Papers Relating to the Foreign Relations of the United States, With the Address of the President to Congress December 8, 1914
File No. 493.11/465.
The Acting Secretary of State to the Chinese Chargé d’Affaires.
Washington, January 16, 1914.
Dear Mr. Charge d’Affaires: I beg to enclose herewith copy of a letter from the Treasury Department, together with an itemized [Page 70] statement relating to payments made by your Government on account of the 1913 quota of the Indemnity.
The Department has inquired of your Government, through the American Legation at Peking, whether this Government is to pay to the Chinese Legation here, for the support of indemnity students in the United States and of the Chinghua College, the amount refundable to China.
I am [etc.]
The Secretary of the Treasury to the Secretary of State.
Washington, January 10, 1914.
Sir: The Chinese Government, through the International Banking Corporation, deposited with the Assistant Treasurer of the United States at New York, between August 30, 1913, and January 7, 1914, certain sums of money aggregating $1,082,805.69 as applicable to the half-yearly installments of the Chinese indemnity which China was required to pay for the calendar year 1913 on the basis of the original amount of $24,440,778.81 as fixed in the Bond of Indemnity given by China to the United States.
An examination of the status of the account for the calendar year 1913 has been made and you are advised that the amount of said deposits required to discharge the portion of the indemnity to December 31, 1913, and the amount thereof refundable to China is as follows:
| Total deposits | $1,082,805.69 |
| Amount required to pay June and December, 1913, installments | 539,798.06 |
| Amount of the deposits refundable to China | 543,007.63 |
Statements are enclosed herewith as follows:
Statement “A” showing deposits by China as applicable to the amount of indemnity due for the calendar year 1913; the amount thereof retained as due the United States on the unremitted portion of the indemnity; and the amount refundable to China as representing the portion remitted under the provisions of the Joint Resolution of May 25, 1908 (35 Stat, 577).
Statement “B” showing the amount of the indemnity due for each half of the calendar year 1913; the payments thereon by China; the amount of interest charged on the deferred payment of the June, 1913, installment; and interest allowed China for prepayments of the December, 1913, installment.
Statement “C” showing the deposits applied and interest charges and credits made in the account for the June and December, 1918, installments of the unremitted portion of the indemnity.
Your attention is respectfully invited to the fact that moneys heretofore deposited by China with the Assistant Treasurer at New York have not been accompanied by any statement of the credit to be given therefor, other than that they were to be applied to the amount of the indemnity due for a particular month, and in this the statements were not always accurate.
The monthly sum of approximately $45,000 is sufficient to pay the amount of the indemnity due the United States on the basis of the unremitted portion of the indemnity. Monthly deposits of $90,065.63 were made by China without any expression of her desires in respect to the part thereof refundable as representing the remitted portion of the indemnity, causing the deposits to accumulate, the Treasury Department being without proper information to permit of a separation of the moneys in order that the portion due the United States might be covered into the Treasury by warrant.
I therefore have the honor to request that suitable instructions be given by your Department for the transmission with each deposit made in the future for account of the Chinese indemnity of a distinct and definite statement of how the same is to be applied and if in excess of the monthly sum of $45,000 that request be made for the disposition of such excess currently, instead of allowing ii to remain in the Treasury undisposed of until the close of the yearly or half-yearly installment periods.
Respectfully,
STATEMENT A.
Deposits made by China as applicable to the Chinese indemnity due for each half of the calendar year 1913; the amount thereof retained by the United States to discharge the debt for said calendar year on the basis of the unremitted portion of the indemnity, as per Table of Amortization; and the amount of said deposits refundable to China as representing the portion of the debt for the same calendar year remitted by the Joint Resolution of May 25, 1908.
| Date of deposit. | Applied to June 30, 1913, installment. | Applied to December 31, 1913, installment. | Total amount of deposits. | Excess of deposits over requirements for the year 1913. |
| 1913. | ||||
| Aug. 30 | $90,065.63 | $90,065.63 | ||
| Sept. 2 | $90,065.63 | 90,65.63 | ||
| Sept 5 | 1,048.21 | 1,048.21 | ||
| Sept. 11 | 90,065.63 | |||
| Oct 1 | 503.22 | $89,562.41 | 90,065.63 | |
| Oct 10 | 90,065.63 | 90,065.63 | ||
| Oct. 18 | 623.73 | 623.73 | ||
| Oct. 28 | 87,797.97 | 90,65.63 | 2,267.66 | |
| Nov. 1 | 796.98 | 796.98 | ||
| Nov. 10 | 90,065.63 | 90,065.63 | ||
| Nov. 19 | 90,065.63 | 90,065.63 | ||
| Nov. 22 | 866.29 | 866.29 | ||
| Nov. 29 | 1,022.22 | 1,022.22 | ||
| Dec. 1 | 90,065.63 | 90,065.63 | ||
| Dec. 10 | 90,065.63 | 90,065.63 | ||
| Dec. 24 | 90,065.63 | 90,065.63 | ||
| 1914. | ||||
| Jan. 7 | 87,726.33 | 87,726.33 | ||
| Total | 271,748.32 | 268,049.74 | 1,082,805.69 | 543,007.63 |
recapitulation.
| June 30, 1913, installment. | Dec. 31, 1913, installment. | |
| Amount of installment | $269,794.38 | $269,794.38 |
| Interest charged on deferred payment | 1,953.94 | |
| Interest allowed on repayments | 1,744.64 | |
| Payments by china for each half year | 271,748.32 | 268,049.74 |
| Total amount deposited | $1,082,805.69 | |
| Deposits applied to June 30,1913, installment | $271,748.32 | |
| Deposits applied to Dec 31,1913, installment | 268,049.74 | |
| 539,798.06 | ||
| Balance of deposits refundable to China | 543,007.63 |
statement b.
