Show FINANCING THE CHINESE REPUBLIC I i Foreign reign Capi Capital al Making aking Heavy Demands D man s I I By Hin Rin Wong Special Correspondent CANTON Sept 14 That H.-That That the tho powers power I will lit not net formally formal recognize tho great re republic republic roI ro- ro I public of China until the tho Chinese lSe govern govern- ment meat submits to tho the terms of ot a a. foreign loan which provides pro for tor tho the bankers banker supervision supervision su su- su of or Chinese public expenditures does dotA not prevent tho the government gO o of the I province of ot from to executing I it its tUi financial program 1 K G will negotiate with Illi the Americans for assistance assist assist- i arias anee ance believing the tue United States state govern govern- government OVen r meat ment will not take advantage of or tho the pr present pros pres s. s ant ent nt financial dlf difficulty c to procure political privileges In In tho the south couth as aa Russia dud and nd I Japan attempt to do In Mongolia and Manchuria has been charged d with Intending tn- tn tending to lIec secede le from the republic because because ber be be- r cause CUle of ot Its refusal to recognize the agree agree- agreement i ment of March 9 last lut between the tho banker bank bank- I er era of the quadruple group roup and the cenI central cen cen- I government at P and aud this agreement agree agree- ee t ment provides that tho the government shall engage Itself to lT grant errant nt no io application of or t the provincial authorities for permission I to borrow orrow funds fUnd from other parties without with with- out first applying applying- to the group The go government believes it U Uha Ii h ha ban 8 a a. right to borrow from tram whomsoever It sees Bees fit nt and end on whatever terms term It deems I most most- advantageous The he Chinese throughout the south arc are arcI I opposed to the regulations for the tho supervision supervision super super- I vision of Pt expenditures of ot the advances id I made by the tho bankers to China According to the firstly the ministry o 01 finance will organize an au au- 4 0 department Th There re will be e on one au u u- u employed and paid by the bankers and ono one employed and paid by the Chinese government This department will w bo be separate from tho the ministry of or finance The Chinese In tho the JH south uth declare this first provision would gho the foreign audItor au au- equal cental power to the tho Chinese Ac Ae- According cording to tho estimated Income and nd ex ex- ex for tor 1912 Issued by the minister of or finance China Chilla will have an income of ell ta-ell and aM an expenditure of ot tads giving a deficit of or 27 jJ- jJ This Thill hows that China will have to borrow several hundred millions for ordinary expenses alone klone If It every item every Item of ot expense o has hiss to go through the department depart I ment meat of ot auditors It will give 81 the representative of or the tho bankers the tho power over oer every Chinese go governmental act which requires re re- quires expenditure a power that would ruin China If Ir he would Interpret the tho other terms in the agreement at as the thc foreign governments go have o so broadly construed the provisions lons of ot the this man many trestles treaties made in previous years year Secondly it tt Is provided that all orders on qa the banks for funds from train the advances placed at the governments government's disposal must bo be signed by the auditors From Front the tending reading of ot this thin the Chinese believe belle that the auditors have the right ht to refuse rUI e to any an order they the do not approve It will then b be the auditors and not the national council and tho the president who have the final right ht over an Not one ODe auditor but the two auditors kavo vo to sign alga an order an and the final authority will be in tn the ho hands of or the tue representative cot of the bankers as liS the Chinese Chi CM- nese nose auditor Is supposed to look after tho Interests ts of the tho Chinese o government moro or less If It this Is not an attempt of ot the foreign governments gove to regulate th the Ia Af Affairs at- at rain fairs of China to Ie their own interests through tho the supervision of or its finances the Chinese would like to know what It I IB is Thirdly the ministry of or finance eng eng- engages to furnish the banker from time to time for 01 their approval tic specific stat statements of the objects upon winch which funds obtained from the advances advance will be bo expended c. The Tho statements lIls must first have lla the approval 1 of or the national council and must I be bo published published pub pub- d in the tho official Gazette The minis try tr of or finance will 1 also furnish the the- the audi audi auditors tors toIs with detailed p and nd state state- ments monte to support governments government ic- ic questions for funds The auditors will ex examine x- x amine the these c. c anil if tr 5 t that Al nil nu la is lain in tn good order will sign tho ther requisitions To make mako China over ever r dependent on foreign foreign for for- eign loans necessary Bry TO vo purchase only from countries interested ted in Inthe the loan unable un unable un- un able ablo to make mako war on the tho powers represented In the syndicate now composed of six nations by adding Russia and Japan to tho United States Germany German England and and- France are all all' what tho the Chinese Ilu lu general suspect the foreign governments would attempt Only lending to China would the th bankers bank bank- ers era Instructed by their government And negotiating the loan through their diplomatic diplomatic diplo diplo- I matic representatives at Pekin demand such terms as restricting the tho tho ways through which the use the fu fund d the Chinese bel bele behove e According to those who are In favor of ot the loan the object of the supervision I is to obtain an honest boniest expenditure of the money mone advanced by the bankers Honest administration i Is one of or the things the most roost important thing which tho thio real patriots patriot y fc sa u for tor Tho The 1 other ether patriots should riot not object cl t to It even enC though the tho form torm o of its Imposition upon Chinese officialdom ma may be somewhat somewhat some some- what disagreeable ble AH As er c every loan obtained by the government government govern Joern ment of China 13 Is secured by one sort of tn tax or another what hat In Is tine tho difference to th the bankers in lii the ways the government Jo may use uso the mon money monC S. S it Il Is ts also asked Regardless of or the th feelings of or the tho p people ople the government go Is burrowing and und has to borrow on t tei similar t r. r t to the f foregoing mentioned d. d Of or course there thero aro are other provisions in the loan agreements hut but butthi tho thi In st nn s are embodied Inthe In InI Inthe the above c three e. e I Ne Negotiations for loans loan are still taking place at 1 |