Peking, Sept. 29.
The new $10,000 008 can secured by the Russian indemnity payments, is now approved by the proper authorities beyond—all is an excellent investment both from the point of view of security and from that of interest, its ready sale is taken for granted. This means that the immediate future of the present administration in Peking is secured. There will be no collapse and presumably no radical political turnover. It would appear that it was largely this consideration of saving the Gov ment which made the loan possible on such favourable terms. As it was, it did not escape bitter criticism from certain quarters.
Tha lear was made possible because the maturing of internal Joan bonds secured on thd reserved portion of the Russian Boxer indemnity payments from Customs veceipt{ released something like £360,000 a year. Many foreigners, including some of the bankers, took the attitude that this money should become so much Customs surplus, that its proper use would be to stabilize further the consolidated internal loans, and that a loan secured on it, if such a loan were made, should be considered the last lien on Customs surplus and should not take priority over the various charges subsequent to the Boxer Indemnity charges.
With this view both Sir Francis Aglen avid the Chinese financiers differed. They argued that Russian Boxer indemnity payments were not repudiated by the Chinese Government but that the proceeds of the loan service were held in trust by the Government pending the resumption of relations with a stable Russian Government, so that these funds could not be thrown into the general surplus but must maintain their status a4 Boxer indemnity payments while any loans secured on them would have the same position of priority in the sequence of liens on the Customs revenues as the Russian Boxer indemnity loan service. The Chinese Government insisted; that if these futids newly available were not used as security for the prospective loan they could not be available for other purposes but would simply accumulate in the foreign banks bearing two per cent. interest per annum.
Text read from the printed page and cleaned; old type leaves the occasional error.