Imperial Valley press., 1927-01-03


dation Of the Russo, Asiatic Bank
disappears the last remnant Of eco
nomic might Of Old Russia in Man
churia. Formed in 1895 with Rus
sian state funds and French private
capital, the Russo Chinese bank re-
named in 1910 into the kusso-Asint
ic bank, it was intended to serve
on one hand the imperialistie de
signs of Russia in her push tow ard
open ports in the Pacific, and on
the other to foster economic. rela-
tions with the Far Eastern coun-
tries.
Through its medium the railway
main lines in Manchuria were built,
the southern part Of which reverted
to Japan in result Of the Rasso-Jap-
anese war.
The bank reached its height 9f
prosperity during the period preced-
ing the Russian revolution. 1t had
over 80 branch offices in Russia,
China and abroad, and fulfilled the
functions of n state bank. 1t OBJ
tained and managed concessions, ls-
sued it's own money and had the Gus
today of Russian and Chinese state
funds.
The Bank 4 decline began with
the naturalization of banks in Rus
sia after the October revolution.
Having lost the support of the Rus
sian Ministry of Finance and hav-
ing suffered a severe drawback by
the loss Of its properties and funds
in Russia, the bank since then Ind
to rely on the operations Of its Far
Eastern branc hes, especially on
those Of North Manchuria.
Bv an agreement concluded at
Peking in 1920. with the Chinese
government, the bank obtained
practically a full control of the
management of the railway, but had
to spend great amount of money
in order to restore the railway
which was badly disorganizod dur-
ing the revolution period, to q
working condition. Barely having
accomplished this, the railway was
taken away from the bank by the
Mukdcn.Soviet agreement of 1924.
Since then all railway funds We're
withdrawn from its custody and the
work of the Harbin branches of the
Russo Asiatic bank became practic-
allv nil.
At the same time in Paris, whore
the board Of the bank is situated,
the misunderstanding which were
going on for long time between
the Russian and French group of
shareholders came to a deadlock, on
account, of the negotiations conduct
cd by powerful Russian faction
as to the transfer of controlling
number of shares to the Soviet
government.
Not Voluntary Liquidation
In connection with this, it is stat
Cd from authoritative sources that
the liquidation of the bank is not
a voluntary one, but has been or
dered by the French government,
which was unwilling to. see the con-
troll of the bank pass into Soviet
hands. AS another reason for the
liquidation is named the dual posi-
tion of the bank in China, where
although seemingly under the
French flag, it did not possess ex-
traterritorial rights. This made it's
work very difficult.
The latest decisions of the Senate
i'll Peking in the case of repayment
of current accounts placed in Rom
anoff paper money on gold rouble
basis were not in favor of the bank
and threatened huge claims in flu
turc.
Then also in connection with the
rumors that n new Franco. Russian
Chinese bank is to be formed which
will take over the affairs of the
Russo. Asiatic bank, it is said that
the latter bank holds in custody
large funds belonging to the former
Russian government. which with the
liquidation Of the bank will pass
into the safe-keeping of the French
government, which may use them
in the interests of the new bank.
Such a bank. free of the liabilities
of the Russo Asiatic bank, but re-
tanning it's privileges, being extra.
territorial and enjoying full support
of the French government may have