The New York herald., 1922-05-21
Troubles of Private Bank
Menace French Government
By PHILIP CARR.

NJ. Philippe Berthelot held In the
French diplomatic service the rank of
Ambassador. He has never really
been an Ambassador. although his
name was pretty generally mentioned
with regard to the London POST just
before NJ. Cambon's resignation. But
he had been--it was the Office from
which he recently resigned-Director
des Affaircs Politiques al the Quai
d'Orsay. which corresponds approM-
mately to the position Of the Perma-
nent Under Secretary at the British
Foreign Office. The organization OF
the French diplomatic service is differ
ent from the British or American. The
Ministry in Paris. the embassies
abroad and the consular service form
one complete hierarchy and it's mem
bers are transferred from one service
to the other. according 10 their grade.
In this way NJ. Berthelot had reached
that of Ambassador while remaining
in Paris.
The Bauque IndustrieIle de Chine.
whose misfortunes are now being
worked up into a first class political
financial scandal, has become so much
representative OF French prestige
abroad that there is little doubt that
even a Government and a>Chamber
which are not very friendly 10 its
hackers and its directors viii not al
low il to collapse altogether IL IL can
be saved without too great a drain on
the national finances.
Even before the war IL was already
the most powerful agent of French
commercial influence In the Far East
not only in China. but in the French
colony of Indo-China. where. however.
1t was in competition with the official
Banque de rIndo-Chine. now its most
dangerous enemy in its time OF
trouble. In China 1t enjoyed special
privileges-even including, the power
Of coming money.
Granted Privileges In China.
In 1914 it floated an important loan
for the purpose of financing certain
public works in China-tramways I'm
Pekin. harbor works and so forth. This
loan was largely subscribed by natives
of China and French Indo-China.
Work was about TO begin when every
thing was stopped by the outbreak OF
the war. The 3. I. c.. for so the bank
is generally known in Paris, applied
the money thus held in suspense y
the development Of its own business
and the establishment OF many
branches. For time all went very
we'll: but there came the slump In Tar
Eastern trade and shipping. and tae
B. !. c. now has liabilities Of 100000, 900
francs. against which the assets, OF
the estimated value OF l.lOO,O00,OOp.
are at present unrealizable.
So long ago as the end OF January
OF last year the French Government
NJ. BRAND had just come into power
concluded that the national credit OF
France in the Far East would suffer
IL the u. I. G. were allowed to default,
and temporary advance OF l2.ooo.ooo
francs was made. OF which half was
furnished by the home authorities and
half by the colony OF lndo-China. Be
fore this. however. M. Philippe Berthe
lot. the principal permanent official OF
the French Foreign Office. had. on his
own authority, sent certain kilograms
to China. acting upon which the
French consuls in that country gave
assurances to Chinese depositors which
are now held virtually. II not tech
nically, to have engaged the RESPONSE
bility of the French Government
Leygues Denies Responsibility.
When the matter was raised In the
Chamber, although NJ. Leygues. the
outgoing Premier. disclaimed knowl-
edge and responsibility for these tele-
grams, NJ. BRAND. who had just taken
Office, covered NJ Berthclot. and the
incident temporarily closed. NJ. Ber-
thelot's enemies. however, were not
likely TO let the matter rest The
Right have long regarded him as the
inspiration of what they considered
to be the excessively pro~British policy
of the Quai d'Orsay. NJ. Leon Daudet
in the Action Franchise indeed always
refers TO him as "Sir Philip" And.
when, couple of months ago. the
question was raised in the Chamber
OF another telegram, which again on