CO129-429 - Public Offices & Others - 1915 — Page 49

12.

ĒŚ

a great portion of this business.

The Deutsch-Asiatische Bank was very little used for fl- nancing business, as the Germans complained that its policy

was too rigid, being diotated from Berlin and not in as-

cordance with the needs of the local market.

Dyes. Practically every German Firm of standing held an

Agency for Aniline dyes, which was a source of steady pro-

fit without any risk. The goods were consigned free, the

services of an expert were seconded in most cases at the

Kanufacturer's expense, all expenses were borne by the Ma-

nufacturer, and the Firm usually deducted 5% from the Account

Sales for its commission.

Credit. A very lax system of granting credits to Chinese

was in general vogue. The usual terms on imports of piece

goods and sundries were from to six months, but in many

cases final settlement was only insisted on at China New

Year, and in one case piece goods had been out on credit

for two years. As a rule a promissory note was given by

the dealer but even this was not always insisted on, and

7

in many cases he merely chopped the book. 411 Accounts were

guaranteed by the Compradore, but the following instances

will show the value of this.

(1)

(2)

Business secured by Compradore

Compradore's own securities

Business secured by Compradore

Compradore's own securities

$ 2,300.000.

и

150.000.

2,200,000.

117,000.

(3)

All the business secured by the Compradore, while his own cash deposit had been endorsed over to, and used by the

Firm.

In some cases the Compradore received 14 on cash transac- tions, and 1% on credit.

I would attribute this widespread credit system to the

D/A facilities enjoyed from the Banks, which gave the

Firms control of all goods.

Exchange.

Speculative transactions in exchange were