126
the majority of instances the service would be improved. General statements are of no value whatever.
፣
A. M. THOMSON.
Postmaster General.
THE HONGKONG WEEKLY PRESS AND
into the sea here. Yulingkan itself can never | be a trading port of any consequence, for the adjoining country is mountainous and sparsely populated; its only value lies in its strategical possibilities as a naval stronghold.
FRENCH DESIGNS ON HAINAN AND WHAT IS TO BECOME OF THE VALLEY OF THE WEst river.
(CONTRIBUTED.)
There is no doubt that the French intend to annex the Island of Hainan sooner or later- probably sooner and it beboves the British to see that their acquiescence to that event, when it takes place, is conditional to the British be- coming heirs to the valley of the West River.
If the reader will take the trouble to look at the map of China he will readily observe that the area of the Island of Hainan is almost equal to that of the West River Valley, and therefore the cession of the latter to Great Britain would only be a fair equivalent to the annexation of Hainan by France, The French could hardly, unreasonable as they are, object to such an arrangement, for the whole of the trade of the West River is carried on with the British colony of Hongkong and in British vessels and the bulk of that trade is British trade also.
x
HONGKUNG AND SHANGHAI BANKING CORPORATION,
The ordinary half-yearly general meeting of shareholders in the Hongkong and Shanghai Banking Corporation was held on Saturday, 12th Feb., in the City Hall. Hon. J.J. Bell-Irving pre- sidedand there were also present-Messrs. R. M. Gray, C. Beurmann, G. D. Boning, D. Gub. bay, A. Haupt, A. J. Raymond, R. L. Richard- son, R. Shewan, G. B. Dodwell (Directors); Thomas Jackson (Chief Manager); J. M. Alves, P. A. Barlow, G. Murray Bain, D. E. Brown, S. B. Bhabha, H. Buck, Hon. C. P. Chater, A. Coutts, G. C. Cox, K. A. Chinoy, F. Dodwell, H. G. Edgar, T. Brown, PT. Wright, Firth, Ho Fook, Erich Georg, C. J. Gonsalves, D. Gillies, D. D. Guzdar, V. A. Caesar Hawkins, S. Hancock, F. Henderson, Insburg, P. Jordan, J. H. Lewis, F. Leyburn, W. Lysaught, H. M. Mehta, H. N. Mody, F Marshall, G. H. Medhurst, C. Palmer, G. Stewart, Captain Tillett, J. E. Thompson, E. S. Whealler, O'Keefe, and others.
Mr. JACKSON read the notice convening the meeting.
It is true that the whole of the trade of the Island of Hainan is carried on with the British colonies of Hongkong and Singapore and that there are on the island a great many natives said-Gentlemen, the directors have great The CHAIRMAN, after reading the report, who have spent a large portion of their pleasure in coming before the shareholders with lives in British possessions in the Straits such a satisfactory report as the one just read, Settlements, and many others who have allowing of the usual dividend of £1. 58. per relations there, but as the French are now share, and an addition to the reserve fund of 10 intent on the possession of this valuable lacs of dollars. The account under the heading island, recognizing their folly in not seiz- ing it when last at war
of dead stock, which has appeared in the various with China, it reports since the establishment of the Bank, has would be well to waive our claims to that por- tion of the crumbling Chinese Empire in fafour $100,000 to the profit and loss account of the been wiped out of the books by a debit of of possession of the West River Valley, more past half-year. Dead stock represented house especially as the possession of that valley would and office furniture, safes and stationery, all enable us to assert our influence in the central unproductive or non-interest bearing items, and portion of the vast valley of the Yangtsze any fitly grouped under the heading of dead stock. carry out our view as to the conservation of In future, it is intended that renewals of the independence of that part of China. British policy must in the end, no matter what unin- the profit and loss account from half-year furniture, stationery, &c., will be debited to formed or interested politicians at present as- sert, be directed to the removal of the Chinese item in the accounts now is the Bank prem to half-year. The only non-interest bearing capital to Nankin, or other point on the Yang-ises account, and this we write down every tsze, and the establishment of popular elected half-year by charging the various offices a -assemblies for assisting in governing the rental upon the premises they occupy. Our numerous and concrete people inhabiting that premises at the head office and at the various fertile valley; the village elders would form the electorate.
branches are worth a sum considerably exceeding There is another point of great importance viz, $971,965.66. It is our policy to own the the figure at which they now stand in our books, in the matter of these approaching territorial premises we occupy at the various centres of our changes. On the south-west coast of Hainan is business, and to continue writing down their the excellent and land-locked harbour of Yaling-book value. Our silver current accounts shew kan, only distant about sixty miles from the direct track of vessels bound from the south to
a falling off during the half-year of 85,801,888.54. China, capable of being converted into a second
This was caused by the extreme tightness of Port Arthur, or a Bizerta, and of far more im- of the latter half of 1897. This tightness money all over the East during nearly the whole portance than Port Arthur in that it commands first began in the Straits in consequence of the route of the whole of the China trade, ex-shipments of silver yen to Japan, where they cept that carried on with America across the Pacific. It would be no light matter, therefore, being at times as much as 10 per cent. over were exchangeable for gold yen, Japan exchange to allow a great naval power like France, with the rates ruling in the Straits. British dollars abundant coal supplies close at hand in Tonkin, were freely imported by the Banks in the to occupy such an important strategical position Straits, but pending their arrival there was unless it was stipulated that this point was not a great scarcity of coin in both Singapore and to be fortified and some equivalent was conceded Penang. The change in the currency of Japan, to us for such a change. Yulingkan was in the old sailing ship days a favourite resorting money in the Far East, resulted very satis. while producing some inconvenience by tighten- of vessels bound up the China. Sea, especially factorily to this Bank, as we were considerable during the north-east monsoon, when vessels holders of Japanese silver yen at the time. ran in for shelter during a blow and to refit Hongkong and Shanghai had to face gbnormally and obtain fresh provisions for the crews. large shipments of bullion, the former to Can- There are quite a number of graves of seamen ton and the Coast ports, the latter to the River who have been buried there in past times, the and Gulf ports, causing temporary stringency spot now being overgrown with jungle, but in both markets, and high rates of interest well known to the natives of the locality, who ruled all round. Fixed deposits in silver show pointed it out to the writer many years ago.
