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Trinity LSF 



Guaranty News 


A Fairer Division Coming 

in Interview with Mr. Sabin 

The Awakening of a Great Nation 

Published by 


and devoted to the interests of the employes of the 
Guaranty Trust Company of New York 

The Guaranty Club of New York 




HARRY V. BAUCOCK, President 

R. J. McDONALD, Vice-President 
J. G. DUNNET, Vice-President 
GEORGE C. FINCKE, Treasurer 
JOHN WATTS, Secretary 
W. O. DUNTZE, Aast. treasurer 

FREDERICK W. COLES, Asst. Treasurer 
CHARLES J O'KEEFE.Asst. Treasurer 
ARTHUR HAAGENSEN. Abbi. Treasurer 
HARRY P. ENGLE, Asst. Secretary 
MISS ETHEL M. BURKITT, Asst. Secretary 

J. B. Avegno, Paris 


Henrv C. Eniery 

William H. Watson, Burnos Aires 

F. C. J lea ton, London 

Harry V. Bab cock 
E. J. Bleezarde 
A. de Wilde, Jr. 
J. G. Dunnet 
George C. Fincke 

August. Entice 

W. Cringle 

George R. Doremua 

W. L. J. Conway 

MisB Ethel M. Burkitt 
Frank Donovan 

H. W. Carlisle 

R. F. Blessing 

A. R. McComaey 

II. W. Carlisle 

John Heudershot 

L. D. Child* 

Miss Catherine Binning 

Executive Committee 

John Gaul 

Rennald V. Graber, Jr. 

J. S. Johnston 

A, J. Leveque 

R. J. McDonald 

Athletic Committee 

John Gaul, Chairman 
John R. Fritts G. M. Francis 

Auditing Committee 

George S. Wallace, Chairman 

Entertainment Committee 

J. J. McNulty, Chairman 
Harry P. Engle Wilbur H, Talbot 

Fi nance Comm it tee 

George C. Fincke, Chairman 

Finance Forum Committee 

R. S. Rife, Chairman 
James Rattray R. A. Shaw 

House Committee 

A. J- Leveque, Chairman 
H. W. Enlund Q. J. Whitten 

Initiation Committee 

Rennald V. Graber, Jr., Chairman 
Thomas A. Elwood William Golden 

J. J. McNulty 
C. E. Rasche 
W. E. Simpson 
George S. Wallace 
John Watts 

Walter Swenson 
Richard Raney 

H. F. Kroeger 
F. de Long Prentice 

John H. Thompson 

Sidney Hulsizer 

Library Committee 

H. A. McCormack 

Thomas H. Nevin 
Miss M. E. Youngs, Librarian 

Membership Committee 

A. de Wilde, Jr., Chairman 
J. V. Hoosack Walter Sweeney 

Music Committee 

Ira C. Avers, Chairman 
H. W. Fraas Theodore Madru 

Publicity Committee 

J. G. Dunnet, Chairman 
Oscar G. Egg Rudolph Sibbern 

Purchasing Committee 

W. H. Wilson, Chairman 
I . R. Manning Harry N. Mittrach 

Thrift Committee 

John S. Johnston, Chairman 
J. C. Collingwood Philip F. Van Der Kar 

Visiting Committee 

E. J. Bleezarde, Chairman 
F. II. Cooper Misa Ilel^n Monahan 

P. P. Pearse 

Herbert L. Smith 

James Rattray 

F. J. Vanderwate r 

Charles H. White 

William M. MacKeuzie 

Women's Committee 

Mr*. \nne F. Polglase, Chairman 
Miss Eleanor Adaoia Mies Jennie G. Jones Miss Mollie McCarthy Mrs. F. U. Simpson Miss Edythe White 

