893.51/3540: Telegram

The Continental and Commercial Trust and Savings Bank to the Secretary of State

We desire to acquaint you at the earliest possible moment with the situation pertaining to the loan of $5,500,000 made to the Republic of China in 1919 and which loan matures to-morrow, Tuesday, November 1st. …

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With a view to having the Republic of China make appropriate arrangements for the payment of said last loan, Mr. John Jay Abbott, one of the vice presidents of this bank, has been in China for nearly four months. To our great astonishment we are to-day in receipt of cable advice to the effect that the Chinese Minister of Finance resigned last Friday, October 28, and the Republic of China will make default to-morrow in the payment of both principal and interest of the notes then due. The notes of the Republic of China were widely distributed among investors and are now held by many hundreds of financial institutions and citizens of this country. We appeal to you for such immediate action in the premises as you deem proper. If such default occurs, the financial credit of the Republic of China in this country will, we believe, be [Page 381] greatly impaired if not destroyed, and any effort on the part of the Republic of China to secure further loans in this country will probably fail. This telegram is sent to you after conference with the Managing Committee of the American members of the consortium. The numerous noteholders are urgently pressing us for information as to what steps we are taking to protect their interests. We therefore ask you for a telegraphic acknowledgment of this message to-day.

Continental & Commercial Trust & Savings Bank
Arthur Reynolds
, President