Banque de l'Indochine
The Banque de l'Indochine ( German " Bank of Indochina " ) was an institute founded in 1875 that acted as a central bank with banknote privilege for the French colonies in the Asia-Pacific region . It was merged with Banque de Suez in 1974 to form Banque Indosuez .
Business operations
It was founded on January 21, 1875 through the merger of the Comptoir d'escompte de Paris and the Crédit industriel et commercial (CIC). It was a private institute backed by numerous major investors. The head office was in Paris at 96, boulevard Haussmann . The Comptoir , founded in 1848, had been active in East Asia early on. She founded branches under her own name at Indian trading centers in Shanghai 1860, Cochinchina 1864, Yokohama 1867–93. It remained active as a separate institution in Australia (1880-1) and around 1900 in Madagascar .
The shareholders' meeting, in which only the hundred largest holdings were allowed to participate, elected a board of 15 members. The Colonial Ministry appointed a representative who had the right to attend all board meetings. The government reserved the right to appoint auditors or a separate control commission.
The significant capital increases in 1887 and 1896 came from investments brought in by Société Générale and Crédit Lyonnais . An amendment to the 1900 statute allowed lending and discounting to a greater extent . The total of the loans granted could not exceed a third of the reserves. The various currencies and parities gave the headquarters good profits from arbitrage prior to 1914 . When the banknote privilege was renewed in 1922, it was determined that the - de jure independent bank - had to use its funds more to promote the colony, especially since the banknotes were ultimately guaranteed by the state. On the one hand, government agencies were granted an extremely low interest rate (1/10 to 1/3 of the discount rate ), and on the other hand, the state received part of the dividend if it exceeded 6%.
The primary task of the bank since its inception has been to support the government in the administration of the colonies east of Suez, which were largely acquired at the end of the 19th century. It acted as the main treasury and accountant of the respective administrations and for most territories also as the central bank with banknote privilege. Administration deposits did not earn interest. The cooperation between the bank and the colonial administrators was not always free of tension. The governor of each colony appointed a local inspector who had the right to participate.
An important line of business in the 1870s and 1880s was the financing of travel exports to China , as well as the export of silk from there to Lyon , which obtained about a third of its needs from China after 1870. The branch in Hong Kong (closed from 1877 to 1884), not completely known as Indochine until 1894 , was an important trading point for the gold-silver exchange business. In addition to its British competitors, the bank - also with its Shanghai branch - became comparatively important in the Chinese market. However, one did not participate in the large Chinese bonds issued in Paris from 1895–1909. Business in China, strengthened by the co-financing of the state-guaranteed Yünnan Railway in 1893 and Hangkow-Szechuan Railway (1908), achieved 27% in 1905 and 33% in 1910 of total sales. Later, the investment in the Shanghai Tramway Company and the mortgage business of the Crédit foncier d'Extrême Orient became highly profitable.
Of the 14.831 billion sales in the second half of 1928, 8.1 billion came from Indochina, 4.62 billion from China, although only Shanghai (2.2 billion), Tientsin (0.8) and Hong Kong (1, 3) were significant. The branch in Bangkok had sales of 556 million, in Singapore it was 917 million. Sales in the other branches and colonies were almost insignificant between 41 and 79 million. It is true that the absolute amounts of dividends paid and reserves roughly doubled between 1916 and 1928, but given the rapid decline of the franc , the underlying values at most remained stable.
Between the two world wars, until at least 1946, the bank had stamps with "BI" perforated for its official use. President Paul Baudouin , in office since 1938 , became French Foreign Minister in 1940 . After his resignation in January 1941, he resumed his position as director until 1944. The rehabilitated René Bousquet acted as general secretary after the war .
Colonies
The branches in the individual colonies acted independently of one another and were subject to different coverage obligations, etc.
