The Birmingham age-herald., 1914-02-18

Steel corporation of which he is presi-
dent will be of great material advantage
to the United States
The Moral Support
Yet 1t is asserted confidently by those
in this city who are familiar with condi-
tions in China that these investments in
large amounts of American capital In con-
structfve work of all kinds in China and
In the exploitation of mineral resources
may rely confidently upon the moral sup
port OF the federal government in ca ase
there should be complications. Should
China, FOR instance, refuse to recognize
the terms of the contract which the gov
ernment has entered into with the Stand
ard Oil company it would be we'll within
the rights of the company to appeal to
the government at Washington for such
support as diplomacy might be able to
offer.
One of the reasons stated for the will
ingness of the Chinese government to ex-
ecute the contract with the Standard oil
company is to be found IN the confidence
which China has in the good faith of the
people of the United States, who have
never desired any territorial authority or
control anywhere within the Chinese en-
pire. II was the lurking apprehension
that We're this natural oil concession to
be given to Japan, whose government
for 1t. then the Japanese would be likely
to gain territorial influence no one knew
how great. in northern China.
Secretary knox's Purpose
When Philander c. Knox, as Secretary
of State, in President Taft's administra-
tion, entered into agreement with syn
dicate of New York bankers at his own
request, whereby these bankers agreed
to participate in the contemplated loan of
SV.0o0Vo0 TO China, Mr.. Knox stated to
the bankers that his sole purpose was,
first, to make II certain that the industries
and capital of the United States would
have equal opportunities with those of
other nations in the work of constructing
railroad and public Improvements in China
and in trade and, second that China
should be assured through the participa-
tion of the United States in this loan that
no one of the other five nations would at
tempt to gain territorial authority in
China or TO secure exclusive trade priv
ileges. These were the two propositions
afterward laid down as conditions prece-
dent to negotiating the loan by the Amer
lean representatives at the meeting OF
the siX-nation group at Paris two years
ago.
The conditions were accepted by all the
members of the group, but with the with
drawal of the American syndicate imme-
diately after the administration at Wash
ington last spring reversed the policy OF
Secretary Knox there was no guarantee
that none of the five nations still repre-
sented in the group would attempt to Sc
cure territorial ACKNOWLEDGMENT or ex-
elusive trade privileges. The loan recently
negotiated by China of s12o, 100000 gives to
the French industries the exclusive right
of furnishing China material and equip
ment needed in the construction of the
contemplated new railway system.
The aggregate returns to France i'm the
form of payments for these materials
should amount to a considerable slice OF
the s12o0000O0 recently borrowed. Time
will be needed to determine whether the
new policy of the government respectins
the commercial and trade relations be-
tween China and the United States will
serve greatly to develop international
trade.