The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-09-12
INVESTIGATING
IA.
CHINESE LOAN
Foreign Powers Will See
That Money is Used to
Pay Soldiers.

WdSnlI6IOus sept. 16.-In0 state
department received word from
American Minister ralhoun at Picking
today that the reported $50,000.0 0e
loan was being Investigated by the
foreign ministers there.
1t was inferred at the state de-
partment that conditions in the con-
tract must bring it within the broad
terms which the six powers have laid
down as essential to the conclusion Of
any loan to the Chinese government.
All Of these powers have definitely
agreed that they would not themselves
advance n money to China except
upon provision for a careful super
vision of its expenditure. This pro-
vision was made to make sure that
any loan. should not be put to Inn
proper uses and go to the numerous
oficials that stand between the Chi
nese foreign Office and the soldiers
whose pay Is in arrears and the COO
lies who are working on public enter
prises.
The negotiators full yrealized the
difficulty Of preventing individual
banks and even mercantile corpora
lions. like steamship lines and hold
ers Of Chinese concessions. from
yielding to the temptation Of high in
terest rates to lend money privately
to the Chinese government. To meet
this difficulty as far as possible, the
powers undertook to let their nation
ais know that they would not be pro-
tected in such loans by their. own
governments.
Therefore officials here are inclined
to believe that the contract has been
usNhvSNHktAA - Ah4 Wa{>-- g. ra-nS--
representing the SIX powers. with the
understanding that it shall become
effective. and take permanent form
only after 1t has received their ap-
prevail.
To Promote Railways.
Peking. Sept. 12.-President Yuan
shi Kai proposes to give DIR. Sun Vat
Sen $4,000 taels ($20,0uo) monthly to
promote his scheme Of railways
throughout. China, and the. provis-
ional assembly is expected to agree
to this. DR.. Sun proposes to borrow
abroad. giving the railways as Sc
curity until the profits will pay the
loans. whereupon the lines will be-
come government properly. This il
for while many sections Of the coun-
try distrust Yuan Shi Kai. recogniz-
ing only his capability, Sun Vat Ser
Is q popular hero who 10 most likely
to persuade the nation to accept for
eign railway loans which were actual.
ly the cause Of the late revolution.
President Yuan has invited each
provincial governor to send three rep
resentatives to a conference to be held
at Peking. hoping to persuade them
Of the necessity Of a strong central
government. the inter provincial ties
now being insecure. The presidents
powers Of persuasion are remarkable.
Men came to Peking his enemies and
depart loyalists.
The s6o.ooo.o 900 loan which has
just been negotiated with Lloyds'
bank at London is agitating Picking.
The representative OF the bank here
says that 1t Is merely a preliminary
loan and that all funds necessary for
the reorganization of China's finances
will DO forthcoming. There 10 much
skepticism. however. with regard to
ultimate ucces Of this step. The
opinion IL expressed mat II It 10 sue
cessful. the six-nation group Of bank
ers will be broken up.