During the time the Dalbank has been conducting business in China it has more than once suffered from political pressure which consisted in raids, closing up of branches in Peking and Shanghai, and in peated audits of the head ofice Harbin and the Shanghai branch, none of which has so far revealed any facts of illegal nature or which are in any contradiction to the laws of the Chinese Republic.
The Board of the Dalbank no objections against any audits as long as they are carried out according to the procedure provided by regulations governing the supervision of credit institutions.and do not violate the principle of confidence in business, the bank, however, deems it absolutely impossible to carry banking business under the contions of a permanent control over: all transactions of the Bank, control established by mere offic order issued by local authorities and not based on any legal grounds, whereas such a procedure was! declared by the authority and published in the newspapers in the form of rules for the supervision of the credit institutions in Harbin.
The system and methods of auditing established by. the local authorities provide for the preliminary exai tion of the nature of each. individual transaction and the right of arresting clients and employees of the Bank as the supervisers may think fit, and have practically led to the actual cessation of business. Such -a situation creates losses to the Bank and makes it impossible for
Text read from the printed page and cleaned; old type leaves the occasional error.