New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-17
cHINA'S MOST PRESSING
PROBLEM IS FINANCE
uoIitico.F Financial Developments
of Last Few Months Told by
Tribune Correspondent.
s300.0OO,O0O LOAN NEEDED
woroan g. Co., Kuhn Loeb, First
national Bank of New York
and National City
Interested.
a., REGULAR Correspondent Of The Tribune
10y "' ia PekinE.

49, pesular Correspondent of The Tribune
10y "' ia PekinG.
potnc March 1s-The first difficulty
.,ob the new Republic Of China has to
a. might have been expected, concerns
80 and there are signs OF an impend-
,oIitico-fnanclal conflict of no mean
ar,ions There has already been an
break between Tang Shaggy. the new
,,,or and the international organize
49,, of bankers known as the quadruple
IN composed of great financial insti-
e.,ons NJ America, England, France and
carr,any and supported by the govern
mis- Of those countries. While solu-
-, Will doubtless he found, the present
,I.hrogIo is one of deep and important In
..-ost involving as it does the welfare OF
this nation
Tho ,ugdruple group is undoubtedly one
=, the wealthiest and most powerful of all
aroncisl organizations. 1t comprises great
r.nring institutions of four of the richest
.o,n,ries of the world. The American sec
.,or commonly called the American group.
,,c,pdes J. = Morgan & Co. Kuhn. Loeb
E 90. the National City Bank and the
RVS, National Bank of New York The
countries are as strong and powerful In
their own countries as the institutions Just
named are in America.
The organization or aDalgamauon OF
,hssa banks Of various nationalities, came
% 100 when the so-called Hu-kuang Rail
nav loan for 100000 was floated The
cerrsns. the British and the French had
arranged the Hu-Kuang loan. the purpose
~ which was to enable the Chinese gov
eminent 10 construct railways in the prov
,ncss Of Hu-Peh and Human when the
american government demanded a quarter
share OH the ground that in 1908 China had
nromised that America might participate
IN this particular railway scheme. then
only projected, whenever Il might he con-
ANIMATED. The Department of State in
Washington made a vigorous fight for
American rights and finally obtained Amer
lean participation.
American Group Organized.
The American group was organized and
tas since been n participant in the
Ng financial affairs of China. Last
year the international group arranged to
aoat lie 100000 currency reform loan,
which. on account Of disturbed condl-
lions. has not yet been put on the market.
Thus IL has come about that the interna-
tjonal group considers itself, and is gen.
,rally looked upon. as pre-eminent I'm
China and the Chinese government makes
no financial move that is not closely
watched by the representatives of the
rroup stationed in Picking. The four gov
ernments of the banking groups are fully
aware Of all that the bankers try To do
and the bankers do little without consulting
their governments 1t amounts 20 diplo-
matte finance of the highest order.
Very shortly after the outbreak OF the
revolution in China. the first chapter OF
which was brought to close with the re-
rent inauguration Of Yuan Shih-kai, the
government became badly in need
NJ funds Proposals were made 10 the in
ternational group by the imperial govern
nent but were not favOrably received,
rrincipalIv on account OF the opposition Of
Great Britain
The Department Of state in Washington
has haa much to do with conditions that
exist to-day Early I'm the game the de-
partmcnt secured an international agree
hent for concerted action in China's affairs,
and so far no country had deviated from
the programme outlined. Recently. when
certain japanese firms made plans to lend
considerable sums to the revolutionists the
japanese government stepped in and put
stop to the negotiations The powers took
IN attitude Of neutrality, and held aloof
ss much as possible. letting China fight II
ont for itself There were some violations
Of neutrality, but, In the main. the powers
stood pretty well together, and there has
teen no grave breach Of faith nor any open
endeavor on the part Of any one power 10
take advantage Of the situation.