The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-13
American Principle Wins.

WASHINGTON, May 12.-Organizat6n
of a new consortium for financing
Chinese loans, announced to-day IN
Paris Dispatches, is regarded in offcis
circles here as triumph for the new
American principle OF extension Of the
scope Of participation in internationa
financial arrangements.
At the State Department It was said
officially that under the conditions which
are to govern the new consortium the
Government practically. II not in specific
terms, guarantees the investments o.
the banking group interested. II III.
terms Of the loan are just and the con.
ditions fair and II China agrees 10 The
terms under which the loans are made
IL was stated officially that this Govern.
ment would assure the bankers. after
the matter had been submitted to tie
State Department. that the United Statss
would protect all the interests secured
in good faith.
Thirty-seven American banks. it was
learned, are interested in the loans that
will be made to China by the interna-
tional group. This is understood TO have
been one of the points contended tcr
by the State Department after the
United States withdrew from the former
consortium which expires by limitation
the American representation was limited
to four large New York banks. and no
other American banks could obtain an
interest in Chinese loans. The thirty.
seven banks which are to compose the
proposed American group are said to
represent all the geographical sections
of the United States and the same prn.
ciple is said to obtain in the group Of
nations represented.
While the present organization is a
four Power group. the United States
Great Britain, France and Japan, with
reservation for Belgium when the
bankers OF that country are able to par
ticipate, it is not limited to these coun-
tries Other countries may be admitted
II was said, as we'll as other banking
houses in each Of the countries may be
admitted to the banking group Of any
country. The American representative
at the Paris conference were Thomas W
Lamont of ]. P. Morgan & Co. New
York. and Jerome d. Greene OF Lee
Higginson & CO.. Boston.
Loans, guaranteed by the various
countries under the conditions provided
by the respective Governments, il was
explained, may be made 10 the Chinese
Government direct or for industrial o.
political purposes in China, provillng
the loans are accepted, approved o.
guaranteed by the Chinese Goverume7t.
]. J. Abbott, a Chicago banker, is TOW
in China as a representative OF the
United States group, making an invest.
CATION OF conditions in China and the
needs OF the Chinese Government prcpar-
tory to formulating the first loan con-
templated: He is about to retura - ire
United States and will report 10 th=
bankers of the group.
|, No definite loan. it was said author.
tatively to-day, has yet been determined
upon, but with the formation Of the new
organization in Paris the way is cleale Ell
to entertain any suggestion for a loan
The original membership OF the cd
consortium, that now exists or'y ~
paper. consisted OF the United Ststes,
Germany Belgium. Great Bu,a.n,
| France and Russia. The six Power
! group was reduced to five ~ the With
drawal OF the United States At tie Ne
ginning of the European war Germany
eliminated herself by declaring war, Ge
GUM was forced to withdraw because o:
the wrecRing of the country by the war
and Russia collapsed. This lef. Great
| Britain and France, neither OF whom
was able to make any loans hecaus, o.
the needs OF the money for carryIns on
! the war.