New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-17

~ anu s'apiiity, 1t was clearly seen.
was III the governments immediate acouio,.
lioh Oh considerable sum of money 70 no :,
the running expenses Of the nation 70 No.,
UNPAID soldiers and to set the wbsa,s g.,
fnouon. Chinas credit had to no r,o,,-
tanned, not entirely for the sake of C,bina
alone but also for the sake of those who
IN the past have heavily invested in Chinese
loans and enterprises and for the sake y,
future business. W
Lang Shao-yi set forth his needs. telling
III uelall Just what he wanted The hank
CTS considered. and finally agreed to make
certain advances. The first of these was
Z,"''oVO taels on February %. This went to
the Marking government for urgent ex-
penses and the payment of soldiers
Inc Peking government needed money
less urgently, and no advance was made TO
it until later. when 100000 taels were
given, In two instalments. These advances
were made on treasury notes, and there
was no loan contract. Finally an arrange
ment was made whereby the bankers of
the quadruple group agreed to finance the
Chinese government until it has been thor
oughly organized and recognized. The ad-
Vances would amount to about 100000
taels monthly. When the government
should be recognized the advances would
be absorbed in a loan of great size. The
Chinese talked about loan of 100 10000
and an agreement was practically reached
that the loan would be 10000 600, or APP
proximately $500 600 600 gold
An Anglo Belgian Syndicate
Everything seemed to he moving along
most smoothly. when there came a decided
hitch. when an Anglo Belgian syndicate
signed a contract with Tang Shaggy for
loan OF 100000. with the kalgsn railway
as security. Russian bankers were also
interested in this loan, and there are those
who say that Russia is endcavoring in this
manner To secure control Of the Kalgan
line. which ~ important to Russia com
mercially and strategcally. The loan was
for G., UD0.co0 only. but there was provision
for future loan of 100000.
When news Of this secretly concluded
loan became public there was great deal
Of the bank representatives were held, and
two protests were formula ted. The groups
contended that tho action Of Tang Shso-yi
violation of his agreement with them. in
that he promised, on behalf OF the Chinese
government. that the groups would carry
on the government until big loan was
made. They resented the intrusion OF the
Anglo Belgian syndicate and considered
that there had been display of bad faith.
Tang Shao-yi declared that he has never
promised to deal with the international
group alone that as Premier OF the coun-
try. he was al liberty to deal with any ma
ton or any nationality, and that he would
not give to the group a monopoly on Cm-
nese business.
The Kalgan line, say the French and the
British. is a product of the Board OF Com
uunications and they therefore have the
right 10 protest against its being used as
security for this new loan. The french
and British banks interested In this loan or
1ens are the same as now represent France
and Great Britain in the quadruple group.
The Anglo Belgian people point out that
the Kalgan line was not in operation when
the 1908 loan was concluded and therefore
cannot he considered as part OF the secur-
itv for the loan of 1905. The argument over
this point is getting rather hot and quite
technical.
With these two protests against the Kali
gan loan. it is not unlikely that the quad
ruple group will make great Roadway ana
possibiy Kill the Anglo Belgian loan al
though it is likely that the final result VIII
he the taking Of the Anglo Belgian syndi-
cate into the international group. and then
an agreement with the Chinese that this
new group he given the sole right to finance
China. For China must be saved whether
or no. and the international group is APP
parentIy the only means OF reaching this
end