811.51693 Manchuria/61: Telegram

The Consul at Dairen ( Chase ) to the Secretary of State

The local manager of the National City Bank of New York states that the local manager of the Yokohama Specie Bank has informed him that at a meeting of Japanese bankers called by the Governor of the Kwantung Leased Territory this morning it was decided:

1.
Until further instructions are received the National City Bank may pay no depositors of any nationality.
2.
Clearinghouse facilities are suspended for the National City Bank.
3.
By tomorrow morning the bank must report to the authorities the name and nationality of every depositor, together with the amount of the deposit, the type of deposit, the date deposited, and the due date in the case of time deposits. At the same time there must be reported the name and nationality of every borrower, the amount and date of the loan, the due date and the security.

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It was intimated that a formula will soon be evolved for paying all depositors except Americans and British and that reasonable provision will be made for American and British depositors to withdraw living expenses.

The local manager of the National City Bank stated that Chinese debtors of the bank who attempted to obtain cash from Japanese banks in Dairen to repay loans due today to City Bank were refused cash for this purpose. The manager states that these measures are practically equivalent to closing the bank.

All these measures are also applied to the Hong Kong and Shanghai Banking Corporation.

The local manager of the Yokohama Specie Bank inquired how the American Consulate was to obtain money for current expenses. The Governor is reported to have requested that the question be not brought up for a day or two.

Sent to Tokyo, repeated to Peiping for the Department.

Chase