New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-26
Russia Asks
Japan for a
Third Loan
France Also Wants Credit to
Offset Purchase of War
Materials
Rx ADACH KINNOSUkE

capital According TO Mr.. Katsuda. the
Finance Minister of Japan, new loan
to Russia. tho third hoatcd since the
war began, will be issued shortly.
Probably it will be for S5o,oOo,oO0.
though Russia asked for Sl00,000,0OO.
Russia now owes Japan for munitions
and other war materials about S35,-
100000, so that a large part of the pro
cecds Of the loan will have to be used
for paying outstanding bills. There arc
some differences Of opinion between
Russian and japanese bankers as to
the rate of interest and other consid-
erations, but IL is believed that an
agreement will be reached shortly.
Probably the loan will be issued in
two sections first $@5,OOO,OOO TO take
care of current obligations and then
little later an additional S15,oOO,00O.
China To BE Financed
Nfr. Katsuda also states that at
conference of the representatives Of the
Foundations syndicate, held in Lon
don. it was decided TO advance China
the loan she had asked for. The ques-
ton Of American participation is still
undecided. Only the New York bank
crs participated in the Five-Nations
loan. This time, however, some of the
Chicago banking interests are reported
to be favorably inclined toward the
loan. The first proposition was for a
loan of lOO.0OO,00O Chinese dollars, or
about S5OO0O,OOO gold 1t has been de-
cided to increase this amount though
no definite limit has been fixed. 1t may
come to as much as Sl00000.0 600 gold.
The loan 5 to be secured by a land tax.
1t has been stated that China LAID
down two conditions upon which she
would ioin the Entente Allies against
Germany. One was the postponement
of payment Of the Boxer indemnity and
the other the revision of her customs
tariff Mr.. Katsuda states that 1t Is
fact that China did propose these two
conditions to the Allies, but It is not
true that the Allies gave her their I'M
conditional and immediate consent.
The severance Of diplomatic relations
with Germany had nothing to do with
Chinese demands. There is no trouble
on the score of the postponement Of the
Boxer indemnity, the only difficulty be
ing in finding a satisfactory adjustment
of interest charges. once that Is
arranged all objections Will have been
overcome.
- 20
has been a standing problem for years
between Japan and the other powers
The present tariff rate was fixed IN
1902. China nets from il only about
SO per cent ad valorem. To raise it to
: per cent is a thing which would have
been looked for in the near future, war
or no war. There is tendency among
the Allies to acquiescc in Chlna's
wishes IN this matter, but all talk OF
raising the tariff to TX or 10 per cent
is unwarranted. The Allies would never
assent to that. $50.
On the assurance that the Allies
would favorably consider these pro-
posals China broke off relations with
Germany. The all important part comes
in future negotiations. The immediate
advantage that Japan has received
through the severance OF German
Chinese relations is that it can get iron.
cotton and other raw materials without
payment of an export duty, and an
opportunity Of securing some o. the
commercial advantages which Japan
had held before the war. Naturally,
also. japanese merchants will secure
considerable amount of trade formerly
controlled by Germans.
Ero,co Nsks for Ioan
Japan has sold to France munitions
and other war materials to the amount
of about $12,00O,OOO gold, and this has
not been paid The French govern
ment recently approached the Japanese
government, according to Mr.. Katsuda'
with the proposition to raise loan,
portion to be used in paying current
Indebtedness and the rest TO payment
of future purchases. Japan has re
sponded to both British and Russian
requests for money, and Mr.. Katsuda
saws that she is DESTROYS Of doing all
that is possible for France. However,
in view Of the heavy demands 1t has
been proposed that the French loan be
for Sl2, O0O, 600 or just sufficient TO wipe
out French Indebtedness IN Japan.
The French government did not, how
ever, wish to float q loan quite as small
as that and suggested instead that the
indebtedness be financed through the
fotation of short term notes, with the
understanding that she would float
much larger loan in Japan at some
future time when the market should be
more favorable for such a flOtatlon.