A
THE IRREPRESSIBLE GROWTH OF
TRADE" CHINA'S FOREIGN
"WHEELS OF COMMERCE, THOUGH CLOGGED. KEEP MOVING.”
HONGKONG AND SHANGHAI BANK'S REVIEW OF CONDITIONS.
THE ANNUAL MEETING OF SHAREHOLDERS.
A HIGHLY SATISFACTORY YEAR'S WORK.
Following the usual custom a comprehensive review of truda conditions, with particular reference, of course, to the trade of China, was made at the annual meeting of the shareholders of the Hong Kong and Shanghai Banking Corporation at the City Hall on Saturday.
The Bank itself presented a very fine record for the year's work, the nett profit approximating 17 lakhs more than in 1925 and 1 lakhs more than in 1924. As Mr. T. E. Pearos remarked, in seconding the adoption of the report and accounts "We are proud of this Institution.
The review demonstrated and emphasised the remarkable fact that although trade in most countries would, have been well nigh imposible under such conditions as have been existing in the Far East daring recent times, in China there is steady, irrepres- sible growth. In the face of civil war, innumerable strikes and boycott the trade returns continue to expand. What wandet. ful resulte might be ortained under a peaceful and ordered regime? The Hon. Mr. D. G. M. Bernard (Chairman of the Court of Diree- torn) presided, and there were also present the following members of the Cours of Directors:-The Hon. Mr. A. Q. Lang, Hessra, W, H.
1.
THE HONG KONG DAILY PRESS, MONDAY, FEBRUARY 28th, 1927.
The Straits Settlements and Malaya report a satisfactory year. The steady advance in the price of tin has brought prosperity to that important mining industry, while, even at the much lower level of prices commanded by their product, practically all Rubber Flantation Companies are doing well.
tha
Chinese Government Finances," reserves and the writing down of the 1825 balance sheet is not alto- The woven months' stoppage of
ita propertia.by large amounts Passing to the subject
every year, in one which will be gether easy. I would mention, how of work in the coal fields was very ever that the decrease of approxi- detrimental to all home industries.
Chinese Government's finances, and heartily endorsed by all who beliers mately £6,000,000 in the Starling and naturally seriously affected the
the payment of their foreign obliga that the future of this Corporation its pask feel convinced no share- equivalent of the total Assets and balance of trade, as instead of
tions. It is a pleasure to be able is going to be vastily bigger than Liabilities, as compared with the being an exporter, Great Britain
to note a fresh record in the Ous holder will cavil at the large 1995 Balance Sheet, is fully ae- was forced to import large quan-
toms Revenue collection for 1998 amounts which have been appro
these purposes. I think I need only counted for by the lower rate of ex- tities of coal. In the circum
which amounts to 78 million Hai-priated from last year's profits for kwan Taels. This represents an in- | refer to one more item in your re changs at which the Sterling stances, it is somewhat surprising
In the Philippine Islands crops crease of a million Taola over the port on the accounts, and that is the fact *that full provision has equivalents of our Silver assets and that the adverse movements of gos!,
were not an a greater scale, and fell rather short of expectations 1995 revenue, nearly 5 million of been made for all bad and doubt- liabilities have been calculated on this occasion. In fact, an analysis that the New York Exchange re and, on the import side, business which is, however, absorbed by the ful debts and sur investments show enhanced cost of meeting the for-satisfactory margin on current This indeed seems of the original items reseals and main steady throughout the was not too satisfactory.
Advices from India report that, ciga gold obligations secured on the market prices.
A highly satisfactory state-of- expansion of 4 per cent in the year, especially as the fall in the figures, and not the contraction prices of rubber, and jute, com- although the Monsoon was a good Customs, due to the drop in the affairs that the decline in the Sterlingpared with the previous year, were one, the general trade of the Em-exchange value of silver.
