Malaysian: Bank of China shrink 100 million deposit to 8.92 Yuan(Cont’d)
Posted by chinaview on September 7, 2006
Li Rulan, The Epoch Times Malaysia, Sep 06, 2006– (cont’d)
Calculation Methods of the Deposit
How did the bank calculate the deposit to justify a 100 million yuan bank deposit becoming only worth 9 yuan? In the forum, Cai displayed the letter from the Bank of China to his father. In the letter, four calculation methods were used by the bank. The first three were based on the repayment method approved on January 9, 1953 by the People’s Government Administration Council of China.
1. The first calculation method used by the Overseas Chinese Service Department of the Bank of China in Xiamen was: For the first five thousand Yuan of the deposit, only 570 Yuan was refundable. For amounts above five thousand Yuan, only ten percent of the deposit amount was refundable. Base on this calculation, Cai’s deposit was reduced to 11,152,743.13 Yuan (Figure 1, right).
This calculation method, determined by the Chinese Communist Party (CCP), was actually meant for fixed deposits. But in fact, Cai’s father’s account is not a fixed deposit account but a current account.
2. After discounting the refundable amount based on the calculation method for fixed deposits, the bank further discounted the amount refundable by eighty percent by using the calculation chart for current accounts. The bank deposit was only left with 8,923,450.49 Yuan after the second calculation.
3. For the third method, the bank used the repayment standard from 1937 to August 1948 (Figure 2, right) to further discount the remaining 8 million. The sum was somehow multiplied by 0.01 and thus the value of the deposit was reduced to 89,234 Yuan.
In reality, Cai’s father deposited the money between Aug 1946 and May 1948. If based on the calculation chart of the CCP, the conversion rate for 2 million deposited in 1946 should be 1 to 3.25. As for the over 100 million deposited before May 1948 , the conversion rate for 1947 is 1 to 0.46. In fact, the bank used none of the conversion rates in between 1937 and August 1948 but chose to use the conversion rate after August 1948, which is 0.01.
4. Lastly, the bank invented the calculation method of “exchanging old currency with new currency”. They fixed the rule that every 10,000 of the old Yuan currency would be exchangeable for 1 new Yuan currency. At the end, the 89,234 Yuan deposit was reduced to only 8.92 Yuan. This calculation method was in fact self-invented, says Cai. (See right part of figure 4.)
Cai said that his deposit used to be worth more than 20 million USD. The Bank of China delayed repayment of this deposit for more than thirty years and finally used these ridiculous calculation methods to reduce a 100 million deposit to only 9 Yuan. This was indeed very much like the fabrication, lies and cheating methods commonly used by the CCP. Cai said even if they used the repayment standards approved by the People’s Government Administrative Council in 1953, he could have got back at least 8 million Yuan. He simply cannot accept the calculation methods used by the Bank of China.
“I have received in total a few millions in interest [on statements], so how could 9 yuan fetch so much interest?” said Mr. Cai.
Furthermore, the Bank of China Malaysia branch intended to sue Cai for “damaging” its reputation and wanted him to compensate the bank.
Cai said during the old times, the overseas Chinese wanted to contribute financially to China because of Japan invasion. Thus many of them transferred their savings to China. Having the similar mindset, Cai’s father deposited his hard-earned money from trading rubber in the Bank of China. He said besides his father, there were many other people who could not get back their bank deposits. He finally appealed to all the people who had placed deposits with the Bank of China and were cheated their deposits to step forward and demand their deposits with the bank to be returned and expose the truth to the public. (END)
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