Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-12-10
Roosevelt and His Cabinet Would
Like American Bank in the
Far East.
Will Give Encouragement to Such
an Institution Run With
American Capital.
Eastern Concern to Handle Chi.
nese Indemnity in Spite OF
Foreign Competition.

Washington Dec. 10.-The establish
ment of great American banking in
stitution in the far east is about to be
realized with the cordial cooperation OF
the government at Washington, so far
as assistance can be given under exist
ing law and under legislation that is be-
ing urged upon the present congress.
The enterprise is understood to COM
,nand the enormous capital indispensa-
bic to enable 1t to compete with great
foreign institutions strongly intrenched
on the other side Of the Pacific.
The Guaranty Trust Company Of New
York has been selected by President
Roosevelts cabinet to undertake the re-
sponsibliities at Shanghai, Hong Kong
and eventually at Manila and other
eastern ports. and already officials Of
that corporation have been sent out to
survey the field and to make prelimina-
ry arrangements for beginning business
about the first of the year, when they
will be called upon to receive the first
installment Of the Chinese indemnity at
Shanghai.
Their plains are not fully known here
but the administration has been salts
fled with the company's full responsible
fear that the company will not be ready
to receive full authority to handle the
Chinese fund when the payment is
forthcoming and become the custodian
Of all civil and military funds at Ma
Mia in a short time.
The desirability of such bank, capt.
talized and controlled by Americans, has
long appealed to commercial interests
doing business with the orient. but no.
until the Philippines came under the
jurisdiction of the United States did the
national government become aware of
the great necessity, thru being placed in
the humiliating position of absolute de-
pendence for banking facilities on two
powerful English corporations. and
compelled to transact its business with
them, including the handling of the
large funds required by the army and
navy.
Frequently these transactions in
of rates of exchange that were regarded
as exorbitant. and many opportunities
arose for them seriously to hamper the
fiscal operations of the government.
The method adopted in the general
protocol of Pekin for the distribution Of
the Chinese indemnity, amounting to
S333. 100000 in gold, Of which $25, 000, 900,
with interest, is payable to the United
States in installments running to 1910,
made it Indispensable for the United
States to designate some bank at Shang-
hal as the depository of it's share, and
the only alternative to dealing with for
eign banks was to encourage the estab-
llshment Of an American institution OF
undoubted strength.
The inducements which 1t is possible
to offer American capitalists to enter
into the fierce competition that may be
expected in addition to the handling OF
the American share in the Chinese in
dennity, include as we'll the vast dis
bursaments that are inseparablei from
the maintenance oflgreat fleets of naval
vessels and army transports in Chinese
waters, and the transmission Of consul
lar fees, charges and salaries.
These are to be Immediately opera
tive, but the extension Of new banking
facilities to the Philippines must await
legislation by congress.
The competition which must be met
by the new enterprise is shown to some
extent in the report of Commissioner
Conant. He says:
An American bank doing business In
the orient will be confronted by foreign
competitors long established. of unques-
toned credit and possessing great re-
sources. English capital for many years
dominated the colonial and foreign
banking field, especially in the east. but
has recently encountered powerful COM
petition in French, German, Belgium
and Russian institutions, foreign banks
deriving their capital from these
sources. No less than nine large banks
co business in Hong Kong. and other
institutions are scattered over
Japan, and the Russian and French es-
in eastern Asia.