The trade of Hainan is capable of considerable $31,730,522.12, against $30,641,249.52 the pre- a slight increase during the half year, say, development were the island in the possession vious six months. Current accounts in gold of a civilized power, and there are two excellent show a decrease of £1,208,675 58. 10d., being harbours, one Chunlan on the north-east coast further withdrawals on account of Chinese Go- and the other Heung-po on the west coast, which vernment loan money temporarily in our posses- would be much visited were the whole island sion as explained by my predecessor in the chair thrown open to trade. Chunlan is the head- on the last occasion when we met in this room. quarters of the junk, trade with Singapore, and Our fixed deposits in gold show a slight in Heungpo, although not possessing any trade of crease, riz., £2,622,738 against £2,610,278 on great importance at present, has great possibili- the 30th June last. Bills payable show an ties as the largest river in the island discharges increase of 36,285,263.14 over the previous
(
have
| February 19, 1898. half-year, while bills receivable on the other side show a falling off of $3,115,482,79. Bul- lion in hand and in transit shows an increase of $3,557,768, and cash a reduction of $6,615,132.47. The increase in bills payable and bullion in transit, and the decrease in cash, show that the Bank's resources were fully occupied during the half-year, resulting in the splendid profit the report discloses. Bills discounted, loans, and oredite show a decrease of $4,011,495.53. The amount of our advances, viz, $61,258,502, was just as much as we could afford consistent with sound banking. During the half-year the tightness of money already referred to re- quired the most careful supervision of our funds in order to meet, as far as possible, the wants of our constituents, and this fact emphasizes the wisdom of our adding largely to our reserve fund whenever We an opportunity of doing so. We were most fortunate in not having to provide anything for losses during the period under review. Our holdings of Consols and other sterling securi- ties are very little changed.
None of our securities have been written up during the half- year, nor have we trenched upon the Chinese Government loan profits referred to at the last meeting. (Applause.) An impression recently existed that we were large holders of Chinese and Japanese securities. The facts are: on the 31st of December last we had £29,000 of the former and £20,000 of the latter. Our funds
stocks, good as we consider them to be. The ness to permit of large investments in these were far too fully occupied in our ordinary busi-
half-year has been one of exceptional success, due in a very great measure, it is perhaps unnecesary for me to state, to the ability and untiring energy of the Chief Manager (applause), ably assisted by the Bank's Managers and Agents and a most competent staff here and at all the branches. (Applause.) I very heartily con- gratulate the shareholders and all concerned Bank, and I am glad to say that so far the new on the present position and prospects of the period entered upon has been highly satisfactory. (Applause.) Gentlemen, I have no further desire any further information I shall be pleased remarks to make, but if any shareholders should to give it.
moved the adoption of the report and accounts. There being no questions, the CHAIRMAN
Mr. GILLIES-Mr. Chairman and Gentle- men, I believe it is an undisputed fact that yearly meeting, and I rejoice in saying. we have now arrived at our sixty-fifth half- that on no former occasion have shareholders received a more satisfactory report on the pro- tion than that now presented to us, and I am gress and prosperity of our Banking Corpora- sure you will all readily admit that the result of the most sanguine expectations. I have listened the half-year's working has more than justified with much interest to the speech.of our worthy Chairman, and feel that we are greatly indebted regarding the movements of the money market to him for his very clear and concise statement in the East, particularly in connection with silver, his careful comments on the extensive information respecting the very satisfactory business done by the Bank, and for the assuring position in which we stand with regard to our sterling and other securities. It must
find that the premises belonging to the Corpora also be most gratifying to shareholders to tion at the many branches, including the head low figure of $971,965, a sum which is certainly office, have been written down to the extremely far short of the value of the land only; that it is proposed to pay the usual dividend of 25/- per share, and to place the large sum of $1,000,000 to the credit of reserve fund, thereby augmenting its total to the equivalent of eight- tenths of the subscribed capital. The policy of continuing to build up the reserve fund when opportunity offers must commend itself to every increases the resources of the Bank immensely, one having a genuine interest in our welfare; it and in a short time will place us in such a position of strength and stability as to be almost without a precedent in the annals of banking. Gentle- working of any business than the balance sheet, men, there is no better gauge of the successful and bringing this standard to bear on the returns before us, we have reason for congratula efficient control and guidance of the Board tion and being satisfied with the very able and Directors and with the skilful management
1:|::