PEKING, May 25, 1912 (UP) - Popular opposition to the $300,000,000 foreign loan and the imperative need of the government for ready funds, which the loan would have supplied, precipitated a crisis today in President Yuan Shi Kai's cabinet and its disorganization was imminent.
The national assembly, President Yuan and Vice President Li received by telegram from Nankin today memorials from Gen. Huan Sing against the advance by the foreign syndicate. They called upon the government to annul the contract with the six powers, on the ground that the terms of the loan practically invested the syndicate with control of the Chinese army.
To raise needed funds, Huan urged the issuance of inconvertible paper currency and the opening of a national subscription.
The cabinet fears that the military, already restless over deferred wage payments, in the event of trouble would support Huan, who is a popular idol.
