48 INFORMATION REI^ATING TO CREDIT 



were prosperous in 1915 and very much the reverse in 1916. If dients 

 suiTered from diminished earnings they were at least able to meet their 

 habiUties with fair punctuahty, being helped by their exceptional profits 

 of the previous year. Mortgage loans were reduced by £68,000 and the 

 money thus released was invested in British government securities. The 

 properties taken over under foreclosure were slightly less than in the 

 previous year, representing only £ 2,381 or about ^/g per cent, of the outstand- 

 ing loans. Investments, under the general heading of British government 

 securities, appeared in the balance-sheet as £170,105, their estimated va- 

 lue on 31 December 1916. The profit and loss account showed that the 

 gross revenue was £131,777 or rather more than £1,000 in excess of that 

 of the previous year. After the expenses, the interest debenture stock, etc. 

 had been deducted and £5,000 set on one side towards the depreciation 

 of investments, there remained a net profit for the year of £68,630 — much 

 the same as that for 1915. For 1915 after £20,000 had been placed in the re- 

 serve a dividend of 18 per cent, had been paid. This year a bonus of 2 per 

 cent, which would bring the total dividend paid on the ordinary share capi- 

 tal up to 20 per cent., was recommended. 



CHINA. 



THE FUNCTIONS OF THE AGRICUI^TURAI, AND INDUSTRIAI, BANKS. — Chung-Fu 

 Kiing Pao (Official Journal) No. 1231, 12 October 1915. 



The law as to the agricultural and industrial banks is dated 8 October 

 1915 and became active on the 12th of the same month. 



This law defines these banks as limited liability stock companies aim- 

 ing at providing the credit necessary to agricultural and industrial enter- 

 prises. The minimum sum of the capital shares is fixed at 100,000 yuan (i) 

 and the minimum value of an individual share at 10 yuan. 



Even if the fixed capital of the agricultural and industrial banks has 

 not been entirely covered they must be inspected, as soon as at least half of 

 it has been paid up, by the competent authorities, who will make certain 

 that the founders and shareholders are really honest persons disposing 

 of sufficient capital and capable of belonging to a company. The same 

 authorities will take note of the amount of the capital already paid up, 

 and the application for foundation will then be transmitted to the 

 Ministry of Finances which may or may not give authority for the bank 

 to become active. 



Each agricultural and industrial bank will have the territory of a 

 hsien as its sphere of action. There may be onl}' one bank in each such 

 territory. If however there are special local conditions the competent 

 authorities may send to the Ministry of Finances a request for the division 



(i) I yuan is a piece of fine silver weighing 414. 51282 grains (troy). 