Indemnity due for each half of the calendar year 1913; the payments thereon by China during the year, as credited at the United States Treasury; the amount of interest charged on the deferred payment of the June installment; and the interest allowed China for prepayments of the December installment.
| 1913 June 30. | Semiannual installment of indemnity | $269,794.38 | |
| Interest to Aug. 30—61 days | 1,803.55 | ||
| 271,597.93 | |||
| Aug 30. | Payment by warrent | 90,065.63 | |
| 181,532.30 | |||
| Interest to Sept. 2–3 days | 59.69 | ||
| 181,591.99 | |||
| Sept. 2. | Payment of warrant | $90,065.63 | |
| 91,526.36 | |||
| Interest to Sept. 5—3 days | 30.09 | ||
| 91,556.45 | |||
| Sept. 5. | Payment by warrant | 1,048.21 | |
| 90,508.24 | |||
| Interest to Sept. 11—6 days | 59.51 | ||
| 90,567.75 | |||
| Sept. 11. | Payment by warrant | 90,065.63 | |
| 502.12 | |||
| Interest Sept. 11 to Oct. 1 | 1.10 | ||
| 503.22 | |||
| Oct. 1. | Payment by warrant | 90,065.63 | |
| Credit balance, being in excess of amount due to June 30, 1913 | 89,562.41 | ||
| Half-yearly installment | $269,794.38 | ||
| Total interest as above charged on deferred payment | 1,953.94 | ||
| Due for June 30, 1913, installment | 271,748 32 | ||
| Dec. 31. | Semiannual installment of indemnity | $269,794.38 | |
Credit.
| Interest due China to Dec. 31—91 days—on balance of payment of Oct. 1 in excess of June 30, 1913, dept | $893.17 | ||
| Monthly installments (1/12 of yearly) | $44,965.73 | ||
| Three months, Aug. 1, Sept. 1, Oct. 1 | 134,897.19 | ||
| Payment Oct. 1 (excess) | 89,562.41 | ||
| Paid Oct. 10 | *45,334.78 | ||
| Interest on $45,334.78 Oct. 10 to Dec. 31—82 days | 407.98 | ||
| Interest Nov. 1 to Dec. 31 on Nov. 1 installment of $44.965.73 | 295.66 | ||
| Interest Dec. 1 to Dec. 81 on Dec. 1 installment | 147.83 | ||
| Total interest allowed | 1,744.64 | ||
| Credit balance on 1/2 yearly installment of June 30, 1913, paid Oct. 1, and applied to installment due Dec. 31, 1913 | 89,562.41 | ||
| Oct. 10. paid by China | 90,065.63 | ||
| Oct. 18, paid by China | 623.73 | ||
| 181,996.41 | |||
| Oct. 28 China paid $90,065.63 of which there is to be applied for the half year ended Dec. 31, 1913 | 87,797.97 | ||
| 269,794.38 | |||
Note.—No interest can be allowed except in accordance with the bond of indemnity which authorized interest on the monthly advance payments made within the half-year Period. The monthly installments of August 1, September 1 and October 1 were paid October 1 and 10; hence interest is allowed on the amount of said installments from date of payment to the end of the year. The other payments in October are treated as payments of the monthly installments of November 1 and December 1; hence interest is allowed from November 1 and December 1, respectively: the dates the monthly installments earn interest under the terms of the bond.
[Page 73]statement c.
Amount of the indemnity due and paid to the United States for the calendar year 1913, on the basis of the indemnity as limited by the Joint Resolution of Congress approved May 25, 1908(35 Stat., 577).
| Amount of original bond of indemnity | $24,440,778.81 |
| Remitted by joint resolution of May 25, 1908 | 10,785,286.12 |
| Amount of indemnity retained by the United States under joint resolution of May 25, 1908 | 13,655,492.69 |
| Under table of amortization, amount of indemnity payable by China each year is as follows: | |
| Due June 30 | $269,794.38 |
| Due December 31 | 269,794.38 |
| 539,588.76 |
| Date of deposit. | Unremitted portion of indemnity. | |
| Installment due June 30, 1913. | installment due Dec. 31, 1913. | |
| Aug. 30. 1913 | $90,065.63 | |
| Sept. 2, 1913 | 90,065.63 | |
| Sept. 5, 1913 | 1,048.21 | |
| Sept. 11. 1913 | 90,065.63 | |
| Oct. 1, 1913 | 503.22 | $89,562.41 |
| Oct. 10, 1913 | 90,065.63 | |
| Oct. 18, 1913 | 623.73 | |
| Oct. 18, 1913 | 87,797.97 | |
| Interest allowed, by united, states and credited to China on account 01 pre payments made within the half-year ended Dec. 31, 1913 (Statement “B”) | 1,744.64 | |
| Totals | 271,748.32 | 269,794.38 |
recapitulation
| Half year installment | 8269.794.38 | $269.794.38 |
| Interest charged China on deferred payment installment due for half year | 1,953.94 | |
| Interest allowed by the United States to China on account of prepayments on installment for half-year ended Dec. 31, 1913 (Statement “B”) | 1,744.64 | |
| Payments made by China applied to installment due for each half year ($269,794.38 plus $1,953.94 interest charged, installment of June 30, 1913; installment of Dec. 31, 1913) | 271,748.32 | 268,049.74 |
- Included in Oct. 1, 1913, payment of $90,065.63.↩