The Washington herald., 1912-07-13
NEW PHASE TO
CHINESE LOAN
Capt. Dollar, Head of Steamship
Line, to Conduct Negotiations
for Baby Republic.
sIx-POwER TRANSACTION OFF

New York. July 12.-Capt. Robert s.
Dollar. of San Francisco, head of the
Dollar Steamship Line, left New York
this morning on the California for Glas-
gov on a mission of far-reaching i'm
portance both to the United States and
the new republic OF China. The chief
purpose of Capt. Dollars visit to Europe
is to enter into new negotiations for the
Chinese government for a loan with
which to finance the worlds most recent
republic through the early stages of its
existence.
The significance of his trip is that the
loan of $3c0.cC0.0)0 agreed to be made
to China by six powers, the United States,
Great Britain. France. Germany, Russia,
and Japan. finally has been rejected at
Pekin and new arrangements must be
made. Capt. Dollar discreetly declined to
admit that he was commissioned by the
Pekin government to conduct the nego-
tiations. but he acknowledged that he
was going to Europe "as the friend OF
China"
Il am sorry that I cannot talk freely
about the subject at present" he said,
but anything l might say now further
than that China will get all the money
needed to tide over her present difficulties
might he miscontrued and defeat the OBJ
ject of my visit"
Blames OfHcinls Here.
The veteran seaman, whose ships have
been plying in the Chinese trade for a
generation. is inclined to lay at the door
ofthe government at Washington the chief
blame for Cnina's present embarrass-
ment. He acquits J. Pierpont Morgan
Of all responsibility for the tansle thai
has resulted in the six powers loan and
its probable rejection by the Yuan Shih
Kai government. He and Mrs. Dollar.
who is accompanying him on this trip.
were in China through nearly the entire
period of the revolution. They left the
celestial empire only two months ago.
Knowing China as / do" said Capt
Dollar, Il confess that at first l was
extremely dubious about the capacity of
the people suddenly to emerge from a
hoary monarchical government to a re-
public. What I thought would be best
suited TO them for a time was a limited
monarchy. But they have shown their
readiness for a government modelled in
every essential after ours. / left China
convinced that the republic has come
to stay; that IL rests upon a sound and
permanent basis and that We long ago
should have taken the lead in her last
ing friendship by according her recogni-
ton.
w
Why this has not been done / dare
say the people responsible at Washing
ton cannot themselves say. unless 1t ne
that we are yielding too much 10 the
demands OF the three aggressive powers
OF Europe-England. France and Ger
many. Their course shows that these
three nations cannot deny that they are
striving in every imaginable manner to
hamper the growth of republicanism in
China. Their desire for a generation has
been to partition China among them
selves. with portions to the United States
and such other nations as might object
TO the worlds most populous country be-
ing gobbled up by only three nations.
In the face of this situation I fear
that We have faltered too much. The
Chinese look to US for guidance. Their
faith in us should appeal to our man
hood and good sense. II We disappoint
them in this crisis, how can we expect
TO retain their friendship? We are their
next door neighbor. The future theater
Of the next great struggle .or the mas
Is the Pacific Ocean. With China's
friendship We can dominate that COM
merce in the next generation"
Capt. Dollar said he had laid the real
situation of China plainly before the
State Department at Washington in a
series of cablegrams from that country
and that all the satisfaction he was
able 10 get out of Secretary Knox was
to refer him to our Minister at Pekin.
w. J. Calhoun.
Calhoun Not Convinced.
Minister Calhoun virtually told me-"
declared Capt. Dollar. that he was not
convinced Of the stable foundation OF
the Chinese republic. and intimated that
II was for this reason that he had not
strongly recommended immediate recog-
milton. That was his Trofessed attitude
when / first interviewed him. But when
last saw him just a short time be-
fore / left China he in effect admitted
that in his opinion the republic had
come to stay: but he would make no
admissions as to our duty to accord
recognition. He also gave me to I'M
derstand that a hard and fast agree
ment had been entered into by the
f1nanciers who were parties to the six
powers loan, whereby the terms OF the
lean were made too burdensome for the
Chinese government to bear either with
profit or dignity.
'As 1 understand that agreement, the
lean was conditioned upon the lenders
prescribing the entire revenue system of
the new republic. collecting its taxes.
and so forth. Tang Shot Yei, the first
premier, vigorously opposed this ar
rangement and he was forced out of
office. He has been succeeded by Lu
Chang Hsien. a close personal friend of
President Yuen Shin Kai. but the new
premier obviously is no better inclined
Toward the arrangement than was his
predecessor, a Chinese of the highest
intelligence and whom l have known