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Show CHINA UNABLE JO ELMS Lack of Security Proves Handicap By R. 0- MARSHALL. (United press 8taff Correspondent.) PKKJN (By Mail to United I'ress China's Inability to get a substantial loan, either foreign or domes tin. is explained ex-plained by a report of her financial status, compiled by Chinese and members mem-bers of some of the legation staffs. China owes In round, numbers 12,-000.00V.tXM 12,-000.00V.tXM and of this total $440,000.-000 $440,000.-000 le unsecured, or the security is wholly inadequate. The remainder is secured by the customs, cus-toms, such salt revenues as have not been aelsed by the provinces, the railroads rail-roads and the telegraphs. The largest single unsecured debt ! to the Nlshlhara banking group in Japan, which leaned, without asking security. $150,000,000 when the Anfu or pro-Japanese government . wss In power. A year ago the unsecured loans did not exceed $1' 00, 000. 000, but since that time the provinces have seised the salt fields. Wu Pei-Ku seised the revenues of the Pekln-Hankow railroad and Chang Tso-LJn seised the northern half of the Pekln-Mukden railroad. Wu Pel-Fu also seised a portion of the telegraph revenue These government enterprises have had a measure of foreign for-eign supervision to insure reasonable efficiency, but the properties have been seised by the military despite the protests pro-tests of foreign investors. Just one good security remains, the Customs. That source is under rigid foreign control and being established mainly In port cities accessible to foreign for-eign gunboats, Is In little danger of set sure. The customs Is taxed to the present limit by forclan loans, only a small portion por-tion each month being available for the government. An increase of one and a half per cent is soon to go Into effect, but most of this Increase, according ac-cording to the Washington conference confer-ence agreement, must go for liquidating the foreign debts. At the lowest estimate It requires $ J. MM). 000 a month to pay the country's bare administrative expenses and the government heads can find but $l.ouv,-00. $l.ouv,-00. The military expenses must wait under un-der any condition and this is nine-tenths nine-tenths of the whole governmental expense ex-pense of China. |