893.51/3049: Telegram
The Secretary of State to the Minister in China (Crane)
331. Semi-annual interest due November 1st from Chinese Government on 5,500,000 six per cent two-year Treasury Notes of 1919 which were publicly offered and sold by Continental and Commercial Bank, Chicago, has not yet been received by that Bank, though it was due to have been deposited with it on October 22d and paid to coupon holders November 1st. Cablegrams exchanged between Finance Ministry, Bank and Chinese Legation in Washington, make it not clear whether interest has been remitted or whether it will be remitted when ready. Please make inquiry of Finance Ministry as to when and how these interest funds amounting with expenses to 165,825 dollars were transmitted. Bank promptly paid expenses out of its own funds but this generous action will not preserve China’s credit in the American market unless Bank is promptly reimbursed. In view of recent organization of new Consortium and prospect of necessary public issue of further Chinese credit in this market it would be extremely unfortunate if Chinese Government does not immediately meet its obligation, with such explanations as will place the matter in a more satisfactory light.