July 17.
Mr. Thomas W. Lamont selected an extraordinary time and place for his pronouncement with regard to China's prospects for future loans, The meeting of the International Chamber of Commerce is one of those now increasingly numerous love feasts at which everyone proist all the others present in the hope that all will leave feeling cheerful and happy to spread the glad tidings of "international amity and ce-operation. As for the time, those who have returned from New York have usually brought with them the message that Wall Street would await the report of the Kemmerer Commission as to China' ability to secure new loans after. meeting outstanding obligations, Yet, Mr. Lamont did not wait for'this report but utilized the first opportunity that presented itself to make clear to China and to the international money markets that the enormously important American banking group of which he is the leader is not prepared in' the present circumstances to make loans to China. For the national dignity of China, it was most fortunate that China was represented by Mr. Chang Chia-ngan, Managing Director of the Bank of China, whose reply undoubtedly reflected the sound and sober financial programme of the Minister of Finance, Mr. T. V. Soong, who has always, we understand, discouraged wild-cat suggestions of enormous loans abroad at the present time.
Mr. Thomas W. Lamont is not only a partner in the principal American banking firm, J.P. Morgan & Ca., but he is also the head of the International Banking Consortium, which wag organized at the request of the State Department of the United States. In spite of China's consistent refusal to do business with the Consortium, it has continued to exist and until it is dissolved, none of the constituent members can make loans to China independently.
American banking firms interested in foreign loans are members of the American Group of the Consortium, although Dillon, Read & Ca. remain outside it.
This firm, however, is reported to be interested in' the Curtiss-
Robertson Aviation Agreement which is still subject to adj ment and the mails which its aeroplanes should have been carrying since June 1 are actually being taken from Shanghai is contract, which seems to be successful, was financed without banking participation and the
Text read from the printed page and cleaned; old type leaves the occasional error.