Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-22
"In Difference to Presidents
Wishes" Is Excuse of six
Power Group"
WITHDRAW COMPLETELY
FROM ALL NEGOTIATIONS
FinancierS of Europe and Japan
Receive Notification of the
Action in Quitting.

suit Of the announcement made by
President Wilson that the United
States under his administration would
no longer be a party TO the six Power
Group" which has been striving TO ar
range a s125,OOO,O 900 loan in China, an
announcement has just been made at
the offices of J. P. Morgan & Co., in
behalf of the American banking group.
that in Difference TO the policy OF Pres
ident Wilson the entire American bank
ing group has withdrawn completely
from the Chinese loan negotiations, and
has so advised the European and Jap
anese bankers.
The statement given out to the press
follows:
The American group, consisting of
J. P. Morgan & Co, Kuhn Loeb & Co,
the First National Bank and the
National City Bank was formed in
the spring of 1909, upon the express
desire of the department of state
that a financial group be organized
to take up the participation 20 which
American capital was entitled in the
Hukuang railway loan agreement,
then under negotiation by the British,
French and German banking group.
Why Bankers Entered Pact.
This group thus became interested
in Chinese loan matters, not primarily
for its own profit, but for purposes in
dicated by President Taft and Secre-
tary Knox AS stated in President
Taft's message to congress of Deem
ber 1909, these purposes, in effect, call
ed for the cooperation of the bankers
as the indispensable fundamentally
which the American government need
ed to enable it 10 carry out a prac-
teal and real application of the open
door policy
THE department Of state considered
that American cooperation with the
powers enabled the United States TO
exercise a practical voice in Chinese af-
fairs and constituted the best guar
antee for the preservation of China's
integrity.
TN pursuance of the policy so advo-
Gated, the American group, with the
administrations approval, entered into
an agreement with the Britain, French
and German groups for the purpose
of rendering financial assistance to
China
six Power" Group Formed.
In February. 1912, these four groups,
at the request of their respective gov
ernments and with the consent of the
Chinese government admitted Russian
and Japanese financial groups to the
negotiations for the reorganization loan,
thus constituting what has since been
known AS the Six Power Group.
Following the revolution and de-
spite the fact that the authority of
the new republic had not been gen
orally accepted. the American group
Joined with the other group in making
to the provisional government substan-
tial advances to enable II more firmly
to establish its authority and 20 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. of their banking groups and the
Chinese government and to be ready
for signature.
Defends Terms of Loan.
These terms were intended 10 cover
two points The first was to enable the
Chinese government to reorganize its
administration on an effective modern
basis. to pay of its large outstanding
debts and to build up Chinese credit
The second was to protect the inter
ests OF American and European In
vestors.
For such protection, in the judgment
of the governments and the groups, the
only method was TO ensure. despite any
possible recurrence Of political unrest
in China the proper expenditure of
the funds loaned to China and TO safe
guard the handling of the revenue
pledged for principal and interest of the
bonds
As announced in the statement given
to the press. the present administra-
ton 81 Nashington with desire to
be Of assistance 70 China and to pro-
mote American interests IN the Far
Fast has decided tina these purposes
may better he served by the adoption
NJ difernt AND independent policy"