The
EXTRA
China Mail
HONGKONG, SATURDAY, FEBRUARY 27, 1926.
FINANCE IN THE EAST.
the provision we have made from signing of the Locarno Pact help-economic position of other coun the profits of 1925, this account eu to restore business confidence, fries, ch will show an appreciable reduction | however, and the year closed with French trade is active, but the at the end of 1926.
batter prospects than at one time rectification of the financial posi I would add that our Invest seemed likely.
SILVER & GOLD MARKETS REVIEWED. ments stand in our books at wall The year 1926 will always be
HONGKONG BANK MEETING.
TALE OF CHINA'S INTERNAL STRIFE.
Our Position Vis-a-Vis Canton.
PROSPERITY IN OTHER PARTS OF ORIENT.
below current, market pricessen meinorable for the return to the truat, gentlemen, that the propose gold standard on April 28, when ed distribution of profits will re- Mr. Winston Churchill, the Chan ceive your approval. ^ "
cailor of the Exchequer, announc In comparing the sterling equled that it was the intention of the valent of our assets and pupili Government to allow the embargo tics with those of 1924, it should on gold exports to lapse at the be noted that the rate of exchange end of 1925, and in the meantime fat which the conversions have now to grant a general licence to the been made are approximately Bank of England for the export of 24 per cent. higher than the pres "gold. vious year,
political rather than an
economic problem is giving rise
to increasing anxiety as to the. iture German business" has been hampered throughout the year by a shortage of floating capital that of some of the Scan- ainavian countries by the rapid appreciation of their currencies, (with a corresponding fall in the internal price level), and that of the new states of Central Europe by a policy of high tariffs.
It is no mean fent for Great Bri. The conditions which have As mentioned in the report, wetain, in face of the much more existed in South China since the closed our Vladivostock office on serious financial disorganisation, middle of June, 1925, are well! Trade conditions the world over, the gold and silver markets, September 30 last. Our experiwhich prevailed in many coun-known to you all.
In this colony we have been, and Hongkong's position with regard to the Canton boycott, and the fence of business conditions in tries after the late war, to accom prosperity in other parts of the Far East were reviewed at the 110th Vladivostock has not been encour-plish the return to gold in a short are passing through, a period of aging during the seven years we er period than was found possible, stress and trial Speaking per- ordinary yearly general meeting of shareholders in the Hongkong were established there, and, as the after the Napoleonic Wars a hun-sonally, I have little doubt as to and Shanghai Banking Corporation, held at the City Hall to-day.
prospect of improvement appear-dred years ago. The uncertainty in the outcome. Our Chinese friends "Canton" is no more entirely independent of Hongkong, thaned remote, it was considered ad- financial circles as to the time and neighbours are rational Hongkong is entirely dependent on Canton," eald the chairman. I visable to close that office.diate effect of the return to gold people, and sooner or later more confidently anticipate a return to more or less prosperous conditions." There has been an absence of on the moneta position has been reasonable counsels must surely. spectacular movements in the dispersed 1 were doubts prevail. I am convinced the vast Another remark of importance wast“, little doubt, as to price of silver during the past too, no doubt bet founded, as to majority would welcome an early the outcome,"
year. In fact, the range of the effect on industrial costs, but termination to the presens arti Trade has been hampered in every direction but the Bank 2.3/8d between the maximum and with the industrial improvement, ficial-it is nothing else attitude minimum prices, viz.: 83.7/16d which began in the autumn, it was of hostility towards Hongkong, shows an increase in the total of assets and liabilities..
and 31.1/16d, respectively; has recognised that many of these Canton is no more entirely in. A prediction made was that the discount market in London been the narrowest for many doubts had been exaggerated.. dependent of Hongkong, than would be more uncertain. There had been an absence of spectacular years, and one of the smallest on Not that all was plain sailing. Hongkong is entirely dependent movements in the price of silver last year..
record. In the circumstances, The necessary adjustment of Brion Canton. I think experience Great prosperity is reported in Malaya, the Philippines and in of interest to, which I can refer in in the return to the gold standard, ment that their present policy la
there are no outstanding features tish prices to gold prices, implied will convince the Canton Govern
Japani
connection with the silver market, could not fail to be a painful pro-economically unsound, and quite
Continental Silver. ceas but upon the whole it ap as detrimental to their own pros Contrary to the expectations of pears to have been achieved with perity as to that of this Colony, a year ago, beyond moderate pur comparatively little disturbance While, without question, many chases of the metal for Germany,
to trade.
