telegraphic transfers, &c., always standing as guarantee to the bank for the bona fides of the contracts.
In addition to the European banks, there are upwards of thirty native banks, chief among them being the Yuen Fung Yan, the Soy Kut, the Hong Yue, the Shing Tak, and the Yue Fung. Some of them are substantial concerns, having their own compradores, and capital sums ranging up to two or three lakhs of dollars. Theirs business lies chiefly in receiving money on deposit and in lending money against security of goods. They also conduct a large remittance business between Hongkong, Canton, and the interior of China, where none of the large European banks have agencies; indeed, as far as Chinese business is concerned, they act to a large extent as feeders of the European banks. Like all the other establishments they speculate a little on exchange.
THE CHARTERED BANK.—The distinction of being the oldest established banking institution in the Colony belongs to the Chartered Bank of India, Australia, and China, its Hongkong branch having been founded nearly half a century ago. Its business is that of an exchange bank. The head office is in London, and there are branches in New York, Hamburg, and numerous places in the East. The paid-up capital is £1,200,000, and the reserve liability of the proprietors is £800,000. No less a sum than £1,475,000 has been set aside as a reserve fund, so that the financial soundness of the concern is assured. The manager of the bank is Mr. John Armstrong, who has been in the service of the bank in the East for about twenty-four years. The bank’s premises form part of the handsome row of similar institutions in Queen’s Street Central, and the site on which the building stands is the property of the Corporation.
HONGKONG AND SHANGHAI BANKING CORPORATION.—Largely owing to able management and to the foresight of successive directors, the Hongkong and Shanghai Banking Corporation is to-day the premier bank of the East. Its history is one of extraordinary prosperity, and though at one time heavy losses were encountered, the tide soon became once more favourable, and upon it the Corporation has been carried to its present strong position in the financial world.
The bank was started in 1864 with a paid-up capital of $2,500,000, in 20,000 shares of $125 each, and amongst its founders were men whose names are associated with some of the largest undertakings of the last half century, Business was commenced in 1865, shortly before the opening of the Suez Canal revolutionised the trade of the Far East, and incorporation was granted in 1866. The prosperity anticipated by the shareholders was fully realised for some years ; then came losses, and for 1874 and the first half of 1875 no dividend was paid. In 1876, Mr. Jackson (now Sir Thomas Jackson, Bart.), was appointed chief manager, and from that time onward the progress of the bank has been most marked.
In 1874 the Imperial Chinese Government contracted a loan with the bank of £600,000. Since then the Hongkong and Shanghai Banking Corporation has been the means of placing many Chinese Government loans on the markets, and has also assisted in the flotation of Government loans for Japan and Siam.
Sir Thomas Jackson finally retired from the chief managership in 1902, and was succeeded by Mr. J. R. M. Smith, the present chief manager.
To-day the paid-up capital of the Corporation is $15,000,000. The authorised note issue is $15,000,000. The sterling reserve fund amounts to £1,500,000, which at exchange of 2/- is equal to $15,000,000, invested in sterling securities (mainly Consols standing in the books at 82), and the silver reserve fund to $13,500,000—a total of $28,500,000. The reserve liability of the proprietors is $15,000,000.
The Court of Directors is composed of Mr. G. H. Medhurst (of Messrs. Dodwell & Co., Ltd.), Chairman ; the Hon. Mr. Henry Keswick (of Messrs. Jardine, Matheson & Co., Ltd.), Deputy Chairman ; Messrs. G. Friesland (of Messrs. Melchers & Co.), A. Fuchs (of Messrs. Siemssen & Co.), E. Goetz (of Messrs. Arnhold, Karberg & Co.), C. R. Lenzmann (of Messrs. Carlowitz & Co.), A. J. Raymond (of Messrs. E. D. Sassoon & Co.), E. Shellim (of Messrs. David Sassoon & Co., Ltd.), R. Shewan (of Messrs. Shewan, Tomes & Co.), H. A. W. Slade (of Messrs. Gilman & Co.), and H. E. Tomkins (of Messrs. Reiss & Co.).
Branches and agencies of the bank are established at Amoy, Bangkok, Batavia,
