The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-02
IMPERIAL BANK OF CHINA.
A Chinese Financial Institution oper-
ated Under Foreign Methods.

Minister DENLY, IN Ll6 lHdiIC4CN.
One of the most striking features or the
commercial development which China Is
undergoing since the war Win Japan 40
the great increase in banking faclntleS.
The Russo-Chinese Bank, organized prl-
marilv to facilitate the management or the
Russo-Chinese loan, has estabushed ageh-
cies in Shanghai I1en-Tsin ana Vlaol 20
stok and is about to open aSencles IN T. e
king and Che-Foo. The future OF TINS IN
stitution is amply assured. In addition 10
this handling of the Chinese loan OF 1879 Tor
G15 $50 coo csc, 98S, 030) on which annual pay
ments are to be made for thirty-siX years,
beginning with 1896, this bank is to do the
financiering of the Transmanchur1an Rank
way, recently organized. The ofnceS OF TINS
railroad and of the bank are to be located
on the same premises in this city, ne%t 70
the Russian poStoffce and just west OF Tue
legation. 1t is confidently expected by the
managers of this bank that it will do the
banking business of the Russian tea trade
and obtain other business from Chinese and
foreign sources. The shares OF the com
pany, of the par value of 1Z0 rubles, are
agency of the bank will be taken advantage
of in the payment of the Russian squad
ron. and also, probably, in connection with
be engaged for work in Manchuria.
Another large banking institution, IN
which it is proposed to use Chinese capltai
with foreign methods and under foreign
management, it is to be known as the I'M
perial Chinese Bank of International Com
merce The plan OF the Pa base or rg5iTosd
projects have been fully reported to the de-
partment This plan was submitted to the
Emperor by Sheng, and was approved by
imperial decree dated the 26th ultimo. The
project, in outline, is to obtain capital or
5000 000 taels,* of which Sheng guarantees
1000 900 taels from the shareholders in the
China Merchants Steamship Company ana
the Chinese telegraph administration. one
million taels further are to be subscribed
by other directors of the proposed bank
and 500 900 taels of stock is to be sold to
Chinese merchants. Sheng is to be the
president of the company, and the directors
a nd ctr n - "a
nese. This bank is to have the authority to
issue notes, coin money transmit taxes
and handle other government funds.
The management of the central oIhce or
this bank has been offered to an English
broker, Mr.. Maitland, formerly in the en-
pioy of the Hong Kong and Shanghai
banking Corporation. Other foreigners will
be made managers in Picking, Tientsin and
other cities. The Picking agency is under
stood to have been offered to an American
banker, but his services could not be Sc
cured. In addition to the agencies IN
China, branches will be established in Eu-
rope and America, where the title OF the
bank will be the Imperial Bank Of China.
1t was intended originally that the Shang-
hal and Picking agencies should be open
April next, but there has been delay in Sc
curing the funds which Sheng undertook to
supply, and upon which the Chinese gov
eminent has conditioned it's financial and
There is however, no reason to anticipate
that this delay will be of long duration,
and a great future may be predicted for
this bank. 1t will be not only an agency
of the Chinese government and of the sys-
TENS of railways to be built under Shengs
control but it will doubtless develop large
and profitable business among the mer-
chants of China.
The native banks now existing in China
do large business and possess much cap
ital, but they are unfamiliar with the de-
riands of foreign trade. This new bank
will have exceptional facilities for gaining
the confidence and support of these insti-
tutions.
1t is a flattering commentary on the solid
ity and management of the Hong-Kong
and Shanghai Banking Corporation, the
greatest existing financial institution
in China, that it's stock not only has not
deprecated in view of the threatened COM
petition, but remains in demand at the
enormous premium of 10 per cent. 1t is
probable that this rivalry may not threaten
this institution. Not only is it securely in
trenched in the confidence of the mercantile
community of China, but it is probable also
that the advance in commercial enterprises
here will create ample business for the eS-
tablished houses and their new competitors.
I greatly hoped that American financiers
would enter this field. 1t seemed to me
our system of national banks could be
adapted to the wants of China with advan-
tage, and | frequently urged this plan upon
the consideration of Chinese statesmen.
There is no immediate prospect, however,
that our system will be adopted.
Picking March 10, 1897.
*The minister does not designate the tael,
but it is, most likely, the Shanghai tael,
valued at Is cents in United States cur
rency on Jan. l, 1897.