Evening star., 1922-08-27
NEAREAST CAUGHT.
IN GRIP OF GREED
Struggle Among Western
Powers for Trade Conoes-
sions Is Peace Menace.
GREEKS IN DEFIANT MOOD
BY CONSTANTINE BROWN.


By Cable to The Star and Chicago Daily News.
Copyright. 1922.
CONSTANTINOPLE, August 26.-
Though ofl4cial circles regard the
prospects OF the new near eastern
conference with q certain amount Of
optimism, 1t Is feared among those
who have closely studied the develop
ments in the near east in the last
three years that nothing good will
be accomplished even il the belliger-
ents agree to meet.
The main difficulty seems to be not
the Greek-Turkish quarrel. but the
greed OF certain western powers
which subordinate the peace question
to the exclusive material advantages
they hope to obtain For instance, I'm
note to the Kemalist government
asking for peace conditions the Ital-
Ian government added: What will be
Italy's part in the oil concessions once
peace is restored?'
Greek Bank Formed.
On the other hand, it appears that
In spite of the offer of the allies last
March to return Smyrna to Turkish
sovereignty. the Greeks have decided
to keep the province, which is the
cause OF the present near east trou-
Bile. This intention appears to be con-
frmed by economic measures now be-
ing taken. A new bank called the
Ionic Bank. Ltd, was formed recently,
with a capital of 100000 pounds
sterling Gs7.200.000). 1t is backed by
Sir Basil Sacharofr, famous inter
ers, Ltd. and other British and French
concerns, and an intimate friend of
Prime Minister Lloyd George. Sacha-
RON is Greek and was born in Con-
stantinople. Though a magnate in in
ternational finance. he has remained
an ardent Greek patriot. Many con-
slider him mainly responsible for the
treaty OF Sevres, wherein he con-
nected his patriotism with remuner-
ative concessions in Asia Minor.
The Ionic Bank will be established
In Smyrna as a bank Of issue and
will place in circulation Immediately
paper currency based on the pound
sterling. This currency will be loan
ed partly to the autonomous Ionian
province to help development, but
mainly to keep up the Greek army
ing the new bank. NJ Sacharoff is
heading a concern which has bought
controlling interest in the Adm
railway, thus endowing the new
Greek province with a railway and
state bank.
u. S. Bank Needed.
What is considered most signifi-
cant. however. is that the Ionic
Bank has decided to purchase the
Constantinople branch of the New
York Guaranty Trust This branch
American bank was established here
in 1920 and after suffering certain
losses, due mainly to the unsettled
political conditions, began to show
profitable returns. For reasons un-
known to the public, the New York
Office decided to sell to the Ionic Bank
the Constantinople branch, which in
one year became one of the foremost
institutions of the kind here. The
American colony resents the trans
action keenly, for in the near east
financial and political interests are
SO closely connected that countries
not having their own banks are
heavily handicapped.
American interests in Turkey are
increasing rapidly. American busi-
ness men who in the last twelve
months have visited Anatolia fire.
queptly report that the country Of
fers better field for activity prob
ably than any other place on this side
of the Atlantic. Now they feel that
they can no longer compete with the
other nationals who have their own
banks and are protected by their gov
ernmentS,