The Awakening of a Great Nation 

Trade, Industries and Resources of Central and 
Northern China and Manchuria 

WHILE the present war has been 
the most destructive in the expe- 
rience of mankind, it has also been one 
of the most powerful constructive ele- 
ments the world has ever known. It has 
affected, directly or indirectly, every na- 
tion on earth, and, through the dire neces- 
sity occasioned by it, has energized prac- 
tically all humanity. The impetus, too, 
which it has given to nearly all peoples 
will not have been spent by the time 
peace is declared, and, unquestionably, 
will result in a great world-wide develop- 

The possibilities, indeed, are plainly 
forecast today in China, which is one of 
the very richest fields awaiting commer- 
cial, industrial and financial cultivation. 
The steadily increasing influx of foreigners 
into China since the beginning of the war 
is significant of vast future potentialities, 

as well as of the fundamental and far- 
reaching political and social changes 
which are transforming China into a 
country of attractive business and in- 
vestment opportunities. Ample evidence 
of the growing realization of China's com- 
mercial possibilities is to be found in the 
latest official reports which disclose that 
there were in China in 1917, 7,055 foreign 
firms and 220,485 foreign residents, as 
compared with 4,742 firms and 185,613 
residents in 1914. 

The proposed loan of $50,000,000 to 
China by the United States, Great 
Britain, France and Japan, which has 
been sanctioned by our State Depart- 
ment, will enable China not only to take 
a more active part as one of the Allies in 
the war against Germany, but will also 
aid materially in the economic and finan- 
cial rehabilitation of the countrv. It will 

Copyrighted by E, M. Newman 

Chinese salt junks on the Yangtze Kiang 


Copy righted ny Ni-vvman Traveltalks ami Hi 

One of the mining towns on the Yangtse Kiang, in the center of the iron and coal mining field 

tend indirectly, but, nevertheless, po- 
tently, to foster trade relations between 
the Chinese and the lending nations, and 
lay the basis for the future participation 
of the latter in the development of China. 

And, through the expansion of China's 
commerce, the ships which the pressing 
needs of war are sending down the ways 
along our Pacific coast will find profitable 
cargoes when peace is established. As a 
consequence, our seaports on the great 
western ocean will steadily grow more 
important and prosperous. 

With a view to active participation in 
the development first of the northern part 
of China, particularly, the Asia Banking 
Corporation was recently formed under 
the laws of New York State with a 
capital of $2,000,000 and a surplus of 
$500,000, all of which has been paid in. 
Among the stockholders of the new com- 
pany are the Guaranty Trust Company 
of New York, the Bankers Trust Com- 
pany, the Mercantile Bank of the Amer- 
icas, the Anglo and London, Paris Na- 
tional Bank of San Francisco, the First 
National Bank of Portland, Oregon, and 
the National Bank of Commerce of 
Seattle, Washington. 

Charles H. Sabin, President of the 
Guaranty Trust Company of New York, 
is President of the new company. The 
Vice-Presidents are Albert Breton, Vice- 


President of the Guaranty Trusty ^Com- 
pany, and Ralph Dawson, Assistant Sec- 
retary of the Guaranty Trust Company 
Robert A. Shaw, of the Overseas Division 
of the Foreign Department of the Guar- 
anty, is the Secretary, and F. R. Sand- 
ford, Jr., is the Treasurer. The directors 
are Charles H. Sabin, Seward Prosser, 
President of the Bankers Trust Company; 
Thatcher M. Brown of Brown Brothers 
and Company, who will represent the 
interest of the Mercantile Bank of the 
Americas; Eugene W. Stetson, Albert 
Breton and William C. Lane, Vice- 
Presidents of the Guaranty Trust Com- 
pany of New York; F. I. Kent, Vice- 
President of the Bankers Trust Company; 
Herbert Fleishhacker, President of the 
Anglo and London, Paris National Bank, 
San Francisco, Cal.; M. F. Backus, 
President of the National Bank of 
Commerce, Seattle, Wash.; C.F. Adams, 
Vice-President of the First National 
Bank, Portland, Oregon; and George E. 
Smith, President of the Royal Typewriter 
Company and of the American Manu- 
facturers Export Association, New York. 
In New York the bank will occupy the 
second floor at No. 66 Liberty Street. 

