To the Editor of the "Norrg-Cuixa Dairy News."
Sm,—As you have considered it of sufficient interest to your readers to publish the various telegrams passing between the Shanghai Bankers Association and Sir Francis Aglen in reference to the new 11th Year Loan of $10,000,000, you may consider the following comments in the same light.
It is unnecessary to detail the reasons for protest, except to say that, undoubtedly, there was some justification for the Association's attitude, though it was entirely disassociated with its terms or security, which are excellent, or the need for the loan, which is beyond question.
Other and vitally important considerations must have been overlooked which, to quote Sir Francis Aglen's own words, made oposition "untimely and unwise." The Central Administration was utterly at the end of its financial] resources, and there was a grave danger that unless financial assistance was immediately provided the Administration might have been unable to continue to funetion. The disastrous results of such a collapse are too obvious to require enlarging upon, except to state that which should appeal most strongly to the patriotism of the whole Chinese people, namely, the possible prejudice to China's international relations, so recently established on a basis more in keeping with her dignity as a sovereign power, and this at the very time when the whole nation is anxiously watching the progress of the negotiations for the redemption of her vast national assets in Shantung, which have been for so long a period, under alien control.
In the event of such a national catastrophe it is the bankers, business interests, the capitalists and gentry that would suffer the greatest loss, and it is precisely these that alone hold the power to avert the national peril. Was it wise, therefore, to endanger the Ship of State for the sake of a mere coating of financial paint?
Undoubtedly, it was these considerations that secured the cooperation of the Custom's Administration, with all that this indirectly but obviously implies.
It is the opinion of many, which I share, that the salvation of China must be achieved by its business men and educated classes rather than by purely political factions, and the opportunity of the former has come now when the financial straits of the Administration have reduced it to utter dependence on those who control the nation's wealth. If these were now to unite and formulate a policy based entirely on China's national requirements, irrespective of pdiitical - factions, they ]coutd probably force it on this or any other government in return for their financial assistance, which alone makes survival possible, There is ground for belief that the phase of politico-military factions may now soon come to an end, if the merchants, gentry and educated classes generally unite in the support, financially and otherwise, of the present Administration, which seems to be, in most respects, the best and most promising since the first Revolution.
Just a word in conclusion with regard to the loan itself, in which T have no personal interest other than as the representative of a Chinese corporation investing in these bonds on the same terms as they are offered to the public. The terms and security are such as to make it a perfectly sofa and profitable investment, and its successful flotation is fortunately already. assured. It is practically a two and-a-half years' investment, giving an average return of nearly 14 per cent. per annum, while at the same time the Government is obtaining the much-needed finan. cial assistance on terms far more favourable to it than has been the case with any other loan floated in recent years. It should, therefore, prove very attractive to foreign investors in China, and a considerable sum has already been subscribed for by them.
I am, etc., A. J, Huaues.
Text read from the printed page and cleaned; old type leaves the occasional error.