GBM interests have suffered and
F
Those present wereG. M. little affected, and they are in a Young (Chairman); H. P. White position to lay before you a (Deputy Chairman); W. H. Bell balance sheet, which they feel D. G, M. Bernard, A. H... Compton, assured you will consider emin totalling about 5,000,000 fine Now that the embargo on the hardship has been inflicted on Hon Mr. P. H. Holyoak, Hon. Mr.antly satisfactory. A. O. Lang, W. L. Pattenden, The result of the year's work- ounces, there was no Continental export of gold from Great Britain numbers of innocent people, as a J. A. Plummer, T. G.Wealling including
demand for coinage purposes, and has been removed, and sterling re- result of the present state of $3,390,608.94 (directors); A. H. Barlow (chief brought forward from 1924, shows at present no signs of support established on its pre-war basis, affairs, I do not think the Colony manager A. C. Hynes (manager) a net profit of $15,846,978.01 as coming from that quarter are ap-with a free market for gold in has sustained any permanent in- D. J. Lewis, T. E. Pearce, Ho compared with the net profit of parent. On the other hand, to- London, the London money mar-jury, and given a turn of the Kom-tong, Ho Wing Capt. Themas $10,888,882:01 for 1924. wards the end of the year the ket is subject to the influence of tide, I confidently anticipate a re- Arthur, J. F Wright, G D Towns,
The interim dividend paid in Spanish Government sold by ten-gold movements, a factor and a burn to more or less prosperous
der about 1,000,000 ounces of very important one--that has conditions. H. antar, F. W. Stapleton, August, last of £480,000 at ex silver, resulting from the melting been absent for over ten years. I would take this opportunity
A. Dastur,
change 2/8.7/8, absorbed $4,182,- C. F. Nicolay, AH da sva 735.43. After deducting that down of old coins. This in itself There now comes into force the of recording my appreciation of B.. A. Hail, C. A. Middleton Smith, A. S. D. Cousland, Ho. Fook, J. M. amount and $50,000 remuneration is not a very important factor, but, automatic check to an excessive the assistance accorded the com in view of the large stock of influx or efflux of gold, viz.; the munity under the Government to directors, there remains a McHutcheon, Chan Lim-pak; D. Templeton, J. D. Kinnaird, S. H. balance of $11,664.242.58, which, silver held by the Spanish trea-lowering or raising of the Bank of Trade Loan scheme. I might Michael, V. Goulbourne, P. S. as you have seen from the ac-sury, there is a possibility of sales England rate, as the case may be mention that the Bank has contri- from that quarter being on a scale We are, therefore, likely to ex-buted very considerably to the Cassidy, C. B. Brown, Stewart counts, it is proposed to appro-sufficient to influence the price. It perience a more uncertain dis- funds raised in London for the Smith, Lo Man-hing, Lo Cheung-ip,priate as follows:
seems hardly likely, however, that count market in London, than we purpose. large quantities of the metal will have been accustomed to during North China Trade... be disposed of at present, and in the past few years, as the Lon- A combination of adverse cír-2 any case sales would probably be don money market now comes un-cumstances last year rendered the gradual to avoid unduly disturbing der the direct influence of the port trade of North China ex- the market.
world-value of money, whereas ceedingly difficult and disappoint the export of gold was in force, movement of goods during the during the time the embargo on ing The slight recovery, in the London was to a great extent in late spring was detrimentally dependent of outside influence affected by the unfortunate The Bank of England rate remain- Nanking road Incident last May. tralia and America, to China, and ed at 1 per cent. throughout the A distinct revival of trade was ap 109 million standard ounces to Whole of 1924, while during the parent during the mon India included in the latter per cent.
past year the rate was raised to ember and Octobe
cent in March, lowered to figure, however, are 6,000,000 41 percent in August caused a fresh
break of givil standard ounces re-shipped from
H. G. Hegarty,. E. A Ramy: Mrs. Hegarty,.. Mrs. Weall, Lee Coon, Sir H. E. Pollock, · D Steavenson, W. C. Van der Steen,: S: Stevenson, Hon. H W. Bird L. S. Greenhill, N. V. Croucher, J. W. C. Bonnar, F. A. Joseph, Commodore A. J. B. Stirling, S. M. Churn, Mak Kon-li, G. M. Dalgety, C. J. Cooke, C. Ada Roza, J. Walker D. H Cooper, K. S. Morrison, Dr. J. M. Sanders, F. R. Marsh, Fung Kong-yuen, AF: Bi Silva Netto, 3. M. Alves, H. B., I. Dowbiggin, F. Austin, AK Henderson, E. H. Summers, R. M.
Smith, E. A. G. May, L. S. Dodwell P. K. Kwok, W. E. Van Epps, FG Carroll, G. Grimble, WA. Eustace, G.. B. Layton, H. R. B. Hancock, A. Murdoch, A. Denison, J Fleming, HS Hills, G. Murray (shareholders)
Pay a final dividend of £3 per share and a bonus of 22 per share (subject to deduction of income tax) amounting together to * £800,000; this, being payable at the rate of 2/4.3/8, will absorb $6,766,519.82
Transfer to silver reserve fund $500,000.0
Write off bank premises, ac count $1,000,000/
And carry forward to the cur.
rent year the balance $8,897,722.76,
"Not Without Losses."
The total production of silver throughout the world last year is estimated at 258 million standard ounces, 62 million standard ounces
being shipped from Europe, Aus-
year without losses, but, as full fer country's imports of silver in chiefly owing to the withdraws
We have not come through the India to China, bringing the lat and 4 per cent on Octo-to their diffic
Ber 1. Early in December Lancashire cott provision has been made for all 1925, to an estimated total of 68 gold for export, the rate was
of had to bad and doubtful debts and con-million standard ounced, as comed to 5 per cent. Discount tingencies, and in view of our large reserves, your direc
pared with approximately 61% fully justified in recomm
million standard ounces in the pre Bank rate, but on the
at times ruled consideral
vious year this occasion, a smaller,
feel
ling on
Chairman's Speech to the silver reserve than has been The chairman said Gentle customary, rath men-The report and statement tion in the amou
of accounts having been in your bonus, It should
rate It is estimated that gold to the end amount of $10%
Into pared with
hands for some days. I shall, as mind wever, that a bonus is de ros usual, take them as read
ependent upon proz
I trust the day will soon come so long as our when a successor of mine in the account stands chair will be able, in his opening
the polley shot
remarks, to refer to a past year of down each year prosperous trade and peaceful ac tivity throughout China. It Is long time now since such a hap state of affairs could be recorded,
and I imagine the year recently
ended, will long be remem one of the most unsatisfa difficult that mercha have experienced hampered in every wars, strikes and the order of the mental to trade the country! he peaceful life ous populations
in the tors
power, of
ments
form of
ctive
of Sept the out
North add
oda have
Easing