Evening star., 1916-12-03
CHINA'S PRESENT FINANCIAL CRISIS


dent Ii Yuan Hung. tho
New Cabinet President of the Chi
nese republic. OF COM
ooe'aAAeu. promise cabinet headed
by Tuan Chi Jul as premier with the
war portfolio. September another
dispatch reported the confirmation by
parliament of this cabinet The vote
received by Premier Tuan Chi Jul was
almost unanimous, but there was much
opposition to several other members.
notably to that OF our old acquaint-
ance Tong Shao VI, and also that OF
Lou Tsen Tsiang. but the critical
financial condition Of the government
and the seriousness of the Japanese de-
mands for police power in Manchuria
and inner Mongolia silenced the oppo-
sition.
This opposition Is an inheritance
from the preceding regime OF Yuan
Shi Kai on constitutional questions be-
tween the militant party and the lead
inces where the rebellion against Yuan
Shi Kai had its inception and strongest
support.
that the president, Ii Yuan Hung.
has been obliged by pressure of
the militarists to withdraw the ap-
pointment OF Tong Shao VI and desie-
nate Lou Tsen Tsiang in his place. In
turn he has withdrawn the name of
Lou Tsen Tsiang. and this is the knot
of the political crisis. Both of these
gentlemen were formerly in the minis
try of the Yuan Shi Kai regime. and 1t
is assumed that the opposition grows
out of that fact.
There are some explanations which
are so complex and contradictory that
we refrain from reproducing what ap..
pears sheer nonsense - medley OF
words which end in grotesque conclu-
sions. There is reference to the lack of
parliament being a real representation
Of the opinion of the population. repre-
senting only minority. The disas-
trous effect of the contraband opium
incident at Shanghai, duplicating GER
tain deputies of Yunnam province. is
represented as compromising the moral
authority of the assembly. The role of
parliament, nevertheless. remains con-
and means of opposing and even para
lying government action.
<
This situation, somewhat vaguely
stated. is made to indicate that the task
of the new president is ex-
Arduous tremely arduous and deli
cate. This is particularly
stances, when China founders in COM
plex financial and political conditions.
| which, affecting the provinces. consti-
tute for Ii Yuan Hung grave subjects of
preoccupation. On the other hand, the
incidents in Mongolia, the succession of
the Okuma ministry at Toxic by Te-
raouchi cabinet partisan of more en-
ergetic policy in regard to China, be-
get fear of complications and disQuiet
10 he dan nj m a
meet the necessities of the situation.
The moment is indisputably propitious
for the United States to exert her good
offices to sustain China in this difficult
| ma ton:
An article from the North China
| Daily News with reference to China q
finances appears opportune, and it is
therefore reproduced for better infor-
nation.
AT the present moment China has to
! find some four million dollars for for
eign railway payments, at least as
much more monthly for administrative
| purposes, thirty millions to redeem the
notes of the Bank of China and Bank
of Communications. and not less, it is
| calculated, than twenty millions more
| for costs of the late revolution. In
| these circumstances, to go about bor-
rowing few hundred thousands here
and there. to the detriment of an ade-
quate loan and the loss of valuable
mines. appears SO lunatic a proceeding
| that it is difficult to believe that man
of DR.. Chen Chin-taos minister of
finance) scholarship and theoretic
training in finance should have been
physically capable of taking a hand
in 1t.
China is suffering today a collective
retribution for the sins of immune ra ble
individuals. No corruption Is so bad,
because SO impossible to bring to book,
as the corruption of democracy.
With virulent form of this disease
China has been afflicted for five long
wears. Among her leading men there
| have been and are honorable excep-
tions. OF the rank and file the univer-
sal evidence is that official acQuisi-
tiveness under the empire was nothing
compared with the rapacity of repub-
licans. So much it is necessary to say
of the past. 1t is not the best of guar
antees for the future. Yet there is Il
least a chance today for better things,
such as China has not had for many
years.
THE transition from the regime of
President Yuan Shi kai to that of
President Ii Yuan Hung
Financial has been effected with
nL surprisingly little friction,
and President Ii holds
Office with a degree of general approba ton
which ought to be turned to good account
For the moment China is seeking. and
must seek. another reorganization loan
How far it is likely to do her any good
depends on the extent to which she
VIII allow reorganization to accom-
pany the lending. There is no apparent
reason why other sources of national
revenue should not be as effectively
and proftably organized as the Gus
toms ana salt gabeile' have been. but
there is great reason to fear that with
out foreign assistance they never will
be. This is the position to which in
diyidual dishonesty, repeated infinitely,
has brought China, and it needs cour-
aseous handling. On the one hand,
another loan. a certain amount of Su-
pervision as to it's spending, but moth
ing fundamental, all the real causes of
Hastage covered up by official vanity.
and SO in due course another loan, and
another. On the other hand. a frank
appeal to the powers represented in the
consortium for such advice and assist
OF reN enue to flow through the proper
channels into the national exchequer.
When course will China choose?"
The author of this article appears to
know the 'innumera BILE corrupt indi-
viduals' whom he does not name. Why
does he not name them that President
i Yuan Hung may strike them off his
lists in the better interests Of China?
The autf-or of this article has just now
all exceptionally good occasion to bring
to book the corruption in China Of
which he Justly complains.
A congressional comm ssion was pro-