Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-03-20
America Witbdraws from Six
Powers Group Because of
Attitude Assumed by Wash
ington Government
TAFT ADMINISTRATION
ASKED PARTICIPATION
Purpose of Finanoiers Was to
Strengthen Position Of United
States and Save New Repub-
lie from Disaster.

States ana save New kepuD-
lie from Disaster
,iiy Mornlng journal special Leased wirc)
Kew York March iH AS result
Of the statement hN President Wilson
yesterday that his administration
would not request the American
bankers, heretofore Interested in the
six power loan 60 china. 600 CON
tinue tn seek their share. the three
banking houses in the so-called
American group. announced tonight
their entire withdrawal from the re-
eotatiOns
The announcement followed com
ference Of the banking interests con-
cerned at the offices of j. T. Morgan
a. 60. ln concluding their statement
which reviews In considerable detail
The NEGOTIATIONS begun under the TAFT
administration. the bankers say
"As the American group had been
ready to serve the administration in
the past. irrespective OF the heavy
risks involved So it WIS disposed tO
serve the present administration. ~
requested. liut drfrrrng 60 the policy
now declared, the group hus With
drawn entirely from the Chinese loan
negotiations and hats So advised the
European and Japanese banking
groups
beginning with their explanation OF
how the American banking interests
became Interested n the NEGOTIATIONS.
the statement says
"The American group consisting et
j. T. Morgan q CO.. Kuhn, Loeb q
Co. the First National bank aud the
National city bank. was formed TN
The spring Of 1902 upon the ca
pressed desire OF the department Of
state that "a financial group be organ
zed 20 take up the participation GO
which American capltal was entitled
Ina the llukuang ruilroad loan agree
ment. then under negotiation 10y Brit
ish. French and German banking
groups This group thus became inter-
csted in Chinese loan matters, not
primarily for Is own profit, but for
purposes indicated by President Taft
and Secretary Knox
AS stated IN President Taft's mes-
saee to congress of Deccmher laAe,
the purposes I'm effect. called for The
co-aperation of the bankers as The
indispensable instrumentnlitN which
the American government neeued to
enable 1t 10 carry out practical ana
real application Of the open door pol
icY
The department of state considered
that American cooperation with the
banking groups of the several great
powers enabled tlc emitted states TO
exercise a practical voice in China
affairs and constituted the hest guar
antee for the preservation Of China $
integrity
I'm pursuance or the policy SO ad
yooatod, the American group with the
administration approval. entered
into an agreement with the British /
French and German groups for the
purpose Of rendering financial assist
ance to China In February 1912. the
four groups at the request of their !
governments and with the
consent of the Chinese government, !
admitted Russian and japanese iinan
cial groups to the negotiations for the
re- organization plan thus constituting |
what has since been known as The !
'six-poWer group.
Following the revision and despite |
the fact that the authority of the new
republic has not been generally ac- |
"epted. the American group joined |
with the other groups IN making 10 the
provisions, government substantial
advance. 90 enable 1t more firmly TO |
establish its authority and to restore
normal conditions throughout the !
country.
Meanwhile, there had been in ne
sOtlution during period OF many
months loan agreement which in its
terms appeared last month 20 /