The total number of return items for the year was 90.792, giving daily average of 306, which was about 3.54 per cent. of all items cleared, a. decrease of 1.21 per cent. as compared with the previous year.
[the necessary personnel of the Acceptance Howe, On March 16 these preparations were completed, and the House started to function with a membership of 38 Chinese modern-style banks. The reserve funds subscribed by member-banks totalled $7,623.750, of which 5 per cent, was paid in cash to the House and the remaining 95 per cent. }was deposited by the Mouse with member-banks in proportion to their respective subscriptions, -Accordini, to the terms of the acceptance ayeee= ments concluded between the House fand the respective member-banks, the aggregate amount of bills which the House is obliged to accept is fixed at $90,499,000, Shortly after wards various kinds of properties and commodities were deposited with jthe "House by member-banks security "for acceptance of his. Early i April the House bean to accept bills drawn upon it by mem= ber-banks, and {were readily discounted Banks, the quarters, of the year under re~ view, the activities undertaken by the House were smoothly and successfully carried out, thanks to the energetic ce-operation and assist. nce of member-banks, One of the principal objects establishing the House Is to increase the liquidity and elasticity of bank Fesources, consequently every effort has been made to bulld up a satisfactory system of acceptance credits best suited to the needs and conditions of member-banks. This organtation, though in accord with niodern banking practice, ix a mittedly novel in China and precedented in Chinese business history. The scheme is still in its experimental and initial. stage, and will require much time and ' con structive effort in order to develop into a perfect system, but will then prove of Invaluable assistance to the banking community.
Acceptance Securities The following is a brief review of the saetivities of the House during the past year:—
The total properties deposited with the "Howse by. member-banks scourily "for acceptance of bills amounted to $3,867,808 on December 31, 1936, The total amount of bills accepted against properties pledged security represented 09.30 per cent, of the appraised value of the securities. Classification of acoeptance securities at the close of the year showed that $0.01 per cent. con= Bisted of Government bonds, stocks and debentures, 20.71 per cent. wan real estate, 18.11 per cent, was made up of domestic commercial bills and promissory notes, 648 per cent: was Joint Reserve Notes and Certificates issued by the Board, and 4.09 per cent. consisted of native products Bills Accepted During the year under review the House accepted a total of 84 bills, drawn upon it by member-banks, to the value of $4,020,000. OF this total 27 bills, to the: value of $1,340,000, matured in the course of the year. while 87 bills, to the value of $2.680,- 000, "remained outstanding at the close of the period, The greater number of bills accepted had a maturity of 90 days. In every case the amounts of bills accepted were pald to the House one day prior to maturity, without a single renewal of mattired acceptances during "Discount of Bills Accepted The bills accepted by the House fare "eligible for discount by any member-bank, and in case of neces sity the Board may be requested to discount bills, "During the year under review, the aggregate amount of discount of acceptances was $86,710,000, of which $4,060,000 wax Aiscounted by the Board, and $2.050,- 000 by member-banks. The discount rates of acceptances for the year. with a 90 day acceptance as standard. averaged $0.119 per $1,000 per day.
Profit.and Loss From March to December the total income from acceptance charges and interest amounted to $8,327.15, According to the approved budget of the House, the expenditure for the year was estimated at $8,000, where the statement showed ah actual expenditure of $5,007.69, which was $2,002:31 ess than the approved budget. After deducting preliminary expenses, $1,008.14, there remained a het profit of $1,411.82 for the year, which it is proposed to carry forward to the credit of Surplus Fund.
Text read from the printed page and cleaned; old type leaves the occasional error.