New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-03-06
BANKING IN THE ORIENT.
THE PROSPECTS FOR A UNITED STATES
BANK N THE FAR EAST



Kobe. Japan February ;.
The chief Of an influential American business
company here. speaking about the prospects for
American bank in The Orient. and more partic-
l.azrl. japan. said that he had read with inter-
est the reports OF movements IN Washington hav-
ing in view the establishment of such an institu-
ton and said emphatically that there was room
for an American bank in the Orient and that u
was needed
Ar present" he said we have practically only
two banks we can do business with in China, japan
and the PhiIippines-the Hong Kong and Shanghai
Bank and the Chartered Bank. There IS the Russo
Chinese Bank. but its methods. IN Japan, at any
rate. do not commend il TO European and American
business firms here. There IS room for an Anerl-
can bank. therefore because we have only two at
presenu-that is 10 say, firms OF all nationaht'eS
would be glad 10 new competition IN the pahK-
ing business in the Orient. Besides. American
trade with the Orient has assumed SUCH pro
portions and Is growing 50 rapidly that United
States bank would probably md good field for the
employment OF SIS capital. The Hong Kong ana
Shanghai Bank has agencies in San Francisco
and New-York. but nowhere else in the Cn!leo
States. The Chartered Bank does not possess even
this small amount CT representation in the States
I do not think the question OF nationality would
count for very much in the prospects OF the pro-
posed bank ii the Far East. where the Iorelsh
population Of the most cosmopolitan character
possible but question or rates or exchange ana
general facilities would he the principal factors
IN building Up a large business. Foreign traoers
here in the East-in China anu Japan especlaAy-
Il Will the with American lIauels "Aeil
an American bank comes here. They VIII not
choose the American hank because 1t Is Amerl-
can but they will give that bank their business II
II can offer them the best terms Other things
being equal. American firms would no DOUBT give
the preference to the bank of their nationality
Firms Of other naticnalities Will give the American
hank their business as il offers inducements 10
them 10 do so. ,.,
.rhe proposed bank will require large capital
to compete with the European banks at present
established in the Orient. especially Il II Is 10 take
the field wherever the competing banks are i4o"
doing business l.,
.pTbe Hong Kong and Shanghai Bank for IN
stance alone has 100000 at its peck ana o.
The amount Of business 70 be done IN Japan W.
The native business companies VIII not DC la -
o,= x,iT have 70 be entereu into with caution 1t
IS not that there are no openings tneIe ate
crowds but there IS not that commercial ii4'ee
as vel throughout the business life OF the CouL-
Try which would create ule HeO'9'''
among foreign investors $1,000 -.
u suppose the American bank VIII De start
Manila II should then extend TO the Digger cee GENES
oF foreign trade in the East-H ohohaInA, ''iia
- Hon Kong and on 10 the other points whefe
foreign banks are now established. II sho1iu IoI
he difdcult TO find openings all along
complementary to the above views there are some
interesting facts which prospective American Odih
- an the Far East should know These come
from various trustworthy sources
The profits Of the British banks in China ana
Janan are largely made exchange business put
-, .-e a good many houses of considerable posi-
lion in the foreign trading ports OF emma anu
Japan which have made themselves on money DOT
rowed Of the Hong Kong and Shanshal Dam ,i-u
7ba Chartered Bank The former has also III couiSe
- ,+s bie+or, passed much Chinese Government
money through its hands, and at the present 'ie
II Is undoubtedly the framework or the nldhCial
fabric Of the Orient It was not always SO. len
wears ago the great European paAhlHE IlIs'i''---
Sn these parts was the Oriental Bank Corporation
hut It met disaster through the errors OF us
,aragev7er+. and though reconstructed and set
he sfN1
N Oriental f3ank" il again 10 grief. ana since
then the field has been possessed by the hong hong
and Shanghai Banking CORPORATION and the Char
tered Bank Of India. Australia and emma caleu
for short The Chartered Bank
The Hong Kong and Shanghai Banking Corpora
ton has been called one Of the strongest financial
institutions IN the world. and the description IN
doubleday applies TO Il Its paid up capital IS
s50oo00 AT the end OF its financial year its re-
serves amounted szocOooo. and there is re-
serve liability of the proprietors OF the same
amount as the capital. Its shares are quoted at
over I'VE times their par value Every year the
strength Of its position increases. 1t has branches
tn the following cities: Annoy. Bangkok. Batavia
(East Indies, Bombay, Calcutta. Chefoo Chinese
open port). Colombo. Foochow Chinese open port)
Hamburg Hankow ION tie Yang-Tse RIVER
Kobe London. Lyons France. Manila. Nagasak
4Iew-York. Picking. Penang MALAY PENINSULA
Raagoon. Saigon. san Francisco, Shanghai. singa-
pore Sourabaya Tien-Tsin. Iloiio and Yokohama
Its chief or head Office is in Hong Kong.
The principal founder Of the Hong Kong and
Shanghai Banking CORPORATION was Sir Thomas
Sutherland. now the managing director and chair
man Of the great English line Of passenger vessels
10 Australia and the East. the Peninsular and ORR
entail Steam Navigation Company Years ago in
Hong Kong Sir Thomas Sutherland and some OF
his friends had rather cnurlish treatment at the
hands OF the people Of the big bank OF that time
and they at once set about finding the capital TO
run a bank OF their own. They found the capital
ana the result is the Hong Kong and Shanghai
Banking Corporation IF to-day Sir Thomas Suther-
land is a Scorsulani and down this dav the bank
which ne founded is particularly partial Scots
men when star vacancies occur. Its chief man
ager. Sir Thomas Jackson. is Scotsman. and in
ali the branches throughout the Orient Scotsmen
are installed IN the responsible places.
The Chartered Bank OF India. Australia and
China which is the only European bank rival in
the Orient 10 the Hong Kong institution has not
the same Command Of money that enables the older
bank 10 cover its wide field. The paid up capital
OF the Chartered Bank IS 100000 and there is a
reserve fund OF nearly 100000 II has branches at
the following places Bombay, Bangkok Batavia.
Calcutta, Cebu Colombo. Foochow Hong Kong
IIankow, Kobe, Kuala Lunipor malay Peninsula).
Madras, Mecan tSumatra) Manila, Penang, Ran
coon. Singapore, Shanghai, Sourabaya Tien-Tsn
TAPPING CChina) and Yokohama. The Chartered
Bank also sets special value on Scotsmen- They
are regarded as being more steady ard trust
worthy than EuglishLncn, and accordingly one dnds
them II the counters OF most OF the banks in the
East The Chartered Banks chief Office is in Lon
con. n the East II IS regarded being rather
more conservative than the Hong Kong Bank. but
its resources are much less extensive
There are other foreign banks in the East-the
Bank OF China and Japan. the National Bank OF
China. the Mercantile Bank Of India the Deutsch-
Asiausche Bank. and others-which however
scarcel. count factors in the commercial world
OF the Orient whole Hong Kong and Shang-
hal support branches of several Of these minor
banking concerns but practically speaking il is to
these ports that their operations are restricted The
Yokohama Specie Bank. a purely Japanese insti-
III