Evening star., 1933-06-12
r. F. C.. Loan of Fifty
Millions to China
o the Editor of The Star:

To the Editor of The Star:
The press reports that the Finance
Corporation is making loan of fifty
millions to the Republic of China, with
which the Chinese government Is to
buy American wheat and cotton. It is
said that these products will come
from the reserve stocks now in the
hands of one of our Government
| agencies.
Presumably no part of this loan will
actually be turned over to the Chinese
| authorities, but that they will be
credited with the loan and the wheat
and cotton charged against it as and
when it is furnished to China.
1t is hard to see just how the Amer
lean farmer will be benefited by this
we will make gift of fifty millions
worth of wheat and cotton to China,
for the loan will never be repaid
But there is a question involved of
far more import than this loss of the
business phase of this transaction. It
Is assumed that the billions which this
corporation has been dispensing with
a prodigality and generosity without
parallel IN human history come from
the people by taxation. If this is true
there is no authority for the loans
made by this concern. The taxing
power of Congress and the purposes
for which taxes may be imposed are
found in section 8, clause /, article
OF the Constitution. The activities of
this corporation are probably based
upon the theory that these loans are
for the general welfare" which is
term found in said section g. The
Supreme Court has, however, fire.
quently held that the term, provide
for the common defense and general
welfare" contains no grant of power
whatsoever, but Is a mere expression
OF the ends and purposes to be effected
by the preceding power of taxation,
and is limitation on the taxing power
of the United States, and that only,
thereby limiting the power to tex to
those purposes only which are clearly
set forth in the Constitution. Loaning
the taxpayers money to carry Tom,
Dick and Harry is not among those
purposes.
But one may ask, Why bring up this
question, since the Constitution has long
since passed into the dim twilight of
hah-remembered things?
But II the loan were made with law
full authority it is without Justification
for the simple reason that there is no
Republic of China in fact, but only in
name. In reality there is not now nor
has there been for long time any re-
sponSible government In China, exercis-
ing authority and jurisdiction through
out that vast country Of four hundred
millions of people. There are provincial
governments under the control of war
lords, who recognize no central govern
ment, and who are continually fighting
among themselves to maintain their re-
spective positions and to extend their
power and jurisdiction. True, there are
a few Cinnamon sitting in Nanking who
imagine and claim themselves to be the
Republic Of China, but who exercise
about as much influence and control
over China as the man In the moon
In fact, their position Is none to Sc
cure even in the city Of Marking.
This loan can never be repaid and
should any of it come into the hands
of these officials of the so-called Re-
public of China it will be promptly an
propriated to their personal use. In ac-
,ordance with the immemoriai chinese
custom. have been in China four
lines, and know something Of the peo-
Die, officials, customs and conditions in
hat country.
ALEXANDER SIDNEY LAN1EI.