THE HONGKONG DAILY PRESS, MONDA, FEBRUARY 28TO. 103L
THORNYCROFT
WOHN THORNYCROFT & CO., LIMITED,
SHIPBUILDERS And Evotreens,
LONDON, SOUTHAMPTON AND BANGSTOKE.
Shanghai Office: 10, Kinkiang
Road.
15 B.H.P. 30 B.H.P. 50 B.H.P. Engines
in Stock
For quotation apply-
SHANGHAI OFFICE.
HANAN
SHOES
Hanan is the name that identifies Shoes & Boots of superior quality; a mark that appears only on footwear of the highest standard of materials, fit & style.
NEW BTYLES IN TAN, BLACK- and PATENT LEATHERS,
MACKINTOSH
& 00, LTD.
MEN'S WEAR SPECIALISTS,
16. DES VEUX ROAD.
Telarnown 29. 7
188
HONGKONG AND SHANGHAI
BANK
MEETING.
CHINA'S TRADE BALANCE GOVERNS THE SILVER SITUATION.
REVIEW OF THE TRADE SITUATION.
THE SUVER MARKET.
LAST YEAR'S BOOM,» The silver market showed very marked Imports coming on the markot during fluctuations during the year. From 758 the first four months of the year were laid at the beginning of January, it rose down at relatively high sterling rates of rapidly till it attained the extraordinary exchange, and very large profits were price of 801 on the 11th February. The being made all round. Owing to the keen demand then existing for China's prosperity of the import trade in 1919 products and the discredit into which many now dealers appeared, particularly- various paper currencies had fallen amongin piece goods. Enormous orders were placed in England and America, where the Chinese people, produørd a very strong demand for silver, which was not manufacturers,-Blooded-with--indents, | antissed till the United States Government were in a position to command their own to deliveries. Consequently ultimately allowed the export to China terma of very large amounts from their stocks many orders placed in 1910 for the Spring of silver dollars. The cessation of the market in China were not delivered till demand for exports found China mode well on in the autumn of 1920. Owing to rately well supplied with silver, and such uncertainty as to deliveries, exchange during the latter half of the year she was
in many instances was unsettled at the time not able to absorb what was offering.of arrival, with the result that a very The one hundred and fifth report of the provided for. The balanos carried for India was in the same ease and no large proportion of stocks had to face an Court of Directors of the Hongkong and ward is $3,201,401.69 compared with Government in the world was making overstocked atarket, with declining prices, Shanghai Banking Corporation was pre- 83,982.847.20 in 1919. With regard to the contrary, many Governments, including of raw cotton, plus a drop of 50 per cent fresh issues of silver coinage. On the caused by the heavy drop in the prico sented to the shareholders at the yearly other figures of the balance sheet, cem general meeting held at the City Hall,parisons with former years are difficult our own, were either melting their silver in the value of the tael and dollar, a Hongkong, on Saturday, at noon,
oving to the varying rates of exchange
coinage and selling the bullion, or replac-compared with rates ruling at the time The Hon. Mr. E. V. D. Parr (Chair at which the accounts are presentediting the existing coinage by one of inferior the orders were placed. The position was man) presided, and there were also pre-is noticeable, bowever, that the depression fell throughout the year and reachedances in the Northern and Central pro fineness. Consequently the price rapidly further embarrased by political disturb sent the following members of the Court in trade is reflected in our cash balances
