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for.
1933 TRADE REVIEW SUPPLEMENT
(Rolleiflex
you
Automátic
and
"Foolproof
Service..
Hongkong Daily Press.
WHAT DOES IT MEAN TO YOUR CLIENTS 7
IT MEANS taking care of their insurance promptly and computeatly. It mesus settling losies fairly, without delay, and with sympathetic anderstanding, it means confidence. dependability and progressiveness.
IT MEANS baring available the facilities to obtain the many coverages so necessary in these days It means band- ling each transaction with a little more care and dispatch than is ordinarily given.
"SERVICE." means that your client feels that his business, no matter hor wall, is sincerely appreciated, and that the organization with which he is dealing is capable of affaring reliabl and friendly advice on his insurance problems.
TRUE "SERVICE" has an importaat place in business. It is the most valuable asset an agent bad. Kenlizing this, the A. A. .. with its 23 sound and progressive insurance companies, and it. 14 branch offices in the principal citien of the Far East, is always ready to render that service which helpe to make friends of agente and clients.
AMERICAN ASIATIC UNDERWITERS
4
HEAD OFFICE:
17 THE BUND
SHANGHAI
SAF
BRANCHES IN
14 PRINCIPAL CITIES
or THE FAR EAST
ASIA LIFE INSURANCE GO.
The following is a statement from Best's Life In
surance Guids of 1992, published in New York City, and the leading unbiased life insurance statistical publication.
The ASIA LIFE has had a moderate growth. Policyholder's surplus is sufficient for all conting encies, and the reserve basis is good. The mortality rate is reasonable. Its investments are of very good quality (the cash item is large), consist mainly of bonds, and yield an excellent return."
The ASIA LIFE INSURANCE COMPANY, Incorporated in the State of Delaware, U.S.A., is an American Legal Reserve Life Insurance Company with all that implies of safety and security for its policyholders.
Hong Kong
Asia Life Building
· Tel. 30234
How Your Money Is
Invested
HA
AVE
you
"ever
友 邦
#
保
險公司
商美
友
asked
#B
What does a Savings
Bank do with my money?”.
Here is the answer: It in-
vests in a restricted group of
the soundest securities which in- clude Public Utilities, Deben tures, and First Mortgages.
In this way a Savings Bank assures its depositors the fullest measure of safety for their funds.
Underwriters Sabings
Bank FOR THE FAR
EAST INCORPORATED
銀
行
ASIA UFE BLDG. HONG KONG + TELEPHONE 30234
ESTABLISED 1857
FRIDAY, JANUARY 26, 1934.
TRADE REVIEW OF 1933
On looking through our les we find that these words appeared "There is no in the Daily Press about trading conditions in 1932: disguising that the year 1932 has been just about the worst ever en- countered by Hong Kong commercial circles. With a few exceptions, local arms report "not only decreased profits, but a heavy drop in business handled. On the other hand in these days the question has3 changed from the old 'how much have I made to 'can I do enough. to keep the business going? ' If the latter question is answered in the affirmative then there is reason to be satisfied, especially in many lines of staple business which are hit the world over. Bearing that reservation in "mind conditions must be regarded as less unhappy than they sound. If Hong Kong "has done badly the rest of the world has done worse and regards the Colony as one of the favoured and sheltered places of the East." In review of the year 1933.those words may almost be applied cxcept that conditions have grown. dis- tinctly worse, and Hong Kong can hardly be the object of much envy: There is no use in blinking away facts: Lf the figures of 1932 had stil held for 1933 there would be, cause for congratulation. But the Agures for 1933 are more gloomy. Scarcely any line can show improve- ment on 1932, a few have held their own and the rest, among which are most of the major commodities of trade, have shown a distinct following away in volume. More, some, lines have just died away.
in the course of the year important Chinese merchants have been forced to close their doors, and there have been wholesale fallures among small concerns. Secondary Chinese banks also have not been happy and towards the end of the year there was embar- rassment in certain quartera.
"
In seeking the causes for the steady falling off in trade we must take as a first cause the general depression the world over. This is improving in certain parts even if only slowly, but in many sections it is as bad as ever and in any case the effect of improving conditions in Great Britain, to name one "trading power, which, according to âgures would seem to have turned the Corner, has not had time yet to react favourably on our markets in the Far East A far-reaching cause, of course, lies in the cheapness of silver and concurrently the very serious weakening of China's purchasing power. China Eas always been looked upon as an important market for British goods and naturally with a currency based on silver she 'cannot afford to purchase in the wholehearted way of earlier years. Then again we have the tariffs, which are being increased from pinnacle to pinnacle.. Tariffs and a depreciated currency, combined, have done more towards a consumption of Chinese-manufactured goods-in spite of a pre- ference for a better article manufactured abroad-on account of the appreciable difference in cost, than anything else. These factors have gone a long way towards killing the piece-goods and yarn markets than anything else excepting the deadly factor of Japanese competition.