The branch opened in French Somaliland (today: Djibouti ) in 1908. Today's successor institution is the Banque Indosuez Mer Rouge . The New Hebrides condominium was represented in Port Vila . With the creation of a single currency in 1938, the institute also received the banknote privilege there. The branch in New Caledonia opened in 1888. The name of the branch, which had existed in Papeete since February 24, 1904 , was changed in 1973 to Banque de Polynésie .
Indochina
The most important colonial business was the financing of trade and colonization enterprises in Indochina. Branches opened in Saigon, Hanoi, Tourane (now Da Nang ), Dalat, Cantho, Haiphong, Hué, Phnom Penh and Battambang. Until the First World War , the bank also had to ensure currency stability in the ratio of gold to silver. This was done by abolishing free silver minting and a ban on the export of Kurant coins. There had been a branch in the Kouang-Tchéou-Wan lease area since 1926.
From 1927 onwards, almost all agricultural credit was controlled by the granting of advances from a fund to farmers who could provide collateral. This was done at an interest rate of 8% and was therefore significantly cheaper than the required usury rates of native or immigrant Indian moneylenders - from the merchant caste of the Nattukottai Chettiar - on which the small farmers in particular remain dependent. In the course of the global economic crisis, the branch network was downsized. After 1954, operations in the Democratic Republic of Vietnam were stopped . In South Vietnam, they participated in the Banque pour le Commerce, l'Industrie et l'Agriculture (BCIA).
According to the French ordinance on foreign exchange control for the duration of the war of September 9, 1939, a special department of the bank to be set up became the executive body of foreign exchange management.
When the privileged position of the institute as a central bank ceased to exist, attempts were made in 1960 to get better business again by acquiring shares in the BFCCI, which had also been active in Madagascar since 1951. The nationalization of the branches in Cambodia (1963) and Madagascar (1975) could be absorbed by the expansion of the branch network in France, which had become possible since the liberalization in 1967. Under different names, the company was active in newly founded branches in French Guiana , the Seychelles , Réunion and, at the request of the government, since 1976 on Mayotte .
China
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The opening of China, enforced after the Second Opium War , guaranteed France the right to establish offices (e.g. in Shanghai and Tientsin ). In particular, the rapidly growing silk wholesalers in what was then the most important processing center in Lyon received interim financing. Branches were opened in Beijing, Tientsin, Shanghai, Hankow, Canton and Hong Kong. The boxer's compensation to be paid by China to France was handled by the institute. The importance of the bank on the Chinese market remained low compared to its competitors such as HSCB , Yokohama Specie Bank and Deutsch-Asiatische Bank (until 1914). However, they have been working closely with them in a consortium since 1909.
After the First World War, business in China was restricted. The stock exchange transactions in Hanoi and Saigon (market share in 1920 ø 75%) and the Saigon foreign exchange market (share in 1920s 51–54%) became more important. The share of the profit generated in Indochina in the total profit of the institute was 38% in 1913, 49% in 1922 and 59% in 1928. The investments in Crédit foncier d'Indochine and SFFC made a significant contribution .
With the participation of the Chinese government and together with the Banque de Paris et des Pays-Bas , Banque Lazard , the Banque Franco-Chinoise pour le Commerce et l'Industrie (BFCCI) was founded in 1925 , which took over the remains of the Banque Industrielle de Chine (est. 1913) took over. Unless the branches in China had to cease operations during the Second World War, business operations had been paralyzed since 1949. The official withdrawal did not take place until 1956.
Southeast and East Asia
They operated branches in numerous trading centers in East Asia, outside of French colonial possession, B. in Bangkok and Singapore (from 1905).
The Yokohama branch was relocated to Tokyo in 1942. Since 1940, this branch has been exclusively responsible for clearing all trade between French Indochina and Japan as part of clearing via the Yokohama Specie Bank .