Holyoak, the Hon. Mr. John Johnstono,
THE POLICY OF THE CONSORTIUM,
of Directors: the Hon. ME P. H. which show a large increase on those of exchanges re-acted similarly, and from was practically at a standstill, owing tơ 40%.on the 31st December. The China vinces, where trade during June and July the previous year. Our silver deposits
Messrs. G. M. Dodwell, A. H. Compton, have also increased considerably and the 9/34. for the tael and 67oä. for the dollar, the presence of unpaid and uncontrolled
G. T. M. Edkins, A. S. Gubboy, A. O. Lang, and W. L. Fattenden; the Chief Manager, Mr. A. G. Stephen, and the following shareholders: Sir Robert Ho Tung, Sir Ellis Eadoorie, the Hon. Mr. H. E. Pollock, K.O., the Hon. Mr. Ho Fook, Dr. J. H. Sanders, Messrs. G. C. Albaster, Henry Humphreys, G. C. Moxon, A. Denison, G. S. Archbutt, D. J. Lewis, G. Grimble, D. V. Stevensett, E. M. Raymond, T. E. Pearce, M. S. Northcote, A. H. Barlow, V. N. Gray, burn, Mok Man Chee H. C. E. Hancock, H. Keswick, H. Birkett, Ep Wing, A. V. Apear, H. M. H. Nemazee, H. Sassoon, A. S. Gair Smith, C. A. Roz, G. M. Young, G. Miskin, A. 9. D. Cousland, P. Lauder, J. H. Taggart, L. N. Leefe, T. W. Hill, E. 4. M. Williams, A. E. Griffin, P. M. N. da Silva, Mok Kon Bang, W. E. van Eps, Chan Sin Kai, RA. Dastur, E. Howard, L. Dunbar, R. A: Gubbay, J. M. de O. Basto, Lo
is the highest recorded in the history of dollar total of our assets and liabilities they declined to 4/Id. and 3/2d, respec-
tively. the Bank.
INCREASE OF CAPITAL.
ון
Even the high prices generated by the extraordinary demands of war led to no incrasse in the annual production of the Your Directors have had under conmetal: it remains at about 105,000,000 sideration the desirability of increasing ounces. But this amount is not all avail the capital of the Bank, and have decided able. We must deduct from it 60,000,000 to issue the remaining 40,000 shares, say ounces of the United States production 85 million, witch the present Ordinance to be purchased by the American Gavera- authorises them to do. The necessity for ment in accordance with their under this measure has no doubt been generally taking to replace the 200,000,000 ounces Bank's business has kept pace with the the other hand, economies in the use of apparent for some time past, #LA the sold to the Government of India. On
silver as currency already referred to have
from $10 million to 815 million.
The
enhanced value of merchandise of all
ro-
soldiers.
HONG KONG HOTEL GARAGE. Cheung Shiu, Lo Man Hin, Chau Shu predecessor in this chair in 1807 remarked. For the reason stated the ordinary completion. Further cotton mill
Telephone No. 483.
SOLE AGENTS
IN
HONGKONG AND SOUTH CHINA
FOR
THE STUDEBAKER CAR
"SHELL" MOTOR SPIRIT and "GARGOYLE" MOBILOILS can be obtained fat all hours at the Town Garage and
#
Repulse Bay Garage......
We hold stocks of the following Cord Tyres-
"PENNSYLVANIA VACUUM CUP"
** KELLY SPRINGFIELD"
THEATRE.
"FISKE LEE"
₤340
ROYA L
EDGAR WARWICK
ANNOUNCEB, A.
SHORT FAREWELL SEASON
OF THE
WARWICK COMEDY COMPANY
COMMENCING
TO-KORROW NIGHT
WITH BERNARD SHAW'S ANTI-ROMANTIC COSTUME PLAY
APWE AND THE MAR
"WEDNESDAY,
March 2nd. THURSDAY,
FRIDAY,
March 3rd"
March 4th.
SATURDAY,
March 5th.
N. & J Thorpe-Mayne's Mystery Play- "THE LAST ACT”. Hubert Hanry Davies's Witty Comedy” "CAPTAIN DREW” H. V. Eamonds Comedy of Youth "WHEN WE WERE TWENTY-ONE" By General Request **BROWN SUGAR"
PLANS AT MOUTRIES'E.
FAREWELL
BOOK -BEFORE YOU SLEEP.-
SANITARY WASHABLE
PERFORMANCE
HALL'S DISTEMPER
THE KING OF WATER PAINTS.
