Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-09-19
Chinese Loan.


London, Sept. 19.-Wendell Jackson,
the American, who proposes to loan
$5O,O00,O00 and actually is paying ovel
the fist S2,5OO,O0O installment of
the money, refused today to say whe-
Their the Standard Oil Company is
among his hackers. "The syndicate
is international, but I cannot reveal
what American interests are includ-
ed in it," was all he would say.
In financial circles here it was
strongly the impression, however, that
the Rockefeller company controls the
group. The London house of Birch,
Crisp & Co., which has refused to
make any statement concerning the
loan, has figured most prominently IN
the transaction thus far, but finan-
ciers generally look on this as a blind,
taking it for granted that the Stand
ard does not want to disclose it's hand
at present.
1t is certain that during the early
days of the Chinese provisional gov
eminent, when Dr. Sun Vat Sen was
president and Nankin the capital, the
Standards agent, Roy Anderson, had
the highest of grips on the admins
tration. 1t is also practically certain
that the money with which the pro-
visional government financed itself
during the first few weeks Of its eX-
istence came from Standard Oil sour
ces.
In return for what the Standard did
for the provisional government it was
well known that promises were given
for such oil concessions as the Stand
ard might want at Szechwan province
which experts say will probably prove,
when it's development commences, to
be the richest oil region in the world
With DR.. Suns retirement, the sue
cession of Yuan Shi Kai to the presl-
dency and the transfer of the capital!
from Nankin, to Pekin, the Standard
was crowded out of its position OF
influence and power and the six Cor
iginally FOUR powers syndicate, OF
which J .Pierpont Morgan's interna-
tional banking corporation was the
American member, became dominant.
1t is agreed among financiers that
this cannot but have been displeasing
to the Standard. The transition OF
China from an outworn to an up-to-
date civilization promised incalculable
profits to whatever interest could Sc
cure control of the nations affairs and
there was every indication that the six
powers syndicate planed to monopo-
lie them.
The syndicate, had, from the outset,
support which gave it prac-
tical official standing. 1t was obvious
that the new government would have
to borrow large sum. The syndi-
cate was ready to advance it but at a
rate, which, including the jugglery Of
exchange, appropriated
10 or II per cent. In addition to this
it specified that China must borrow
from no one but the syndicate and
that the syndicate must be granted su-
pervision of the taxing machinery,
giving it virtual control Of the govern
ment itself.
The Chinese refused these terms
and the syndicate accordingly, simply
waited, trusting to time to compel
their surrender. In the meantime it
to see to it that the money
was forthcoming from no other
source
This seemed comparatively easy by
so arranging matters that no other f.
nanciers could secure their govern
ment's pledge to back them, in case
If default, in enforcing collection.
What English fnanciers surmise is
hat the Standard has been quietly ma
recovering these difficulties and will
egain the control wrested from it by
he powers syndicate.