Disappearing Owing to Chums-mess and Much Abuse "It is probably not generally understood by the public, but it takes, on the average, from five to 15 days to collect one compradore order." This was an_ interesting statement made to a_ represent ative of the—"North-China Daily News" by a leading foreign banker who was interviewed reference to an announcement issued by the Association of Shanghai Banks that "on and after February 4, 1930, Banks which are members of the association will not accept for collection any merchant firms!
This announcement has been the cause of a considerable amount of gemment in mercantile circles, inasmuch as some of the leading' ongs have been_ accustomed to issue compradore orders in payment of their accounts. Through the enforcement of the decision, these hongs will be compelled either to pay in cash or to issue cheques.
When approached on this sul our informant countered with the question "Why was the practice ever started?" and our representative had to confess, that hho knew too little of the practice of the Toeal banks to give a reply.
Extensive inquiries have been! made and nobody appears to know why or when the practice was start ed." Our informant. said that the compradore order of the presen? day was far away from the original compradore order: in former day", was looked upon as an honourable document but now it was, more of less, simply a signed chit, "Tha present compradore order, or the old compradore order for that, isnot and was nota nego-table instrument," the banker said 'Nit is not a bank instrument of any sort, neither Is it an instrument' that can be cleared."
Phe collection of compradore orders, he stated, has apparently een the custom prevailing Shanghai through a number, of years. It was stopped in Hongkong! several years ago and, we believe, Tientsin followed suit x year or two ago and refused to accept such orders for collection, Our informant said that the mara reason for declining to accept the compradore orders for collection was that, nowadays, it entailed too much work, and a considerable loss of time, Invariably, the orders were not honoured, shroffs had to wait for days at 4 time to collect on them, and they had proved to be nothing less than signed chits. Our informant pointed to the tremendous amount of work involved and said that it was probably not generally known by the public, bue ft took, on the average, from five to 15 days to collect one of these orders.
As: an instance, the banker in aavestion remarked that, when a compradore order was presented to the banks for payment, the latter had to send around shroffs to the compradores " concerned. In. some instances, the eompradotes did not pat in an appearance until quite Jate in the day. Invariably, they did not attend for a couple of days a time, Then, when. the compradores did arrive, the shroffs wers Kept waiting fo, hours, until compradore was disposed to take up their accounts. In some instances, the shroffs were kept until as late seven or eight o'clock at night.
However, when finally the shroffs ved attention, they were given native tank orders. 'These were not collectable when presented but the drawers of the money had to wait until the' next day to collect, it being specifically stated on the native orders that, "funds willie payable the day afte, presentation of this order." The drawers then left the orders with the bank and were given a number which, when presented on the following day, entitled them to draw their money.
Unfortunately, this is not always the, case. The compradore may be.in the International Settlement. He will give an order on a native bank in Chapei, sind that institution will sive the drawer a similar order on another native bank in Chapei, which goes through the same procedure, until native banks in Nantao, Ghapei, the Chinese City, the French Concession and then the International Settlement are visited by
Text read from the printed page and cleaned; old type leaves the occasional error.