The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-07-22

of these associations attracted great IN
terest. as showing that the Chinese had
anticipated the principle Of our build
ing and loan association, as they have
anticipated so many other complex
systems in modern western civilization.
He said:
Since the opening of ports to foreign
commerce. several European banks
have been. established in China with
headquarters az Shanghai or Hong
kong and branch houses in other ports.
Some of these banks issue notes partly
in taels, partly in Mexican dollars,
which find a large local circulation
among natives as well as foreigners.
IN some of the southern ports where
native banks do not issue paper cur
rency the foreign bank notes are rapid
~ gaining favor among the Chinese,
and the circulation of HOngkcng notes
has spread even over to the adjacent
districts on the mainland where there
are no foreign residents Indeed, on &C
count of their portability, a premium
is sometimes paid for them. The fact
indicates the great confidence placed
by the Chinese on the stability of for
eign innovations. The Chinese, art. a.
assertion that the Chinese are preiu-
diced against the introduction Of for
eign innovations. T he Chinese are "a
practical people; they would not allow
sentimentality to stand in the way of
progress and Improvement when they
have been given an opportunity to as
certain the value and practicabilfty of
the adoption Of the innovation.
g . 8
There are, generally speaking. two
classes Of Chinese banking establish
ments. the local banks. or cash shops.
and the exchange banks Cash shops
so called from the character Of the
business chiefly engaged in. do only a
local business and supply a local want
They are as numerous in our cities as
drug stores are In yours, and their pat
r0nage Is circumscribed just as that
of your drug stores is.
The cash shop Is. a natural OutgrOWth
and an Indispensable eoneomitant Of
the existing currency system. Wages
Of laborers, servants and the like be-
ing extremely low. and the daily neces-
sites Of life being correspondence
cheap, the copper cash enters very
largely into the daily transactions of
the people of every class. hence i'm
mense quantities of cash change hands
every day. Those who have silver
must buy cash for sundry uses. Shop
keepers who have received cash in nav
ment for wares sold convert their &C
cumulated cash into silver by selling
/ it TO the cash shops. Buying and sell
cash shop, and its chief source Of pro-
it The rate of exchange between cash
and silver is daily determined BY the
guild Of cash shops. which is guided, of
course, by the ssaN .ef supply and de-
mand. h
The other large class Of banking
houses may be described as exchange
banks, which are numerically weaker.
but financially far stronger and on
crate in wider field than the local
banks. They are conducted upon the
general principles Of banking Their
usual line Of business comprises buy
ins and selling drafS or bills of ex-
change on other cities of the empire.
and issuing letters OF credit for pur-
poses 0f travel or business. The system
Of remittance by drafts compares IA
vcrably with that IN vogue IN AFneri-
ca OF Europe, in respect to its COM