PAGE 2-HONGKONG DAILY PRESS,
MONDAY, FEBRUARY 27, 1939.
CHINA'S RAILWAYS As regards the railways, the ceeds apace, and the efforts being future with confidence.
eral Profit and Loss Account" is situation naturally deteriorated as made to improve agricultural PHILIPPINE OUTLOOK. very gratifying to us. (Applause). the War was prolonged. “The methods and to promote the pro- The trade and finances of the This is all the more so because of Peking-Mukden Railway is now duction of goods of importance to Philippine Islands showed some our knowledge of the dificulties alone of all the Chinese railways the export trade will surely prove recession in 1938, but there is under which the Bank's work has running fairly normally. There is their value in the course of time. plenty of optimism about the com- been conducted during the past no point in speculating about the SHANGHAI CONDITIONS. ing year. The gold output and|year. future of the other railways in Shanghat has perforce had to base metal production. both grow Strength shows itself only when which British bondholders are in-resign itself to the new conditions, steadily and are an increasingly tested by adversity, and there are terested. They have ali suffered which have outwardly changed important factor in the economic few present today, who are un- severe damage and it is clear that very little during the year. In outlook. Supporters of the move-aware that the past twelve months au long as warfare continues and spite of its main artery, the Yang-ment to bring independence to the have produced most of the ad- there is no sign of an end-the tze River, being severed, the past Islands earlier than 1946 seem to verse factors that an institution rallways will generally speaking befew months have shown a distinct have veered round in their views, such as ours" can" expect to en-. {improvement, both in imports and as a result of the conflet in China, counter. If confirmation of this and the report of the Joint Preis required, one has but to reflect paratory Committee on Philippine upon the fact that during 1938 the affairs has helped to put a seal world was in a continual state, of on this agitation.
political and social unrest, and that no less than nine months out
In West China, development pro-j so we are in a position to face the net profit shown in the 1938 Gen-
llable to constant attacks.
MALAYA'S POSITION
The Chinese. succeeded in re-exports, over the low level of the moving a very considerable amount earlier months of last year. of rolling stock and destroyed Up' there in Shanghai you have. large sections of the track and crowded into the limits of what many bridges before they retired are regarded as the safety areas, westwards. As a consequence, the population which is equal to, if In Malaya, the set-back which of the twelve were marked by in- Japanese have had to bring much not greater than, the population started in the last quarter of 1937 |ternational crises; each one Di rolling stock over from Japan and which previous to the hostilities continued into 1938. The trade major importance and having a undertake a great deal of recon-lived in the three separate ad- figures are far from satisfactory, marked effect upon the financial struction work at heavy cost.
ministrative districts of the Inter-while banks have been overloaded markets of the world-
INDIAN EXCHANGE ""
There has been a lot of talk national, the French and the with cash. Malaya of course de- That the Bank's strength was about the Burma Road and the Chinese Municipalities, Moreover, pends for prosperity largely on the demonstrated during this period Burma Railway. The completion considerable industrial activity has rubber and tin industries and in is evident from the Statement now of the former is undoubtedly developed in the western district both cases 1938 saw decreases in before us, and I would be lacking magnincent feat, though its prac- controlled by the Shanghai Muni- production as well as reduced in a sense of appreciation I, on tical importance should not be cipal Council. New cotton mills, average prices. Stocks are now behalf of all shareholders,, I did. over-emphasised. The railway is silk fiatures, paper mills and also gradually falling, but the future not tender to the Board of Direc still in the preliminary stages and numerous plants of the type em- depends, as always, on demand tors, the Chief Manager and Staff what its future will be, it is too ploying only a handful of workers from America
our thanks for and congratula¬ early to foretell.
have sprung up, and this feature
tions upon the fine result they TRADE RETURNS
continues. These developmenta Trade in India has been dull and have achieved. It gives me great The Customs Returns of Trade have caused difficult problems for exports of merchandise have fal- pleasure to do so. (Applause). for 1938 are not easily comparate the Municipal Council as well as len somewhat alarmingly. A not- In the difcuit circumstances in with those of previous years, but for the utility' companies.
