When bankers thought of floating a loan in foreign countries, Mr. Hayden stated, it was customary, fas a matter of courtesy for them to) consult Washington to ascertain whether the American Government had any outstanding diplomatic. negotiations to which the proposed loan might prove embarrassing. Financial circles were neither required to ask permission of the government! for their international loans nor did they expect to be told any thi about the kind of diplomatic neotiations, etc.. which might be in process between a foreign country fand the State Department at Wash. ington. They took the view of cooperation with the government only insofar as a practical consideration warranted, Should there be strained relations existing between America and any other country, the American public, informed by newspaper reports, naturally knew what was going on and would not be tempted by any appeal on the part of bankers to put money into a loan the country in question 'That bankers sometimes received advices from the government was probably more from these considera. tions than anything else. Supposing, on the other hand, that' no such diplomatic uncertainties existed, bankers used their own judgment and experience and acted according!
Mr, Hayden declared that the lat. ter was exactly the situation og regarded the proposed loan to the th} South Manchurian "Railway.
AL though unwilling to make public the details of his interviews with Chang Tso-lin in Peking and various other Chinese political and ancial
Text read from the printed page and cleaned; old type leaves the occasional error.