Evening star., 1933-06-15

Reactions to the $4,000 900 dea
with China by the Reconstruction
Finance Corporation show wide yaria.
tions. The loan, in the form Of credit
is to be employed for the purchase from
this country Of 100000 bales Of cotton
and 12,500,000 bushels Of wheat. with
China pledging payment OF the money
out Of revenue from certain definite
taxes. Advantages for both nations are
generally recognized, though there Is
some criticism of the deal, based upon
internal conditions in China.
Fifty million dollars worth OF cot
ton and wheat shipped to the Orient
will contribute something sizable both to
growers and shippers" according to
the Oakland Tribune, and that paper
comments: 1.-THE money goes from one
country to the other and comes back
again. American ships carry the cargoes
and American growers receive the bene-
fits of the sales. China guarantees the
payment of the loan by stipulating it
shall come out of taxes, and right now
for all the war and its expenses, Chi
nese finances are in better shape than
in years"
This loan to the Nationalist govern
ment at Nanking," in the opinion of
the Hartford Courant, will have a
tendency to strengthen the Kuomin-
tang. The necessity for giving aid to
this group was pointed out by the
Lytton Commission on Manchuria, be-
cause only with some fairly strong CEN
trail power can China be in any way
responsible for its obligations. This
loan to Nanking for purchase Of Amer
ican products is In complete harmony
with out historic policy of the open
door, or equal opportunity among ma
tions In competition for the great un-
developed Chinese market, but 1t In
wolves consequences which clearly In
dicate the immediate need for inter-
national understanding on problems Of
world trade"
This may prove" says the Charlotte
Observer, "the beginning of the opening
of the way for trade resumption between
the United States and China, which will
have substantial benefits for both coun-
tries. 1t Is somewhat in the way of
letting down the trade barriers existing
since the World War, if even by a
process that may be considered little
peculiar"
Not only will it mean the reduction
of cotton and wheat surpluses, espe-
cially the former" points out the Louis
vile Courier journal, "but 1t will result
in helpful activity for the railroads,
steamship lines and the -four mills. The
cotton it seems, is to be shipped in
the bale and spun and woven in China.
The milling of 12,5O0,000 bushels of
wheat will mean the day-and-night
operation Of some of Americas big
gest plants, especially those around
Minneapolis, where the bulk of the hard
wheat Is processed. Some Pacific mills,
however. are likely to be allotted q por-
ton Of the -four contracts by the Chi
nese government. Even though 12,500,-
600 bushels is small part Of the Amer
lean wheat carry-over Of 1853 ,000, 900
bushels, that quantity is enough to bring
prosperity to the milling community,
which must, in addition, turn out its
regular supply for this country and the
Atlantic export trade"
ITO all intents and purposes" as in
terpreted by the Fort Worth Star-Tele-
gram, '''the United States Is lending
China approximately 100000 bales Of
cotton and u, SOC, 900 bushels Of wheat.