The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-03-19
May Result in Withdrawal of
American Bankers.
DESIRES LOAN S125,OOO, 900
China Is Pressed for Money to
Continue Republic.
Is More Than Year Behind in
Boxer Indemnities.

Washington, March 19.-PreS1dent
Wilson last night, in a statement ap-
proved by his cabinet after two hours
of discussion, announced that his ad-
ministration had declined to request
the group of American bankers to con-
tinue their negotiations for participa-
ton in the SIPS, ,O00 900 loan desired by
the Chinese government.
President Wilson's statement of the
administrations attitude toward Ameri-
can bankers participation in the Chi
neSe loan and foreign loans generally
has attracted widespread comment and
discussion in official and diplomatic
quarters.
Following closely upon the state
ment comes intimations that the nego-
tiations now may proceed as a five
power affair without the American
group
1t is pointed out today that the
bankers of China's creditor nations, es-
pecially Russia, may now be counting
on the moral support of their govern
ment to continue to press Provisional
President Ypan Shi Kai to make the
loan, but there are also some indica-
tions of discord found in the conflict
ing claims of the various nationalities
for predominating influence in the ap-
pointment of administration of the loan
and for it's expenditure.
China Is Behind.
The pressing feature for China, right
now, diplomatistS point out, is found
in the fact that China is more than
one year behind in payment of boxer
indemnities to the extent of 0000, 900
with an army clamoring for back pay,
many provincial loans coming due and
need for money to continue the opera
ton of the provisional government,
Ypan Shi Kai is placed in the posi-
ton of attempting to secure an ex-
tension of time from creditors who
have failed to make a loan, or sue
ceed in borrowing money from inde-
pendent bankers, as was done in the
so-called crisp transaction a few
months ago. It is intimated here that
some American bankers, other than
those concerned in the loan rejected,
are figuring on participation in such a
tranSa ction, but it is pointed out that
President wilson's statement made it
clear that while the Chinese govern
ment would have the sympathetic sup
port of the United States, under no
circumstances would it take the form
of a guarantee to would-be investors
in Chinese securities. Discussion is now
turning to the question of when the
administration will announce it's policy
on the recognition of the new repub-
lie of China.
The statement yesterday made no
mention of the question of recognition,
but now that the loan matter has been
determined, it is generally believed that
a determination of this governments s
attitude toward the new republic will
follow at an early day.
Concern Felt in Germany.
Berlin, March 19.-The indicated re-
~tirefnent of the American bankers from
participation in the Chinese loan crea-
ted CONSERVATION today among the
leaders of the interested group of Ger
man bankers. Fear is expressed that
the whole operation will fail.
1t is asserted, however, that the
Germans will continue negotiations in
spite of the action of the Americans,
whom they regarded to a certain ex-
tent as their natural allies in the I'M
derstanding, since territorial possess
sions, it was pointed out, did not play
the same role with the Americans and
Germans as with the other powers.
The German bankers are inclined to
feel hurt because they received no in
timation in advance that the Ameri-
can group contemplated withdrawal