The Catholic bulletin. [volume] (St. Paul, Minn.) 1911-1995, 1912-10-05
WORLD PROBLEMS At
the PRESENT TINE.

Ill l!LULWl IlWlL
China, the Worlds Market, Practically
Closed to the United States-The
Financial Situation-No American
Merchant Marine.
written Specially for The Catholic
Bulletin by Rev. j. T. Roche, LL.D.)
in diplomatic circles at the present
hour. People read of prospective
Chinese loans and wonder why there
is SO much trouble about negotiating
these loans. Mr.. Calhoun, Americas
present ambassador at the Chinese
capital, signalized his entry into Office
by arranging purely American loan.
1t was not very large one as national
loans go, being only for $5O,000,000,
but as soon as the ambassadors of the
other nations heard of it there was
flutter in the dove-cotes. The New
York bankers had been notified before
hand and they had given Mr.. Calhoun
assurance that they would float the
loan. In other words they pledged
themselves to sell the bonds in the
stock markets of Europe and America.
A few days after the negotiations had
been completed the ambassadors of
Germany and France called upon Mr.
NoThn11ra ND oil T,,1u inf him hot
the nations represented by them must
have finger in the loan pie or there
would be serious trouble. Questioned
as to the nature of the trouble they
promptly informed him that the
bourses of Paris and Berlin would
refuse to place the new securities on
sale and since American investors do
not purchase securities of this kind
the bankers, who had agreed to handle
the matter, would be face to face
with very unpleasant situation.
Now the loan in question was for
railway construction and it provided,
amongst other things that American
engineers should be employed and
American material used, wherever pos
sible, in the construction of the pro-
jected railroads When China has
borrowed from other countries they
have seen to it that provisions of this
kind have been inserted in the terms
of contract. Mr.. Calhoun was anxious
| to do a good stroke of business for
his own country, but the visit of the
German and French ambassadors gave
another turn to the affair. He COM
municated with the American bankers
and inquired if, under the circum-
stances, they could handle the loan?
The answer promptly came back that
they could not and the next news that
came over the wires was to the effect
that the United States, England, Ger
many and France were arranging a
| -Four Powers Loan" The latest
news is to the effect that Japan has
been invited to get into the game and
negotiations are now proceeding for
Give Powers Loan"
The present probabilities are that
there will be no loan. Japan in some
way seems to have blocked the game.
She wants Manchuria in the worst
way. If she can prolong China's diff
culties her chances of getting it are
very good. The trade of China S
richest province will then be diverted
into Japanese channels and Uncle
Sam and the other powers can haggle
over what is left.
Germany already has control over
the rich Shantung Province with it's
outlet. at Tsingtau. The trade of
China with it's teeming millions and
it's vast resources is still worth con-
tending for, but the United States, for
good and sufficient reasons, is getting
very little of it. England was the
first on the ground, and with her chain
of banks from Hong Kong to Pekin,
she is still the mistress of the finan-
cial situation. Germany arrived some
what later, but she is straining every
nerve to make up for lost time.
Japan arrived later still but she is at
China's door and kindred language
gives her immense advantages. The
United States has been shouldered out
and if it were not for the Standard
Oil and the Singer Sewing Machine
her trade with China would be hardly
worth considering.
Then, too, the ships of the other
nations are all receiving subsidies. On
my trip around the world was on
thirteen different lines of steamships
and every one of them was subsidized
by the governments, whose flags they
bore Without these subsidies the
business of carrying merchandise and
passengers would have been con
Quoted at a loss. There is no United
States merchant marine Our anna.
teur politicians have attended to that
They are willing to build up auxiliary
cruisers for England, Germany and
Japan They are content to have the
ships of these nations carry to foreign
ports the six billion dollars worth Of
noroho ndiSo fho TTnifod States QYnNrte