The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1913-03-22
BANKERS WILL NOT
AID THE CHINESE
AMERICAN FlNANclERs DECLARE
THAT THEY WILL SERVE
ADMINISTRATION.
CONFER AND THEN WITHDRAW
Asserted Negotiations Were Entered
Into in First Place At Instance
Of Mr.. Taft-London Sur.
prised.

=
II the statement by President Wilson
that his administration would not re.
quest the American bankers here in.
terested in the ''six-power" loan to
China to continue to seek their sha: e
the three banking houses in the SO.
called American group have an.
nounced their entire withdrawal from
the negotiations. The announcement
followed conference of the banking
interests concerned at the Offices of
J. P. Morgan & Co.
Bankers Statement.
In concluding their statement. which
reviews in considerable detail. the ne
gotiations, begun under the Taft ad.
ministration, the bankers say:
Gas the American group had been
ready to serve the administration in
the past, irrespective of the heavy
risks involved. so it was disposed to
serve the present administration ii
requested.
''But deferring to the policy now de-
elared, the group has withdrawn en-.
tirely from the Chinese loan negotia.
ton and has so advised the European
and Japanese banking groups
Beginning with their explanation Of
how the American banking interests
became interested in the negotiation,
the statement says:
Formed at Governments Request.
"The American group, consisting Of
]. P. Morgan & Co., Kuhn. Loeb &
Co.. the First National bank and the
National City bank was formed in the
spring Of 1909. upon the expressed de-
sire of the department OF state that
financial group be organized to take
up. the participation to which Ameri.
can capital was entitled in the Hulk.
1ang railway loan agreement then I'M
der negotiation by British, French and
German banking groups.
This group thus became interested
In Chinese loan matters, not primarily
Tor it's own profit. but for purposes in
Dictated by President Taft and Score.
tary Knox. As stated in President
Taft's message to congress Of Decem.
Der, 1909, these purposes. in effect,
tailed for the cooperation of the bank
ers as the indispensable instrImen.
atty which the American government
needed to enable it to carry out
practical and real application of the
open door policy The department Of
state considered that American co.
operation with the banking groups Of
The several great powers enabled the
United States to exercise a practical
voice in China's affairs, and constitut.
ed the best guarantee for the preser.
walton of China's integrity.
Bankers Entered Agreement.
I'm pursuance OF the policy 60 adyo-
Gated. the American group with the
administration approval entered into
an agreement with the British, French
and German groups for the purpose Of
rendering financial assistance to Chi.
ma.
These terms were intended TO GOV
er two points. The first was to en-.
able the Chinese government to re.
organize it's administration on an eff.
fective modern basis. to pay of it's
large outstanding debts and to build
up Chinese credit.
THE second was 10 protect the IN.
terests of American and European in.
vestors. For such protection, in the
Judgment Of the governments and the
groups, the only method was to in.
sure, despite any possible recurrence
Of political unrest in China. the proper
expenditure Of the funds loaned to
China and to safeguard the handling
OF the revenues pledged for principal
and interests Of the bonds.
AS announced in the statement civ.
en- to the press yesterday. the present
administration at Washington, with
desire to be Of assistance to China and
to promote American interests in the
far east, has decided that these Dur.
poses may better be served by the
adoption of different and indepeu.
dent policy"
London.-The announcement Of
President Wilson that his administra.
ton had declined to request the Amer
lean bankers Of the "six-power" group
to continue their negotiations in con.
nection with the $125,0o0,00o loan to
China. came as complete surprise to
the British government
Huerta Signs Amnesty Bill.
Mexico City, March 20.-The am.
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