Rumours were current on Monday that a number of Chinese and foreign banks had invested money very heavily in the Banque Industrielle de Chine and as a result of the closing of that institution, they were thrown into financial trouble. Practically every bank in Shanghai which issues notes has been included in the rumour, which evidently comes from exchange shop sources.
As a result of the rumours, there was a little excitement at several of the banks on Monday morning but when it was found that the banks had enough money to meet the demand, the trouble eventually subsided and business in the afternoon was carried on as usual.
The chief centre of attraction was the Bank of Canton, Ld., on Ningpo Road. The bank was opened as usual at 7 o'clock in the morning and a couple of hours later, a crowd was at the door demanding that the' bank exchange their notes for hard silver, For about two hours this continued and when it appeared evident that there was no sign of the bank's inability to pay and that the institution was able to meet the demand, the crowd melted away.
While money was being paid out at the bank, quantities of silver dollars were sent to some 25 money exchange shops with orders that the notes were to be accepted at full value. The Wing On Ca., the Sincere Ca., Nanyang Bros. Tobacco Ca., and other large and influential business houses, also issued notices that they were accepting the notes. Mr.'Chun Bing-him, one of the directors of the Nanyang Bros. Tobacco Ca., issued notices to the various buyers of the Company's cigarettes urging them to accept the notes at face value and the Company would guarantee to accept them when presented. Mr. Chun, who is also compradore of Messrs. A. W. Burkill & Sons, has taken the same step with the soap dealers, He has promised to accept full responsibility for the notes.
$600,000 Patp Our.
In all, about $600,000 was paid out on Monday.
The Bank management absolutely denied the rumour that it had loaned $100,000 to the Banque Industrielle de Chine and was unable to nay its obligations. We are informed that the Rank of Canton has had_no connexions with the French Bank, and are asked to state that all rumours to the contrary are entirely groundless.
The Bank of Canton, Ld., is a company registered in Hongkong under the Companies Ordinances of 1911, and was incorporated in 1912. When it was found that its original authorized capital was oversubscribed, the articles of incorporation were changed, making the authorized capital £1.200,000, more than £1,000,000 of which has already been paid up. This, at the
Text read from the printed page and cleaned; old type leaves the occasional error.