New-York tribune., 1918-07-02
Dollar Diplomacy
President Wilson to Pollen Ub; IT, y,,
Unfair China.
By Frede Moore
Unfair to Chin
By Frederick Moore

TIME announcement made in Fridays
paper that Mr.. j. p Morgan had been
to Washington to discuss, at the re-
quest Of the State Department, the financ-
ing Of the Chinese government is Of pecul-
lar interest. The President appears to
have reversed his attitude toward the
American group of banks that participated
with the International Consortium IN the
financing Of China under foreign intcrna-
tional control. The original project was a
sincere effort on the part of league of
nations to support China, eliminate aggres-
sion upon her and prevent war between the
powers over territorial and other questions
in the Far East. But President Wilson and
MIR. Bryan, in the heat of the political
campaign of 1912, took the view that it was
Wall Street exploitation scheme backed
by plutocratic and imperialistic Republi-
administration.
1t happens to have been my lot TO follow
this question very closely for number Of
years having been located in Peking as
correspondent of The Associated Press for
more than five years and having been
through several revolutions there-that
WiiCH OVcTtUEeW the 1U2NCnUS and cSCaD-
lshed the so-called Republics; the Sun
Yat-Sen revolution, which attempted to re-
cover control of the government from Yuan
Shih- -kai, who sought to make himself en-
peror; and several others Of minor mpor-
tance. | was there when the American
Group was taken into the International
Consortium, and later when President vii
son, on entering Office, denounced the work
Of the Consortium as unjust and unfair to
independent nation
Now the State Department, according to
news appearing in Fridays papers, is en-
deavoring to undo the Presidents work of
1913, which has had such dire consequences
in China. The State Department is evil
IDENTIFY making a last-hour effort to save
that distressed country from the continu-
ance of revolution, from subsequent bank
ruptcy and consequent foreign control and
domination.
What was dollar diplomacy as applied to
China, and what were the consequences Of
President Wilson's denunciation of the
former American Group, headed by ]. P.
Morgan Co., whom the Administration
now asks to go back to China?
The programme which the powers had
outlined for this backward state was not
proclaimed as altruistic or even along the
lines of what league Of nations could or
should do. No silver tongued orator gave
vent to idealistic phraseology regarding it,
1t was the work of practical men who knew
China, and had worldly wisdom and ex-
perience. They were not theorists.
The purpose OF the agreement was to
save China from bankruptcy, both for her
own sake and that of the bankers Of the
various nations that had already lent her
money, and also in order to prevent the
nations becoming involved in war with her
or between themselves regarding her.
China is a tremendous, undeveloped ter
ritory, as vast and potentially as wealthy
as the United States. Governed by incapa-
bic and corrupt officials, it had become.
like all such countries, the prey to com
petitors for concessions, financial projects
and other "bg business" American con-
cession hunters were in the field, and occa-
slonally, as was the with the others.
they We're corrupt and unprincipled The
infamous case Of the original Hankow-
Canton concession is an American example.
Chinese officials we're sometimes bribed. but
whether they took money or not from the
concession hunters they got their personal
share in another way Twenty million
dollars would be loaned for the construc
hon of a railway Of, say, 500 miles. and
forty miles would be constructed; then
the Chinese would seek new loan.
The Five-Power Consortiuu. RECENTLY
operating with the support of their gov
ernments (France, Britain, Germany, Rus
sia and Japan, was noteworthy effort to
internationalize loans and concessions in
this exploitable country; and the govern
ments concerned would have done we'll to
make their policies publicly known in the
way that the present administration con-
tlnually endeavors to throw the best light
on its plans and policies; but the greatest
publicity the scheme had was from the
pens and tongues Of critics, some Of them
from men who knew no better than to
think all financial and diplomatic schemes
must be wrong, and some cornpetitors ~
the banking groups. 1t was the political
business of the Democratic administration