Evening star., 1900-12-17
BANKING IN THE ORIENT
A GREAT FINANCIAL OPPORTUNITY
NEGLECTED. BY AMERICANS.
Foreign Houses Now Do the Business
and Get All the
Profit.



That American bankers are letting slip a
great financial opportunity in the far east
is the consensus of opinion among leading
merchants and business men Of Japan of
various nationalities. That an American
banking house was not long ago establish
ed in the orient has been the wonder of
Asatic traders, and that at present, when
American interests are of such paramount
Importance in Asia, no attempt has been
made to establish an American financial in
stitution here is most surprising to those
who know the situation and who realize the
monetary possibilities of the future.
Your correspondent has it, however, upon
the best possible authority in Japan that
the United States government is at present
endeavoring to interest with figures certain
New York and eastern states men of mon
ey in the advantages-almost necessity-of
an American banking institution in this
part of the world. American trade is won
derful!y on the increase while the volume
or purely. governmental business is con-
stantly growing. Even the business tran
sactions of the government of the United
States in Japan, Corea, China and a large
share of that in our own possessions of the
Philippines is of necessity conducted
through japanese, English and German
houses.
In nearly every principal port Of the east
today, including such prominent stations as
Toxic, Kobe, Nagasaki, Yokohama, Taku,
Pekn and Hong Kong, United States gov
ernment money is being employed in works
of many kinds. The transactions connected
with all our interests here could be carried
on through the routine government chan
nels, but the pace would be annoyingly
S1n A II tha
do the work and get the profit
This is speaking of financial matters per-
taining purely to the American government,
and does not include the constantly in
creasing business of American tradesmen
or foreign tradesmen with American mer-
camille concerns.
The Washington government has come to
a realization of this state of affairs and I
am able to say positively that report to
the Secretary of the Treasury, through the
state department, is now being formula ed
to be forwarded from Toxic. American con-
suls and other officials throughout this part
or the world are contributing facts to the
report.
Hundreds of thousands of dollars are
weekly paid out by the American govern
rnent to its soldiers sailors and civilian
employees, and on contracts of many sorts
in all the principal ports of eastern Asia
Yet this money, the best in the world. Is
exchanged at a cost of from % cents to G
cents on the dollar. An American dollar is
actually worth S2.G1 in japanese currency
but at no banking house in the island king
dom can more that s1.92 be obtained tor
It. In China and even in Manila Whera
the money market is almost exclusively
controlled by the Hong Kong and Shansha.
E&Eking Corporation, an English institu-
ton. American money is exchanged at even
d greater discount.
A System of Discounts.
This situation is made even more exasper-
ating to those who exchange American
money in north China through the above
named course. Carry the bank notes of
the English institution from Pekin to
Shanghai or Hong Kong, and go to the
branch house at either of those places, and
they will discount their own money and II
you desire American money in return they
viii! charge you a 3 per cent exchange,
Therefore if you possessed an American
geld dollar in Pekin you would get ia eX-
change 81 cents from the branch bank OF
the Hong Kong company in its own coin.
Taking the 81 cents to Shanghai or Manila
and wishing it changed again into United
States money, you would be charged / per
cent discount on the note and 8 per cent for
exchange to American gold. You would
then have about % cents Of your original
dollar, though you had spent nothing and
had all the time been dealing with the same
house.
This Is but a sample Of certain banking
ever, to show in small way the needs for
ali American financial institution in this
quarter Of the globe.
Consul Harris Statement.
Yesterday I had a long talk with United
States Consul Charles B. Harris at Naga-
saki Mr. Harris Is working energeticalIy
OH the report soon to be made to the home
government on the necessity for bank in
the east.
Among other things, Consul Harris said:
II cannot imagine what American finan-
cierc have been thinking about all these
years. They seem to have overlooked en-
tirely this great field for financial opera
tlons. American trade in Japan is reacE-
Ing enormous proportions, and American
commercial relations with the east demand
an American banking house. The desir.
ability of such an institution has existed
for years, and now with the United States
a recognizedly permanent factor in this
quarter of the globe American house
OF exchange is an absolute necessity If our
trade is to be fostered. The japanese mer.
chants, dealing so largely In American
goods, at a loss to understand why
they are still compelled to do their business
through European exchanges"
VIM. F. MANNIX.