Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-08-18

you have studied Hong Kong that you begin
to discover, and that slowly, what marvel
Gus place it is Less than fifty years ago, a
barren island, with few Chinese fisher
meu's huts to-day, port with 1000, 900
tons of shipping year; focus OF enter
prise with six and quarter millions sterl-
ing of locally registered capital; coal CEN
ter where sc, 200 tons are consumed per
month; an insurance base where in 1888
premiums were paid by Chinese merchants
alone upon a capital value of e21, ,O00, 600
sterling (I have this fact upon the best au-
thority);
A FINANCIAL CENTER
for the whole Far East, since Japan,
Manila, Singapore, Java, Swatow, Amoy
and Saigon all finance through Hong Kong,
and from which 100000 rupees is the
monthly average remittance to India for
opium and yarn. And unless all signs fail
the development of the Far East is only be-
ginning. Borneo, the Malay Peninsula,
and Siam are all certain to become the scene
of enterprises of all kinds within short
time, and the Philippine Islands are max
ing great strides. Any development In any
of these places means the increased pros
perity of Hong Kong. If the coal of Tong
king turns out as it seems to promise, and
can be sold in Hong Kong as cheaply as is
reasonably claimed by the promoters OF the
company, Hong Kong will become also a
manufacturing center. And the introduc-
tion of railways into China, which is on the
eve of being an accomplished fact, Will
bring infinite grist to her mill. In fact
there is only one thing that can surely bring
about the collapse of values in this marvel
GUS island colony, and that is war in
which England should be engaged with a
power represented in the Pacific, while
Hong Kong still feels herself to be made
quately defended.
The subject of the coming development of
the Far East brings me to another matter
closely touching Hong Kong, and which,
although new at present, will soon be prom
nently before local and London tnanclers.
Namely, the question of increased banking
facilities. OF the five banks here the Hong
Kong and Shanghai Banking Corporation,
the Chartered Bank of India. Australia and
China, the Chartered Mercantile Bank of
India, London and China. the New Oriental
Bank Corporation, and the Compton
d'Escompte, only the first two can be re-
garded as having afforded important facil-
tiles to local finance.
MORE BANKS NEEDED.
The third and fourth mentioned do a COM
paratively small business, and the fifth is a
The Hong Kong and Shanghai Bank is the
divine providence, from financial point of
view, of the Far East. 1t has been the
foundation and malnstay of British pros
perity in this part of the world, and its
name and fame were never higher than to-
day. But the needs of the Far East have
been tending to exceed its resources for some
time, for the best bank in the world can
only give what it has. So, too, with the
Chartered Bank of India. Its local busi-
ness here, and business of q very profitable
character, has increased several fold during
the last five years, but it, too, has all
its available funds employed. So
to-day, as 1 am assured on all hands,
constantly increasing amount of
legitimate and profitable banking busi-
ness is being turned away from the doors of
both institutions. Therefore, unless Hong
Kong is to stop where 1t is-and the record
and character of its inhabitants makes that
in the highest degree improbable-one of
two things must be done. Either the local
bank must increase its capital, or a new
semi-local bank must be established "to
meet legitimate business, with very large
margin to very good people" So certain is
this that already the leading Chinese mer-
chants, refused in their applications for
banking facilities, are threatening to estab-
lish local Anglo-C Chinese bank. The CAPT.
tai for a new local bank could be raised i'm
mediately, or new issue of Hong Kong and
Shanghai Bank shares could be placed on
the market at heavy premium tomorrow.
One course or the other is practically certain
to be taken. and neither presents any special
difficulties. But from the reputation of the
directors of the present bank do not sup
pose they will allow a step of this kind to
be taken over their heads.
HENRY NORMAN,