The Washington herald., 1919-05-21
LOAN TO SPEED
BOOM OF CHINA
Also Significant Proof Of
Change Of Thought,
Says Holland.

made known OF the nnanclal arrange
70 ment which is to make the United
States and three European nations.
creditors Of China by a large amount
Only the bare fact has been an
nounced that an agreement has been
reached by means of which, when
working OF 1t begins. China will re-
ceive many millions. perhaps as much
as q hundred millions in all, through
an international syndicate of which
the United States Is to be perhaps
the most important member.
1t is inevitable that the minds of
men Of finance and especially Of the
leading executives of the American
banks which are expected to partici-
pate In this loan should recall a like
attempt which was made in the latter
part of the administration OF President
Taft.
For word having reached the Secre-
tary of the State, Mr.. Knox, that
- China was seeking a loan of as much
as $50 .ooo,o 900, II so much as that could
be obtained. the Secretary determined
that. II possible. the United States
should participate in this loan. Five
of the leading European nations were
at first in agreement to lend China
the money which was greatly desired
in order to begin and carry on in
ternal improvements and complete
certain railroad plans.
Secretary Knox was fearful lest.
in the negotiations. one or more OF
the European nations would be able
to secure concessions from China. per-
-nsps for exclusive trade facilities. pos
sibIy for the lease of territory. The
y. policy adopted by the United States
Z q when John Hay was Secretar yof
State. which was that of the open
door" might be impaired or ended
In case China found 1t necessary to
make certain concessions in order
to secure the loan. That was some
thing which he believed the American
government should prevent. He
therefore communicated with Henry
Y. Dawson. now chairman of the Red
g.. Cross organization. and within few
hours after Mr.. Dawson received the
dispatch he was in conference with
the Secretary at the State Depart
ment. Mr.. Dawson was asked by
Secretary Knox il he could organize
an American syndicate which would
z-spledge itself to take its proportionate
part of the proposed Chinese loan.
s.1within a day or two after the Sec
retary asked Mr.. Dawson to do this
the syndicate was organized. and then
after a little pressure the United
-. States was admitted into this inter-
Sensational syndicate so that it became
-s..known as THE Six Nations Syndf-
s-s'cate"
--s When the representatives of the six
nations met at Paris. Mr.. Dawson
Was chosen chairman of the COM
=, mission. He spoke briefly on taking
lzsthe chair saying no more than TINS:
- that nothing should be done by the
commission which would result in
loss of Chinese territory or in ending
= the "open door policy. He observed
e that some of the representatives
- seemed a little annoyed, presumably
~ because they entertained the hope
that the nations which they repre-
scented could obtain concessions from
China But Mr.. Davison's blunt state
s-nent and his insistence that 1t be ac-
s.seepted were sufficient to secure for
Eythe commission unanimous approval
accompanied by formal pledge. OF his
statement.
sss What China Wanted to Do.
The Chinese government was pre-
-pared to spend millions IL the money
could be found in the development of
her very rich natural resources, in
=. the institution of new industries and
in the construction OF railroads. II a
rrogram of this kind could be put
. into effect. then there would follow
a heavy demand from China for man
ufactured products Each one of the
nations would try to meet its fair
. share of this demand and the United
: States representatives were certain
that this country would gain good
part of the trade which in that way
woNld be opened. The abler men of
China were satisfied that with inter-
nal improvements well developed and
with adequate transportation secured
China would awake from her long
: sleep and make progress which might
in time be compared with that which
Japan has made
When the administration of Presi-
. dent Wilson began. speedily the Sec
: retary of State. Col. Bryan. intimated
to Mr.. Dawson that the government
of the United States should not be
called upon to give its moral sup
: port to any proposition similar to
that of the Chinese loan.
This decision. of course. compelled
the American syndicate to withdraw
and il was the fear of our leaders
that as a result OF this withdrawal
and the non-participation OF the
United States in the Chinese loan. we
might lose a great deal of trade. as
YelI as an honorable influence. which
otherwise would have been secured
had the United States remained one
Of the six nations creditors of China.
Then Came the War.
The advent of the European war
affected China. as il has affected
every other nation. But with the GER
tainty OF the triumph of the allies
over Germany. China again began
negotiations. in the hope that in
this way she could secure millions
which are needed il she is to enter
upon a new era of Industrial. mineral
and transportation development.
1t is an interesting coincidence
that whereas Henry P. Dawson, of
J. p. Morgan and Company. was
the chairman of the body of repre-
sentatives of the six nations, now
Thomas w. Lamont. also of ]. p. Nor
gan and Company. has been chosen
chairman of the new commission or
International syndicate. Our allies
as well as China are very glad that
the United States Is to participate
in this loan. In fact were the
United States unwilling to share in
IL the proposition would undoubted-
Iy fall through. for not only is the
United States to pay over its own
share of the loan. but il undoubted-
~ will be called upon by Great
Britain and France to lend those
nations the money with which they
can also be prepared to enter into
participation in the loan. Those
s,E@ h.N