OVERLAND CHINA MAIL
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Contains soe Week's News"
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The China Mail
Barometer 29.76 Baintal; 0.00 ch.
ESTABLISHED
1848
April 26, 1921, Temperature,77
Humidity. 84.
二拜禮
HONGKONG, TUESDAY, APRIL 26, 1921.
·號六廿月四年一十二百九千一英
"BUSINESS NOTIONS
THE DOLLAR.
In this changeable weather
Today's closing rate 2/6 1/8
To-day's opening rate 2/6 1/8
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THE
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ERICK TIEK ZA 1960.
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非
TO-DAY'S CABLES.
(Reuter's Service to the China Mail)
NEW BUDGET.
A REMARKABLE FINANCIAL YEAR:
PORINGA DARÍS REDUCED.
BRITAIN REGAINING WORLD'S FINANCIAL LEAD."
LONDON, April 25.
April 26, 1920, Tomperature 71.
日九十三酉辛列疏十國民革中季: PRICE $3.00 Per Month
PRICES AND PROFITS.
•
CAUSE AND EFFECT.
AN INTERESTING LECTURE. -
Sir Josiah Stamp in the course of a recent lecture at University College dealt with the effect of changes in price level upon profits and wages,
He said that the body of statistical The outstanding points of the Budget statement introduced by Mr. data for past experience was difficult Austen Chamberlain in the House of Commons this afternoon were no to handle, and that the present situa- additional taxation and the removal of additional taxes on sparkling wines tion was so different in degree that, and cigars imposed last year which were found to have restricted consum results drawn from experience must tion. Legislation is being introduced to terminate the excess profits tax be applied with caution. It could
In spite of the changed conditions this realised a surplus of £230,500,000 be shown that during the gradual
only, £3,700,000 under last year's estimates? The foreign debt was reduced £117,000,000, including the United States £75,000,000. The reduction during the past two years has been £203,000,000. Mr. Chamberlain anticipated a further reduction of £103,000,000 during the ensuing year. The esticaated surplas of revenue over expenditure for the forthcoming year is £94,000,000.
INTERNAL DEBT REDUCED.
LATER
rise since 1896 changes in prices were much more powerful than changes
in output in effecting profits mediately, but not ultimately.
I-
In the case of changes in the coal industry a percentage increase in price had been four times sa powerful
The Budget was introduced by Mr. Austen Chamberlain who said thats a similar percentage increase in the past year had been one of the most remarkable in our financial bistory. output in its effect upon prices. but Trade was prosperous and prospects rosy when last year's budget was this was immediate only and not framed. Then deep depression suddenly descended in autuma. Never-sustained At the same time the theless, bis estimate of the revenue £1,418,300,000 was exceeded by profits of tailways and gas-works £6,600,000 and the realised surplus was £230,500,000. In the course of were adversely affected, and in the reviewing revenue he said that the corporation tax was disappointing owing general aggregate many of the extreme to the difficulty of putting it into operation, but he thought it would justify actuations of particular industries itself. The corporation tax produced only £650,000 instead of £3,000,000. tended to cancel out. In the cotton £259,500,000 had been applied to debt reduction and during the industry fluctuations in prices led to past year the internal debt had been reduced by £123,000,000 and the fluctuations in profits ten times as floating debt by £37,000,000.
great:
AN IMMENSE ACHIEVEMENT.
On the whole, in times of rising Mr. Chamberlain said that the foreign debt had been reduced by prices, increases of profits have been £117,000,000 to £1,161,500,000 on March 31. We had performed an made over and above the amount immanse_achievement which no other belligerent country had even that would arise upon the increased attempted by reducing our external debt by £203,000,000 two output that such prices induce, but
The estimated total ordinary expenditure for 1921 and--1922
years.
was £974,000,000 and the revenue, after dropping the excess profits tax the additional profit is not usually and two small changes, was estimated at £1,058,000,000. A substantial much greater in proportion than the proportion of the balance must be kept in hand to meet liabilities aring out rise in price if the period taken is not of the coal strike losses Any receipts in respect of reparations would less than a year. be applied to debt reduction. It was estimated that there was a possibility
to redeem the debt from the ensuing year's surplus by £103,000,000.
BIG REDUCTION OF FOREIGN DEBTS.
EXPERIENCE OF FORTY YEARS.
Reviewing the experience of the last forty years, during the first period; We have paid off in the United States during the past twelve on the when prices dropped about 2 points nearly $75,000,000 and in Canada Sagpro boat we have put on gust per annum profite increased by only debts to Japan, Spain, the Argentine, Uruguay, and Hiland. Except for about 14 millions per ammmm, or 44 comparatively small debt we owed the Allies, who, however; were far more millions less than the average i largely indebted to us and a generens kan of £8,000,000 made us by the crease., Then from 1880 to 1895, Straits Settlements and Mauritius (cheers)-the only debt outside the when prices dropped about It points United States and Canada was £828,000 which-would be paid Sweden on per annum, profits increased only maturity in the summer. Arrangements had been made with Canadian 34 millions annually, or nearly 61 bankers to pay off the balance of the $125,000,000 owing in monthly instal-millions below the average, but in ments ending April 1.
the period up to the war, when prices
TAXATION NOT REDUCED.
Mr Chamberlain said that there would be no further reduction in increased nearly 11 points each year, taxation during the current year but a couple of adjustments would be profits increased 16 millions, or 6 made. He admitted that he was wrong last year regarding the effect of millions above the average.
