New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-08

onc-half Of the troops thorough going
financial reform Is impossible. This
whole situation Is most difficult, for it
constitutes n vicious circle.
A Suggested Solution
For instance, as I have just pointed
out, the government deficit cannot be
wiped out until disarmament of the
troops takes place, thus doing away
with the extraordinary military ex-
pense. On the other hand, disband
ment cannot be accomplished without
u considerable expenditure for paying
Off soldiers arrears. Until it can nego
tiate loan for these purposes the
government cannot do much in the way
of DISARMAMENT, and until it can cut
cult for it to borrow.
The solution, as IL would appear to
me, is not the military Intervention
or occupation of certain cities, which
few of the Japanese militarists advo-
cate. If, on the other hand, the lead
ing powers, under whose approval the
New Consortium has been organized,
should make the present Picking gov
crnment, to the Southern government
and to all factions in China, including
the Tuchuns, strong diplomatic repre-
sensations, stating that all this non
sense of an opera bouffe warfare must
be dropped and the government must
get down to business, am inclined to
believe that the result would be sur
prising in its effectiveness.
| took repeated occasion in China to
make it clear that. until effective rec
onciiation between the factions has
unable to function upon any extensive
financial scale. In the last few weeks,
since my return from Picking, the gov
eminent has made several important
cabinet changes tending materially to
strengthen the situation.
The Integrity of the Chinese
The Western governments. and also
! the groups making up the consortium
can in the long run place great re-
lance upon the integrity and sobriety
of the Chinese people and can find in
them elements Of strong cooperation
can encourage them in the development
of a more stable government.
I was greatly impressed with the
growth there has been in the last few
years in education, the study of politi-
cal institutions and of government by
the students at the various universe
ties and the liberal minded men of af-
fairs. These men are the hope of
China to-day. They are anxious-nay,
eager-for he-consortium to begin its
work there They declare to me that
in its operations lay Chinas only hope,
and if ever people deserved our eff
! fective friendship these are the ones.
In material way they will repay it a
thOusandfold. China has untold
wealth in her natural resources. 1t re-
qures only sterilization of political
conditions there in order to develop
these resourcse and make the country
perhaps the greatest in the world in
actual as we'll as in potential wealth.
In those coast cities of China which
are really largely foreign one is apt
to think that they present a melan-
choly picture Of Reorganization and
inefTectivencss. But as I went into the
interior, rode on horseback through the
little villages and then on through the
cultivated plains coming into personal
contact with the people at work filling
the soil with infinite industry and as
| began to see how they have carried
on their civilization without let or
hindrance through thousands of years
| became thoroughly imbued with the
Japan Anxious to Cooperate
AS to Japan I have confidence that
her people will enter fully into the
spirit in which the new consortium
has been formed and that her bankers
will carry out scrupulously the com
pect they have made with their part
ners and associates of America, Great
Britain and France.
They are anxious to cooperate with
the other participating powers and
many of the japanese Government of
Gals declared themselves Convinced
Of the desirablity of adopting a new
policy toward China. I believe the
statesmen and financiers of Japan
realize that their country lacks the
free capital necessary to the construc-
tive program that China requires and
that they are willing to go along in
any joint project insuring fair and
! equal treatment.
In the last few years in pursuance
Of political policy Japan has ad-
vanced more than 250,000,000 yen to
China. 1t is now realized that con-
siderable portion of this money may
/ have found it's way into the pockets Of
dishonest politicians and that the pol
icy of being helpful has been harmful
to both China and Japan. 1t was in
evitable too during the recent flnan-
cial depression from which happily
Japan appears to be making recovery
that there would be a realization that
25O,0OO,OO0 yen had been kept at home.
! dscerned too a strong desire upon
the part of many Japanese for a
stronger, more stable, more orderly
and therefore more solvent China, as a
ncighbor, customer and the source
Of needed foodstutfs and raw materials.
With Japan's changing ideas toward
China and facing the situation in
China itself that | have described, with
its banking, economic and transport
tation systems in a backward state,
the consortium comes, with its new
policy, not Of imposing some large
plan of exploitation and control upon
China nor of securing great conces-
sons from her, but of wishing to rem
der China assistance in the develop
ment of her great basic public en-
terprses.
The consortium plans to do this