted To Reforming the
Currency System.

PEKING. Aug. 29.-There are err.
rors in the reports which have found
their way to publicity concerning the
nature Of the work to be undertaken
with the fourpower Chinese loan OF
s50.000.0O0.
The loan was originally sought by
the Chinese government for political
purposes, and an imperial edict issued
Oct. 20 last, authorized the loan from
a group or American fnanciers, who
were TO take In exchange a 40-year
b per cent bond issued at So. But
early In November. following confer
ences In London with representatives
OF British. French and German bank
Ing interests, at which Willard ID.
Straight represented the American
syndicate composed OF j. p. Morgan
q Co.. Kuhn. Loeb q Co., the Nation
al City Bank of New York and the
First National Bank OF New York, 1t
was decided that these foreign ma
tons should participate on an equal
basis, each of the four groups under
writing s12,500,000.
On Dec. 2 this agreement was sub
mitted to the Chinese government.
and approved. And on April 10 the
loan was ratified by the government.
II had been reported that the great
err part of the amount would be APP
piled to the reform OF currency, but
really only about half Of the entire
amount is going to be devoted 10 that
purpose.
The proceeds of the loan will DO
Ell 4
development OF various Industries In
Mongolia: 100000 for the exploita-
ton OF the Amur district; $2,0O0,0OO
for working the silver mines In the
regions OF Mohe, Kuanvinsham and
Sanhsing: 100000 for the proven
tive works against epidemic diseases
In Manchuria: 100000 as the In
itial expenditure for starting sugar,
paper and brandy manufacturing In
dustries; 100000 for the reform OF
the currency system In Manchuria,
and the remaining sum over ana
above these OUTLAWS will be devoted to
carrying out the reform OF the cur
rency system.
AS the money for the preventive
works in Manchuria Is now obtainabie
from another source, the amount al
lotted for this purpose will be appro-
priAted for other undertakings. II is
believed that II viii be devoted to
some industrial purpose, as the gov
. eminent Is pushing manufacturing III
dustries with great energy.
Resides. the government Is thinking
of changing some items OF expendi
ture toward which the four-power loan
viii he used. and to confer with the
REPRESENTATIVES Of the powers con-
corning this matter Mr.. Chen Chin
tao yice-president of the Teaching
bank, will go to Paris to meet the Eu-
ropean and American financiers inter
ested in the loan.
Within the last few moths the gov
( erument has fioated a $4,000, 600 cur
rency loan and $50. 000, 900 Hukuans
railway loan In America, England,
France and Germany, and $5,00O.OOO
In Japan. But II II still looking for
more In order to improve means OF
transportation and to develop the nat
ural resources of the empire.
The revenue commission or kiangh-
81 province has requested permission
TO float loan Of 100000 taels In
England, the proceeds to be devoted
10 the promotion and extension OF
manufacture in that province. 1t Is
reported that the government VIII
consent TO 1t.
The governments policy Is to cease
granting concessions and privileges
to foreigners for the exploitation OF
the country's natural or commercial
resources and keep them for the Chi
nese.