The Financial Consortium (also known as the Sextuple , Quintuple, and Quadruple Group of Bankers) was a consortium of various large western banks first organized in 1908 to lend China large amounts of money.[1][2][3]
The Consortium was first created between banking groups in Germany, the United Kingdom, and France in 1908, for the purpose of "international cooperation in political loans to China". The United States requested that an 'American group' be created, and was admitted to the Consortium in 1910. In 1911 the group made a £6,000,000 loan to China for the construction of a Hukuang[dubious ] railroad. Soon after, banking groups from Russia and Japan joined the consortium. When Woodrow Wilson assumed the presidency of the United States in 1913, he withdrew the nation from the Consortium, and the remaining Quintuple Group financed a £25,000,000 Reorganization Loan in 1913.[4] The United States rejoined a 'New Consortium' in
History edit
Hukuang Railway loan edit
In 1903 the Chinese government promised the British government that if Chinese capital was insignificant to build a railroad from Hankou to Szechuen, they would invite British lenders to fund construction. The following year the preference was extended to include American capital was well. The French government soon requested the same preference, and formed a syndicate with Britain. The new group, consisting of French and British capital, also included provisions for Belgian and American capital. In 1905, America was again invited to participate, but no action was taken. The British and French group then invited German bankers, forming the first consortium. The group created a draft agreement with the Chinese government in May 1909. In 1909 the American government reminded the British and Chinese governments, on June 2 and 5, respectively, that the agreement of 1904 still stood and their capital could participate.
On June 6, 1909, an agreement between Britain-Germany-France and China was initialed for a loan of £5,500,000, subject to approval by imperial edict. A supplementary agreement was drafted from May 23-4, 1910, that included American capital, and after various discussions about ancillary aspects and addressing several concerns of the Chinese government, the agreement was further modified.
A meeting was held in Peking on September 24, 1912, to allow the construction of a railroad from Lanchow to Hankow by a Belgian company. The £10,000,000 needed for construction were to come from Belgium, a matter that created much contention between the countries.
A meeting was held in London from December 13 to 14, 1912, and a draft agreement for a £25,000,000 loan to the Chinese government for the purpose of reorganization was written.[3]
Currency loan edit
Reorganization loan edit
Notes edit
- ^ Journal of the American Asiatic Association. John Foord. 1912.
- ^ Asia and the Americas. 1918.
- ^ a b "Papers Relating to the Foreign Relations of the United States, With the Address of the President to Congress December 2, 1913 - Office of the Historian". history.state.gov. Retrieved 2019-12-26.
- ^ "The Financial Consortium in China". Bulletin of International News. 3 (5): 4–7. 1927. ISSN 2044-3986. JSTOR 25638241.
References edit
Fuller, Joseph V., ed. (1919). Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 3, 1912. FRUS. Washington, D. C.: Government Printing Office. OCLC 24045518.