New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-24
LOAN TO CHINA MAKES
THE REPUBLIC SECURE
Crisis as Serious as Any During
the Late Revolution Is Now
Safely Passed.
SHE THINKS THE COST HIGH
Price Paid Is Foreign Superb.
sion of Finances, and Most
Chinese Consider That
an Evil.
rBv Cable n The Tribune ]

Peking, June ZO.-NlIn tne SuSCeSSI'A
termination of the negotiations between
the powers settling the terms of the
$500 100000 loan to China, It is now OPP
Fortune to draw attention 10 the situa-
ton of the new republic, with regard
alike to the lending powers and to the
internal exigencies of the country.
China has undoubtedly emerged within
the last few days from a crisis as serious
as any that existed during the recent
revolution. The prospects are that the
new republic will now get safely through
though at the cost Of foreign supervision
of her fiscal affairs. or, at least those
connected with the big loan. Thus emma
Is saddled with what most Chinese con-
slider an evil. and something that may
in the end, tend to hold the country bacR
and prevent realization Of the patriots
dream Of a truly great nation. the pol
icv Of employing foreign aid in the con-
s+ruction of certain railways was one
of the very causes Of the revolution NO"
china has had forced upon her more for
eien control and supervision than WouIH
over have been thought Of under the ola
regime.
Whether internationalism in China
enairs will be Of benefit 10 China re-
mains to be seen. Many Chinese are
convinced that it will not, but in view
If the intense need of money these op
nonents Of foreign supervision have been
forced 10 acquiesce in certain degree
of control
China Fears Disaster
China's fears of disaster resulting Iro'"
this loss of financial independence are
aosv 70 understand The Chinese nave
little TO thank the foreign powers 1or'
and their suspicion of certain nauoi's
pussia and japan in PARTICIPANTS obVl-
orelv we'll founded. Russias recent gran
IN Mongolia and Japan's virtual assump-
+ton Of control in ManChuria are more
than enough TO make the Chinese fear
the Intentions Of the foreigner. Ihese
are but examples from long list OF al
vances and aggressions on the part OF
s,,nnosedIv friendly powers. the net re-
suit Of which is an intense suspicion OF
everything the foreigner proposes.
The loan negotiations in their progress
5,scIosed an interesting and at times
hitter struggle. The Chinese fought the
hest they could and as long as they coulo
AGAINST supervision Of finances, but iiIla'-
~ Z, became a matter Of vital neces-
s,tv the question OF the continued MAIN
+anance Of public order becoming In
Oh nHCG2
gary. None could be raised locaiy'
Therefore II had to come from ABROAD
The influence Of the six poweTs-the
United states. Great Britain, france
Germany. Russia and Japan-eXcrclsed
es unit. prevented the Chinese from
,o-ro,,ine from any one save the interna-
+tonaI group. The international group
refused absolutely to lend without some
control Of expenditures.
Succun1bs TO the Inevitable.
Internal conditions grew more danger
ous dav by day. Troops were unpaid
md threatened to pay themselves ny
,ooting. So China was forced to sue
o,,rob n the inevitable, and has now con-
SeOte0 TO q CtIbdiil 'if1i
surervision. It doubtless will he good
thing FOR China in the end, providing the
povers carry out their side of the agree
,nent with Justice and non-aggressIon'
The souandering Of public funds in the
,aet-not only during the Manchu re-
einne but during the republic as wen
e the direct cause Of the virtual paIh-
,untcv Of China to-day. Under foreign
s,narvisior of expenditures public FUNDS
will probably be spent honestly al
though II is to be doubted that even Ihe
closest SUPERVISION will altogether eIlin-
Irate the nractice Of squeezing. ms
form, Of graft has been going on TOT
thousands ~ wears and is as much an in
stitntion as Confucianism. II cant De
illuminated until China's morals are al
tered which will take mighty long
time However, foreign supervisors can
force an approximately honest admins
+ration and one far superior to anything
b,,berto known in this country.
From 2 purely business point OF view
1he bankers we're doubtless rlght III lof'-
ING control China had no SPECIFIC Sc
cpritv 10 offer The available security
bod already been pledged to other loans
rbe,etofore all Chinese loans had been
,,ade on come sort Of specific security.
conditions had also changed. No stable
,,o,,ernn,ent existed in the country. con-
dltions everywhere were unsettled ana
the nresent regime has not been able 10
chou. that it is in thorough control oil
the entire nation. Moreover disagree
ohio etories Of immense graft In Marking
eoated up to Peking Tang Shao-yi the
1,re,,ier was accused Of simply throw
Inc awav government money when ID
sbargha, and Marking. Since his hight
1ror, Picking to Tien-Tsin he has peen
onenlv charged with having briped DIS
ro,,t,caI enemies and with having squah-
A.rsd a great deal Of good government
$50. obtained from the proceeds OF the
pe,eian loan. for his personal amuse-
-. THOSE are disagreeable things
,bov are saving about the Premier OF
,h,s great country, but the reports are
very common.
An Unwise Proposal
A,otber rock on which the negotla-
.,rrs seemed likely to split was propo-
s,tion made by the four powers that inc
troons be disbanded und%* the super
-. ~ foreign military attaches. u