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1. 04.
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1
Part II.
9.
45
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1.
On the whole, the liquidation of the German Firas in Hong- Kong does not appear to have disclosed any novel methods of trading which were unknown to British merchants, The Germans have carried on a general mercantile trade in the staple de- partments of pleas goods, sundry importa, dyes and other consignments, and exports.
The following points, however, marif attention.
Financo, Practically the whole of the German Import and Export trade has been finanoed in London, partly by the Eastern Exchange Banks, but principally by the large London Discount Houses such as:-
Frühling & Dosahen,
Frederick Huth & Co.
Kleizwort, Sons & Co.
Arthur E. Brandt à 00.
Wm. Brandt & Co.
Konig Brothers.
The system in vogue was that known in financial circles as
the London acceptance system,
It is operated as follows;-
Importo. Arrangments are made with a certain Discount House to accept the Drafts of the shippers up to a certain amount. As the goods are shipped from Manchester„Bradford, or Hamburg, a Bill ia drawn at six montha sight on the
Discount House, which accepts it, and then discounts it in the open market. Inamgoh as the Draft is fine paper on
account of the standing of the Acceptor, it can usually be discounted at lý below bank zate. The Acceptor charges
per month for the facility, and the total cost of fin- nancing is merely the accepting Commission, o iš per month, interest o 1% below bank rate, and the cost of the Bill Stampa.
The Accepting House sends the documents with a
letter of lion attached, to their clients in China either direct or through an Eastern Bank usually direct, The
China House signs the letter of lien, returns it to London,
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