Evening star., 1919-12-28
CHINA IS SOLVENT,
THOUGH "SHAKy"
Always About to Go Into Re-
ceiver's Hands, Country
EIudes Him Still.
BY WILLIAM II. GILES.
Special Correspondence OF The Star
and the Chicago Daily News.

Special correspondence VI StuT
and the Chicago Daily News.
PEkING. China, November s.
China seems to go from one political
crisis to another. and, although each
new crisis further complicates the
political situation and adds to the per-
plexities of those attempting to study
this country's affairs, the expected
collapse of China's government ma
chine is often averted. Time and time
again students have said that China
will be placed in the hands of an in
ternational receiver. Up to the pres
ent it has not happened. but how she
managed to muddle out OF the many
difficult situations that she has found
herself in during the last six or seven
years it is impossible to tell.
There is something in the national
character of China and her vast pop
ulations that gives her a certain
strength to overcome national DIM,
culties and hardships that would
bring other nations to their knees or.
perhaps, to their complete downfall.
but the loosely riVeted, badly con-
nected and weakly controlled admin
istrative machine of China wobbles
along in an uncertain manner. but
never comes to StandStill.
NOuntEy mas WV IACAuSs
The country is divided against it
self. The north has parliament, so
has the south; the north has a ma
tional army, SO has the south. Both
governments are divided among them
selves, and both national armies are
fighting each other. or are ready to
do so. The northern government is
on the verge of bankruptcy; the
southern government has no funds.
The military governors of the prov
inces of both sides are law unto
themselves; they help themselves to
the provincial revenues for the main
tenance of their troops. and the ad-
ministrative bodies have to obtain the
money to carry on the work of gov
eFnment from whatever source they
can. Neither the Peking nor Canton
governments can make their influence
felt outside of their Immediate neigh
borhoOd, and. although mandateSsand
governmental orders are issued. no
one takes the slightest notice Of them;
that is, unless the police are instruct
ed to enforce them, and even then it
is the poor and helpless that are COM
PEELED to obey.
Opium Still Sold.
An instance of this is the manner in
, which opium is cultivated. The north
ern government has issued numerous
mandates. bearing the presidents seal,
forbidding the cultivation Of the
poppy, it's manufacture into opium or
other preparation. and those found
selling or purchasing it are threatened
! with heavy punishment, Imprisonment
and fines. The southern government
has done the same thing. yet opium is
being grown in most of the provinces
today in larger quantities than ever.
In some provinces opium smoking is
publicly carried on, and even in the
large cities the extent to which smok-
ing is indulged in is only limited by
the cost of the drug. The poorer
classes in these places are not able to
satisfy their cravings, but the officials
are in a position to smoke the same
amount of the drug as they did in the
days before the prohibition. Among
the members of the government today
| there are many who are still addicted
| to the habit.
The government is running into
debt monthly to the tune of $7.5O0.0 900.
mostly through having to maintain
useless army of 100000 soldiers.
! AS each pay day draws near reports
are in circulation that it is impossible
| to find the means to pay the soldiers
and open mutiny is sure, but each
month the crisis is tided over some
way or the other. An issue of new
notes is made, a few million govern
ment bonds are thrown on the market
at 20 per cent of their face value, or
money is received from the native
banks and the salt surplus funds are
l
| other lease of life for one more month.
But still it is puzzle how it is done.
! for common sense leads one to the
| conclusion that frenzied finance of
! this nature cannot last forever. That
! it has lasted as long as it has done is
mystery to all foreigners. For two
years now it had been generally ex-
pected that the eliminating point had
been reached and that the end had ar
rived. But nothing of the kind.
| China's Exchange Good.
Strangest of all. China meets her
obligations, despite the critical finan-
cial condition she is in, and her paper
on the foreign exchanges today stands
higher than that of the japanese.
| Moreover, the powers have promised
China that if she will only bring an
end to civil war and become united
again. they will come forward with
/ large loan to help put her on her
feet and assist to help her national
development.
! Considering her present financial
! condition, it is strange to see the
| financial organizations of the west
having confidence in this county. AL
| though they are Withholding concert
| ed action in making advances to
| China because they do not wish to
loan money for the purpose of see
ing IL go up in powder smoke.
yet they have assured China that
| they will have no hesitation in do
ing so when internal peace has been
obtained.