able change took place in the ex-which the world at present finds the export agures do indicate how In the Japanese-controlled areas change market when last April itself. It is understandable that successful the Chinese Govern-north of the Soochow Creek Httle the Reserve Bank of India drop-you, Sir, have deviated from cus- ment were in gradually diverting change is to be recorded. A few ped its buying rate. The effect tom and refrained from lengthy exports from the Yangtze to more factories have opened and a was to cause exchange to weaken comment upon such delicate sub- South China ports. Thus exports few thousands of Chinese have re- and attacks on the market by jects as politics, trade and cur- from Shanghai dropped greatly turned, but bye and large those speculators were only checked in rency conditions in the Far East. while the majority of the
South areas remain much the same as a December after the issue of a Naturally, we are interested in all China ports showed considerably year ago, and no serious attempt strongly worded communique by of these subjects and, because of increased exports. The comparison at reconstruction of the devasta- the Government stating thetr the leading part the Bank plays would be more striking were ittion has yet been set in hand. determination to maintain the in the economics of the Far East, not for the closure of Canton and Unfortunately, barely perceptibie existing exchange value of
the we listen each year with eager „. some of the other Southern ports progress has been made in the rupee.
(attention to its Chairman's re- after the middle of October. The negotiations affecting Shanghai ....
NEED FOR MEDIATION views and anticipations. Tientsin figures are a considerable and its relations with the Japanese Before I end. I have one more Undoubtedly, upon this occasion improvement over the previous military and naval forces, and word to say about the situation in your reticence is wise and I pro- year, mainly because of the great can only underline what your the Far East. For many years re-pose to follow your example, mak- increase.
of" trade with Japan. Chairman said last year, when he lations between these great neigh- ing but a short comment upon one Canton and Hankow, in spite of emphasised the importance of the bouring countries of China and aspect of the China situation. All air raids and various restrictions, Powers supporting the present Japan have been unsatisfactory, I would say is that the deepest enjoyed a phantom prosperity for Municipal Administration, pending and unfortunately there are at the sympathy of every person having some nine months of 1938, but the a final, rettlement of the Shanghai moment few indications of any the smallest claim to human feel- immediate outlook is gloomy for problem in all its aspects.
the handful of foreigners sticking
it out in those places under un- pleasant conditions
WAR'S EFFECTS
clearing of the air. In fact things fings must go out to the un-
are drifting dangerously, and the fortunate and innocent victims of Any visitor passing from China gap will grow more and more the present strife.
holders.
to Japan will be struck at seeing difficult to bridge unless media- On occasions such as this the The reopening of the Pearl and what little outward effect the war tion is attempted soon. For mer Bank has joined with others in Yangtze Rivers to foreign shipping has had on the latter country, chants of all nationalities the de- providing succour for sections of are naturally matters of very great But the effects of the war are of sirability of an early cessation of the community who through dis- importance to Canton and Hankow, course telling on her month hostilities is manifest, but for faster are in dire need: I feel aure but Hongkong and Shanghai are by month, and the
external millions of desperate people it is the Directors' policy in this. respect also vitally affected and merchants value of the yen is now little of vital importance-a matter of has the full support of share- of all nationalities are watching or no higher than the Chinese life and death. the situation with concern,
dollar Japan is, however, a well This is not the occasion to dilate Mr. Chairman, I now formally CONSTANT ADJUSTMENTS disciplined country, with a highly upon the desolation existing over second the adoption of accounts The general disorganisation and organised system of Government, hundreds of square miles of terri as presented at this meeting. dislocation of trade and Industry and it would be a mistake to under-tory; upon the wretched condition There being, no questions, the in China during the, past year
estimate her lasting powers of millions who first" by military motion was put to the meeting necessitated constant adjustment under conditions as they exist at operations and then by succeeding and carried unanimously to keep in line with the changing present. Whether these conditions waves of brigandage have been
OTHER BUSINESS situation. May I for instance re-change or not mainly depends on pillaged and despoiled and are Mr. J. F. Macgregor proposed, mind you that during the year external political developments, likely to suffer repeatedly in simi-and Mr. J. EL Taggart seconded. the Japanese occupied the parts China's loosely-knit organisation lar fashion until peace is once the re-election of Messrs. J. K of Tsingtao, Chefoo, Welhalwei, contrasts, vividly with Japan's, but again restored.
MANCHUKUO
Bousdeld," K. 8. Morrison and T. E.
