To the Editor of the Norts-Cuina Dairy News."
Sir, t-Referring to the article written by Mr. Rodney Gilbert, which appeared in your daily issue of the 7th instant, re the redemption of notes of the Banque sacuaiclls ce Chine, the writer es liberty to expose some underlying facts lest a false impression may gain ground.
The assertion made by the French bankers that at the time of redemption by Chinese bankers, the vast majority of the notes was actually held ty the latter themselves, was absolutely untrue. The notes were redeemed in the buildings of the Chinese Bankers' Assouiations at Shanghai, Peking, Tientsin, and Hankow, and were paid ina week's time purely out of the funds supplied by Chinese banks. Multitude of unfortunate note-hold-erg congested the buildings, and police force had to be called on duty to maintain order. This can be proved from the photo. graphs taken by the Associations in commemoration of the occasion, besides those who are actually beneficiaries and eye-witness.
is ridiculous to assert that the Chinese bankers themselves were holders of the majority of the notes. Any sound-minded will question why should Chinese banks hold a large quantity of the Banque Industrielle's notes. The Banque did not enjoy a privilege and position like the Federal Reserve Banks in the United States, or the Central Banking institutions in Europe. As the holding of notes by the Chinese banks would mean a temporary loss of cash to them, what could be the inducement that made them do so? According to the prevailing custom in Shanghai, a bank will mever keep any large quantity of other banks' notes. Whenever it comes in to possession of them, the bank would either cash them from the' issuing bank, or deposit them to its account in the same. The writer is totally disappointed to learn_that the assertion made by the French bankers did not give due regard to the Banque's position, and even ignored common Conceivably the Chinese bankractioe.
Text read from the printed page and cleaned; old type leaves the occasional error.