THE DEBATE ON NATIONAL SALVATION
47
readily lend except on condition that they should have some voice in the control or management of the enterprise for which the money was to be loaned. Ho Kai was of the opinion that China would scarcely relish such a condition. China would prefer to raise a loan among her own people. This was indeed a better way. He suggested:
Nearly every European nation has a national debt in which her people freely invest in spite of the low rate of interest. Why should China not have a national debt also in which her own people can also invest? No reason at all except that before borrowing from her subjects she has first to establish her credit with them, and win their confidence and trust. But does China possess the confidence of her people regarding money matters? I am afraid not. Witness the recent failure in the attempt to raise a small loan by the Canton authorities. One can hardly wonder at this, seeing the great reputation Chinese mandarins have acquired of knowing too well the value of money, and therefore hard to be made to part with any when once placed in their possession. Some Chinese go so far as to fear that if once they deposit their hard-earned capital with the Government, they will never see it again, much less the interest. This is a pity, for I believe there are many wealthy Chinese who could afford to leave with the Government handsome sums on loan at moderate interest.
Should the Government have much difficulty in securing sufficient funds to carry out all the contemplated improvements, they might be forced to leave much to be done by private enterprise. This after all is the best way, as has long ago been found out in other countries. But private enterprise will not be undertaken without much encouragement from and confidence in the Government. The least suspicion of injustice, the remotest fear of underhand dealings and undue interference on the part of the Government, such as the levying of blackmail, the imposition of heavy taxes and the assumption of certain injurious prerogatives, would prove fatal to such undertakings. Will the Chinese Government give us some assurance beforehand?