New-York tribune., 1901-12-10
BANK IN THE FAR EAST.
ESTABLISHMENT OF A GREAT AMERI-
CAN INSTITUTION ASSURED.
THE GOVERNMENT TO GIVE CORDIAL CO.
OPERATION-GUARANTY TRUST COM
PANY SELECTED BY THE CABINET
TBr TELEGRAPH To THE TnrPrNE.I

IBY TELEGRAPH TRIRrNE.l
Washington. Dec. 9.-The establishment of
great American banking institution in the Far
East is about be realized with the cordial CO.
operation of the government at Washington. so
far as such assistance be given under exist
ing law and under legislation that is being urged
upon the present Congress. The enterprise
is understood command the enormous CAPT
tai indispensab BILE to enable it to compete with
great foreign institutions strongly iHtrenched on
the other side of the Pacific The desirabty
of such a bank. capitalized and controlled by
Americans. has long appealed to commercial
interests doing business with the Orient, but not
until the Philippines came under the jurisdiction
of the United States did the national govern
ment become aware of the great necessity.
through being placed in the humiliating position
of absolute dependence for banking facilities on
two powerful English corporations, and COM
PEELED to transact its business with them. fnclud-
ing the handling of the large funds required by
the army and navy. Frequently these tansac-
tions involved the application by these banks of
rates of exchange that We're regarded as eXorhl-
tant. and many opportunities arose for them
seriously to hamper the fiscal operations OF the
government.
The method adopted in the general protocol OF
Peking for the distribution Of the Chinese IN
6en,nitv amounting to $3.50 100000 gold of
the United States in instalments running to
1890 made # indispensable for the united
States to designate some bank at shanghai as
the depository of its share, and the only alter
native to dealing with foreign banks was t" en-
courage the establishment of an American III
stitI,tiop of undoubted strength. The induce
ments which it has been possible TO offer amer
lean capitalists to enter into the fierce compeu-
ton that may be expected in addition to the
amortization Of the American share in the chi
nose indemnity include as well the handling of
tho vast disbursements that inseparab bic
from the maintenance of great fleets of naval
,-essels and army transports in Chinese waters
and the transmission of consular fees, charges
and salaries These are 10 be Immediately op-
erative but the extension Of new banking Iach-
tiles to the Philippines must await legislation
by Congress.
GUARANTY TRUST COMPANY SELECTED.
The Guaranty Trust Company Of NeW-1 ofk
has been selec cted by President Roosevelt 5 Id'-
met to undertake the desired Responsiveness
at Shanghai, Hong Kong. and eventually a'
Manila or other Eastern ports, and already
officials of that corporation have been sent
out to survey the field and to make preliminary
ARRANGEMENTS for beginning business about the
first of the year when they will be called upon
ia receive the first instament of the indemnlt!
at Shanghai. Their plans are not fuily known
here but the administration has been satlshed
of the companys full responsibility and It's
earnestness. and there is no fear that the
company will not be ready to receive fuli au-
thority to handle the Chinese fund when the
payment is forthcoming and become the cuSto-
dian of all civil and military funds at Manila
in a short time
The competition which must be met by the
new enterprise is shown to some extent In the
report of Commissioner Conant who recently
spent several months in Manila and in the East
under Secretary Roots directions. to inVesti-
gate the coinage and banking needs Of the
Philippines. He says:
An American bank doing business in the Orient
will be confronted by foreign competitors long
established. of unquestoned credit and possessing
great resources. English capital for many years
dominated the colonial and foreign banking fleld
especially in the East, but has recently encountered
noUerfui competition in French, German, Belgian
and Russian institutions. in banks deriving their
capital from these sources No less than nine large
hanks do business in Hong Kong. and other power
full institutions scattered over Japan and the
Russian and French establishments In Eastern Asia
A few of leading banks doing business in the
East with their capital and reserve funds, appear
in the following table:
Capital and