CHINESE-LOAN.

Dominion, Volume 6, Issue 1558, 30 September 1912, Page 5

CHINESE-LOAN.

ISSUE NAT RUSHED.' PROMOTERS/ REASSURE STOCK EXCHANGE. YUAN.SJHH KAI GRATEFULBy TclogrA.ph-JPr.oss Associalion-ConTrieht (Pic. September 29, 5.5 p.m.) London, September 28. There has been no public rush for the first half of the Chinese ten million loan, bill, it is expected that the amount will be o-jvered to-day. The President of China, Yuau-Shih-Kai, has cabled to the Chinese legation expressing the Government's satisfaction at (he successful flotation of the loan. The , nation,-he says, is deeply grateful, and the. Republic will regard the discharge of this loan as an obligation especially binding. | The "Statist" declares that great cleveri| ness was shown in underwriting the ban f quickly, but the issue will create a bail | impression abroad and give a handle to | unfriendly nations to impeach Britain's II good faith in connection with the proposed I Six-Power loan. The "Daily Telegraph" says: "China's I leaning towards the resources and friendships of our Empire is not a thing to be ! lightly put aside. A remarkable phenomenon is that the Government at such <i moment should be found sharing with Powers which arc outside the arrangement desired by China." It is announced that the interest ami sinking fund of (he loan will only absorb -EGSO.OOO annually, and will be a first charge on the Chinese salt taxes. The banks supporting the loan are: Lloyds, the Capital and Counties, the London awl South-Westem, and the Chartered Bank of India, Australia,-and China. When the action of Sir John Jordan (British Minister to China) was announced, soroo of the underwriters were nervous, -and Messrs. Birch and Crisp, fhe promoters of the loan, went to the Slock Exchange, and offered, not only to relieve thr,m of (heir liability, but to" pay them a half per centum commission for their trouble. Practically all decided to adhere (o the original agreement. Tho City understands that China is willing to pay off her liabilities to the Powers. PESSIMISM IN JAPAN. (Rec. September 29, 5.5 p.m.) Tokio, September 28. The press is pessimistic at the failure of the Six-Power group to negotiate a loan with China, and foreshadows the dissolution of the combination and tho readoplion by the Powers of individual policies in China. ISSUE OVER-SUBSCRIBED. (Rec. September 30, 0.35 a.m.) „. London, September 27. ! The Chineso loan has been oversubscribed. "PUTTING THE SCREWS ON PEKING," THE POWERS AND THEIR TERMS. Greater than any other source of di«c ,?,, m Cllllla J ust 1,0, v. savs the Paris ' temps/ is the question of who is to spend the vast sums which have,been offered. "With, characteristic inconsistency both the central government and tho provincial authorities assert the doctrine that any kind of foreign supervision over the expenditure of foreign loans is inadmissible. It is, they say, an infringement on the sovereign rights of China and an insult to her dignity. Most unfortunately for the country, the London 'limes" thinks, the Chinese have contrived of recent years to obtain from Luropcan and American financiers' ever growing sums without adequate control. Iho terms of tho railway loan which has 60 recently mado trouble are an example of their success. The construction nnd control of the lines are vested in the Republican Central Government as an inheritance from tho old Empire. Although provision is made for the employment of Western engineers the agreement does not contain clauses to prevent mismanagement. The United States Government has tried, in the best interests of China, to insnro that advances shall not be made without provision- for effective supervision of expenditure. But these endeavour's have often beeii defeated. When carrier! too far they have brought about crises like the one through which Yuan Shih Kai emerges triumphantly.' He seems to be on the side of the American view that expenditure should be audited, but the Republicans about him deem the practice a violation of tho newly secured freedom, iSun Yat Sen grows restless at. evidence that a clique of international financiers seeks to capture tho Chinese Republican Government. As evidence of what he means is cited tho fact that in order t<i "put the screws on Peking," the Chinese Treasury, was ji.ot permit ted recently to transfer by cable large sums to its credit in London. The banks controlled by Russian, German and French houses insisted that the bullion would have to l>e shipped from Europe to Asia. This was n mere trick, it is alleged, to bring the Government of Yuan Shih Kai to term; with reference to the sixty million loan. Hints of the state of affairs were conveyed to the 'provinces by the agents of Sun Yat Sen, the first consequence being an agitation against foreigners. Tho provincial assemblies declare by resolution again and again that the establishment of financial and military autor-omv in themselves is indispensable if Peking be surrendered to the financial syndicates. The financial syndicate itself is divided- into a so-called Anglo-American combine and a clitiue.of Continental European in'oi">ylenders. The Anglo-American combination is accused of seeking a monopoly of Chinese domestic, bonds. The continentals are charged with designs upon the territorial integrity of China.