The Far Eastern territory where the 
Asia Banking Corporation contemplates 
centering its activities comprises mainly 
the northern and part of the central 




provinces of China, Manchuria, and 
Southeastern Siberia. It covers an area 
of about 2,800,000 square miles with a 
population of approximately 340 million 
people. Eighty per cent, of the foreign 
trade of the entire Chinese nation is trans- 
acted through the seaports of this territory. 
Branches of the Corporation will be 
established in Shanghai, Peking, Tientsin, 
Hankow, Harbin and Vladivostock — 
strategic trade centers. 

While China has more than 2,000 miles of 
coastline, it has very few harbors suitable 
for trade purposes, chiefly because they 
lack adequate means of communication 
with the interior. Shanghai, with a popu- 
lation of about 700,000, is the only port 
which has a natural waterway extending 
far into the interior of China. It is lo- 
cated on the Whang-pu which runs into 
the estuary of the Yangtze River which 
opens up the central portion of China to 
the trade of the world. It is navigable, 
except during the dry season, to Hankow, 
for a distance of 600 miles for ocean 
steamers and for small steamers to Ichang, 

a distance of more than 900 miles, and 
for small river boats to a distance of 
1,700 miles from the seacoast. 

The valley of the Yangtze River is the 
only one of material size in China and 
in extent is somewhat comparable to our 
Great Mississippi Valley, except that it 
is broken up into basins by intersecting 
mountain ranges. The basins of this val- 
ley are among the most fertile sections of 
China. In addition to the Yangtze River, 
Shanghai is connected with the great 
agricultural region extending northward 
750 miles, by means of the Yangtze River 
and the Grand Canal reaching Tientsin, 
and also by a railway line which extends 
from Shanghai through Nanking, by ferry 
to Pukow, Tientsin, and Peking. Shang- 
hai ranks as the first port of China with 
approximately 40 per cent, of the entire 
trade of the country passing through this 
port, the value of which in 1917 amounted 
to over 407 million Haikwan Taels (at 
the rate of exchange for that year, one 
Tael equals approximately $1.03). 

Shanghai is primarily the distributing 
center of China and, in addition, the most 

Copyrighted by E. M. WeWB 

Shanghai, overlooking the Soochow River 



Copyrighted by E. M. Newman 

The Bund, Shanghai 

important industrial center. The main 
industries are cotton spinning and weav- 
ing, and that Shanghai will be the center 
of the cotton industry of the Far East is 
indicated by the shifting of other cotton 
plants from less convenient places to that 
city. Another important industry is silk 
filatures, which gives employment to 
about 20,000 workers. There are also 
extensively developed soap works, chemi- 
cal works, paper and flour mills, tanneries, 
oil mills, match factories, tobacco fac- 
tories, printing and lithographic works. 
Large engineering and shipbuilding estab- 
lishments form very conspicuous features 
of this place, and it is interesting to note 
that the United States Shipbuilding Cor- 
poration has recently closed a contract 
for the construction of several vessels 
with a Shanghai shipbuilding company. 
All the materials, except 40,000 tons of 
plates, are to be obtained in China. 


Peking, the capital of China, has a popu- 
lation of over 1,000,000. In addition to 
being a political centre, it serves as a 
commercial focus on account of its good 
communication with other parts of the 
country. Railways connect it directly 
with the great commercial cities, such as 
Kalgan, Tientsin, and Hankow. In addi- 

tion to the railways, many roads radiat 
from Peking, the longest being that 
Lhaza, the capital of Tibet, which 
4,713 miles long, and the daily arrival 
caravans adds to the picturesqueness of 
the city. Water traffic is unloaded at 
Tungchow, a few miles to the east, and 
is transported by cart over a stone road 
to Peking. Tungchow is on the Pei River 
and is connected directly with Peking by 
an artificial canal. 


