CHINESE REPUBLIC.

Taranaki Daily News, Volume LV, Issue 116, 2 October 1912, Page 5

CHINESE REPUBLIC.

THE MUCH-DISCUSSED LOAN. By Cable—Press Association—Copyright. London, September 30. Mr. Crisp, of the firm of Birch and Crisp, denies that the German loan is connected with the English one. The Chinese loan is quoted at threequarters discount. The underwriters take 60 per cent, of the Chinese loan.

"PUTTING THE SCREWS ON PEKIN."

THE POWERS AND THEIR TERMS.

Greater than any other source of discord in China just now, says the Paris Temps, is the question of who is to 6pend the vast sums which have been offered. "With characteristic inconsistency both the central government and the 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 011 the sovereign rights of China and an insult to her dignity. Most unfortunately for the country, the London Times thinks, the Chinese have contrived of recent years to obtain from European and American financiers evergrowing sums without adequate control. The terms of the railway loan which has so recently made trouble are an example of their success. The construction and control of the lines are vested in the Republican Central Government as an inheritance from the old Empire. Although provision is mads 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 insure that advances shall not be made without provision for effective supervision of expenditure. But these endeavors have often been defeated. When carried too far they have -brought about crises like the one through which Yuan Shili Kai emerges triumphantly. He seems to be on the side of the American view that expenditure shoud be audited, but the Republicans about him deem the practice a violation of the newly secured freedom. Sun Yat Sen grows restless at evidence that a clique of international financiers seeks to capture the Chinese Republican Government. As evidence of what lie means is cited the fact that in order to "put the screws on Pekin," the Chinese Treasury was not permitted 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 be shipped from Europe to Asia. This was a mere trick, it is alleged, to bring the Government of Yuan Shih Kai to terms witli 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. The provincial assemblies declare by resolution again and again that the establishment of financial and military autonomy in themselves is indispensable if Pekin be surrendered to the financial syndicates. The financial syndicate itself is divided into a so-called Anglo-American combine and a clique of Continental European money-lenders. 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.