BANKS OF CHINA.
A FORMER "BANK OF CHINA"
1
(All Rights of Reproduction are Strictly Reserved)
It is interesting to find a rather lengthy account in old files of the proposed founding of a local banking institution which, unlike the Hongkong and Shanghai Banking Corporation, failed to develop and thus passed quite early out of existence. It was called the Bank of China and appears to have been organised (if at all) in 1872.
That date is rather significant: in 1872 there commenced a second period of severe economic depression in the Colony, which lasted until 1876 and was responsible for the failure of several old-established firms. In the first period, for instance, Dent and Co. in 1867 had closed down, and in the second slump, Augustine Heard and Co. (in 1875) had to liquidate, while the Hongkong and Shanghai Bank weathered the depression only by virtue of its exceedingly sound foundations. Thus the Bank of China must have died in early infancy: it is not recorded in any of the reference books after the Seventies.
Incidentally, there is another Bank of China to-day, a flourishing semi-official Chinese institution. But let us return to the old one, and see what was thought at the time of this further instance of local enterprise.
An extract from a rather pompous contemporary comment dated January 26, 1872, runs as follows:-
"The formation of a new local Bank, whose prospectus has for some days past appeared in our columns, and which has been projected by the enterprise of Shanghai merchants, is an undertaking we wish well to, and whose establishment we are of opinion will, under judicious management, be of great advantage to the further development of our commerce with China. Some people may urge that the requirements of foreign Trade are fully met by the Hongkong and Shanghai Banking Corporation and six other banking establishments, through and by means of which foreign trade is at present conducted; that the creation or introduction of another is not only unnecessary but that it could, at the best, attract to itself only a very small share of the present volume of business, which is pretty well known to be of no very expansive kind and within the limits, to which the policy of the Treaty Powers has thought fit to confine it, of a measured extent. That if conducted on sound principles, it could offer no facilities which are not already enjoyed by the public and yielded by its older competitors, and that its success must therefore appear as problematical and doubtful as its formation is uncalled for and useless.
"We differ very broadly from those who thus regard the introduction of a new local Bank, and we do not shrink from a bold avowal of our opinion nor from an exposition of the grounds on which we base it.
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BANKS OF CHINA.
A FORMER " BANK OF CHINA "F
1
( All Rights of Reproduction are Strictly Reserved)
It is interesting to find a rather lengthy account in old files of the proposed founding of a local banking institution which, unlike the Hongkong and Shanghai Ban- king Corporation failed to develp and thus passed quite ear- ly out of existence. It was called the Bank of China and appears to have been organised. ( if at all ) in 1872.
That date is rather significant: in 1872 there com- menced a second period of severe economic depression in the Colony, which lasted until 1876 and was res onsible for the filure of several old-establish firms. In he first period for instance Dent and Co. in 1867 had closed down and in the second slump Augustine Heard and Co. I in 1875) had to liquidate while the Hongkong and Shanghai Bank weathered the depression only virtue of its exceeding Ly sound foundtions. Thus the Bank of China must have died in early infancy: it is not recorded in any of the reference books after the Seventies.
Incidenyslly there is another Bank of China to-day flourishing semi-official Chinese institution. But le us return to the old one, and see what was thought at th. time of this further instance of local enterprise.
An extract from a rather pompous contemporaty comment dated January 26, 1872 runs as follows :-
"The formation of a new local Bank, whose prospectus nás for some days past appeared in our columns, and which has been projected by the enterprise of Shanghai merchants is an undertaking we wish well to, and whose establishment we are of opinion be will under judicous management be of Sreat advantage po the further development of our commerce ith China. Some people may urge that the requirements of foreign Trade are fully met by the Hongkong and Shanghai Janking Corporation and six other banking establishments hroughand by means of which foreign trade is at present conducted; that the creation or introduction of another is not only unnecessary but that it could at the best attract to itself only a very small share of the present volume of business which is pretty well known to be of no very expansive kind and within the limits, to which the policy of the Treaty Powers has thought fit to confine it. of a
easured extent. That if conducted on sound princoples, it could offer no facilities which are not already enjoyed by the publich and yielded by its older competitors, and
hat its success must therefore appear as problematical and Joubtful as its information is uncalled for and useless.
"We differ very broadly from those who thus regard the introduction of a new local Bank and we do not shrink from a bold avowal of our opinion nor from an exposition of the grounds on which we base it.
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