New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-25
To Restore Normal Conditions.

Tie governments were DESTROYS that tho
groups should furnish sum SUFFICIENT,
with proper safeguards. TO enable the
Peking administration 10 establish Us
authority and TO restore normal condi-
lions throughout the country. owing 20
the unsettled conditions ~ China and the
world wide Importance In tho business
contemplated the groups deemed u nee
essary TO act only In consultation with
and subject 10 tho approval OF their re-
spectlve governments. From the incep-
ton % tic negotiations, therefore. the ak
governments ard tho groups have been
acting IN f1ll accord.
Notwithstanding the fac, that as the
result Of the revolution there was prdc-
tlcally no stable central government and
that China had dcfaulted IN the service
Of several loans and had bceu obliged TO
request permission 10 suspend tho Boxer
Indemnity payments, the groups were
willing TO finance the requirements Of the
Chinese government under conditions
which the governments and the groups
believed calculated. on the orc hand. 10
restore Chinese credit and upbuiid the
newly organized republican government,
and. on the other. 10 protect the prospect
i've purchasers Of Chinese bonds. These
First-That the purposes for which the
funds were required should be stated by
the Chinese and approved by the groups.
Second--1hat china should adopt
system OF audit witch would insure the
effective expenditure OF loan funds for
the purposes specified.
Third-That the salt taxes 10 be hy-
pothecated for the service Of this loan
should be administered either BY the en-
listing maritime customs organization or
by n separate service Ike the customs
under foreign direction. thus safeguarding
the proper administration OF the security
despite the possible continuation or re-
currenca of unsettled conditions I'm China
The groups appreciated that certain
funds were required Immediately and that
q considerable time must elapse before
the Chinese Government could prepare lie
programme for administrative and In
dustrial reorganization. They desired.
moreover 10 be certain that each sue
cessiye bond issue should he properly
secured. The groups. therefore. proposed
within the present yea, to o is5 sue Loan
were prepared. Furthermore. when funds
were required by the Chinese government
and when adequate security was avail
able 10 take subsequent issues at price
10 be ascertained by reference TO the
average net quotation in London OF the
Immediately preceding series.
In order TO protect the, bonds issued
and the market FOR succeeding series ana
10 safeguard the security therefor, tho
groups. because Of the magnitude OF the
contemplated operations. desired China
10 engage not to borrow from other
parties until the reorganization loan was
issued in entirety.
In the Interests OF China.
The groups furthermore desired China
20 aupoint them financial agents for a
term OF five years, the period within
which the Chinese proposed 70 issue the
entire reorganization loan. The groups
believed II 10 be IN the Interest or China
and of the investing public that they
should be IN a position intelligently TO
assist the Chinese government IN the prep
aration Of its reorganization proSramme
and TO advise az to the expenditure OF
loan funds In such manner az 10 secure
IT'S efficient operation a..
Retvecn the end OF February ana the
middle OF June tho groups ADVANCED a
tntoi ~ about 10000 to meet the press
&C. needs of the Peking administration.
III during this period was able 10
coiiect practically no revenue from the
r,n,.incrs over which II was endeavorng
o. o. ,aduslIy Ia establish It's authority.
.Thc conditions upon which the groups
- nreparcd 10 make the loan were
",t,,i,,ed To the Chinese government
80 ,.erc declined by IT, not because OF
thn dnaucial terms, but because OF inc
.safeouards required by the groups 10
,,.h and the effective collection and pro-
.''o,iou ~ the security offered.
49, the most careful considerauon
=, Conditions In CbLEa and the dlnicult'es
Of the Chinese l s9Ne5" by the six govern
n,ents and the six groups 70 Oe essential
On these terms a loan Wouio nave ueeIi
considered by the groups 10 DC sound
despite SSss tee g pT9T But
.ri,bout such safeguards they would not
80 j,,stifcd I'm offering the bonds TO the |
nuhlic Neither were tho cover nIHenlS
willing TO support. nor the groups 10 IN
GertsEe. a loan which would 80 largely
1900 1hins's debt without insisting |
iinon the Inauguration OF reforms Which |
would enable her TO sustain H.