New-York tribune., 1901-11-07
A AMERICAN BANK IN CHIN.
THE PROJECT FAVORED BY TRE.srr-
OFFICIALS-TO RECEIVE THIS
COUNTRY'S SHARE OF
THE INDEMNITY.
lBT TELEGRAPH TO THE rR1RuSEr


Washington. Nov. 6.-An interesting .o,.
versy has arisen among officials here in rag,-,
to the propriety of designating a British hs,s
ing house in Shanghai to act as the fiscal -.
of the United States to receive it's frac.,on :.
the Chinese indemnity bonds which ara s.
to be turned over to the doyen of the Dinlon..r-
Corps at Peking for distribution. Under n.
Chinese protocol each Of the powers is p, -
represented in Shanghai by a delegate an
commission of bankers authorized to receiva "a
amount of interest and amortization which WIN
be paid by the imperial authorities As tbs-,
is no American banker in that city. the an
thorization of Great Britain's delegate on n.
commission to represent the United States ~.
been suggested At the instance of the ssr,e-
Treasury Department to-day TO consult wi,,
Horace A. Taylor, of the assistant secrA-
taries. on this subject. Mr.. Rockhin advances
the opinion that an American corporation
should be selected as the delegate on the com.
mission After discussing the matter Assistant
Secretary Taylor announced that an American
banking institution ought to be established IN
Shanghai He maintains that this government
should be individually represented at the meet
ing of the commission. and that the transmission
ness in connection with the decentralization nav
ments should be conducted by an American
representative
Officials of the Treasury Department were
not prepared to say whether the Secretary Of
the Treasury, the Secretary of State or the
President was authorized TO select this delegate
1t is pointed out that the moneys will b.
turned over to the Treasury Department AMI
held as a trust fund. some time 10 be distributes
in part at least, 10 individual claimants, yst
the settlement OF the indemnity is a semi
diplomatic matter The whole intenpnitv
amounting to about S412, ,0O0000 bears interest
at per cent for thirty-nine years, at the end
OF which period the entire principal shall have
been settled IL is agreed that the arnortiza-
tions shall begin January 1, 1902 being payabEa
annually until 1910 The interest is payable
semi-annuaIy. The remainder of the revenues
Of the imperial maritime customs after paw
ment Of interest and amortization Of preceding
loans secured on these revenues; the revenues
OF the native customs administered in the Gpen
ports by the imperial maritime customs and
the total revenues of the salt gabele, exelu-
sive OF the fraction previously set aside for
other foreign loans. are the chief sources u
revenues assigned tor the payment OF oonds
Instalments from these accounts are TO be paid
TO the commission monthly Obviously the dee
gate of any powe- on this commission viii be
kept busy handling large SUMS OF money for
nearly half century. y nominal commission rate
VIII be allowed the banker by each nation for
his services
In The case of the American designated f,.
tHat purpose, figuring the basis of I psr
cent. which has been suggested as the delegates
allowance, If the fractional bond amounted ta
SZ3,OootpO the agency would ultimately colecc
Il fee Of more than $780, 900 II would seem thar
the assurance of this profit or even half thai
amount would attract hundreds OF American
bankers 10 Shanghai, and. Of course, if Mr. Tay-
ioTs tentative plan is adopted there may bs
vigorous competition TO secure the delasateship.
Ihe operation of an American banking iusttl-
ton in China has been projected by American
financial interests for a good many years. The
commercial advantages to be obtained are not
questioned by a majority of the officials Of tn
Treasury Department. who are strongly inclined
10 encourage the instiga tors IL is thought thar
q substantial American bank operated IN Shang-
hai would prove of great value to American
traders IN the Orient Now that this alleged
necessity for such an eSta bliShment has pre-
sented Itself. ii is said that the difficulties which
have defeated former similar projects may b.
overcome. and it is predicted that America may
soon extend its financial institutions into China
OF course. Sucn a project would have TO be IN
dertaken by a private banking establishment,
and an enormous security bond Will be required