Even with the beavy clouds over- equivalents would seem to indiente. weak factors as regards the expire was not too favourable during hanging the political horison and 1928, the heavy decline in the price the peculiar trials under which of produce, notably Jate and Cot-British commerce is labouring, we may derive some comfort from the ton, and rather excessive imports apparently irrepressible growth of of piece geods, etc., having had sa China's foreign trade, as evidenced adverse effect on business. It is to collections, which have actually by the steady increase in Customs be hoped that the question of the doubled during the last eight years
With the exception of Notes in change position, though to some about extent counteracted by the lower Circulation, which are $7,500,000 higher, due, I am afraid, ptice of cation. rather to hoarding than expansion in trade, I don't think there are any items on the Balance Sheet
Discount Rates, Discount rates in London ruled
It is good to bear that trade in the Straits Settlements and Malaya The many Chinese carrying on business in that part of the British Empire must thoroughly appreciate how much law and order can do to assist and develop trade.
continues to thrive.
Your comprehensiva review of the situation will be eagerly read by those who are closely connected with
which call for special comment at 4.1/4 per cent to 4.3/8 per cent.adoption of the Report of the Royal This is perhaps a suitable occasion the Far East. I hope, Sir, it will"
$1,537,460.13 mare,
at the lower
also be read and thoroughly digest- ed by many who have only recently realized the importance of British interests out here, but who never theless stem ever ready to talk and give advice as experts.
Three Momentous Years." I take it that 1923, 1928, and 'this
Net profits are $1,701,589.41 in ex cess of those of a year ago, but, on the ather hand, it costs us level of exchange, to provide the usual sterling dividend and bonus Your Directors feel assured that you will cordially endorse their action in voting the Staff & bonus of 10 per cent. on their salaries for the past year. The work has been too small to meet the demand, with had; I need hardly remark, a very Government has sunk lower than which a few years ago would have
ing. and the Customs Revenue arduous and, from the Chief Man- steadily increases, though the re-ager downwards, their responsible sult is nothing compared to what duties have been efficiently and the figures would be under a peace- loyally performed. (Applause) ful and ordercil regime. While the Bank's business is world-wide,
The Price of Silver,
the Discount Market was the continuous large demand for first- class 3 m/s mercantile paper by the The Continental State Banks. supply of such bills was invariably the result that. Treasury Bills, af which there is always a large supply, were easily obtainable at bigher rates than those current for fine. 3 m/s commercial bills. reason for this is that most of the Central Banks of Europe, why
bills bearing two names.
The
unusual significance.
י,
of the most momentous in China's
of
Bell, A. H. Compton T. G. Weall, China is our principal field, and silver during 1920 showed a carry such paper, enn only hold railways, and disorder of the Pro che provinces retained nearly three-taction, the volume of trade pos
H. P. White and G. M. Young, with Mr. A. H. Barlow (the Chief Manager).
The following shareholders also attended:-Sir Henry Pollock, K.C., Professor C. A. Middleton
your Directors consider themselves fortunate, in being able to meet you with such a satisfactory report as the one now before you.
The Bank's Figures.
The movements in the price of range compared with recent years, the difference between the highest and lowest spot prices, riz 31.13/15d. and 24.1/8d., being 7.11/18. Up to July, except for a short period in April when the
Considerable amounts of foreign money have been attracted and re-shrinkage. tained in London by the high rates offered by the Joint Stock Banks
Middleton Smith, Dr. J. H. Sau- cluding $3,387,722.76 brought in Price dipped towards 20d, the for deposits up to six months.
ders, Dr. F. Lindsay Woods, Mrs. Templeton, and Messrs. T. E Pearce, Yeung Yan Po, R. M. Dyer, F. R. Marsb, G. E. Towns, E. G. Hegarty, C. R. Eldridge, Fong Lang, Ho Wing, Ho Kom Tong
The net profit for the year, in"
From the last account, amounts to 817,536,700.24. This compares with
net profit of $13,816,978.01 for the
metal remained fairly steady at over. 30d, but the publication of sion on Indian Currency, indicat the Report of the Royal Commis year 1995. Deducting the interim dividend of £1 paid in August, ing amongst other recommenda viz: £180,000 at 2/9.7/8=
tions, possible sales of Surples.
