The Washington herald., 1912-04-28

Mankin. April 27.-while II was held
from the very outset. in these best in
formed quarters, that the rebellion would
ultimately prove Of great advantage to
China, there is the fact that. the revolu-
ton having taken longer TO consummate
than was anticipated. the finances Of the
country have also suffered to a greater
extent than was expected.
To aIIege tAst political complications
no longer exist would be foolish. and
since the political situation is largely
dependent upon. finance. It is obvious that
the means to De adopted in extricating
the government from its embarrassments
require the most careful consideration
To restore order and establish the new
regime on a sound footing, II is calcu-
lated that a loan Of from $3O0,OOO.0o0 to
$4OO. 90. 900 will be required in the imme-
date future. The provision OF such a
large amount clearly necessitates very
powerful financial backing.
The Four-power Group.
This backing has hitherto been mainly
provided by what is known as the four
power group. comprising England, repre-
sented by the Hongkong and Shanghai
Banking Corporation and its allies; Amer
lea, represented by Messrs. ]. p. Morgan
& Co., Messrs. Kukn. Loeb & Co. the
First National Bank. and the Ma
tionaI City Bank: France, by the
Banque de rIndo-China, and Germany.
by the Deutsch-AsiatisChe Bank. which
includes the Deutsch Bank, the Disconto
and Gesselschaft, and the leading great
German institutions.
It is needless to point out that a more
powerful combination could scarcely
be conceived. but. strong as II is, there
is every probability that the group
will be extended from four to six pow
ers by the inclusion of Russia and ia
pan.
with the arrival of completely new
conditions. and the prospect of very
profitable business in connection with
the opening up of the country. It is not
surprising that certain fairly important
financial institutions in this country.
outside the representatives of the four
power group, are anxious to compete in
the financing OF China.
That the four-power group has. so
far, enjoyed any monopoly is now
strongly denied by those against whom
the charge is brought. But 1t Is ad-
mitted that for the present 1t is con-
sidered necessary, in view OF the ex-
ceptional circumstances prevailing.
that the financing of China should be
Aho -NOuNAOA Va Olt SIoup- 1HG
monopoly. II such Il can be called.
would last only until the country were
once more on a sound financial basis.
but until that happy event is accom-
plished the four-power groups repre-
sentatives insist, and rightly so. that
before advancing the tens of millions
required. they should have proper safe
guards with regard to the application
OF the money.
over the funds. in order that they may
be properly devoted to the purposes in
tended. and not be uselessly squandered.
Conditions Important.
1t appears that the new group. which,
according to the kilograms. has already
made a small advance TO the govern
ment, Is not so particular about the con-
ditions, which, no doubt, is a very i'm
portant matter in the eyes of the Chi
nese authorities. But what the latter
have to consider Is whether their new
friends can raise the huge amount re-
quired to put the country right. and it
must be realized that in any case they
as the powerful financial combination
which has hitherto found supplies.
There has also been some talk about a
trade monopoly at present alleged TO pc
possessed BY a well-knowh Anglo-Chinese
frn. 1t Is said that no one else has any
chance of supplying railway materials or
other goods: but while the firm IN ques-
tion, from its long association with China
and the far East, Is no doubt in better
position TO secure orders than later COM
ers In the field, no concrete instance OF
anything in the nature Of an actual mo-
nopoly has even been discovered, in spite
Of the most careful investigation.
The outstanding debt Of China consist
ed at the end Of last year of about
sts5. 900 900, made up OF $50, $500 OF gen
eral loans and Sleo,5l, 900 railway loans.
There was q further loan Of $4,000. 900 en-