San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-09-09
By JUNIUS B. WOOD.

Special Correspondent of the San Antonio
Light and the Chicago Daily News.
Peking, China, July 2s.-Chin,
probably has the smallest per capiti
, national debt in the world. No othcI
people are more thrifty and industrl
Gus. The country has unlimited re
sources and commerce. With all thes'
advantages, its government is always
in financial straits and its nationa
credit is at the vanishing point. China
leads the list of good assets and the
j list of bad debtors.
China's national debt is about s.
gold per capita. That of the United
States. since the war. is around 1920
The annual interest alone in the
I United States is nearly five times the
principal in China. Countries are like
people. A $500 loan to some does not
cause any worry but 81 touch by
others means many sleepless nights
and hopeless dunning. China is no
nearer bankruptcy than is the United
: States. The trouble is that the ficti-
" tious government in Picking does not
represent the people, has no control
lover the country and no machinery
% for collecting the mere pittance from
each inhabitant which would pay al
debts and increase the country's bor-
rowing credit hundred fold. Credit
ors took a chance. They have largely
themselves TO blame for loaning mil
lions to irresponsible and frequently
dishonest officials, knowing at the
time that the latter did not represent
the country and easily surmising that
many of the millions would not be
, used for the country's development.
Total Is Hard to Reach.
No two authorities agree on the to-
tai of China's public debt. Changing
rates of international exchange make
( variations of millions and each al
= thority" uses his own arbitrary method
of classification. The estimated deOt
= divided by the estimated population
makes 81 per capita which can be
y-agreed upon. Six carefully compiled
; sets Of tables-by two separate fleet
I ing ministers of finance. an expert
of the maritime customs. two Chinese
mathematical experts and the statisti-
! clan Of the tariff conference bureau
vary from S1,6S7 ,S35,739 TO s.. 237.-
I, 245000. The amounts are in Mex dol
T, lars (S2 Mex-S1 U. S. and Mex
F.; dollars will be used hereafter. The debt
I question will be an important factor
= in the international tariff conference
for China proposed in the Washing
ton treaties. The summary of d. h
Lieu, representing that bureau. are as
follows:
Foreign loans (secured) 81 ,OS7 SOC, 900
i Domestic loans (se-
- cured) ............. 236, 81 81
German loans ..... 2.231 ,OJG
Austrian loans ...... 3J,09O,0
Foreign loans (un-
securely ......... 300, 032, o52
Domestic loans (unse-
y cured) ............. 96,106, $50
!. s1,775,7O1,s52
4 Since Mr.. Lieu's report, exchange
rates have varied to China's disad-
vantage. Taking more recent rates
+, fpound sterling, SOIL: frame, S1.6j;
florin, S0.405; 81 L. s., so the Sc
cured foreign debts are:
Loan. Unpaid
Franco-Russian .....S 25,9j3,272
Anglo German ........ 110.01G,2S6
Z Boxer indemnity ..... G56.206.3iJ
/. Crlsp ...... 4J.J50,0O0
. Reorganization ........ 227,1J0,0 900
& t.--I ,>,44 81, 5.4I5,90
{ Principal and Interes,
bpdu. Due III 100.
Franco-Russian 81, 49O, 524
Anglo-German .......... 16,436.91S
Z Boxer Indemnity ....... 20,572 .6I6
< Crisp ................ 3,1S9. 100
(. Reorganization r-...... II ,321 ,247
s. ----------
Is Sj6,611. 135
!, The Franco-Russian loan was con
/, tracted in 1895, to pay the japanese
war indemnity. issued at 81 Is with
per cent interest, amortization from
1896 TO 1881.
I, Who Loaned the Money.
I. The Anglo-German loan, represents
= two joint loans for the same purpose
by the Hongkong and Shanghai Bank
/. ing Corporation British and the
Deutsch-Asiatische Bank German
and closed), the first in 1896, issued
at "a. at D per cent, amortization
from 1896 to 1892, and the second in
!1S9S. issued at So, at 41-2 per cen,.
amortization from 1898 to 1913.
The Boxer indemnity was contrac.-
ed in 1901 with thirteen governments
. at 4 per cent, amortization from 1902
TO 1910. The unpaid German and
Austrian share was cancelled in 1917.
and the Russian payments have been
suspended since 1920. Eight of the