The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-02-28
CHINESE BANKS AND MONEY.
Theoretical Money Is the TaeI. hut
Real Standard Is Copper.

history Of the country has the United
states had such a standing in the COM
mercial world as IL has gained under the
wise and benefcent legislation of Repub-
lican congresses. after a Democratic OBJ
ject lesson that those who experienced do
not care to again undergo Under the
present administration, too. consular
agents all over the world have been in
structed to gather all possible information
that may prove of benefit to American
merchants manufacturers and shippers.
The last volume of consular reports is
filed with information OF this character.
and the reports are getting more and more
interesting all the time.
Not long ago member OF congress
asked the state department for some In
rency in China. This was referred, to
Consul General Goodnow at Shanghai,
whose reply is here given:
Hongkong md Shanghai.
The Hongkong and Shanghai Banking
under an ordinance of the colony OF Hong
kong. The first incorporation was for
twenty-one years. On May 4. 1887. the
incorporation was continued for second
term of twenty-one years.
The paid-up capital on June go 1899, was
$40, 600 600. Mexican. The reserve fund
at the same time was 900. Mexican.
The current accounts were Sso,2l1 ,4i4. 81,
Mexican, and fixed deposits $50, al ,7is.l6,
Mexican.
The issue of notes was as follows: Au-
thor.zed issue against securities deposited
with the crown agent for the colonies,
81, 600. coo; additional issue, authorized by
a Hongkong ordinance OF 1899. against coin
lodged with the Hongkong government,
81 SO, sos; total note circulation. slS,6226 500,
Mexican. The amount of coin lodged with
the Hongkong government against note
circulation in excess of lo0,0OoO0 Is equal
to 81. C0000o.
The rules provide that
1.-THE total amount of the bills and notes
of the company payable to bearer on de.
mand and actually in circulation shall not
at any time exceed the amount OF the
capital of the company actually paid up,
and there shall be kept by each establish
lnent of the company an amount OF coin
and bullion equal to one-third al least OF
such of the said bills and notes as were
issued from such establishment and are
for the time being In circulation.
1.-THE shareholders of the company shall
be subject to unlimited ability in respect
of all or any such issue or issues or bills
and notes; and in case the general assets
of the company are. in the event of the
company being wound up, insufficient to
satisfy the claims OF both the note hold
ers and the general creditors. then the
shareholders of the company, after salts
flying the remaining demands of the note
holders, shall be liable TO contribute sum
equal TO the amount received by the note
holders out of the general assets OF the
company.
of certain notes in excess of the legal
amount as stated above, but only on the
deposit OF coin with the Hongkong gov
eminent to cover the amount OF such
probation In the price Of silver. This ex-
ira issue of bills was made necessary by
the increasing business along the coast
requiring currency and the eNigency OF
supplying some circulating medium less
bulky that the coined silver.
While there is no statement on the sub
ject | cannot see that these bank notes
have any LEGAL tender quality.
Under extraterritoriality. each defend
ant. IN case of a lawsuit, Is entitled 20
the law OF his own nationality Notes
given a legal tender quality by one nation
atty would not have that quality with
any other nationality, except by positive
enactment.
The branches Of this bank are so wide
spread thus making IL easy to transfer
its notes into sllveD, and its notes are
so generally accepted, and the banks
reputation is so thoroughly good, that in
practice these notes are received by ev-
erybody in payment for debt. Branches
and agencies OF the bank are at the fol-
lowing places Hongkong. Shanghai New
York London. Calcutta, Bombay, Fu-
chau. Hiogo. Saigon, Hankau. Annoy, Ma
Mia, San Francisco, Singapore, Lyons
Ttcntsin, Picking. lloilo. Penang. Batavia,
BANGKOK. Hamburg. Nagasaki, Rangoon,
Colombo and Soerabaya.
At the present time the bank pays
per cent. per annum 60 depositors on daily
balance. 3 per cent. per annum on fixed
deposits for three months, per cent per
annum on fixed deposits for six months,
and : per cent. per annum on fixed de-
pustts for twelve months.
Every branch issues its notes payable
TO bearer on demand at the place Of issue
and ia coin lawfully current in such
place Notes issued in Hougkong are
payable in the currency of Hongkong.
consisting Of British dollars (which do
not circulate throughout ChinRl and
chopped" Mexicans The limited area
Of circulation of the first and the dam
aged condition Of the second reduces
their value as compared with the clean
Mexican dollar. IN which the notes Of
Hongkong dollar today is worth 4 q iael
cents, while the clean Mexican dollar Is
worth 15.sSS tael cents
Standards of Naiue.
The theoretical money of this country
Is the tael. which IS a Chinese ounce ~
silver Tho value Of this tael ON other
words. the weight OF the ounce differs
in almost every port and the value of
any az these tAeis varies with the value
OF silver bullion.
The real standard money u the people
IN China rs copper cash. whieh are worth
about one-twontieth % a gold cent each.
The actual money circulation for the
trade ~ foreigners IN Central md North
In southern China ii IS the chopper
Mexican dollar. worth from 3 20 per
cent less than the clean dollar. In
A9g7 a1Ss 5o Is the British dollar and the
COINED dollars are bought and sold pre-
c.sely as any other article OF merchau-
disc. Their price varies not only accord
inC fo the true value-that IS. the amount
OF bulk silver in them-but according 20
the demand Tor them IN any particular
place for tho purposes - trade. This
latter element OF value e. made prominent
from fhe bulky character of the silver
coinage making 81 more expensive and
more dangerous 20 transport and also
from the eiOwnesS OF transportation be
tween ports on this coast. Shanghai at
the present tiWe has "a surplus of silver
dollars. and On some other ports they are
scarce. There Is no method Of trans
averaging not more than ten knots an
hour. except those Of two three lines
running direct between Shanghai and
HongkouE
The silver iu circulation. each time it IS
paid out. Is 'shruNed' ieNamincdt by. the
rarirtgnf or his Chinese cashier The