The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-03-16


Of an invitation to participate, yet it was
talked about the tables after Mr. Sohif's
speech yesterday that Japan and Russia $
well established alliance in matters OF
common interest on the Asiatio CONT
nent precluded any possibility OF Japan's
becoming party to the loan to the isoia-
ton OF Russia Mr.. Schifr himself made
comments on the Russo-Japanese entente
q year or so ago wu;ch augered the Japa
nees.
When it became known that the terms
OF the first loan of $50, ,ooo, 900 made year
ago pledged China to the hypothecation
OF the Gus toms duties Of Manchuria as
one of the guarantees Japan was particu-
larly bitter. rhougl, the Japanese Gov
eminent made no official protest rctalia-
ton against the four Powers was openly
urged in the more violent OF the Toxic
papers.
C,iriouely conflicting statements OF the
history of the four-power syndicate
made yesterday afternoon by two men.
each qualified to speak wit" authority.
threw an added elemeI, of specula-
ton into questions brought up by Mr.
Schiff announcement. A representative
Of one OF the New York banks partici-
"When Mr.. Schiff said that Japan haf
been invited to participate in the four
power loan he referred TO the fact that
an jrtimetion had recently been received
I 6yl the four Power group from official
eources in Japan that that country would
he glad 70 participate and that an invi-
tation had been extended 10 Japanese
bankers accordingly. The bankers
already in the group do not feel any hesi-
tancy in extending more loans to the
nj
confidence in the ability Of the Chinese
/ to evolve some form of stable govern
ment. and that whatever may be the form
there will be no attempt to Iepudiate
any financial obligations undertaken at
this time or prior to this time.
what the Chinese Government needs
more than anything else just now is moner
with which to pay the rebellious troops.
The bankers group has already advanced
an emergency loan to Yuan Shih Kai and
has promised that more money will be
forthcoming when call is made for it
rs it not true that Japan has felt ag-
grieved because II was not asked to par
q ticipate when the four Power syndicate
was first organized?" was asked.
Japan was asked" the bank repre-
sentative answered. 1T was made per-
fectly clear TO Japan and Russia from the
first that they could participate in the
loans if they wished There was no
exclusveness about the organization OF
have come in at first il her bankers wished
TO do So As matter of fact Japan is
not very active market for securities.
what with the great war debt the Govern
rent is carrying, and the same truth ap-
plies to Russia. Without doubt the
bankers of both countries did not feel
that they could participate protitably
But it is fact that at no time did Japan
have anything to feel aggreved about.
Japan had the chance and did not take il.
81 .t....N lAs In hn
representative Of Japanese interests here
who is quoted above. He said:
Yes. Japan was invited to participate
after the first railroad loan Of s3O.o00,N 900
was f'oated year ago. No. not before.
The frat loan was arranged by the
syndicate of British. German. French
and American bankers withou, reference
to Japan and Russia. by it- terms the
customs Of Manchuria We're pledged. Of
90 oirse Manchuria is under Chinese SOW
ereignty, but the japanese believed il a
peculiar thing when there were 30 MANY
assets in China To- be named ss gtiarInt es
the customs in Manchuria should have
teen selected one especially when
the railroad to he built il in the south II
China
Now the time for the second loan by
the syndicate was set for late last summer
This was to be tse currency loan Of
&51.CJ0,rU Tor the reorIaniza IN of China's
currency. When the time approached d
ing "a i; had bean when the first loan was
. rpada Revolution had already started.
The time passed and the second loan
was not made. BY virtue of that faci
tho Original syndicate became in the
, strict eense dissolved.
Then il was-and only then that
Japan and Russia We're asked tn partici-
pate in the syndicate. After ;he time
limit for the $50 OJ0. 800 currency loan had
expired. then Japan and Russia were
asked to become permanent partners
in whatever other enterprise the four
power syndicate might undertake in
China.
, Il cannot say that Japan will decline
TO accept the invitation a. rect ived but
do not believe that JaDan will bo over
eager to accept. i! Japan were convinced
that the purposes of the syndicate were
-. purely commercial and not ncidont ally
; political il might favor particlpat ion.
But Japanese bankers could not be Il
party to negotiations looking toward the
! building of a railroad. FOR instance. with
only strategic and political significance
and no commercial value. such a. the
!. projected Chin chow Aigun railroad
In answer to a question a. to the ability
of Japanese bankers TO float their part
of any forthcoming loan in Japan, this
man said:
Japanese bankers would be fully
capable of handling any Chinese bonds
that might come to their hands Large
holdings of Chinese securities are already
in Japanese hands.
The American banks participating in
the four power loan are the National
City Bank, the First National Bank. J. y.
- q i E..l. n - l..