The frst annual report of the Bank. ers! Acceptance House of the Joint Reserve Board. is as follows: The system of bankers' acceptance has Tong been recognized as an essential part of the foundation of any money market, but modern banking in China has a comparatively short history. and this modern credit Intrument of bankers" acceptance has not come into general use even China' and the Bank of Communica Shanghai, the financial centre of the tions. 'On the same date a Joint office country. " Bank" accommodations in ras established by these three Banks Shanghai usually take the form of in the Shanghai Bankers' Association collateral loans against properties Building, where the Board is located. under mortgage. These leans are not On September 1. the Cultivation discountable, and in times of fnan-Bank of Chuenkong and the Bank of lal strain simply become frozen book Agriculture and. Commerce were credits, thereby impairing the liquid admitted as affiliated members, clear~ ity of' banking assets, During' the ing through the agency of the Board. past few years a rapid expansion of [On November 2 the Kiangsu-Chekiang credits was witnessed. in Shanghai, Commercial and Savings Bank was with easy money market conditions, amalgamated with the Chung Wai Induced by the transfer of funds Bank, the clearing house number of from the interior. Unfortunately, this the "former "being cancelled. On happy situation was soon ended by December 1 the Agricultural Bank of [the external drain of silver China changed from an afil'ated to a alarming scale in the summer of 1034. clearing member, taking the seat In June that year the situation in vacated by the" Klangst-Chekiang, Shanghai became extremely dimeutt, Commercial and Savings Hank. In characterized frst by the freezing addition the above, thirteen and later the contraction of credit, branches of clearing members were and by a sharp decline in most lines added to the clearing through their fof business activity. In spite of respective head-offices. these depressing and disturbing cir~ cumstances member-banks, steadily Clearing Figures continuing their tong-established policy of cautious conservatism, stood During the year under review 3 firm in handling the situation, and total of 2578913 items were passed successfully tided over the many through the Clearing House, to the dimeulties" with which they were total value of $5,984,308,071.i0. Com-faced. At the same time, plans were pared with the totals for 1935, there under deliberation for the inaugura~ was an increase of 01.05 per cent. in tion of a Bankers' Acceptanee House value and of 38.71 per cent. in the under the auspices of the Board, number of items. The participation in an effort to improve the bank-of the Central Bank of China in the ling' and. credit structure and clearing, and the expansion of. \expedite the recovery of normal afillated members clearing through market conditions. A special Com-the agency of the Board, chiefly organized to go into the counts for the, heavy increase after many constructive volume of clearing for 1936. The Siscussions preimlinary dratts of rules Gaily" total for the year averaged and regulations were made, but 4033 items, to the value of $20,149,- definite' decision for their enforee-000, The highest total clearing for ment was reached up to the end of tone day was recorded on January 31, 1085. the Mgure being $195,252.052.21. while Establishment of House the largest number of items Handled Ju one day was recorded on April 14, AE the beginning of the year now the figure being 24,261, Both these under review member-banks, in view records for the year are the highest of the continued stagnancy in market totals recorded on any one day since conditions and the urgent need of the inauguration of the Clearing introducing the bankers acceptance House. In regard to months, the system, renewed their discussion of daily average clearing (or May was the project. Ultimately decision yea about $16,000,000, for 'March and was Teached that a Bankers' Accept-'August over $17,000,000, Apri' Suis, and. September, over. Board to take charge of the accept for February, ance House be established by the
'$18:000.000, "and for January and ance, of bills, such paper to be con-November, slightly above $22,000,000; fined to itis issued by member October. and December eve "the banks as drawers.—By a resolution Highest returns with a daily average'
Of the 14th general meeting of re-$24,000,000. The relation of balance Dresentatives of member-banks, held Of clearings fo total clearings for the om February 20, the draft rules and year was 1L67 per cent, which is 1.69 Fegulations of the proposed Accept-Jess than the percentage for 1936. ance House were unanimously parsed, and a copy filed with the Shanghai City Cottection Bankers Association whose approval was duly granted. Meanwhile, the The City Collection Department Executive Commitice of the Board was organized on June 13, 1985, Atter was invested with power to formulate several. months of experiment and by-laws and acceptance agreements, training, the procedure of collection provide for reserve funds, prepare adopted at the beginning of the office uecommodation, and' organize was much improved "and the eflciency' of the service greatly "in creased. During the year under Feview a total of 1.242.703 items were passed through this Department, to the value of $1435.457,12406. The daily total averaged 3511. items, to the value of $4.111,000. The highest daily total for collections "was. recorded en December 31, §14.100.- 836.73, and the largest number of Htems handled in one day was 10,980, on" October 1, both figures being. Fecords to date." Of the total amount collected during the year, $7.08 per cent, consisted of cheques and drafts fon clearing native Sanks, 23.56 per cent. representing cheques and drafts fon non-clearing native banks and modern-type banks, and 1876 per cent. represented cheques and dratts fon individuals, firms, or corporations other than banks.
Text read from the printed page and cleaned; old type leaves the occasional error.