The scientific ideal of a wall covering is one that is not only beautiful, but easy to keep clean, germ, proof, absolutely fast in colour, and when applied a thorough disinfectant. No-wall covering conforms so closely to these requirements as Hall's Sanitary Washable Distemper which has the Important advant» ages of being most economical and durable,
Hall's Distemper is applied with a whitewash brush, saving much in the coat of labour.
"
A It sets hari, kills miorobes and verdain, And disinfecta
In le made in a wide range of 70 colours, including rich dark as well as light tints. The colours never fade, enabling faraitaró and platuras to be moved about & room without showing discoloured walla,
7
Hall's Distemper decoration rosy be washed by lightly sponging down with clean kopli water. It retains clean, swooƐ stąd fresh for yourn.
ade card and full particulars post free on application to *---
WM. C. JACK &
CO
14 DES VIEUX BOAD CENTRAL,
LTD..
H AGENTS FOR HONGKONG, AND SOUTH CHINA
[10
Ming, G. E. Towns, A. B. Stewart, G. Hogs, K. 8. Morrison, Fung-Kong Un, C Edgcumbe G. Hastings, 201 Kung Po, F. Smyth, A. S. Ellis, F. Maitland, F. Bevington, P. V. Botelho, Mardock, J. H. N. Mody, Lo Cheung Wan, J. McArthur, B. C. Lambert, Ho Chouk, P. K. Kwok, M. W. Lo, O. 1. Ellis, P. C. Pott, and G. B. Dunnett.
The CTE MANAGER (Mr. A. G. Stephen) rend the notice canvening the meeting,
.
םם
A similar occasion that whatever
expansion of Eastern Trade and its liabilities to the public ATе Dow
480,358,000 compared with $216,960,000 compensated for the loss of the American 1907, when our capital was last increased production as a source of world supply. On the continent, whers paper issues have supplanted the old metallic currencies, kinda entails greater calls on our
silver has been largely demonetized and sources than formerly, making an addi-sold, as securities are sold, in order to tion to them urgently necessary... My obtain credit in other countries.
hamint demands for silver coinage, both in political changes may be in store for England and on the Continent, are in China, there can be little doubt but that abeyance, and it seems unlikely that they the ultimate outcome will be a wider will be revived in the near future. A con- field for the operation of foreign capital, siderable part of the trade demand has and a considerable increase in overseas been met by the melting down of silver trade. I think that this is a tras to-day plate. In India, the reserve of silver as it was fourteen years ago. The ques- rupees, some sixty crores, is larger than tion of the issue price of the new shares it has ever been, and seems ample to meet was closely considered by your Directora all requirements for some time to come." In arriving at the decision to issue at £70, they were guided by a long view of
CHINA'S BURDEN.
and
doubt that the future prospects of the operation in China, and there is little
tinued expansion in the capacity of the cotton industry in this country are en couraging, as is evidenced by the con existing mills, both as regards spindles. and looms.
CHINESE CUSTOMS AND SALT REVENUES,
The fact that the products of Asia have been confronted with overstocked markets. and declining prices in Europe and America, has naturally had its effect on the purchasing powers of India, China, Japan and all other Eastern countries. In dealing with the situation thus created, we are necessarily proceed- ing with caution, but we are also carrying out the traditional policy of the Bank, and liberally, if judiciously, assis ng our friends whose resources are temporarily markets. This policy has always been immobilised by the stagnation of the locked for from the Bank in the past
the stocks of imported goods lying and has invariably brought its own re- ward. (Applause.) Speaking generally. Hongkong and the China ports are not normal in pre-war times. It is known excessive and not more than what was that the murkets in the interior are bare of supplies of these goods, so it is to ba its normal course, and there are already hoped that this trade will soon resume welcome indications of this. The volume of engineering business in North China was fair, but orders placed during the war are in many cases still in process of textile machinery is required to a large extent, whilst the requirements of the Chinese railways are very considerable; new incomotives and rolling stock badly needed in many instances.
