the question of this gold-indebtedness had become so serious and such a
drain on the nation, some months before the outbreak of the Revolution
an arrangement had been entered into with the bankers of four nations
for a Currency Loan of £10,000,000 with which to make an organized
effort to re-establish internal credit. But this loan had never actually
been floated, as a six months' safety clause had permitted a delay
during which the Revolution had come. It was therefore necessary to
begin the negotiations anew; and as the rich prizes to be won in the
Chinese lottery had attracted general attention in the European
financial world through the advertisement which the Revolution had given
the country, a host of alternative loan proposals now lay at the
disposal of Peking.

Consequently an extraordinary chapter of bargaining commenced. Warned
that an International Debt Commission was the goal aimed at by official
finance, Yuan Shih-kai and the various parties who made up the
Government of the day, though disagreeing on almost every other
question, were agreed that this danger must be fought as a common enemy.
Though the Four-Power group alleged that they held the first option on
all Chinese loans, money had already been advanced by a Franco-Belgian
Syndicate to the amount of nearly two million pounds during the critical
days of the Abdication. Furious at the prospect of losing their
percentages, the Four Power group made the confusion worse confounded by
blocking all competing proposals and closing every possible door. Russia
and Japan, who had hitherto not been parties to the official consortium,
perceiving that participation had become a political necessity, now
demanded a place which was grudgingly accorded them; and it was in this
way that the celebrated six-power Group arose.

It was round this group and the proposed issue of a £60,000,000 loan to