Pine Bluff daily graphic., 1912-07-28
FAILED. ID FLOAT
 LOAN E0R CHINA Now Severe Criticism is Be ing Heaped Upon the Of ficlal Heads at Wash
 ington. STATEMENT BLAMED thlna's Esteem Should Be Cultivated By Uncle Sam, Say Eastern
 Trade Experts.
DEPARTMENT BLAMED
lBN Sidney EnSeY

Ill a position to know blame the American State Department and it's tactics i'll supporting European bank CTS in demanding favorable terms from China. The six nations partici- pating in the contemplated loan, Uni ted States, Great Britain, France, Germany, Russia and Japan, have been told, it is said by representa- tives of the Chinese government that the bids for the loan have been per manently rejected. While diplomats do not charge that the United States is the responsible party, it is more than intimated that the policy pur- sued by the American State Depart ment has had a great deal to do with the action taken by the Chinese Re- public.
 New negotiations are pending in Europe to finance loan and as far as diplomats are willing to state no negotiations will be entered into in this country. This means that American bankers have been told that under no consideration will the Chinese government seek money in America
 Travellers who have spent much time in the Eastern Republic are at loss to understand the action of the State Department ill not recom mending to Congress that the Chi nese Republic be recognized ill the Sisterhood of Republics. This failure of the United States to do so will in all probability cost the United States the Friendship of China.
 ba m tap a of the United States i'll this matter deciding China to reject the eontem- plated loan is not known, but that the United States has lost an oppor- tunty in which to renew it's friend ship With the Chinese is a fact.
 Secretary Knox is watching with interest the trip of Capt Robert $. Dollar, of San Francisco who left New York several days ago for Glas= gov, on what appears to be mis- sion of far reaching importance both to the United States. and to China. The chief purpose of Capt. Dollar, it is reported is to enter into new nego tiatons for the Chinese government for loan. He has admitted that he is going to Europe as a friend of China but refused to say whether or not he had been commissioned by the Picking Department.
 That China can obtain all the mon ey she may wish in financing the early stages of the new Republic is admitted by the State Department. Secretary Knox, however, is at loss to understand why any hubub should be raised and feels that the the State Department is unjust.
 In finding a place for the bankers of the United States among other nations to participate in the $300, 100000 loan Secretary Knox thought that a great diplomatic stunt had been accomplished by American dip lomats. He reckoned without his host however. The conditions Of the loan were such that China rejected the offer and in no equlVocal words plainly stated that her national dig nifty has been offended The United States being party to the loan was particularly blamed in trying to fos- ter scheme which meant all but the ruin of the Chinese republic. h. stead of pointing out the danger to the infant Republic as it should have done, Chinese statesmen claim that the United States, in the gulse of a friend, was in reality lending itself to the schemes of European nations who desire the partition of what was the Celestial Empire.
 Captain Dollar who has had eX- tensive trade relations with the Chi nese and is intimate With the lnflu- ential men of the Chinese Republic lays the blame of the failure of the loan also at the door of the United States. He says that the United States has lost great opportunity in not recognizing the new repuDllc and that the people there have shoWn their readiness for government mod- elled after the institutions o1 Ane United States. Il left Nhlna, lie stated 'convinced that the fepuDlc has come to stay, that 1t rests upon a permanent basis and that we long ago should have taken the lead in her lasting friendship by according her recognition
 Diplomats here are rather placing the blame of the failure of the Unlted States to recognize China on Munster Calhoun. He is reported to nave aa- vised the State Department agalnst any such action. In early reports to the Department the Minister lndica- ted that he was not fully convinced of the stability of the new Chinese republic and intimated that 1t was TOT this reason that he had not stronsly recommended immediate recognition Since then he has been reported as saying that he is convinced that the y, but so far as the records of the State Department show, no recom- mendations of this nature have been received.
 Some people coming in touch with U matters at the State Departplent are of the opinion that the 2present ad- ministration is paying too much at tention to the opinion sof European