Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-17

feet that advance, how to help China
effect it.
All questions regarding extraterri-
toriality and settlements and conces-
sions are only accessories of the greater
problem of how to increase China'S buy
ing power and how to maintain that
higher standard of living when 1t has
once begun to ascend the scale. had
a long talk within few hours with one
of the leaders in this colony of active
business representatives, man who
has lived in China many years, who
knows the people, knows their history
and especially knows their present con-
dition. 1t is his business thus to know
the country. Summed up in single
statement, this is what he gave to me
as a synopsis of the situation:
100000, 900 in China.
There are approximately four hun
dred million people in China. Nobody
really knows Just how many there are,
but that figure will serve as a basis.
Their margin between life and death,
the margin Of suStenance, Is very Slen-
der. Their wants, or rather their needs,
are relatively very simple. They are be-
ginning, however, to want more, for as
travel widens through China they see
others living better and it is human ma
ture for them to desire better things.
millions be increased by only a dollar
a year, and the total increase is four
hundred million dollars. If half Of that
Is spent on goods of foreign manufac-
ture somebody will gain two hundred
millions in trade annually. This is a
very conservative figure. Add five dol
lars a year to the average Chinese in
come and spend half of the addition in
purchases and the total Is a billion
dollars.
These mathematical computations are
fascinating. They are, OF course, some
what misleading, for not all Of the as
sumptions will come to pass. But 1t
certainly does stand to reason that II
the purchasing power Of the Chinese is
increased the volume of their purchases
will be increased. And that Is why at
this very hour competitive interests
here in the Far East are watching one
another sharply and maneuverlng TO
get into the most favorable positions
for the good times that, all feel, are
sure to come.
Seeks Loans for Railroads.
Just at this writing China is seeking
foreign loans for the purpose OF build
ing new railroads and for carrying on
other national improvements. A confer
ence at Amsterdam between the Inter-
Chinese representatives on this very
subject is reported in this mornings
papers. BY the time this matter is
printed something may have been
worked out on this line.
One great difficulty now recognized
as in the way of these Chinese loans is
that no adequate security can be given.
A great part of China's present indeb-
tedness to foreign interests Is in de-
~ 40 fh0f
future loans will be more faithfully
guaranteed There is, it is true, a ma
tional government now tunctioning
after a fashion, not perfectly or COM
pletely throughout all parts of China,
but more fully than at any time since
the downfall of the old regime. Yet
with everybody with whom I have
talked here there is doubt as to its du-
rability, even though just at this mo-
ment it seems to be more secure than
heretofore, with less danger OF breach
of the unity that now prevails, and with
some possibility of the disarmament OF
a large part of the military forces that
are absorbing nearly so per cent OF the
revenues of the state.
Frankly, these business interests are
skeptical of the ability Of the Chinese
to understand the basic principle OF
national loan, which Is the obligation
10 pTOVIuc lOE 1IS 1CPoyAAChV AA AeS
time and for the regular payment of
interest. Heretofore, 1t would seem, the
Chinese official concern has been only
to get the money, and to let the lender
worry about principal and interest. OF
course, that method of financing q gov
eminent cannot continue, without coll
lapse In time.
But II collapses come, say the astute
business men who look at the situation
most shrewdly, will not worse condi-
ton ensue? Hence some of them are
urging that loans be made to China on
the "get-them- back If possible" basis,
frankly, on the basis Of regarding such
loans as permanent investments" in
good will, economic development in
China and as a result increased buying
power here and greater volume OF
trade for the most enterprising.
Going back to the hypothetical hg-
ures Of my friend, given heretofore,
suppose by reason OF a loan OF BILL
lion dollars, or q series of loans, from