Bankers Here Are Relieved.

New York Times 100 years ago today, March 19, 1913:
Quite Willing to Drop Out of Deal in View of Money Conditions.
    The prolonged negotiations for a loan to China, which are now apparently ended, so far as this country is concerned, were entered into by the American bankers at the instigation of Secretary Knox, who tried to continue the open-door policy demanded by John Hay. A syndicate, headed by J. P. Morgan & Co. and including besides that firm the First National Bank, National City Bank, and Kuhn. Loeb & Co., was originally formed to unite with bankers of Franco, Germany, and England to supply China with $300,000,000, the amount at first decided upon as necessary to reform the currency system, rehabilitate the army, and carry out internal improvements. Each of the four nations was to supply a quarter of the loan.
    Willard D. Straight, former Consul at Mukden, but now connected with J. P. Morgan & Co., and Henry P. Davison, a member of that firm, have represented the American bankers abroad throughout the negotiations, Mr. Davison was ill last night and could not be seen. Mr. Straight, who spent several months in China, going over the plans, preferred to make no comment on President Wilson's statement. From other sources it was learned that the American bankers were quite willing to drop out of the financing scheme — at least until the world situation clears somewhat. The financial stringency in Europe has made foreign members of the international syndicate only too glad of an indefinite interruption of the negotiations.
    The negotiations have apparently been concluded several times, only to be resumed later, as a result of the inability of the different groups to agree among themselves and the opposition from various sources in China. When arrangements for the $300,000,000 loan appeared in a fair way of being realized they were upset by a demand from Russia and Japan for admittance to the syndicate. These powers finally obtained the right to participate and the international syndicate has since been known as the six-power group.
    For a long time the Chinese authorities refused to sign the agreements, as drawn after a thorough discussion, on the ground that the group had no right to demand the privilege of supervising the collection of the salt gabelle, one of the revenues pledged as security for payment of interest, or to pass on the uses to which China put the proceeds of the loan. While these points were in dispute A. Wendell Jackson, an American college professor and engineer, who had a wide acquaintance in China, caused a fresh break between the Peking authorities and the six-power group by arranging singlehanded an independent loan of $50,000,000. This loan was financed through London banks, headed by C. Birch Crisp & Co. Half of the amount pledged by this independent syndicate was supplied to the Chinese, although the British public failed to subscribe to the bonds offered, and it has been understood that the arrangements for the balance were recently canceled by the payment of damages by the Chinese.
    Following the Jackson incident China again approached the six-power group for a loan of $125,000,000, having given up for the time being some of the less pressing plans for improvements. Much of the $125,000,000 was required to pay the army and meet accrued payments of the Boxer indemnities. China is in sore straits for funds to quiet her unpaid soldiers, and it was expected that at the April meeting of the Assembly approval would-be given to the arrangements, tentatively made, for borrowing $125,000,000.
    The American bankers have all along taken the stand that they were associated with the European nations in this matter chiefly because of the desire of the State Department, and that they would be glad to be freed of their share in the participation.