The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-03-31
BANKERS Plan
LOAN TO China
|Hollins & Co.'S Represents
tive Confers with Presi-
dent on the Subject.
FURNISH NO GUARANTEE
State Department viii Furnish No
Form Of Approval to Such
Transaction.

The suggested plan of short-term
loan OF $10.000.000 to China. outlined
to President Wilson Saturday by ]. II.
Sears, representing HI. B. Hoilins &
Co., bankers. Of New York. is based
upon the suggestions embodied IN
President Wilson's statement of the
attitude Of the new administration to-
ward the foreign loan problem.
A loan such as that which the Hol-
Inns firm has in prospect will not be
guaranteed by the United States gov
eminent, nor will any form of ap-
prevail by either the President or the
State Department be carried in the
transaction. Mr.. Sears told President
Wilson that his Arm was the head of
a syndicate Of American financiers who
were prepared to furnish the 100000
600 for the short-term loan, and later
to negotiate q long-term loan up to a
maximum Of $100,000,000. In present.
Ing the plan to the President, Mr.
sears took care to explain that all his
firm sought was a free hand In max
ing the negotiations. and he added
that the interested fnanciers were In
entire accord with the administra-
TONS policy in the matter OF the nom
Endorsement of such loans.
The conference between Mr.. Sears
and the President did not include Sec
rotary of State Bryan, who was other.
wise engaged at the State Department
at the time.
In discussing the matter tonight. Mr..
Bryan said:
Il was not at the conference between
President Wilson aud J. H Sears, the
representative of II. B Helms & Co.,
but I can say this: The Presidents state
ment with regard to the loan to China
was not positively in favor OF the ex-
tension of credit to China where the loan
was not predicated upon an obligation OF
the United States to guarantee-the loan
or to defend the rights of bondholders
It is negative only IN so far as it treats
of the previously suggested method OF
making a loan upon basis which oo-
ligated the United States. The Presi-
dents statement was surely definite
enough on both of these points"
Question OF Recognition.
Mr.. Bryan was then asked II the Unit
ed States would recognize the Chinese
Republic in the near future. 1t was
pointed out that the constituent assem-
bly, of the republic would meet April Z,
the same date as the assembling OF the
American Congress in extraordinary ses-
sion and that II had been suggested that
word of recognition from the United
States before that time would be re-
ceived with great favor by the Chinese.
Mr.. Bryan said:
ct am not prepared to make an an
nouncement as yet on the point of the
recognition of the Chinese Republic. The
position outlined has been explained, Of
course, but we have not anything To
say regarding the date of the recd9nition
OF the republic or the form which the
recognition will take"
The suggestion that Hollins & Co. were
negotiating a loan to China was received
here with some surprise. The general
impression had been that American bank
ers would be backward In undertaking
such a transaction without the direct
backing Of the United States government.
The American group OF bankers who
were participating in the proposed six
power loan to China. which now has
fallen through. so far as the United
States is concerned. were headed by ].
p. Morgan & Co.. Kuhn. Loeb & Co, the
First National Bank. and the National
City Bank. The participation of the
American bankers in the six-power loan
of $125, COO 900 was to have been about
So, 100000.