The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-03-02
CLOSING OF BANK
ENDS ALL RULE 4.
BY OLD RUSSIA
Institution in Manchuria
Once Welded Tremend-
GUS Power.
MARCH 2, 1927
By United Press

HARDIN, March with the liqul.
dalton of the Russo.Asiatic Bank dis
appears tho 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 Russo-Aslatic
Bank, 1t was intended to serve on
one hand tho imperialistic designs
of Russia In her push towards open
ports in the Pacific, and on tho other
to foster economic relations with the
Far Eastern countries.
Through it's medium the railway
main lines in Manchuria were built.
the southern part of which reverted
TO Japan in result Of tho Russo-Jop.
anese war.
Issued Own Money
Tho bank reached its height or
prosperity during tho period pre-.
ceding the Russian revolution. It
had moro than thirty branch Offices
I'm Russia. China and abroad, and
fulfilled the functions OF a state
bank. 1t obtained and managed cou(
cessions, issued it's own money and
had the custody of Russian and Chi.
nese state funds.
The banks decline began with tho
naturalization of banks in Russia
after the October revolution. Hav.
ing lost the support of the Russian
ministry of finance and having SUI.
fcred a severe drawback by the loss
of its properties and funds in Russia,
the bank since then had to rely OH
the operations of its far eastern
branches. especially of those OF
North Manchurla.
BY an agreement concluded at Pc,
kin in 1920. with the Chinese govern.
ment. the bank obtained practically
a full control of the management OF
the railway, but had to spend a great
amount of money in order TO restore
the railway which was badly disor-
ganized during the revolution pc.
riod, to a working condition. Barely
having accomplished this, the rail.
way was taken away from the bank
by the Mukden-Soviet agreement Of
1924. Since then all railway funds
were withdrawn from its custody
and the work of the Harbin branches
Of the Russo.Asiatic Bank became
practically nil.
Headquarters In Paris
At the same time in Paris, where
the board of the bank is situated,
the misunderstanding which were
going on for a long time between
the Russian and French group Of
shareholders came to a deadlock.
on account of the negotiations con.
Quoted by n powerful Russian fac
ton as to the transfer OF n control
ing number Of shares to the SovietM
government. "
In connection with this. IL Is stated
from authoritive sources that the
liquidation OF the bank Is not n vol.
untary one, but has been ordered
by the French government, which
was unwilling to see the control of
the bank pass into The Soviet hands,
ton is named the dual position of
the bank in China, where although
seemingly under the French flag
1t did not possess cXtraterritorial
rights. This made its work very
difficult.
The latest desicions Of the senate
in Pekin in the case of repayment
OF current accounts placed in Roma.
noff paper money on gold roublo
basis were not in favor of the bank
and threatened huge claims in ia.
ture.
Then also in connection with the
rumors that n new Franco-Russian-
will take over the affairs Of the Rus
so-Asiatic Bank. it is said that the
latter bank holds in custody large
funds belonging to the former Rus.
sian government, which with the
liquidation of the bank will pass into
the safe keeping OF the French gov
eminent, which may use them IN the
interests Of the new bank.
Wide Field Loans
Such a bank, free Of the liabilities
of the Russo-Asiatic Bank, but retain.
ing its privileges, being eXtraterrito-
rial and enjoying full support OF
the French government may have
a wide field OF activity open for IL
i'm China. -
The closing OF the bank at 1larbir
is not expected TO cause any eco-
nomic depression locally as the Har-
bin branches have lately greatly
limited their activity and have prac.
tically withdrawn from financing
grain export business. The assur'
ance given by the manager as TO the
repayment in full OF current ac'
counts has quelled the first panic
Sungari Flour Mills and others are
among depostors. No anxiety Is eX.