R. A. Dastur, W. E. Van Eps84,986,511.63, and 850,000 remunera/ Silver Coin in the not distant
tion to Directors, the balance for distribution is 813,219.778.01, which
future, had a depressing effect. The price, weakening in conse-
Soundness of Great Britain's
We,es Britishers"are proud of our predecessors, who by their fore- up one of the leading ports of the sight and determination have built
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nessing the most complete political break-up of the Tariff Conference. Sationalities or the Chinese them-
during the feat half of the year; Commission on Indian Currency to pay special tribute and courage, energy, impartiality and, and between 1/2 per cent and and Finance in whole, or in part, I may say so, eminent, eficiency 47/8 per cent in the last six will not remain long undecided. It displayed by the extremely capable months. A very prominent (probwill be indeed a relief to have staff of the Chinese Maritime Cus toms in times of great difficulty and bly the most important) feature Indian Exchange problems freedoms applause.
The position of the railways pre- of their present uncertainty.
British Firms in China. sents a much less encouraging pic- ture. Their deterioration, with very For British arms carrying on slight exceptions, has proceeded year of grace, will go down as three business in China the political
way revenues reaching the Central
seemed incredible, and as you have developments of the past year have space, and the proportion of tail- history. Changes have taken place, ever. As the inevitable result de- just said, events are moving with We have been accustomed in the faults on the railway loans are such rapidity, it is difficult to keep
not say a but at
jealousy, is that steady industry 2 past to view Chinese polities from, steadily increasing. The revenue of least an unimpassioned standreint. the Salt Administration meanwhile pace with them. Yet at the back of The even course pursued by foreign has fallen to the lowest level the strife, chaos, and political trade in the midst of civil wars, its history, having brought the the Chinese race, which enables it and political upheavals had become f Central Government enly some 8 to patiently bear, the unnecessary million of dollars after payment of bardens imposed on it. Given familiar phenomenon, and even though the progressive ruin of the the loan services. During the year peaceful conditions and proper pro- quarters of the total revenue collectable, would, I think, Sir, confound vinces, presented a growing menace, ed by the agency of the Salt Gabelle, the most careful and conservative consolation could till recently be
and the latest reports show that statisticians. found in the annual trade, returns, the receipts at the present moment
abowed little
of signs which
have dropped far below the level required to maintain the services of To-day the position is very
These loans are thus reduced to different. The domestic affairs and the foreign loans dependent thereon. foreign relations of China have bor state of great insecurity, while there world out of a swamp, and develop come a matter of prime concern for
are serious fears for the Adminised concessions through which such the British merchant, as for all tration itself, which a short time a vast volume of trade passes. We The year ended with reasonably other elements of the foreign com- confident expectations that trade munity in the country. It is clear 250 was thanks to its reorganiza are proud of this Institution, and viding the Chinese Government individuals who have taken auch terests pre-eminently on further de- with & revenue almoet rivalling the leading part in the assistance of Bank Bate would not be long delay-velopments in China's internal and Customs. As for the unsecured for- the trade of this Country, would improve, and a decline in the to all that at present British in- tion with foreign supervision, pro- the many other British Arms and foreign politics which stand at aeign debt, all early prospects of awe abused the privileges granted most aritical juncture. edi
and order, or discouraged other In the former sphere we are wit-settlement were auspended with the us1 Have we failed to keep law "The Outlook.". Poaltion.
cleavage, and the most extensive
selves from making full use of the Although I would hardly venture facilities for business provided in Germany, Belgium and the Coa-armed conflict that China has
known since the Revolution, in the to call the outlook in China en these places ? tingit gederally appear to be near latter we are faced with an anti-couraging, the earnest endeavours British movement, actively foment being made to arrive at a solution lation and, in the absence of any ed from quarters which are clearly of present difficulties lead me to intent on damaging dur national hope that some arrangement, satis
for delayed.
to all parties, will not be large demand for Indian, it seems interests in every possible way, and.
I now propose the adoption of the probable that most of the gold ar to the greatest possible extent. rivals from Sounth Africa will be
Turning to the phase of Chinese Report and Statement of accounts. After the proposal Bas been second available for America. The pay- ment of the British war debt interest politics which has affected us med and before placing the motion closely during the past year, the to the United States of America anti-British agitation in South before the Meeting, I shall be was effected without any recourse China, to a certain extent this most pleased to answer, to the best of
Shareholders may have to ask. there is that antagonism or hatred anti-foreignism which is unhappily
for us, which is being made so pro to the gold credits established for be considered as part of the general my ability, any questions which except in the minds of a very love, minent at the present time, and use in case of necessity. The re-spreading throughout China, and (Applause.)