"
ATTENDANCE
Amoy and Canton.. They ad- the threads of its organisation are I only urge that these condi- Pearce to the Board of Directors. vanced up the Yangtze beyond stronger than they seem; they tions should be kept in mind by This was carried unanimously. Hankow to Yochow and for vary. have an elastic quality which gives those who are charged with the Messrs. John Fleming and H. R -10g periods Wenchow, Foochow but does not easily break,
direction of national policies and Forsyth were unanimously re Ningpo, Bwatow and other South- Too much stress ought not to that no opportunity be missed to elected auditors upon being pro- ern ports were closed for one rea-be laid on any indices relating to mediate with a view both to re-posed by Mr. J. Owen Hughes, son or another. As a matter of the economic condition of either lieving the appalling distress as seconded by Mr. Fung Kong-un. fact I believe that T'am correct in of these countries. "Under modern well as to obtaining a situation in This concluded the business of- saying that Shanghai, Tientsin conditions even Europe has no which China and Japan can deve the meeting. The Chairman and Chinwangtao were the only right to cast stones at Asia belop naturally and pacifically to the thanked shareholders for their st treaty ports on the China coast cause of abnormality in regard to benefit of the whole world:
tendance, and announced " that which were not subject either to statistics relating to budgets, na- Ladies and Gentleman. I cannot dividend warrants would be ready closure or naval operations at one tional debts, currency reserves and conclude without referring to the today. time or another.
so forth, and in any case these are excellent work of the members of
Those present at the meeting That shows you what merchants realms in which the most august the Staff of the Bank, and parti and shippers had to put up with.
authorities often make miscalcularly of the Managers and were:- Yet this is by no means the whole
culations....
Agents stationed at porta in "the Mr. T. E. Pearce (Chairman), story, because even when ports
Far East who have had to deal the Hon. Mr. J. J. Paterson (De- were open to shipping all kinds of
with problems such as bankers puty Chairman), Mr. J. K. Bous- restrictions were frequently im-comes more closely knit
Manchukuo year by year ber elsewhere rarely, if ever, have to field, Mr. A. H. Compton, the Hon. posed. Moreover, in the hinter Japan, so I will not linger except and I am sure you will agree that Mr. E. 5. Morrison, the Hon. Mr. with face. They have served us well, Mr. 8. H. Dodwell, Mr. W. H. Lock, land, multitudinous forms of irre to draw attention to the new bar our special thanks are due to themA L. Shields, Mr. H. Wil- gular taxation became prevalent, ter agreement concluded with this year." ded
kinson (Directors). Bir Vandeleur while the dangers and dificulties Germany during the year, which now beg to propose the adop M. Grayburn (Chief Manager), of transportation increased charges is expected to divert more trade tion of the Report and Accounts and the following shareholders enormously.
from other countries. Yet it is in- as presented, and after they have Messrs. ↑ & Adamson, √ M teresting that the final trade re- been seconded I shall be pleased Alves. H J. Armstrong, Dr. H Yet the movement of both in-turns show that Manchukuo took to answer to the best of my ability. Balean, Messrs. P. 8. Cassidy, Chus port and export cargo went on goods from the United States of a any question that may be asked Seng-choo, 6. M. Churn, N. V. A. This was largely due to the amaz- greater value than ever before: (Applause), ing resilience and tenacity of the materials for war industries being Chinese farmers and traders, presumably the explanation, which enabled them, sometimes with Government help but often In Hongkong, we have seen without, to and ways and caeans fluctuating conditions throughout It gives me great pleasure to to Wing, A. W. Hughes, Owen of moving goods in spite of the the year very dependent, as al- second the proposal that the Re- Hughes, Dr. adverse conditions with which they ways, on the entrepot trade with port and Accounts as presented to Kotwall, were confronted. In fact the China. The fall of Canton and the this meeting be adopted.
Macgregor, volume of some important exports closure of other southern ports has While our Chairman's opening Plummer, has been maintained at a level of course, had an adverse effect remark, to the effect that there is Mexic well up to average years on the business community, but it little to say about the Balance AL Ricke
Significantly enough, there has has caused no panic and we are Sheet may be true in that the Boss, 7 been a great Increase in the ex- prepared to wait and see what this figures now before us follow fairly venson, J. H. Tazzart, port of raw cotton to Japan, from coming year will bring forth, closely those of last year, I feel I rant, -D_G_N. 234.000 quintal in 1937 to 964.000 Fortunately the currency and am but expreading the views of Williamson, Mas, FB Winter and quintais last year..
finances of the Colony are sound, shareholders in saying that the others.
EXPORTS MAINTAINED
© HONGKONG", "SOUND
A SECONDER'S SPEECH
Croucher, B. A Dastur, DO Edmondston, J. Fleming, HR Rising to second the motion, Mr. Forsyth, 8. J. H Box, Fung Kong- A. W. Hughes said:—
un. H. Gitting, H. Dawson-Grove, Mr. Chairman and Gentlemen FLR B. Flancock, E5 Harrison.
Messrs. 7.
K.C Potts, C.
C Rob ts. B. H ton D. V. Stea-
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