The Washington times., 1914-11-20
CHINA IN DIRE NEED
' OF MONEY FOR ARMY
Two Emissaries Sent Here to
Try to Float a Loan in the
United States.

NEW YORK. Nov. 2o.-The Chinese
government is understood to be in dire
straits for money because Of It's inabil-
fly to negotiate a new loan. The uuin-
tuple loan of s125, 900 600 which the gov
eminent negotiated with capitalists of
England. France. Germany, Russia, and
Japan year ago Is almost exhausted.
If money is not soon forthcoming the
Chinese army of nearly 1900 900 men ill
become ineffective. Because of the Eu-
ropean war ii is impossible 70 negotiate
0 loan with European capitalists. An
American loan is the only recourse left.
Two enissaries of the Chinese gov
eminent arrived in this country two
weeks ago. They are Wong Chin-Fau,
secretary of the board Of finance, and
Fai Chu Tong, of the board of COM
munications. 1t is understood to be
Wong Chin-Fau's desire to obtain an
audience with President Wilson to gain
from him some sanction for the loan,
as a year ago the President discounte-
nonced participation by the United
states in it. His reason was said to be
that money was not intended for a re-
construction fund, but to down personal
enemies of President Yuan Shih-kai.
The official organ of the Japanese
government, the Tokyo Ashai. in the
latest issue received in this country, has
an article on "China's Financial Diff
Guilty." which says:
Unable To Pay Interest.
No matter how economical the Chi
nese government is to meet its ex-
penditures. ii is necessary to have
an amount of s2,5OO0OO a month for
the payments of the ministries and
soldiers under its direct control
During the first semester of this year
the government seemed unable to
pay all the interest on the indemnity
and on the foreign loans. although
there is a residue of about Sc, 600, 900
of the money advanced by Belgium,
France and other foreign countries
the so-called industrial loan) to-
gether with the income of the salt
taxes and custom duties. The re-
mlttance of a financial support from
all the provinces of China which is
said to amount to over SIS 900 for
the last six months. was just enough
to pay the outstanding government
expenses. Unfortunately, not only
has big loan expected from Euro
pean countries fallen through, but
further advances of money cannot be
hoped for until the war is over.
AS a result, of the fact that the
business of China is. not progressing
at present, the custom duties and
eXcises have decreased. 1t is re-
ported that both the custom duties
and the salt taxes are recorded at
not more than $500, 900 a month, and
that the only hope for the Peking
government is the remittance from
all the provinces which at the most
can only afford s, 900 900 a month.
Amount of Deficiency.
The total amount ot deficiency for
the Feking government is, therefore,
N-5o0.0o0 monthly. II no loan can be
successfully concluded, the salaries
Of the officers will have to be sus-
pended for at least two or three
months. and the soldiers under the
direct control Of the government
must be cunningly handled. so as TO
maintain their allegiance. 1t rs said
that President Yuan Shih-kai is in
bad straits, and that he is trying all
possible ways to get a loan abroad.
loan of $1,000, 600 between Sam
uel & Co. and the Chinese govern
ment was said to have succeeded,
but the contract for this will not be
concluded until the European war is
over. The proposed contract called
FOR e1, 900 payable in advance
but, contrary to this, nothing so far
has been paid by that company, nor
has anything been arranged in re-
gard to the issue of the bonds
either in Europe or in America
Furthermore, the British govern
ment did not recognize the Chinese
government in regard to the loan
Representatives OF the revolution
lists are now in this country trying
TO prevent the proposed loan.