The Birmingham age-herald., 1914-01-31
Cain the United States Has
Lost Much Trade by With
drawing Support
KNOX PLEASED THEM
WITH HIS POLICY
But Present Administration Would not
Support Financiers in Efforts to
Put the New Republic
on It's Feet
BY HOLLAND

by HOLLAND
New York. January s.-(Speeial }
| Henry 2. Dawson has not at any time re-
ported for publication the details OF the
conference which he had with the Sec
retary of State. William j. Bryan, early
In the administration of President Will
son. 1t was not necessary. The an
nouncement that the administration would
withdraw its favor and protection over
| the American group which participated
in the negotiations for the Chinese loan
was sufficient.
Very likely Mr. Dawson told his asso-
eiates, Willard ID. Straight. some of the
conversation which he had with Secretary
Bryan. There We're intimations in the ad-
dress which Mr.. Straight delivered to the
members of the American Asiatic associa-
tion at their recent meeting in this city
| that he had full information of the con-
ference which Mr. Dawson had with the
Secretary of State in March of last year.
Mr.. Straight was. up to the time of the
reputation by Secretary Bryan of the
agreement entered into by his predeces-
sor, Secretary Knox, with the American
| banking group, the representative in
| China of this American banking group.
1t consisted of the banking house of
j. p. Morgan & Co, Kuhn, Loeb & CO..
the First National bank and the National
city bank. His occupation however, in
China was ended when the American
group found itself compelled to acknowl-
edge that the attitude of the new ad-
ministration at Washington made it in
eyitable that it should withdraw from
the International group
The negotiations carried on two years
ago by the representatives of Great
Britain. France, Germany, Russia. Japan
and the United States were without prece-
dent in the entire history of nternatio
| finances, The civilized nations of the
world brought themselves into co-opera-
| tion at the negotiations of this group at
| Paris. Mr. Dawson himself was made
| chairman of the associated group and 1t
was due in no small part to his persist
ence that the group agreed that there
! should be no infringement upon the SOW
ereignty of China nor any attempt to
despoil China of any part of the terri
tory but there should always be main
tained equal opportunity and the so-called
open door for all trade with and in
China.
Seeking the Trade of China
Secretary Knox was occupied as earn-
estiy with the opportunity which was
opened by China while he was Secretary
or State as with any of the other respon-
sibiities which came to him He origi-
mated the negotiations with China He
completed the understanding by means
which % fad fata Oh. II
equal opportunity with any other nation
to participate in the construction of pub
lie works and railroads and in the finance
ing of loans. That was as far as Secre-
tary Knox could go. The state depart
ment had no authority oaid financially
IN the new and honorable exploitation of
China. He therefore appealed to the
bankers and in response to that appeal
had several conferences with Mr.. Davi-
son, each of them brief. AS result of
these conferences Mr.. Dawson agreed
to perfect a group of American bankers
who would share in financing China $
loan and the Secretary of State prom
ised to give these bankers the moral and
as far as possible, the legal support of
the United States.
The agreement was entered into without
the possession of any detailed knowledge
on the part of the banking group as to
what would be required of it, or what its
reasonable profits would me. The entire
proposition was based upon the desire of
Secretary Knox that American industry
and American capital should share, or
have opportunity to share, with other ma
tons in the great trade and the stupen-
dous constructive work which the reyital-
izing of China made certain.
1t Was Abandoned
But if deprived of moral support of the
ant of No chi pto fha or;a
| banking group could not in justice to
itself retain association with the other
members of the group. There was no
great regret over one aspect of the new
| situation, for the American bankers did
not look for any large profit. Besides,
there were to be abundant opportunities
| for the investment of American capital in
other directions. But the regret was very
keen that the changed attitude at WASH
| ington should have made it certain that
the United States would not participate to
any extent in the opportunities that were
| opening in China.
| Not until this recent meeting of the
| American Asiatic association has there
| been definite and formal statement about
the effect of this change. The association
| IL made up of men who are interested In
developing our commerce with the far
| east Its members were rejoiced when
announcement was made that the govern
ment at Washington at the time of Pres
ident Taft's administration was acting in
co-operation with American bankers for
the purpose of securing a reasonable part
of these opportunities. Since the change
of the attitude of the government these
members have been vry Respondent. They
have, however. hade no public complaint.
awaiting doubtless the formal meeting of
this association. No one in China or in
the United States is better qualified to
speak in relation to this matter than is
Mr.. Straight. He has been chosen presi-
dent of the association. He is familiar
by personal experience with conditions in