New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-27
INTEREST IN CHINA LOAN
Birch Crisp Prospectus Dis
tributed in Thousands.
GRAVE WARNING IS ISSUED
1.-The Morning Post" Foresees
Wild Competition to Lend
Money to New Republic.
fBy Cable 10 The Tribune. J

fBy Cable 10 The Tribune.l
London. Sept. 27.-Notwithstanding
the dramatic action Of the British Min
lister in Picking, the prospectus or the
Birch Crisp Chinese loan duly made Its
appearance yesterday afternoon. The
issue caused considerable excitement In
the City, the offices OF Messrs. Birch
Crisp * Co. being at once besieyed by
representatives OF business houses.
Within a very short period the whole
OF the prospectuses, amounting to sew
eral thousand. were distributed. There
was an equally eager demand at the
various banks.
There were not many actual transac-
tions in the bonds, which early In the
day were quoted at 4 to 70 premium
and at the close at 4 premium bid.
Much speculation is rife as to how the
public will receive the issue. II Is
stated In quarters not too friendly TO
the transaction that the underwriting
OF the loan Is of a speculative character
and that none Of the regular big under
writer's have taken any Of II.
n Is expected that the Foreign Office
viii take an early opportunity when tho
House OF Commons reassembles Of de-
filming its attitude with regard 10 Chi
nose finance, but II Will not issue any
official rejoindcr to the statements
being made with respect 10 its policy
I'm connection with the two loan pro-
posals. Sir Edward Grey will base his
case on the fact that he has been look
ing after not only the interests Of the
British investor. but also Of China her
self.
A remarkable article in THE Morning
Post" regards the whole transaction
with the utmost misgiving. IL says:
"A most dangerous precedent has been
established. Tho British government
has In the past used its influence 70
persuade other powers into sanction
ing no loans TO China except on such
terms as would provide adequate con-
troll over expenditure. Since IL has
failed TO prevent British hnancers
from viola ting this principle. other gov
ernments will not improbably claim
similar freedom Of action for their ciu-
zens The result VIII be that rival
financial groups. throwing prudence TO
the winds IN tho quest FOR immediate
profit. will compete with each other In
Offering loans TO China on easy terms.
Tho safeguards Will be whitfield
away for few glorious years until the
Chinese government finds itself nj last
able 10 draw without let or hndrance
on the riches Of the money markets OF
the world Thon will come the crash
and pressure exercised by The bond
holders will force tho various govern
ments 10 intervene, whether they like
Il or not
The Daily Telegraph announces on
good authority that II is China's inten-
ton 10 utilize the new loan 20 meet the
very liabilities which were the sub
feet Of the British governments pro-
test. and thus u pay of what the
Chinese government regards as a very
onerous burden.
A Shanghai dispatch to The Morn
ing Post" says that the chartered bank
advertlses the new loan for subscrip-
ton there.
The opinion In financial circles ap-
pears to be that tho new loan, backed
10y four powerful banks, can hardly fail
OF success. After the British Minis
tcr's protest NJ Picking some Of the
London underwriters OF the loan be-
came nervous, whereupon Mr. Crisp Of
fered TO relieve them Of their under
taking and pay them one-half OF | per
cent commission for tho trouble the.
had had.
The Picking correspondent Of The
Daily Mall" says that, In addition to
the salt tax. the Crisp group have
other securities yielding II yearly in
como OF S7.5O0.O0O. These are provided
for In the contract.
According TO the Picking correspond
ent OF The Times" President Yuan
Shih-kai has informed Sir John ". Jor-
dan. the British Minister, that no Is
powerless - cancel the loan.