That brings us to another consideration. The anti-Japanese boy- cott, in spite of propaganda to the contrary is practically non- effective. We use the word "non-effective "deliberately. It is stili supposed to be a live weapon of passive resistance, but in actual effect it has almost ceased to function. Any survey of the figures of Japanese imports to Chinese will bear this out. Coal for in- stance, has reached a higher figure than in many former years. Lines which benefted to a certain extent last year by this boycott, which without doubt was a serious check on Japanese goods, have now to fight. against Japanese competition and are finding the game hard. Just as the Japanese have captured the Indian and African markets "for piece-goods to mention, but a few-so are they ousting British cotton goods in China besides other lines. This is due to cheaper labour. fine organisation and a ruthless policy.
•'.
Unsettled internal conditions in China have not helped the un- happy state of affairs. Banditry is rife and makes trading in the interior both precarious and riprofitable. The Fuklen revolt and
still mare so the Manchurian question have tended to aggravate the political situation, reacting unfavourably on trade.
The outlook for 1934 does not inspire any great confidence in an improvement except insofar as slowly improving conditions in other parts of the world are concerned." as the depression swept across Hong Kong more than two years after its cataclysmic beginning in Europe so should the bettering conditions eventually react favourably in China and perhaps in a shorter interim. To illustrate it let us take as a symbol the whip: Hong Kong is at the tail and the handle, and of the thong having passed through the stroke, the tail is bound part the follow in due course.
But it will not happen yet awhile. Higher currency must come about first and Improved internal conditions before we can expect anything like the trade, we have enjoyed in former years.
TEXTILES
Very Poor
Year Recorded
The following report on Wool- len Textiles has been supplied to us from arellablé · source:— "
1933 trading in cotton and wool-
len textiles has proved to be about
Registered se Newspaper at the General
Post Office in the United Kingdom.
A BAD YEAR Canton Trade in 1933
Canton, December 31. According to report made by the Chamber of Commerce, the general lines of business in this city ex- perienced an acute decline during the greater part of 1933, The cause of the trade slump is attri- buted to the fall of commodity prices and the weak purchasing, power among the lobal populace.
The native banks and the pawn- shops are the chief sufferers o the trade slump, and it.is reported that no fewer than seventy native banks went into bankruptcy dur- ing this year, and general liabilities of well over $8,000,000 were regis- tered. During the past few months the reports of many of the 'bank failures were not published in the vernacular papers as the banking authorities here have requested the co-operation of the members of the Fourth Estate not to make public the bank failures so as to calm down the uneasiness of the. people here.
Owing to the general depression 42 pawn shops which are about one-afth of the total number of such establishments in Canton, were compelled to close their doors. while the rest sustained heavy lasses.
The export business greatly de- clined. The monthly export of raw silk fell from 7,000 bales to 1,500. The price of the raw silk also fell from 81,000 per bale to a little over 2500 per bale. The exports of embroidery, ivory goods, jade ornaments and other products were greatly reduced.
With the increased rate of tariff for the importation of cotton and woollen plece goods, the merchants dealing in this line of business" experienced a great setback in their business as the people here could not afford to pay such a high price for the imported place goods, and they mostly consumed native cloths instead. It is learn- ed that within these last few months over ten piece goods firms went into liquidation.
The textile and the knitting in- dustries in Canton are also on the decline on account of the keer, competition from the foreign coun- tries. Many large factories and knitting plants have had to close down and it is estimated that about 20,000 workers were thrown out of employment.
THE PAPER TRADE
Another Bad Year Reported
LARGE STOCKS CARRIED OVER
Adverse trading conditions were encountered by those engaged. in the paper business, and large. parcels were sold at much below replacing cost.
Writing on the business, one who is in close touch with dealers in paper, states:
The paper market in common with other commodities has been very badly hit by the worldwide depression. Further, new Customs restrictions and taxes in China. have had a very adverse effect on the Hong Kong market, and in consequence, large stocks of News- sprint, M.G. Cap and Kraft Paper are lying in the Godowns here. Some of the dealers in order, to raise money, ́ ́ disposed, of their stocks at ridiculously low prices, very much below the replacing cost.
The paper market is so bad that the banks are cautious in accom- modating drafts covering this line, and they investigate carefully each shipment before accepting the bills. During the latter part of the year there was a little revival- in the paper trade in other parts of the world, "but this did not in any way help the Colony,
Very few orders in Ledger, Bond Paper and other higher grades of paper were placed Dealers have little confidence in the market, and are afraid to keep large stocks.
There were some amall local amongst dealers, including orders placed for box board, for many old established shopa. making boxes for manufactured (e) Imposition of new and high- articles such as containers for wer Chinese Customs Tarin. cigarettes, torches, and rubber
Little benefit to trade is evident shoes, etc.
the worst on record. Adverse fac- from the anti-Japanese boycott. On the whole the business has
tors experienced during the year in fact present deplorable market been far from good and most of were:
conditions may be partly attribut- the dealers have large stock of the (a) Heavy carry-over of high-ed to losses arising from early cheaper grade of paper to carry
priced stocks
confiscations and lock-up of deal-lover to next year the prepects of
dry by no meani bright.
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The Manufacturers Life Insurance Co.-
Chief QHce for South China Asiatis Building, Hongkong. Telephone, 20601. E. J. R. Mitchell, Branch Manager. OFFICES AT:- Canton, 37 The Band, 9. V. Gittins.
District Manager. Shameen, 2 French Concorsion, V, E. Ferrier, Representative, . Macao, A. A. T. Bergos, Agent, Swatow, F. Murer, Agent.
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