In the light of the failure of the Banque Industrielle de Chine, Mr. B. Lenox Simpson, adviser to the Chinese Govern. ment, has issued the Yollowing state. ment on the financial position in China:
The suspension of operations by the Banque Industrielle de Chine will have an unfortunate effect on many enterprises in China—mainly French or French-controlled. Established only eight years ago, and ranted special privileges in China by Presidental mandate, one-third of the paid-up capital was nominally contributed by the Chinese Government. In common with all European banks in China, it had a-more ar less unrestricted nate issue, which must run into many millions of dollars, and is largely in the hands of the Chin-community. From the this is the most. seri Th will de. finitely lower the standard of the foreign banknote throughout: China, The vast number of Chinese deposits affected is another very serious matter. Like Farrow's Bank, the Banque Industrielle gave fairly heavy interest on current accounts. and there is reason to believe that the Chinese customers' accounts ran into several hundred million -franes. A great deal of Chinese Government paper is also affected, for large blocks of Treasury bills and domestic bonds were deposited with it, and some of the proceeds of a very large Chinese industrial issue made in France will also he lost.
Text read from the printed page and cleaned; old type leaves the occasional error.