Tientsin, with a population of about 
800,000, situated at the junction of the 
Hai River and the Grand Canal, and a 
railway center for many fines, is in both 
a commercial and industrial sense, the 
most important city of North China. 
Through the junction of the Peking- 
Mukden and Tientsin-Pukow Railway 
lines and the proximity of the Peking- 
Hankow line, Tientsin is in touch with 
the Lower and Middle Yangtze regions, 
with Peking, Korea, Manchuria, and 
Europe. A large shipping trade is carried 
on from March to December, both in 
Chinese and in foreign vessels. The lead- 
ing industries are the making of Chinese 
rugs and carpets, wool cleaning and pack- 
ing, braid making, bristle sorting, salt 
production, and the tea transit trade, 
developed by the Russians. The iron in- 

Copyrighted by Newman Traveltalka and Brown & Dawson, N. T. 

A street in Peking 


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— — ~~*~~" ~~~ 1 I 

! W 

) & Dawson, N, Y. 

On f/i€ Fan^fee Kiang at Hankow 

dustry is also becoming^an important 
factor. The chief exports are raw cotton 
and wool, goat skins, pig bristles, linseed, 
ground nuts, spirits, medicine, beans, etc. 
The chief imports are cotton goods, cigar- 
ettes, kerosene, machinery, railway mate- 
rial, sugar, and flour. 


Hankow, with a population of 800,000, 
is the leading commercial city of central 
China and is probably destined to be 
the Chicago of China. It is located about 
600 miles from the sea on the left bank of 
the Yangtze River, at the limit of navi- 
gation for ocean-going steamships, and by 
these it is attainable for some nine months 
of the year. Small river steamers and 
boats are able to navigate over 1,000 miles 
farther up the Yangtze River to the west 
from Hankow, while the Han River is 
navigable for over 300 miles northwest 
from Hankow. Through the Yangtze 
River and the Poyang Lake, Hankow is 
in direct communication with the re- 
sourceful provinces of Kiang-so to the 
south. The southern terminus of the 
Peking-Hankow Railway, and the north- 
ern important terminus for the Canton- 
Hankow Railway, the Hankow Railway 

and the Hankow Szechwan Railway, 
which is under construction, will make 
this port the leading city of central China. 
Hankow, Wuchang and Hanyang, known 
as the Wuhan group of cities, with a 
population of 1,300,000 form the com- 
mercial, industrial, and financial heart 
of China and occupy a position unique 
both commercially and economically. It 
is estimated, in fact, that Hankow is the 
distributing point for more than 80,000,- 
000 people. 

The tea industry has become the prin- 
cipal one of Hanka,w. in recent years. 
There have been established also match 
and albumin factories, and the curing of 
hides is carried on extensively. Hankow's 
main exports are beans, bristles, flour, 
furs, hides, iron goods, silk, tea, and wood 
oil. The imports are rice, sesamum seed, 
tobacco, silk, sugar, medicinal plants, 
musk, and furs from the interior of China; 
and from abroad, cotton goods, sugar, 
kerosene, and sundries. 


Harbin, with a population of 65,000, is 
the most important trading center in 
Manchuria. Its location on the Sungari 
gives it direct water communication with 




Vladivostock. Here also is the junction 
of the Chinese Eastern Railway with the 
South Manchurian Railway. The former 
road is a link in the great Trans-Siberian 
system, while the latter line leads to 
Dairen and Port Arthur. Both roads have 
tributary lines in Manchuria, and Muk- 
den is the junction point of the South 
Manchurian Railway with the lines lead- 
ing into China proper and Korea. In 
March, 1916, Russia obtained permission 
to build a road northward from Harbin by 
way of Mergen to Blogoveshchensk with 
a branch line to Tsitsihar. As an impor- 
tant gateway into Mongolia, Harbin will 
benefit by whatever industrial develop- 
ment may take place in this province. 
Harbin is the center for all trade routes 
in Northern and Central Manchuria and 
the great center of foreign trade exchange, 
particularly between Russia and China. 
Foreign goods, as well as locally manu- 
factured products, are not only consumed 
on the spot in large quantities, but are 
also in demand in the other markets de- 
pendent on Harbin. It is the center of 
a great expanse of territory in which the 
soya bean is extensively cultivated. 