MR. T. E. PEARCE. stood at 25d., a gain of 7/8d. on
which has to be kept alive by 1,000,000.00
evitable concomitant of
any nation
Mr. T. E. Pearce, in seconding the agitation, outside influences and the low quotation recorded in Ocmittance of these large amounts in must be accepted as the almost in-
the face of adverse conditions, alist movement in its earliest stage. adoption of the report and state foreign money. The long-delayed 3,399,063.84 | tober..
ment of accounts, said:-I imagine note to Russia presented last Thurs- without unduly disturbing the U.S. But it goes much further. For cross rate, is an indication of the eighteen months past we have been few, if any of us here to-day, ex- day will be welcome and first hand $13,219,278.61
made the subject of peculiar, and
pected, that at this meeting, we information, the poisonous pro- a report as we are now considering in the minds of the Chinese. Those boundless misrepresentation calumny, for which there can be Despite a year of incessant Civil of us on leave last year, know well no other explanation than that it is War, boycott, strikes and domestic enough how the same forces en- the work of political instigators not chaos in the great Country border deavoured to wreck the Old Coun- concerned with the real or even the
proximately 17 lakhs more than in who said at the end of the General solely bent on doing harm to Great 1998 and 11 lakhs more than in Strike last year, that it was the eceding with the business of this cent years, the reduction of Bank China trom Europe and America of re-establishing British currency imaginary, interests of China, but ing us, we find the Nett profit sp-try.. I think it was Mr. Baldwin,
Britain.
༣་༡་མ
1964, I feel confident, Sir, I am good sense of the British people The Canton boycott, as you are voceing the satisfaction and grati- which saw the Country through that only too fully aware, lasted with fieation of all shareholders at the trouble. out a break through the first half excellent results of the year's work- cessation were opened in the Spring of the year. Pour-parlers for its ing, and on their behalf take this good sense of the Chinese people by the Canton Government, who put
of Directors, the Chief their, when they will realise that Manager, Managers and the Staff Great Britain is animated by no the boycott was, nevertheless, made
ings in their desire to see a united declaration of the termination of generally ea such a splendid record. ather than the friendliest of feel- in October. The effect of the off. (Applause.)
The Bonus which you have voted Country, with a Government work. to the Staff is an item in whiching in the best interests of its peo- cial raising of the boycott has been
we heartily concur, and I venture ple. I am sanguine enough to be very limited and British trade re- mains hampered and handicapped to express the hope there never will lieve it will not be long before this This organized attack on the be an occasion when a similar state-friendly feeling will be reciprocated
Fung Kong Yuen, O. Kitchell, N. V. A. Croucher, F. W. Stapleton, W. E. L. Sheaton, H. R. Sturt,
McKirdy, P. S. Cassidy, D... J. Lewin, Ho Ki, M. J. B. Montargis, E. H. Summers, F., M. Crawford, A. A. R. Botelho, G. M. Shaw, A.. Stevenson, G. N. Tinson, Frank Austin, D. V. Stevenson, H. Skott,
G. B. Layton, H. Hills, G., Murray,
H. B. L. Dowbiggin, Lo Chung
it is proposed to deal with a quence, fell away and on large saleeing the eat of their gold accumu.
Iollows:
&
Anal dividend of £3 per share plus bonus of £2 per share (subject to deduction of in- come-tax) amount- ing, to £800,000 at exchange of 1/11.1/2-
serve fund Write of Bank pre
misca account... And carry forward to the new account....
Wan, T. H. Pentycross, C. 1.Transfer to silver re- Cookes, DH. Cooper," J. T. Wright, junior, John Fleming, D. Templeton, G. Grimble, S. M. Churn, G. Piercy, Lo Chung Ip, J. M. Alves, V. Goulborn, A. C. Hynes, C. G. Alabaster, K. C., S. W. Ho, E. L. Sim, E. 4. Ram, A. B. Raworth, A. P. Samy, and
:
5,170,214.77
of demonetized silver by the Bank of France, eventually touched 24.1/8d. in October, the lowest quo- tation for "pct" silver recorded eince November, 1915. Buyers pre- dominating, however, at the low léwel reached, the price re-acted somewhat, and, at the close of busi-
ness in the London silver market on
850,000.00 the last day of the year, spot silver
Of the total World production of silver net, year, which experts put
The Anti-British Agitation.
