To the Editor of the "Nowrit-CuiNa Datuy, News."
Sin,—Before replying to the Native Bankers Association's letter of the 22nd instant, I kindly request the Association to enlighten me on the following points und to give a clear answer to the following questions (1) Whut is the aim of the Native Bankers Association?
(2) What is the difference between a Wei-Wah Bank and a Thiau-'Tang Bank?
Is it true, as reported by the: chairman' of the creditors me ing, that only well founded bank: oe people, can become members of must
the Association?
(4) Is it true, as reported by the chairman of the creditors meeting, that the Association anniuaily inspects the accounts of} its members and annually con-vinees itself of the standing. and wealth of the partners of its members?
Did the last inspection and inquiry re the Yue Dah Bank prove satisfactory to the Association?
Is it true, as reported by the chairman of the creditors meeting, that the total loss of the Yue Dah Bank is not a recent one but started three years ago, gradually increasing to the present total?
If 6 is true, why has the Yue Dah Bank been allowed to continue its business without paying the previous losses?
Why, according to Article 22 not all of the partners of the' Yue Dah Bank have paid their respective share. in the the bye-laws referred to and we suggest that Mr. Ohorn should obtain a copy and study it with due diligence, when he will be able to save not only his time and the time of this Association but also the Valuable space of this paper. It should have occurred to Mr. Ohorn that "the aim" of a bankers' association in any civilized country is almost identical with that of any other's but, in no case, as far as our knowledge goes, isa bankers' association or any of its members capable of undertaking liability for the insolvency of another member.
Having dealt with question (1) raised in Mr. Ohorn's letter, let us proceed with his other questions ji seriatim. Question (2) is childish: the difference between "Wei Bank" and "Thiau-Tang Bank" is that the former is a member of this Association and the latter is a non-member, Question (3): the report by the Chairman at the creditors' meeting as understood by Mr. Ohorn is not correct: the Chairman said nothing to that effect although it might be pointed out that upon admission to this Association of a member-bank, the Committee of this Association has, as a rule, to be satisfied as to the' reasonable soundness of the financial standing of its partners. It cannot, of course, be interpreted 48 a guarantee or an assurance that this requisite financial soundness of partners is to be everlasting. To Suggest that it is to be so is pre-pesterous, Question (4): Mr. Ober: again misinformed. The constitution of this Association confers na power upon the Committee to have any periodical inspection of the accounts of its members nor is it the duty of this Association to satisfy itself annually as to the "standing or wealth of the partners of its members."
Question (5); calls for no further answer than that given to the previous on (6): the statement made by the Chairman of the creditors meeting Telers to the state of after the Bank failed and which this Association has neither right nor duty to inquire to until after it has failed, Question (7): the answer to Question 6 applies to this question, Question (8): if all the partners of the Yue Dah Bank had contributed their respective shares in the loss, the said Bank would have been quite solvent, Question (9): there have been quite a few instances in which "Wei-Wah Bank Orders" have not been paid in full. The case of Yue Foong Native Bank, then member Of this Association, might be cited which affords conclusive evidence that the lability of a bankrupt member-bank in respect of bank orders issued. thereby is on an equal footing to other unsecured liabilities, We are ote, J.C. YING, Tae SuaNcuat Native!
Shanghai, Mar 29, 1080,
Text read from the printed page and cleaned; old type leaves the occasional error.