The lecturer said that the average, the increased duties or champagne and cigars, partly, bowever, due to trade depression. There would be a new fixed daty on sparkling wines of 15s.a of all the incomes in excess of £160 gallon instead of 7s, fixed and an ad valorem charge of 333 per cent. He per annum had fluctuated from 1860 anticipated a small increase in revenue from this. The ad valorem duty onto 1914 within moderate limits, and cigars would be abandoned. The alterations as regards sparkling wines was at its highest in 1873 and lowest and cigars operate on May 10. He expected to collect £150,000,000 arrears of about 1895, but the average of real
- BUSINES? NOTICES
Special Sale.
WHITE COTTON, PYJAMAS.
Regular $5.00 Sale $3.50 snit
MACKINTOSH
& CO., LTD.
Men's Wear Specialists.
16, Des Voeux Road.
Telephone 29.
WE ARE NOW CARRYING STOCKS OF HIGH CLASS
DUTCH HAVANA CIGARS
THE PHARMACY
22, Queen's Road..
Tel 845
FANS.
Tel. 945
BE PREPARED FOR THE HOT WEATHER. BUY NOW.
LARGE STOCKS.
excess profits this year and a smaller sam next year. £300,00,000 of debt incomes, after taking purchasing THE GENERAL ELECTRIC CO. (of China), Ltd.
have been dealt with and it will be necessary to re-borrow the difference power into account, has fluctuated between that and the sum available for debt redemption. The present
time was not favourable for an attempt to fund a floating debt but the time but little, for it was about the same would come when a serious effort should be made to secure the in 1914 as in 1860 and 1874." conversion of some national war bonds matering not later than 1925 into longer dated securities,
In the case of wages in the thirty five years up to the war there had NEW LOAN FOR WAR BOND-HOLDERS.
been a rise of about one per cent. per Mr. Chamberlain said that prospectuses were being issued to-night annum, both in actual wages and in offering national war bond-holders a new 33 per cent conversion loan real wages. The greater part of the redeemable at par in 1961. The rates vary according to different classes advance seemed at first sight to have. of boads of which £100 will be exchangeable at from £163 to £160, accord- taken place in the latter part of the ing to the date of maturity. The total amount of bonds outstanding to time, for the first fifteen years gave which the offer applied was £632,000,000. If all was converted the result a ten per cent. increase in nominal ing figure would just exceed £1,000,000,000. This loan was a necessary
| preliminary to funding the floating debt. The new conversion loan over 40 wages, and over twenty per cent.
had been gained since: years would represent a return of between 114 and 112s per cent.
GAIN IN REAL ́ WAGES,
Mr. Chamberlain, concluding, reviewing the Treasury programme for the past two years said that the foundation had been laid for steady But this apparent effect was offset recovery when industrial disputes occurred. When these had been settled by the rise in prices, and the gain in and trade could again revive we would have wiped off a large part of our real wages had nearly all been obtain. foreign debt and restored international credit. We would have made ited by 1900, since when real wages up clear to doubters that we could and should continue to hold the proud to the war had not appreciably position of the premier financial centre world. (Cheers).
advanced, for the increase in money HOW THE BUDGET WAS RECEIVED! ·
wages had just kept pace with the LONDON, April 25, cost of living. The position had been In City circles the opinion is expressed that the most sensational considerably modified during the war, feature of an otherwise colourless Bodget is the generous terms of the loan and in many cases, though not as the object of which is to wipe out £535,000,000 national wär bonds maturing
from now to 1925. The new loan becomes a permanent loan similar to Consols whole, increase in wages, instead of but the terms will arouse the envy of holders of Consals. It is hoped that lagging behind 'profits, had tended to the loan by securing cheaper money industry will be given a big stimulus. precede them. Critics of the Government, however, declare the Budget a necessary evil. It put the majority of the Parliamentarians into the doldrums," Mr. J.-M. Hogge says that Budget is the calm before the storm which will be upon us between 1922 and 1929 when war debt maturities must be faced.
WHERE INDEED?
The losses to be incurred by in dustry on a rapid drop in prices were
Queen's Buildings.
ESTABLISHED 1900.
DISS BROS.
Tel. 518.
TAILORS"
Alexandra BUILDIFOR,
TIL. 2843.
DONNELLY & WHYTE.
Tel: 636)
WINE MERCHANTS.
Tel 838,
PORTABLE HOUSES
FIRST APPEARANCE IN HONGKONG,
Btorm Proof
a function of the total stock carried in relation to the turnover in the period over which the change took After the budget speech member followed member in declaring that the place, and it was quite possible, if s country could not this year raise anything like £1,000,000,000. Further, if considérable total drop was spread the estimates of revenue are realised the net result will be to intensify gradually over a period of years, to economic depression, increasing legions of unemployed. The Times beceb the Ins by a moderate re asks where are the drastic reductions in expenditure and recalls the Premier's duction in the average percentage of Bain Proof cataclysmal letter 20 ministers on August-20, 1919, ordering reduced profit on turnover. expenditure or to make room for those who can. It declares that is the public temper to-day.
BEDFORD BY-ELECTION.
LONDON, April 25.
Bir Josiah thought that half the increase in prices might be got rid of in eight or ten years at a cost of a re duction in the customary rate of pro- fit on timover amounting to about twenty per cent.
In the Bedford by election the Rt. Hon. Mr. F. G. Keliaway (Coalition-Notice is given that the following Liberal) polled 14,397 and Mr. Riley (Labour) 9,731.
ANGLO-JAPANESE TREATY.
OTTAWA, April 26.
further amended position of the wreck of the ss. Haintah has been obtained from an official survey of the wreck -From the wreck, South east Shantung Promontary Light house bears, Si 82% W, magnetic,
The Fremier mounced that the dominions prime ministers conference distant 1.6 miles. The wreck lies in
in Londors in Cluse- would discuss the question of the renewal of the 10% fathoms of water, with (masta Karlo-Japanese treaty.
only showing above high water,
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