CO129-351 - Public Offices - 1908 — Page 619

This Document is the Property of His Britannic Majesty's Government.]

CHINA TRADE.

CONFIDENTIAL.

[13298]

No. 1.

612

[April 18.]

C

SECTION 2.

19817

1 JUN 08

Sir J. Jordan to Sir Edward Grey.-(Received April 18.)]

Peking, March 4, 1908.

(No. 112.) Sir,

I HAVE the honour to inclose for your information a translation of a set of Regulations for the control of a central bank, which were published in the Chinese press on the 1st March. These Regulations were drawn up by the Board of Finance and sanctioned by an Imperial Rescript of the 17th February.

The intention is to found a great central banking institution under Government auspices for the whole of China, after the pattern of the Bank of England or Bank of France, which is to be styled "Ta Ching Yin Hang," or Bank of China, and which, besides ordinary commercial banking, will undertake the financial business of the Chinese Government in all its forms.

The Regulations are based on Western models, and come into force in three months from the date of the Imperial sanction, that is to say, in the middle of May next.

I have, &c. (Signed) J. N. JORDAN.

Inclosure in No. 1.

Regulations for the Administration of the Bank of China, drawn up by the Board of Finance.

(Translation.)

THE capital of the Board of Revenue Bank, now superseded by the Bank of China, was 4,000,000 taels. It is now proposed to make a further issue of shares to the value of 6,000,000 taels, bringing the total value up to 10,000,000 taels in 100-tael shares, each share bearing the name of its holder; 50,000 shares will be taken up by the Government, the remainder being offered for subscription to the Chinese public. Should the expansion of the bank's business render a further increase of capital advisable, and a Resolution to this effect be passed by a general meeting of shareholders, additional issues of shares may subsequently be made, subject to the approval of the Board of Finance.

The procedure to be adopted in raising the share capital is left to the discretion of the Bank of China, with the proviso that foreigners shall not be permitted to subscribe for shares, nor shall a shareholder be permitted to transfer his share to a foreigner,

2. The Bank of China shall be a Limited Liability Company, a shareholder's responsibility being limited solely to the amount of his shares.

3. The head office of the Bank of China shall be in Peking. Branch offices will be opened, in accordance with the Regulations and with the sanction of the Board of Finance, at commercial centres on the sea-coast and rivers as well as in the chief cities of the prefectures, sub-prefectures, departments, and districts throughout the provinces wherever the local conditions appear favourable. It shall also be open to the Bank of China, with the sanction of the Board of Finance, to appoint other banks of good standing to act as its agents, under an agreement in conformity with the Banking Regulations, or to enter into arrangements with such banks for mutual facilities in regard to drafts.

Should the Board consider it desirable that a branch should be opened at any given place they may direct the Bank to do so.

4. The business of the Bank of China shall consist in the issue of loans for short periods, discounting and selling bills of all descriptions, dealing in gold and silver bullion, the transmission of funds for public authorities or private customers, advances against goods, the collection of bills issued by banks, Companies, or private merchants, accepting deposits of money and of valuables of every kind, making loans and issuing notes.

5. The Bank of China shall have the privilege of issuing notes on behalf of the Government, but Regulations on the subject, in accordance with the rules for the pay-

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