New-York tribune., 1921-12-11
China S Financial Trouble
Allied Powers Responsibility for
Her Predicament
Bv Gilbert Reid

PEKING, Nov. 10 (By Mail).-At the
moment of writing the financial diff
ficulties of the Peking government are
already we'll known to American read
ers. I therefore content myself with
more general review of China's finan-
cial condition as bearing on the Wash
ington conference.
1t may be taken for granted that full
use has been made of China's financial
troubles, approaching liquidation, to
discredit the Chinese delegates and to
place them in an unfavorable position
in the estimation of others. But right
here comes in the doctrine Of relativity.
There is much in which the Chinese
ma. be blamed for their present pre-
dicament, for the Chinese Republic is
no more perfect than was the formeK
Manchu monarchy. But relatively, COM
pairing Chinas finances or military ex
penditure with those of other coun-
tries, blame in being attached to China
must also be forthcoming for others.
The indebtedness of the central gov
ernment now amounts to something
over $4O0.O 100000 (gold), more than half
of which is foreign debt and of that
more than half debt to japan.
The particular crisis has come
through the nonpayment of little
over $2,oOo,0OO (gold) to the Cont
mental and Commercial Bank of Chi
cago and similar amount to another
American company. These amounts are
not large, but payment is as hard as
payment of much larger amounts is
Pressure has been brought to bear
by the American government to bring
about some kind of settlement, but
thus far no source of revenue is IN
sight. Suppose similar pressure should
be brought to bear by the American
government on Great Britain, France
and Italy, would the interest on in
debtedness to the American govern
ment or American bankers be met :?
Or would they all cry "Non possumus!"?
Why, then, is China alone to be dis
credited?
But it may be said the financial
trouble of these three European gov
ernments is due to the part they
played in the great war, while China
was at no expense and did nothing Of
any Importance in the war. Quite
true. but none the less China's present
trouble, politically and financially
must be traced to the war, if not to
active participation in the war. Il
China had not been induced to
enter a war which was no concern OF
hers. there would have been no over
throw of the constitutional govern
ment of the republic, no dissolving OF
Parliament, no strife between the fac
tions of North and South, no rise to
power of the militarists and no need
or desire to load China with foreign
indebted to meet administrative
requirements. All this, if we may form
Judgment on the basis of happenings
prior to the projection of the war is
sue, for up to February, 1917, China
was at peace and all factions worked
| together.
It is acknowledged that China
souanders millions on internal warfare
But how did this come about? Why is
there civil strife? It is because the
militarists sprang into power through
the war issue, and against them the
Constitutionalists, being turned out
have been arrayed ever since.
All the Allied powers are concerned
| in bringing on this lamentable sltua'
tion. They should be patient with the
Chinese till unity is restored.
Moreover, it was the militarists who
were recognized by the Allied powers
for having declared war on Germany
and these have been the men who have
increased China's Indebtedness and
rolled up loan upon loan, especially
from neighbor Japan. 1t Ill becomes
Japan or any other loan-lending coun'
try to dwell too much on China's pres
ent predicament. Real helpfulness ii
needed in these trying days. IT these
facts are borne in mind by all the dele
cations China may yet secure JUS
treatment at their hands.