The Washington herald., 1918-07-25
CHINESE LOAN
now IS URGED
Col. Bryan as Secretary Of
State Opposed 1t, Hol-
land Says.


and IN the attitude Of the government
towards industry and finance 10 the
authorized report from Washington
that the administration has given its
approval to a proposition that Ameri-
can bankers participate In a loan Of
al least $4,000. 900 to China The pe-
culiar feature associated with this
approval Is to be found in the fact
that the government insists that the
loan be not exclusively made by an
american syndicate. but that Great
britain, France and japan Join in the
transaction.
When Col Bryan took ONCE as
secretary OF State, one of the first
propositions which he was called upon
y 70 consider was the attitude of the
eNted States towards the so-called
six-nation loan to China. The aggre-
10000.
Col Bryan took the view that, not
withstanding the attitude of his pre-
decessor in the office of Secretary of
state. Philander c. Knox, he did not
believe that II was expedient for the
government Of the United States to
stand as sponsor. 50 to speak. for
the American syndicate which was
made up so that there could be full
participation with i've other nations In
this proposed Chinese loan,
Now the government suggests and
presumably insists that II its ap-
proval Is to be given to q contem-
plated loan. at least Of 10000 900, to
China, then four of the six nations
which united in underwriting the
Chinese loan OF s125. 10000 should par
udpate in any loan which is to be
made to China at this time.
-Four Nations.
The four nations which will be par
ties to the new Chinese loan are to
be the United States. Great Britain,
France and Japan. The European ma
tons with which we are at war and
which were parties to the so-called
sx-nation loan are necessarily
omitted.
China Is now one Of our allies. in
spirit at least IL not in immediate
active cooperation. The Chinese gov
ernment is believed to be surely, al
i though gradually. gaining strength
Z with the Chinese people. and the rea-
sons are good for believing that 1t
Is 10 be permanent government.
The loan to China of $4,000. 900 is to
money
IN order to expand her internal i'm
provements, to deyelop some on her
sreat natural resources and to bring
herself into closer alliance with her
allies.
The attitude Of the government to-
wards this new Chinese loan, an at
ttude which no doubt reflects under
standing with Great Britain, France
ana Italy, Is reflected in the action
taken by considerable group of
American manufacturers who have
formed a combination for the .pur-
pose Of developing foreign trada. A
combination of that kind would have
been regarded by the Washington
authorities four or five years ago as
in violation Of The Sherman law.
Now so great has been the advance
in public opinion respecting the
utility or even necessity Of combina-
tons. that Congress has been led to
approve by statutry enactment COM
binations made for the purpose Of
maintaining and increasing our
foreign trade.
The new association or combination
begins. according to reports from
Washington, with forty-four manu-
featuring organizations whose 5omes-
tic sales in the aggregate amount to
over aOo,Ooo,Oo0 a year. These manu-
facturers have formed a combination
similar in principle. although not in
purpose, to the combination of
American bankers which will form
the syndicate that will participate
with Great Britain. France and Japan
in lending $4,000 .O0o to China.
Seeking International Trade.
The combination Is to seek trade
with foreign countries and is to be so
perfected as to make 1t possible as
soon as the war ends to begin active
but honorable competition with other
nations for the markets Of the world
BY combination, our manufacturers,
who expect to be exporters upon a
large scale of American commodities,
will be able in the most economical
manner possible to meet the competi-
ton which England-and as soon as
Germany RECEIVERS, that nation-will
surely begin for a large share of the
worlds trade.
This combination will be able to
send agents. not only to Central
America and South America, but to
the Philippines and to the Far East.
These agents will presumably initiate
the example set by the representatives
we're years ago sent to foreign coun-
tries in order to introduce the prod
Gcts OF the American refineries into
trose markets. Very likely they will
initiate the example which was set
by President Farrell Of the United
States Steel Corporation when he was
the head Of the export department of
that organization. Mr. Farrell built
Up an organization which extended
around the world and which was able
in a few years to create a great riar-
ket for the products of the United
States Steel Corporation.
There Is no doubt that a combination
OF this kind will serve greatly 10 in
crease our foreign trade. It wnl
be so organized as TO make possible
for the products Of Central and South
America
In his impressive address before
the unofficial Republican State Con-
vention that was held at Saratoga a
few days ago. former President Roose-
welt said that business men should
be permitted to cooperate and to
combine, subject to such regulation
and control by the government as
will prevent injustice and sharp deal
ing among themselves or towards
their employees or as regards out
siders and the general public.
1t is cooperation and co-ordina-
ton and combination of this kind
which our manufacturers are now
permitted under law to establish for
obtaining and increasing our for
eisn trade The belief is general
that the time is not distant when
Congress will so modify the sher-
man law as to put into effect, not