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

Allied nations-Great Britain, Unite
States. France, Italy, Russia, Japan
Belgium and PortuGal-agreed to
suspension of payments in 1917, re
Stunning this year but extending tn,
amortization to 1915. Spain, HOLLAND
! and Sweden are unchanged. France
Belgium. Italy and Spain are now il
a deadlock with China as TO whether
their monthly share. which is pai(
| in francs while the other countries re
ceive theirs in pounds sterling, goiC
dollars or florins, shall be paid il
francs at the New York rate of ex
change for that day or at a gold franc
rate. The former would mean a &c
per cent reduction for China. Tho
eleven Boxer protocol signatories, in
Guiding the United States. have signed
a joint demand for gold franc pay
ments and Spain, whose annual share
is only 27.60S.55 francs. has threat
ened to withdraw recognition of China
if she insists on paying in paper
francs.
The Crisp loan was contracted with
G. Birch Crisp & Company of Great
Britain in 1912, issued at 50. at )
per cent, amortization from 1922 to
1852.
The reorganization loan was COL
tracted with the five powers conso:-
tium from which Germany and Rus
sian have disappeared leaving only
Great Britain, France and Japan. In
1913, issued at 81, at per cent
amortization from 1923 to 1860.
For Political Purposes.
Regardless of the question whether
their nationals observed ordinary bust
ness precautions when they granted
these loans to certain individuals
whom they presumed represented a
government in China, there are other
considerations which the powers VIII
weigh before they embark on any wild
and expensive campaigns for military
occupation Of China. The Nishihara
loans were made largely for a political
purpose. The Chinese got the money
and then it failed.
So far as the United States is con-
cerned, its commerce with China in a
single month is equal to the total of
the seven so-called unsecured Amer
lean loans. The volume of American
commerce with China has almoS:
doubled in the last. six years. National
honor should not be secondary to a
favorable trade balance. but certaini
no hasty action should be taken TO
disturb the years of friendly feeling
which now finally are Undertaking.
in making China one of the UniteI
States best customers.
Chinas two debts to the Continent
al and Commercial Bank of Chicago
and TO the Pacific Development Com
pany of New York, each for $500.
600 gold and each maturing in 1921.
and overdue since then. are the mos:
discussed of the unsecured" Amer.
lean loans. Their security is the
wine and tobacco tax which is more
tangible in China than is prohibition
in United States. The tax is collect
ed but like other taxes it is kept by
the province or military leaders anl
less than one-tenth of it ever reaches
Peklng. An advance OF United State
S93S,9S3,J1 by the American Interna-
tional Corporation with treasury not:
as security is next in size. The other
four are around United States $780,
GOO each. The unpaid Coltman indem-
nifty of United States $4,000 should
be included.
Want Another Loan.
While the sober foreign policy is To-
let these insufficiently secured debts
stand until they can be winnowed out
and cared for at the coming tariff
conference, the Chinese wish is to float
another bond issue to consolidate
them and allow some spending money
in addition. The government wants
money TO pay salaries. habitually in
arrears, and to carry out various I'M
provements. In the latter they Will
have support, especially from those
who expect to get the contracts.
The latest minister of finance after
several dozen columns of figures sum-
married the government balance sheet
as follows:
Expenses.
Peking police and troops.S 7,96S.000I
War minister .......... 1896, 900
Shihl troops ........... l3.OJ6.OOO
Navy 6,600,O00
Total military ......$ 1O,62O.O 900
Clyll expense ......... 81, 100000
Total expense ..... .S10S, 900, 900
Receipts.
Revenue :. $3.50. 100000
Diverted :. 31j,S12,000
Net ....$ 14,37S,OO0 $ 143TS, 900
Annual deficit .......S $685.. 900
In addition he tabulates some $3.50 =
100000 of back salaries unpaid dur