The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1913-03-20
In New York.

New York, March 19.-As a result
Of the statement by President Wilson
yesterday that his administration
would not request the American bank
ers heretofore interested in the six
power loan to China to continue to
seek their share, the three banking
houses in the so-called American
group announced tonight their entire
withdrawal from the negotiations.
The announcement followed a con-
ference of the banking interests con-
cerned at the offices of j. P. Morgan
& Co.. In concluding their statement,
which reviews in considerable detail
the negotiations under the Taft adj
ministration, the bankers say
AS the American group had been
ready to serve the administration in
he past, irrespective of the heavy
risks involved, so it was disposed to
serve the present administration if re-
quested. But deferring to the policy
now declared, the group has with
drawn entirely from the Chinese loan
negotiations and has so advised the
European and Japanese banking in
terests."
The Statement.
Beginning with their explanation of
how the American banking interests
became interested in the negotiations,
the statement says:
THE American group consisting of
J. P. Morgan & Co., Kuhn, Loeb & Co..,
the First National bank, and the Ma
tional City bank, was. formed in the
spring of 1909 upon the expressed
decree of the department of state that
a financial group be organized to take
up the participation to which Ameri-
can capital was entitled in the HUI
kuang railway loan agreement. then
under negotiation by British. French
and German bankers.
This group thus became Interested
in Chinese loan matters. not primarily
for its w profit, but for purposes in
dictated by President Taft and Sec
rotary Knox. AS stated in President
Tafts message to congress of De-
cember, 1909, these urposes in eff
feet, called for the cooperation of the
bankers as Indispensable which the
government needed to carry out a
practical and real application of the
open door policy The department
of state considered that American CO.
operation with the banking groups Of
several great powers enabled the
United States to exercise a PRACTICAL
voice in China's affairs, and consti-
tuted the best guaranty for the pres
%ervation of China's integrity.
In pursuance of the policy so ad-
vocated, the American group, with the
administrations approval, entered into
an agreement with the British, French
and German groups for the purpose of
rendering facilities to China. In Feb
ruary, 1912, these four groups at the
request of their respective governments
n with the consent of the Chinese
government, admitted Russian and
Japanese groups to the reorganization
plan, thus constituting what has since
been known as the 'six-power group
Following the revolution and des-
pite the fact the authority of the new
republic had not been generally ac-
cepted, the American group joined
with the other groups in making to
the provisional government substan-
tial advances to enable it more firmly
to establish it's authority and to re-
store normal conditions throughout the
country.
Meanwhile there has been in nego-
tiation, during a period of many
months, a loan agreement, which in it's
general terms appeared last month to
meet the approval of the six govern
ments in their banking groups and
the Chinese government and to be
ready for signature.
These terms were intended to cover
two points. The first was to enable
the Chinese government to reorean-
ize Its administration IN a modern
basis, to pay off its large outstanding