The goods in demand there include 
textile fabrics, cigarettes, beer, spirits, 
etc. Harbin is a large export center of all 
kinds of grain, soya beans, and eggs, and 
there is an increasing exportation of meat, 
hides, wool, and kindred products. 


Vladivostock, with a population of about 
92,000, is the capital of the Amur Prov- 
ince of Siberia, and the Chief Russian 
commercial and naval port on the Pacific. 
Its position as the eastern terminus of the 
Trans-Siberian Railway greatly adds to 
its importance. The imports consist of 
manufactures and the exports of raw 
materials. With a return of settled con- 
ditions in Siberia, the importance of this 
point as a commercial, center will be 
materially increased. 


The territory to be reached by the Asia 
Banking Corporation has a variety of 
resources and a variety of climatic condi- 
tions, varying from the cool temperate 
section of northern Manchuria to the 

Along the water front of Vladivostock 



sub-tropical section of the area tributary 
to Hankow and Shanghai in the South. 
Manchuria in the North is primarily an 
agricultural section, resembling Dakota 
in climatic and physical features, with an 
area greater than New York, Pennsyl- 
vania and Texas combined . The principal 
agricultural products are beans, maize, 
millet, wheat, wool, tobacco, hemp, and 
rice. The agricultural products which 
figure mainly in the export trade are 
beans, bean cake, bean oil, aud cereals. 

Manchuria has large areas of virgin 
forest, but adequate transportation is 
lacking to make the timber resources of 
much commercial value. Mineral wealth 
is abundant, southern Manchuria being 
one vast coal field. The Fushun mine is 
probably the best known of those now 
in operation, with 20,000 workers. It is 
estimated that the seams which are being 
worked contain approximately 800,000,- 
000 tons of easily accessible coal. Coal 
is found quite generally in the northern 
part of Manchuria, but primitive mining 
methods and lack of adequate capital 
have prevented the full development of 
coal mining in this section. 

China, at its present stage of develop- 
ment, is mainly an agricultural country. 
The great plains of the northeast forming 
a great half circle with the Shantung 
peninsula at the center, and the extensive 
flood plains of the lower Yangtze con- 
stitute the only large plains areas in 
China, which comprise scarcely J/§ of 
China's surface. Elsewhere only the nar- 
row flood plains and small deltas relieve 
the usual monotony of the slope and 
mountain regions. The northern or great 
plains constitute for the most part the 
Hwang-ho delta, reaching inland for 400 
miles. The Yangtze plain extends inland 
in a series of basins for 600 miles, separ- 
ated from the great northern plains by 

Copyrighted by E. M. Newman 

A street in Hong Kong 

ranges of hills and mountains. These two 
plains coalesce, however, in the east so 
that continuous wide plains extend from 
Hang-Chow to Peking, a distance of about 
750 miles. The Yangtze plain extends in- 
land 1,000 miles. These extensive plains 
equal in area that of Ohio, Indiana, 
Illinois, and Kentucky, and constitute 
the great agricultural resources of China. 
They now support an enormous popula- 
tion — fully 40% of China's total — and 
furnish food and raw materials for export. 
Among the most extensively cultivated 
agricultural products of the Northern and 
Central China are soya beans, rice, cotton, 
tea, silk, ground nuts, hemp, jute, castor 
oil, apricots, etc. Of farm products, eggs, 
egg albumin, feathers, etc., are exported 
in great quantities. Animal products such 
as furs, wool, skins and hides, goat skins, 
and bristles form a very important part 
of China's exports. 

