New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-08

| ingly the American group was obliged
to withdraw at once from the nterna-
tional consortium. This left a five
power group. under whose auspices the
so called reorganization loan of 925s
900, 900 was made in 1913. In the yea1'
after this the Great War broke out and
Of course the active operations Of the
consortium ceased.
A New Group Formed
As long ago as 1916 the Wilson Adj
minstration took IN afresh the con-
sideration of Far Eastern matters and
informed the members of the old
American group that it planned, upon
a new and somewhat broader scheme,
to encourage its citizens to make in
vestment in the Far East, and espe-
cially in way that would inure to
the benefit of China, and that would
give one more evidence of America s
friendship for the Chinese.
The State Department accordingly
made public its policy along these
lines. In compliance with its request
the firms of ]. P. Morgan & Co. and
Kuhn. Loeb g. Co., the First Ma
tional Bank of New York and the Ma
tionsl City Bank of New York, the
associates in the old group, organized
q new American banking group, in
vitng a large number of banks and
banking houses throughout the coun-
try which had shown an interest in Far
Eastern matters to join, their selection
| having been previously approved by
the State Department.
This group, now numbering thirty
six members, is made up as follows
]. P. Morgan & Co, Kuhn. Loeb &
Co., National City Bank. Guaranty
Trust Company, Chase National Bank,
Trust Company, Central Union Trust
pany, Harris. Forbes & Co., Brown
Brothers, Halsey Stuart e. Co., New
York City.
Lee, Higginson & Co., Kidder, Pea
body & Co., the First National Bank
National Shawmut Bank, of Boston.
Continental and Commercial Trust
and Savings Bank, First Trust and Say
ings Bank, Harris Trust and Savings
Bank, Illinois Trust and Savings Bank,
the Northern Trust Company OF
Chicago.
Commercial Trust Company and
Girard Trust Company Of Philadelphia
The Union Trust Company and the
Mellon National Bank of Pittsburgh.
St. Louis Union Trust Company
Mercantile Trust Company and Mlssls-
sippi Valley Trust Company, of St
Louis.
The Anglo and London Paris Ma
tional Bank, the Bank of California
n. A., Wells Fargo Nevada National
Bank. of San Francisco.
Whitney Central National Bank. New
Orleans.
First National Bank and Ladd &
Tilton Bank, Portland, Ore.
Security Trust and Savings Bank and
First National Bank, Los Angeles.
Seattle National Bank, Seattle,
Wash.
The group designated managing
committee Of seven members to act as
an executive body.
The American Governments Proposals
The American banking group having
been thus successfully formed, the
American government was encouraged
to take it's next step. In October, 1915
the United States government proposed
to the governments OF Great brl,a'h
France and Japan that in each of these
countries they should encourage and
support banking groups in the forma-
ton of new consortium for the pur-
pose, as already stated, Of assisting
China in the Development of her great
public enterprises.
The United States government pro,
posed that the new consortlum chould
have a wider scope than the old con,
sortium had possessed; that 1t should
be in the nature Of free and 1ull
partnership among the banking groups
named; that not only future options
already held by individual banking
groups on which substantial progress
had not been made, should, so far
as feasible, be pooled with the con
sortiun: that working on these two
principles the operations Of the con
sortium would serve to prevent 1ol
the future the setting up OF specla
spheres of influence on the continent
Of Asia. The United States govern
ment laid great stress on this latter
point as being highly effective IN 40
ing away with international Jeaiousies
and in helping to preserve me IN
tegrty and independence or Emma.
These proposals also made clear tha'
it was not to be the aim of the
consortium to concern itself with gen
eral enterprises in banking, industry
or commerce. Rather it was to in
cludo within its scope only those basic
enterprises such, for instance. as the
development of transportation sys'
TENS, highways, reorganization OF the
currency, etc.-which would serve tC
eStaDllSn SOunUcl eCOuOiilN .OiI~'iNiot
throughout China and thus form
firmcr foundation for the encourage
ment of private initiative and trade.
Specifically, it was planned that the
consortium's operations should dea
primarily with loans to the Chinese
Republic, or to the provinces OF tht
republic, or loans guaranteed by th'
republic or by it's provinces and, II
each instance, of character sutticlenti5
important to warrant public issue
thus effectively avoiding the curtalI
ment of private initiative and enter
prise in China.
Japan Insists on Reservations
These proposals, as formulated by
the United States government, were
duly approved by the other three gov
ernments, and at their instance the
respective banking groups that ha(
been formed in each Of the four coun
tries directed their representatives to
meet for organization purposes al
Paris in May, 1919. These representa-
tves, duly convened, and, it may be
added. as in the case of the American
banking group, in each instance the!
represented much larger banking
group than in the old consortium.
have already pointed out that in
America the group had been expanded
from four to thirty-six. The japanese
group had been increased to eighteen
members, and both the British anC
French groups had also been enlarged
At the organization conference in