Banknotes
The right to issue the bank initially only for Indochina was initially limited to ten years, it was then extended to 1905 and then extended to the Pacific region. Before the First World War, the extent of the banknote privilege was determined by ordinances ( decret ). The most important were those of January 21, 1875, February 20, 1888, May 16, 1900 and April 3, 1901. The next extension took place until 1920, then 1930 and finally until 1959. The currencies were either denominated in the Franc (fr.) and thus tied to the Latin Monetary Union until 1914 , or they followed the example of the Mexican dollar (mex $) as in China and French Indochina .
China
Like numerous other foreign or provincial banks, silver-covered notes were issued for local needs. The 1901-2 issued notes (1, 5, 10 100 $) of the branches in Canton (today: Guangzhou ) and Canton-Shamian (contemporary "Shameen") as well as Shanghai are similar to those issued in Indochina and also bear the inscription Dollar = Piastre .
French Indochina
In this colony the coins were also issued by the bank. Since 1922, the notes only had to be covered by a third. The governor general was empowered to reduce this amount to a fifth by ordinance. As of December 31, 1928, notes to the value of 184 million piasters were in circulation, of which the Saigon branch had issued 178 million and Haiphong 0.2 million. The local grade privilege ended at the end of 1951.
French Somaliland
The sheet music issues for French Somaliland (today: Djibouti ) began in 1910 with notes of 5 (1913), 20 and 100 Fr. This was followed by new series 1920-3 and 1928-38: 5, 20 (3 types) and 100 (2 types ), 500 (1927, 1938) and 1000 (2 types 1938) Fr. The banknote amount in circulation in 1928 was 4 million. The " free French " issued emergency notes with overprints showing the Lorraine cross . The 1945 series bills were produced by the (British) government printer in Palestine. This was followed by bank notes denominated in CFA francs in 1946 for 10 and 100 (2 types) francs. The Trésor Public took over the grade privilege from 1952 .
New Hebrides
New Caledonia
The notes issued from 1902 replace the predecessors of the Compagnie de la Nouvelle-Calédonie (1873-4) and the Banque de la Nouvelle-Calédonie (1874–98). There were values of 5 (1916), 20 (1902; new type 1905, 1913) and 100 (1914) Francs.
In the period immediately after the First World War, the bank in Noumea issued strange emergency money. On a brass capsule marked “Banque de l'Indochine. Noumea ”was stamped, a glass plate was placed on the back, under which a stamp (25 or 50 cents) was attached.
A new series of notes for 5, 20 and 500 CHF followed in 1926-9. The 1937-40 issues were similar to those in Tahiti, but the notes were marked on the back with the words "Noumea." First in 1939, emergency issues with higher values were overprinted, followed by 1942-44 additional makeshift issues, some of which were printed in Australia from 1944 onwards. Since the end of 1946, the notes of the CFP franc have been in circulation .
Pondicherry
French India consisted mainly of Pondicherry with a few small exclaves and Chandannagar , together around 500 km². The currency used was the rupee (R.) based on the British model, divided into 8 fanons of 2 annas each . 1875 notes were issued for 10 and 50 Rs. After 1919, small change followed for 1 round (until 1945) and 5 Rs. (1936–47). In 1928, notes worth the equivalent of CHF 6 million were in circulation.
Siam
Bills printed in 1898 in values of 5, 20, 80 and 100 Tikal are known from the branch in Bangkok . They are labeled in Chinese and Thai on the back. Whether they ever circulated is not confirmed.
Tahiti
The issue of franc denominated banknotes in French Polynesia first became necessary in 1914. A new series, like the previous banknotes for 5, 20 and 100 francs, followed in 1920. The new series 1923-8, for 5, 20, 500, 1000 (from 1939) fr., Looked similar to the banknotes of the motherland, the were also legal tender. The back of the newly added 100 Fr note 1939 showed a statue of the Cambodian temple Bayon ( Angkor Wat ). 1928 notes to the value of 19 million circulated. During the Second World War, various emergency notes were issued with overprints. After the administration of the colony had defected to the " free French ", in 1944 new bills printed in Australia were introduced. The CFP franc has been the regional currency since 1946 . The L'Institut d'Emission d'Outre-Mer (IEOM) has been responsible for issuing notes since 1965 .