The Shanghai Cotton Mills enjoyed a period of unprecedented prosperity. The demand for mill products (particularly yaza) was consistently steady, and the mills have been able to manufacture profitably owing to comparatively cheap cotton. Handsome profits were nixo made on locally made cloth until the summer months, when the effects of the piece gooda crisis began to be felt. From THE CHAIRMAN'S REVIEW,
In these circumstances, on the assumyrecent statistics it is estimated that there the permanent interests of investora in tion that the American purchases bove are nearly 1,300,000 active, spindles in The "CHAIRMAN Rid:-Gentlemen-The our stock. This figure confere a substan-been offset by the Continental sales and report and statement of accounts having tial bonus, while the addition to our been in your hands for some time. I shall reserves of the funds to be received will China that the burden will fall of absorb- that India is well supplied, it is upon follow the usual custom and take them as considerably increase not only the earning ing an amount equal to the world produc read. The statement shows a net profit power, but also the prestige of the Bank.tion of silver. In other words, China's for the year of 89,841,108.30, which com In due course a special circular will be trade balance is at present the governing pares' with 87,386,802.09 for 1910. Last sent to each shareholder, and an extra-factor in the silver situation and the Jane, as the prospects seemed so favour-ordinary meeting will be called, when the prospect of her being able to increase, able as to justify an increase of the resolutions necessary to obtain your sane-
The Maritime and Native. Customs dividend, we made 'an, interim distribution to the scheme will be put before you.
or even to maintain, last year's 'import revenue collection under the Inspector- million ounces is, to say the least General of Custom for 1920 amonated to tion of £3 per share, and on this occasion
THE STAFF: SIR NEWTON STABB, of it, doubtful.
|H.Ktreió 45,500,000 and H.Ktaels we propose to distribute à final dividend
4,380,000 respectively, an increase of taels Since we met last year the re-action that
The cumulative effects of depression in 3 million in the case of the former over of £3 and a bonus of £2 making in all
was to be expected after the great trade the world's marketa particularly affected the previous record collection for 1919, £8 for the year, the same as in 1918. We boom of 1919 and early 1920 has taken Japan, owing to the very exceptional the case of the latter since last year. the and a decrease of H.K. taels 111,000 in propose also to continue the policy of place. The disorganisation of the world's expansion of her foreign trade during the nett increase expressed in gold at aver strengthening our reserves, and accord exchanges became more pronounced in the four or five preceding years, and were age exchange being £2,242,700 over the ingly $2,029,411.70 out of the year's profits course of the year, and in Asia, currencies' fully felt by April, when something in the figures for 1919 collection. After meet is added to the Silver Reserve. As stated normally based on gold, such as those of nature of a crisis might well have over of the Reorganisation Lean, Tis. 23,150,000 ing all obligations, including the service in our report, the transfer of £1 million India, Java, the Philippines and Japan, taken the country. There was indeed surplus funds have been handed over to to our Sterling Resorve was effected at moved in orbits of their own, with varia- stock exchange crisis, culminating the free use of the Chinese Government.
favourable rate during the year, and tions not always easy to foresee and pro- in the closing of the exchange over the increase is largely if not entirely due Whilst it has to be borne in mind that that fund now stands at £2,500,000. The Tide for. Still, notwithstanding these 1.
lengthy period, which naturally to the revision of the Customs Tariff which Silver Reserve, with the proposed addi-market, to which I will refer later, the affected all investors. Generally speak began to be effective in August, 1918, is tion, will stand at $1,500,000-Ap-earning power of the Bank was more than ing, however, though some import is none the less a remarkable fact that plause).
