The action of the in sending a strongly worded circular telegram to the provincial authorities in regard to foreign loans should be appreciated ose Chinese who recognize that the indiscriminate borrowing of the past has been largely reapons'ble financial and_ political misfortunes. The President haa emphatically forbidden any borrowing whatsoever from foreign sources on the part of the provinces. This is not only sound policy, but it may in much more firmly established than many have been inclined to believe. In former times, and not so many years ago, the provincial authorities were inclined to play fast and loose with China's rights in order to obtain often at an extortionate rate of, interest. It is not necessary to cite actual cases, but itis a well-known fact that the numerous political-commercial firms by means of which Germany has been spreading her culture and morality in China have encouraged the provincial authorities to indulge in periodical bouts of financial dissipation, which were calculated to necessitate subsequently, to use the colloquial, a "hair of the dog."
Text read from the printed page and cleaned; old type leaves the occasional error.