་
Many Chinese must have surely pondered over such questions as these, and realized that now that we are willing to forego many of the privileges we have hitherto enjoyed, that nothing but the friendliest. feeling continues on our side, an it has always done in the past. (Applause.)
Britain's Note to Russia With you, Sir, I do not believe,
It is a matter of satisfaction to at Std. oz. 82,000,000, it is esti/ ability with which the finance was intensely bitter attack supported byhould have" placed before us such paganda which has been instilled
others.
•
The CHAIRMAN said:-Before pro
your Directors that, after provid-mated that India absorbed Std. ozs. as against Std. oz. ing for the payment of the naua! 113,000,000,
Shipments to dividend and bonus and, as in re- 100,000,000 in 1925.
handled. It also goes to prove the soundness of Great Britain's posi tion, and is further, justification, if one were needed, of the wisdom
on a gold basis.
.
and
I believe that in due time the
Court of Directora in 1913, the been made for all bad and doubt those of 1925, an indication, contend with, but, in spite of these, forward unacceptable demands. Portunity of congratulating the will prevail and see them through
DD.
Strikes in Great Britain,
of British fair
The London money market ruled the Yangtsze provinces and North British has come at a time whenment is not made by the Chairman and an appicht-forwardness
meeting. I would refer with the Premises Account by $1,000,000, the figure at Std. oz. 96 million, but deepest regret to the loss we have results of the year's working per-ré-shipments to "London and India
As regards trade conditions in sustained since wo last met, mit them to recommend an increase account for Std. oz. 14 million of through the death, last May, of in the allocation to Silver Reserve this total. Allowing for these de- the East and Far East. In Hong our colleague, the late Mr. P. Hof $150,000, as compared with 1925. ductions, the ziet imports were some Kong, as you are well aware, wo Holyoak Mr. Holyoak joined the I would add that full provision has Std. oz. 14 million in excess of have bad great difficulties to con value of his services as a Director ful debts, and our Investmenia firmed by the increased Customs I think it may be said that, on of the Bank," including his tenure show a satisfactory margin on cur Bovenue, that, in spite of all ob the whose, business shows some im. of the Office of Chairman in 1918, rent market prices.
stacica the trade of Chipa continute provement as compared with the to expand.
previous year. A very disappoint. are well known to us all. The
ing year sums up 1920 conditions in Colony, no less than, the Bank, is the poorer for the passing of such
public-spirited and
generous The Report and Statement of Ac- counts having been in your hands for some time, I will follow the usual procedure and take them a read. At our meeting a year ago, your Chairman expressed the hope ducing the Silver Reserve Fund by had it not been for the imminence last year's progress towards the that, on some future occasion, a 14,400,000.
of labour trouble. This developed rejastatement of her currency on a successor of his would be able to As mentioned in the Report, the in the short General Strike in gold basis. The rather rapid ap. record a year of prosperous trade balance of the Marine Insurance May, and the Coal Strike which preciation in the exchange value of and peaceful activity throughout Account, $250,000, has been trans started in the same month, the yen has, in some directions, had lasted practically until a detrimental effect on the trade China Needless to say, it is not ferred to Silver Reserde. We dis and my good fortune to meet you with continued participating in the in the end of the year. The General of the country, a temporary dis such a
happy reference. In most aurance on our treasure shipments, Strike disclosed the fact, evidently ability no doubt, which will dis, countries trade would be, well nigh etc., some time ago, so there is no not realised by those who launched appear as markets adjust them impossible under such conditions a longer any need to maintain a it, that Britishers will not stand selves to the enhanced value of the
attack on have been existing in China during separate reserve for insurance pur- for an
Constitutional yen. I would mention that, in Government, The well-organised October last, we assisted in the recent times, and the one bright poses. spot is the courage and determina-
The rate of excange at which the and effective measures of the British flotation of a lean in London for tion with which the Chinese Mer Sterling equivalents of our Silver Government for carrying en essen: £0,000,000 under the guarantee of chante, Bankers and tillers of the assets and liabilities, and vice tial services.bated by the ready the Imperial Japanese Government - clements of the for the finance of reconstruction soil carry on their business, and versa, is calculated is 1/11) against response of the I occupations, in the face of all dif/4.3/8 at the end of -1925, a drop community to undertake "all and works in the City of Tokyo. Need ficulties. It is due to their dogged el, approximately, 17 per cent.; so any kind of work, was sufficient to less to say, the issue met with gedness that the wheels of com comparison with the Sterling discourage and another the attempt very favourable reception, the loan merce, though clogged, keep mov- couivalents of the variour items in to zieraren the life of the country, being heavily over-subscribed.
