CHINA A HEAVY FAILURE.

Westport Times, Volume II, Issue 277, 20 June 1868, Page 3

CHINA A HEAVY FAILURE.

Shanghai, Feb. 25, 1861. There as been a heavy failure at Hankow—the Sheng-Yeu-tue, or Customs Bank. This Bank was established in 1861, by the Viceroy Quan, of Hoopah and Hooman, who ruled over a tract of territory 198,000 square miles, with a population of 60,000,000 of souls. The express object was to receive the Customs duties collected from foreigners. It was called the "Government Bank," and has ever since its establishment been employed in this capacity by the Tantal of Hankow, acting as Superintendent of Trade. Loans were effected by the Government through the Sheng-Yeu-tue, and various other monetary operations on the part of the Government. The profits of the Bank were always appropriated by the government; its orders have passed eurrent, and have been received and used by the Chinese authorities in preference to those of any other banking-house. Suddenly, and without the slightest warning, the Tantac closed its doors. When the Consuls of the United States, of England, France, Eussia, and Portugal, sent for His Excellency, he came to the British Consulate, but declined to do anything, would not even amver any questions, and was thoroughly impracticable. Dr. Salter, United States Consul, and Mr. Medhurst, the English Consul, have addressed indignant remonstrances to the Viceroy, and have written to their Ministers at Pekin, but it is thought that nothing will be effected. Many of the merchants at Hankow look upon the whole affair as a reprisal for the English tea failure of Mackellar & Co., last summer, by which many Chinese merchants were entirely ruined and several of them, unable to bear their misfortunes, committed suicide. "Whatever the cause may have been, it has struck a blow at the Chinese credit at Hankow which it will take many years to remove. The question, too, is one which interests many merchants in China. These so called " government Banks " are found at every port, and the duties are paid through them. If one is rotten, all are rotten; and then what is to become of that sensitive thing, credit, and mercantile trade? Your paper would do well to agitate this question. It is one in which California is deeply interested, in view of the growing trade and commerce with China.—Correspondent San Francisco Bulletin.