The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-05-22
CHINESE GRAFTERs GIVE IN.

CHINESE GRAFTERS GIVE IN.
1t will he satisfaction TO the finan-
ciers Of the combined nations which
arc helping China in her financial
stress, to SEQ that the Chinese graftcrs
have agreed al least to concede that
the money-lcnders shall have super
vision over the expenditure of the
loans made to China, so that they can
see that the money is honestly and
bencficially applied, and not stolen by
the Chinese public mon under the an
cient system Of grating which for
ages has been firmly established in
that officialdom
1t is stated that the new government
views with extreme dissatisfaction the
insistence Of the foreign money lend
ors upon n supervision of the money,
TO see that it goes into proper chan.
nels, and is faithfully applied The
new government claims that the in.
sistcncc upon such supervision shows
a measure OF ,istrust that ought not TO
exist; but the old Imperial govern
ment was obliged to yield on this point,
and it was an excellent thing for the
Chinese people that the European and
American money lenders did insist and
did supervise the expenditure Of the
money, and see that it was applied 10
the purposes for which the loans were
made, 1t may be distasteful to the
new officials Of the Chinese Republic
to have this supervision and evident
distrust applied TO them; but there is
no other way for the foreign money
lenders to be assured that the money
will be beneficially expended, or ex-
pended at all in the method and for
the purpose that it was borrowed.
Five years ago British loan of
$4,000 Gas we find detailed in the
New York Tribune) was made for the
Canton Kowloon Railroad under the
requirement that all accounts should
be kept in English as well as in Chi
nese, and the money expended under
the supervision Of British chief ac-
countant, who should also certify all
receipts and payments, In 1908, a
German British loan of $25,O00,000 was
made for railroad purposes on condi-
tion that the accounts be kept in Eng
lish under the supervision Of an audi.
tor appointed By the lending syndicate
In April, 1911, there was a S50,000000
loan by American, British French, and
German financiers made for currency
reform and Manchurian development,
and the money was to be expended un.
der the close supervision of representa-.
tives of the creditors. a month later,
loan of $37 100000 was made by
American, British, French, and Ger.
man fjnanciers for railway purposes,
under the stipulation that every item
of receipt and expenditure was TO be
passed under the close supervision of
foreign agencies, and with foreign en-.
gineers in chief charge Of the construc-
tion work.
The requirement, therefore, of su-
penditure OF the money is strictly ac-
cording to recent precedent in China,
and it will be an excellent thing for
the Chinese that this supervision is
had, for thus the proper application
of the money viii be insured and il
will also be good thing for the lend
ers. in that 1T will shut off all com
plant that the Chinese people did not
receive the benefit of the money eX.
pended. If the Chinese in after wears
could make a claim Of that kind, there
would be basis formed for sealing
down or even for reputation, but when
the creditors protect themselves BY
overseeing the expenditure of the
money, and having the accounts so
kept that the beneficial application Of
the money can be demonstrated, there
will be no room for future discomfort.
Under this system, which is neces
sary in order to protect the Chinese
people against their own officials,
there will be little difficulty in nego
tiating their loan of 5000, 100000 which
is talked about, and which seems neces
sarv in order to pay off the troops, to
meet the floating indebtedness, and to
put the new Republic financially upon
It's feet.