Great Britain was (if I may use
gear.
5e.
It has been considered advisable to convert some of the Bank's Silver
play and funds into Gold Currency, and, as
manifested. The Bank's Policy. you will have noticed in the state steady throughout the year at a China, as regards manufactured the phrase) visibly and actively at these meetings (Applause)
by the game"
I believe also that as an outcome play ment of accounta, a transfer of somewhat high level, owing to the imports, especially cotton and wool anxious to find reasonable ways I have heard, and possibly others of all the trials, and tribulations” £1.500,000 has been made from the necessity of maintaining the Bank lens. On the export side, trade bashing such legitimate grier. have heard also, a few carping which Britishers have had to suffers.
removing been hampered by military disturb auces, and causes of irritation, as criticisms, that latterly, the Bank's British prestige will stand higher Silver Reserve Fund to the Sterling of England rate at 5 per cent. Reserve Fund, bringing the latter during the whole period. A reducances and lack of transport facilities might arise from the existence of policy has not been so openhand than over, and that British trade treaty conditions out of keeping ed or generous. I think these and this Bank which so largely re found up to £6,000,000. The transfer tion in the rate would, no doubt, in the North.
with present circumstances.
a disgruntled few, and even these flourish more than ever before. It is hard to believe that deep in criticisms must have emanated from presents British interests, will was effected at exchange of 2/1, ro-have been made early in the year, Japan is to be congratulated the Chinese consciousness there is must surely agree that when the Applause.).
With these remarks, I beg to not the knowledge that among the road is difficult and obscure, it is foreign nations with, whom she has safest to get at once into second second the resolution which has been proposed by the Chairman. come into contact, Great Britain has been one of China's best friends, It is surely a well-known fact that (Applause. and that the British as a whole are when legitimate business is offering there being as questions, the re utterly undeserving of the accusa or assistance required, this Carport and accounts were adopted" tions and obloquy so freely heaped poration has only been too ready unanimously, upon them. Perhaps we may to assist, and particularly has this
Other Business. cherish a hope that the very ex bean the case during the troublous
will
the last
On the proposition of Sir. HENRY times experienced during travagance of the campaign
POLLOCK, K.C., seconded by Mr. 3 years. (Applause.) defent its own ends, when the good 3 sense. -of-the Chinese people I am not proposing to comment LEUNG YAN Po, the Hon. Mr. AO. Mr. W. H. Bell and Mr. H. has a chance to reassert itself in detail on the accounts before us. Lang (Applause),
So far we have dealt with what To the expert they must appear P. White, the retiring Directors, amazing, when taking into con- were re-elected as members of the
On the proposition have with such ever; to the uninitiated the mass 1998 wded, have moved wine sideration the period which they Count o lupation of Mr. B. M. DYZE, seconded by Mr. F. R. MARSH, startling rapidity and are fraught of figures and big totals, must
Mr. Bernard Brown, A.C.A., and with such possibilities, that it is pear overwhelming. Ad
Mz.. John Fleming, CA, were res at present difficult to visualize how
Steady Growth.
elected as auditors. matters stand. In the circum--
The CHAIRMAN That is all the The steady growth of the Bank's stances, I think it is safer to leave comment on recent developments to business must be very satisfactory business of the meeting, gentlemen, those who are more closely in touch to those who control its affairs, as and I thank you for your attend- with haute politique" than we it is to all its shareholders. The ance. Dividend warrants, will be in Hong Kong can possibly be. policy of steadily adding to its ready on Monday.
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