Mineral Resources 

Generally speaking there is a variety of 
mineral resources in most of the provinces 
of China and scientific surveys are al- 
most sure to reveal mineral deposits now 
unknown, even to the Chinese. The 
most abundant mineral deposits of the 
country consist of coal and iron. The 

Copyrighted by K. M. N\- 

Harbor of Hong Kong 

largest coal area in Northern China con- 
sists of Shan-si field, occupying the prov- 
ince of that name but extending into the 
neighboring provinces of Honan Chi-li, 
Shan-si, and Kan-su. This territory lies 
westward of the railroad line extending 
from Hankow to Peking. Richthofen esti- 
mated that in this field there were more 
than 30,000 square miles of coal. The 
coal of the eastern section is mainly 
anthracite, while that of the western part 
is bituminous. Richthofen estimated that 
there is sufficient fuel there to supply the 
whole world for thousands of years. The 
anthracite area is estimated to be larger 
than that of Pennsylvania. Near Peking 
there are several coal fields accessible to 
railroads and to sea transportation which 
are being extensively operated at present. 
To the south of Hankow is another im- 
portant coal area located in the province 
of Kiang-si which is being mined now to 
supply the government iron works estab- 
lished at Hankow. 


Like coal, iron is widely distributed in 
China, and is often found closely asso- 
ciated with it. Honan, to the north, and 
'Kiang-si, to the south, of Hankow, are 
reported to be rich in iron ore. The most 
important iron plants are those of the 
Hanyehping Company, which are located 
at Hankow, and which produce approxi- 
mately 150,000 tons of pig iron yearly. 
The extent and quality of the iron ore 
deposits of China are not definitely 
known. It is the opinion of many experts 
that the reserves of iron in China are 
quite similar to those of the United States 
and Brazil. Antimony also appears to 
be very abundant in Honan and Kiang-si, 
and there is considerable export trade of 
this metal. 

Clay deposits are found quite exten- 
sively in the northeastern section of the 
province of Kiang-si and furnish material 
for the important pottery industry that 
has grown up there. Among other min- 

Courtesy of Aala, Journal of the American Asiatic- Corporation 



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Copyrighted by Newman Traveltjdks and Brown A Dawson, N. Y. 

The Plaza at Dairen, Manchuria 

erals mined in China are gold, silver, 
sulphur, asbestos, tin, lead, etc. 

The Awakening of a Nation 
China has occupied a place of more or less 
complete separation from the rest of the 
world. The mountain areas of the North- 
west, West, and Southwest have impeded 
communication with peoples of those 
sections, while the great expanse of the 
seas has restricted the relations with the 
peoples across the water. Thus the Chi- 
nese, of all the large nations, have been 
allowed to live a life of isolation, which, 
in certain respects, has led to stagnation, 
rather than growth, of industry. But 
China is gradually awakening and is open- 
ing for the development of her immense 
resources, of which she has little definite 

In the economic life of a nation, there 
are several fairly distinct stages of de- 
velopment. A considerable portion of 
central and northern China has passed 
through the agricultural stage, although 

the development has been along primitive 
lines and there is need of scientific 
methods. Intensive development has pro- 
duced a density of population which is 
not equalled by other agricultural nations. 
China is ready to enter the industrial 
stage. The supply of cheap and indus- 
trious labor, a variety of natural re- 
sources, practically untouched, and suffi- 
cient food immediately available, consti- 
tute a remarkable combination of eco- 
nomic factors awaiting the touch of in- 
dustrial and financial leadership. China 
will need capital for the development of 
means of communication, for the con- 
struction of industrial plants, for the 
development of its mineral resources, and 
for agricultural equipment to modernize 
her agricultural system. American capital 
should play its part in supplying the ma- 
terial that is needed to develop the re- 
sources of China and assist in realizing 
the vast industrial possibilities of tlu 


Photo mount 



Gaylord Bros. 

Syracuse, N. Y. 

Ml. JAN 21,1508 

3 1840 00539 958 

Date Due 

W * 

Fiuria cquipuewt buriau Cat, No. 1090A