New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-08-06
made unless the government agreed to

made unless the government agreed TO
them.
Then the government declared that II
would 90 elsewhere for funds, thus break
ing of the arrangement OF March giving
the bankers exclusive rights. II became
very critical situation, and the next DAY
the ministers OF the six nations called on
the Minister for Foreign Affairs.
The diplomats informed the government
that they had been instructed to say that
their respective governments Woulo sane
ton no loan unless It was made on the
terms which the bankers had presented
which had received the full approval, be-
forehand, Of all the governments. Inc
Chinese officials persisted In saying that
the government would be ruined II such
terms we're accepted, that the country
would never stand for them, Then mo
government presented some propositions
FOR giving the salt tax as security for
loan. This proposal which is based Oh
positively foolish principles. has NOT peeh
seriously considered by either the dlplo-
mats or the bankers.
so the new Chinese government ~
brought to a very embarrassing SITUATION
fraught with danger. Tho government
needs money most urgently. tremen-
dously strong combination of bankers
controlling the markets or the World "
very great extent backed by the SIX
movers. refuses TO lend except on con-
ditlors which the Chinese nov refuse to
accept.
The syndicate Is so strong in financial
influence that there Ia reason 10 DOUBT i
any other financial group could success
fully float a Chinese loan, although sew
eral concerns are now discussing loans
with the government. These loans, now
eyer. would necessarily be at high rates
~ interest. and consequently very bad Tor
China Besides. It Is very doubtful IL
China could obtain enough money 10 meet
her needs The government row says -
wants q loan of only 100000. The gov
eminent viii need much more than thu'
TO meet all her obligations.
Spectre Of Secession.
But the greatest question concerns 'Ie
relationship OF the provinces to the cen
trail government At best the tie "hich
binds some OF the provinces to the cen
trail government IL very weak. ana III
some cases the provinces are practlcaii!
independent. Now, II the government
refuses TO assist the provinces they are
likely 10 declare more strongly than ever
that they owe no allegiance TO the cen
trail government.
Those provinces which are rich enough
70 get alonG by themselves VIII sure'!
lean toward this view. considering theth-
solves .olf-supporting and consequently
iudependent. while those provinces UNI
able TO raise funds will ne inclined 10
,,oka serious trouble. There are lot
NJ neople here who LOOK forward TO "A
nationwide demonstration, and possibly
a counter revolution which VIII vino up
in q complete split between the north
and tho south.
Tho remarkable combination Of dipio-
macy and high finances In the present
situation might furnish food for thought
FOR the muckraker, inaemuch as ~ IN
wolves a sort OF monopoly for the control
Of China's future. but really II seems
quite wise ana luhAIllhpic' Nv
which has been taken is based on two
things. First. those who Invest In Chi
nese securities must be protected. and
protection is not to be had except
through "A liberal control of Chinese
finances. which also must be kept In or
der for the purpose OF avoiding bank
ruptcv. which already perilously threat
ems Second, there must be Information
alism In the big loan which - 10 ne
made. IN order To- prevent any one nation
getting ahead OF the others.
Chinese officials however. feel that al
together too much IL being demanded.
'rh.y profess 20 believe that ChinRs
credit should now be better than Il ever
was, and notably better than under tho
corrupt Manchu regime. Such belief
IL not justified The credit Of the new
China is not nearly 80 good as that OF
the China Of the Manchu. The govern
ment to-day hasn't even that funda-
mental Of credit-revenue and will not
nave IL FOR some time To- come as things
are going now Tie Manchu government
was rotten to the core. but II never
failed IN It's international obligations ana
II was good for Just about any sum 1t
wanted o. borrow. when II was over
thrown IL was found that the finances
were I'm desperate shape, and nothing haze
since been done 20 improve them.