literature
- David, Max: Etude sur la banque de l'Indo-Chine. Albin Michel, Paris 1909 [legal dissertation]
- Gonjo, Yasuo; Banque coloniale ou banque d'affaires: the Banque de l'Indochine sous la IIIe République; Paris 1993 (Ministère de lÉconomie); ISBN 2-11-087164-4
- Grand-Dufay, Camille; Chamber of Commerce de Marseille; Renouvellement du privilège d'émmission de la banque de l'Indochine; Marseille 1930 (Société anonyme du Sémaphore)
- Kolsky, Maurice; Muszynski, Maurice (1927-2010); Les billets de la Banque de l'Indochine; Monaco ²1996 (V. Gadoury)
- Laurent, Arthur; La Banque de l'Indochine et la Piastre; 1954
- Meuleau, Marc; Des Pionniers en Extreme-Orient: histoire de la Banque de l'Indochine (1875-1975); Paris 1990 (Fayard); ISBN 2-213-02520-7
- La Banque de l'Indochine a Djibouti (1907-1914); in: Traversées, histoires et mythes de Djibouti; Paris 2011 (Karthala); ISBN 978-2-8111-0527-3
- Sabés, Albert; Le renouvellement du privilège de la Banque de l'Indochine; Paris 1931 (Giard) [Diss.]
In-house material
The French National Library keeps annual reports, etc.
- Banque de l'Indochine; Etudes financières: Les Sociétés françaises d'investissement spécialisées; Paris 1962
- Convention intervenue le 10 July 1947 entre le Gouvernement de la République française et la Banque de l'Indochine; [Paris] 1948 (impr. De Chaix)
- Magazine: Banque de l'Indochine. Service des études économiques; Bulletin mensuel d'informations; 1931 - [...]
Individual evidence
- ↑ The French business in northern China was dominated by Banque Russo-Chinois (2/3 of the capital from France and Belgium; founded in 1896. Focus on rail financing).
- ↑ Répertoire alphabétique of the text législatifs et réglementaires prohibant ou réglementant en temps de guerre en France ... . The import / export of more than 5000 Francs per half-year by travelers, the trade in gold finer than 899, transfers of workers to China (depending on status 10-50 piastres) according to Circulaire du Gouverneur Général, 6 November [1939], Af0567, -F
- ↑ About Banque Antillaise later acquired by Banque Française Commerciale Antilles-Guyane.
- ↑ see: Banque de l'Indochine facing the crisis in Canton through the 1930s
- ↑ Accord franco-japonais relatif au régime douanier, aux échanges commerciaux et à leur modalités de rèlement entre l'Indochine et le Japon. Ratified and in effect July 5th. Differences of more than 5 million yen had to be settled with gold, rubber was still billed in US dollars. Changeover to a fixed exchange rate December 28, 1941, then transfer yen on January 1, 1943. Tabuchi Yukichika; Indochina's Role in Japan's Greater East Asia Co-Prosperity Sphere: A Food Procurement Strategy; in: Indochina in the 1940s and 1950s; Ithaca NY 1992; ISBN 0-87727-401-0
- ↑ As early as 1914-23, there was “emergency money” in the form of small pieces of paper pasted with postage stamps on the back with a hand stamp “Tresorier Payeur de la Nouvelle Calédonie” valued at 25 cents. - 2 fr. There were also emergency banknotes in 1918.
- ↑ In 1919 there were also emergency notes from the Chamber of Commerce. In 1920-3, Banque André Krajewski also issued banknotes.
- ↑ In the meantime there were emergency notes from the Caisse des Etablissements Françaises libres de l'Oceanie.
Web links
- Early documents and newspaper articles on the Banque de l'Indochine in the 20th century press kit of the ZBW - Leibniz Information Center for Economics .
See also
- Successor institute (since 1996): Crédit Agricole