maintained, and I think we should record ant and well-known names have anfor country, and the political dissensions in spite of the unsettled. state of the our appreciation of the able way our With regard to Bank premises, the managers and agents have handled what tunately suffered eclipse and brought loss which resulted in active hostilities and expenditure on buildings in recent years must have been at times very difficult to others in their fall, and though 19820 considerable curtailment of trade for has been heaty but entirely unavoidable situations I am sure the Directors anti. has been a bad year for everyone all many weeks last summer, a record colleg cipated the wishes of the shareholders round, merchants, manufacturers, dealers, tion can still be shown, and bears strik- Our business has gradually outgrown our when they decided to vote a bonus of and all concerned faced their positioning testimony to the vitality of the accommodation and in addition to the 20 per cent to the stail on their salaries correctly and prepared themselves to comly's trade and of the great pos now buildings referred to last year, ita recognition of their efforts in maintain suffer losses and pay their debts, and such sibilities of its expansion under more. will soon be necessary to rebuild ouring the Bank's service in a high state of it is certain will continue to be their favourable conditions. (Applause.)
efficiency-(Applause), ~. Singaporo ofice. When it and the other As is well known to you, Sir Newton ・ DIFFICULT MONTHS AHEAD. buildings now under construction are the end of the year, after alling that There are some difficult months ahead tions to which I have already referred,
Stabb resigned the Chief Management at
its principal places of business in the ing energy for a period of over ten year vived, the last a difficult state to bring it possible to resume its functions in the completed, the Bank will be housed in all position with brilliant ability and untir till accumulated stock of imports go into coupled with the fact that the Salt consumption, and till exports have re- Revenue Administration has not found Enat in modern and commodious premises, prestige and the business of the Bas about now, owing to the existing high important Swatow area, which were dis
(Applause).-Doring his regime the sufficient for our requirements for many increased very greatly, and the Directors cost of production in Japan, but there is continued in 1919, owing to interference years to come, and no further considerable wish to record their deep appreciation of nothing to justify the pessimistic view of by the local authorities. The total axpenditure should be necessary unless, p the Corporation. (Applause). They wish been expressed in some quarters. In revenue amounted to $79,200,000, a de
the distingushed services he rendered to the country's condition which lately course, we decide from time to time to also to tender him on their own behalf, China, with which we are, of course, more crease of $1,300,000 compared with the extend the area of our activities. Mean and I am sure on behalf of the share intimately concerned, the year 1990 open-revenue for 1818, but still 67,681,000 more time, we propose to continue writing down holders, their congratulations on the ed with a phenomenal boom in trade than the figures for 1918. It has, how- these properties when the profita permits King, which is a fitting crown to his prices raled high, producers making large revenus no less than 224,000,000, was re- honour conferred on him by H.M. generally, the export trade was brisk and ever, to be noted that of the total and on this occasion we propose to allot career in the East (Applause). It is profits during the first four months of the tained or appropriated locally by the $1 million for that purpose.
fitting that I should here refer to the year During May the European and provincial authorities, or military com already valuable services to this Institu- American markets, already overstocked, manders, for their own uses, a striking The great depreciation in all gilt edged tion in many positions of trust of Sir slumped heavily owing to curtailed testimony to the almost entire lack of Becurities in the course of the year has Newton Stabb's successor, Mr. A. G. credit, and shipments from the East control exercised by the Central Govern- entailed heavy writing down of our Stephen, (Applause).-Your Directors, rapidly fell off, leaving the Chinese with ment over certain of the provinces.
After meeting all obligations secured on while congratulating Mr. Stephen on his large accumulated stocks which have sterling and ether gold investments; this, well merited préferment, are confident greatly depreciated in value. The fall in the Bait Hevenue, the large amount of however,
has been accomplished from the that the Bank's best interests, and there axchange, which in normal times would $84,000,000 (including 80,027,000 refunded current profta and all our gold accurities fore yours, gentlemen, will in his hands have helped the producer, praved of little by the Maritime Customs in respect of now mand either at well under their be in the same safe keeping in the future benent, as the fall in prices in both the the service of the Reorganisation Loan) as they have been with his predecessors in European and American markets out was released, for the free use of the market values, or have been adequately the past(Applause).
paced the decline in exchanges?
Chinese Government
handicaps and the vagaries of the silver
2
attitude.
if
bus
The Salt Bevenue collection for the year has also been maintained at a high level in spite of the unfavourable condi