Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-01-02
IH[ ORIENT
Appointment Of Banking Agency
In Chinese Indemnity Mat
ter Was Important.
Believe Ii Will Have Helpful Ell.
feet On Development Of
Eastern Trade.
Government Anxious to Have
Adequate Banking Facilities
In the Orient.

Washington, Jan. 2.-The announce
ment made Immediately after the capl-
net meeting Tuesday afternoon that the
president and cabinet a agreed upon
the designation of the Internationa
Banking corporation, Of New York, as
the agent for handling the share OF the
United States In the Chinese indemnity
is an important one, as it means the
extension of American banking facilities
to the Orient.
1t Is believed the step will have a De
cidedly helpful effect on our develop
ing Oriental trade. All concerns wnlci
have been doing business in Shangnai
have benz obliged to rely upon English
or other foreign banks for their faclll-
ties. This was realized by Mr..
our representative, h the
negotiations on behalf OF the Onlteu
States, which resulted In the settlement
of he foreign claims against China, De-
cause of the outrages of the Boxer up
rising.
When Mr.. Rockhill returned to this
country he drew the attention OF Mr..
Hay, secretary of state, to the fact that
the protocol signed with China provided
for the payment of the indemnity 10 a
committee of bankers designated by the
countries entitled to share in the IN
demnity. Mr.. Rockhill urged that the
United States should have o bank OF It's
own. thru which it could work.
The government let ii be known pub
licly that it desired ~financiers OF this
country to take up the matter. Two
rival New York concerns came forwaro
with propositions. One Of them was the
International company. The negotia-
lions between the financial concerns ana
the government dragged along for a
number of days. 1t was found that one
of the concerns was unable to take up
the project because OF legal difficulties
in the a This left the International
company the only one in the field.
The International company insisted
that the government should not u
guarantee it a commission on the IN
demnity. but that it should be given a
guarantee that 1t could handle all gov
eminent money sent to the Orient. me
government was not willing to make
such an agreement. 1t was m
that the effort to have a bank estap-
lished would have to be abandoned.
Consul General Goodnow, at Shanghai
was designated two days g as the ms
cal agent of the government, with au-
thority to receive the money. This move
on the part OF the state and the treas
ury department led the eastern imam
ciers to believe that they would be n u
out of my benefits to be derived from
handling the indemnity. Immediately
they accepted the government terms
and made a definite proposition, which,
If accepted, they indicated would result
in the establishment Of a bank at
Shanghai.
Just what the terms were which the
government accepts has not been made
public. It is known, however, hat the
government refused to grant any mo-
nopoly Of government business to the
bank. It Is probable that the Interna-
tional will be favored in this
respect, however, as 1t Is first in the
field. It is thought probable that the
terms of handling the United States in
demnity contemplate the payment OF q
lcommission which will about equal
what the government would have had
to pay in exchange to foreign bankers
had 1t not been able to arrange for the
establishment Of the bank.
The International company will do a
general banking business. Government
officials believe that 1t will play an i'm
portant part in the development of ORR
entail trade for the United States. Gov
eminent officers are entirely satisfied
with the showing Of financial backing
which the International company has
made. The Cragin-Eyre syndicate con-
trolls the bank. This is the concern
which financed the Chicago drainage ca
nal. It also purchased recently the
holdings Of the Maritime Canal Com
pany in Nicaragua.