Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-03-03

ways counts the money and figures up the
profits and losses on one of these little boxes
of buttons strung on wires, which makes up
the Chinese calculating machine, and upon
which all China does its arithmetical prob
lens. These banks will give you drafts on
any part of the world, or letters of exchange
and credit, which will be good anywhere.
Their chief officers are among the leading
business men of the East, and they all seem
to be making money.
A CLEARING HOUSE.
The Chinese merchants keep as full a set
OF books as our merchants do, and they do
business on smaller margin. They keep
account of stock and daily sales and have
seen some of their ledgers. The Peking
banks have clearing house system. Each
depositor has from his banker book with
two columns, in one of which are entered
his deposits and the other his drafts. He
pays his creditors by checks on the bank
and in the evening sends his book to be bal
anced. The next morning the clerks of the
various banks get together, checks are inter
changed ana the accounts of the various
depositors are squared. These banks are
also expected to loan money to their de-
positors, and man is supposed to have the
right to draw on his bank for loans equal to
double the amount of his average deposit.
The disgrace of dishonoring debt is such
that business man failing will hardly at
tempt to regain his standing in his own
province, and dutiful sons often pay their
fathers debts.
The honesty of the Chinese in their busi-
ness dealings is shown in the actions of
Hou Qua, the Canton millionaire who died
few years ago, leaving at least 5O,OOO,OOO:
One of the Chinese firms of Canton had
failed, owing a great sum to foreigners.
Hou Qua got up a subscription and paid
the whole indebtedness. He headed tie list
of subscribers with 81 900, 900 out of his own
pocket, saying that "Chinese credit must
remain untarnished." This is the same man
who when the English were about to bonn
bard Canton unless their demand o. So
600, 600 was paid within 48 hours, headed
the subscription list with the sum of 8, 1OO,-
600. 81 give" said he, ''SS00,000 as
have had. I give 100000 as testimony of
the fidelity of my son. And 100000 as
mark of the affection which I bear my wife. ="
This man Hou Qua, though dead, is still
greatly honored in Conton. His gardens
there are among the sights of the city and
his name is synonymous with business
honor.
ANCIENT BANKS.
China is one fthe oldest banking nations
of the world. The people had banks of
deposit and discount as far back as 2600 B.
c., and the interest laws of China date back
200 years before the discovery of America.
In 500 B. G. the Government issued paper
money and there is now in Peking paper
money in circulation issued by private
banks of as low a denomination as 10 cents.
The Chinese money changer may be found
on every street corner and his shops are in
nearly every block. He charges good rates
and makes good profit. A great deal of
the money lending in China is done on
somewhat the same plan as our building as
socoations. 1t is more often In companies
of ten who club together and agree to put so
much into a common fund which shall be
loaned in the first instance to the man get
ting up the company. At the end of the
second year or six months or a month, as it
may be, another contribution is levied and
this goes to the second man and so on until
each has had the use of an equal amount of
money, and the whole matter is so graduated
that each member of the eclub is fairly treated
as to interest and capital.
China is full of these small associations
and there is no country in the world where
| the art of organization has been carried to
such an extent by the different branches of
capital and labor as here. Even the beggars
have their organizations and the bankers
have their trades unions, which regulate
how all the banks connected with them shall
/ do business. The Shanghai bankers guild
fixes the charges of 90 of the banks of
Shanghai. Its rules lie before me and see
that the minutest particulars of business are
| given. The various kinds of silver dollars
to be taken are mentioned and checks for
| less than SO are not receivable. Each
banker has to send his book to the clearing
house twice day and the manager for the
month has the supervision of them. Other
| rules more or less strict prevail among the
banking associations of Peking and Canton.
and most of the difficulties of lender and
borrower are settled here rather than in the
courts. FRANK G. CARPENTER.