隆
SUPPLEMENT
Hongkong Daily Press.
Post Office in the United Kingdom.
18-19 Marina House, Queen's Road Central G.P.O, Dox No. 1.
'Begistered as a Newspaper at the General 報西 ESTABLISHED 1857 韓孖
HONGKONG, THURSDAY, FEBRUARY 29, 1940.
2
CHINESE TRADE INCREASE FAVOURABLY REFERRED TO AT HONGKONG
BANK ANNUAL
ANNUAL MEETING
War's Strain On Japan's Economic System
CONCERN OVER RISING COST OF GOVERNMENT
IN HONGKONG
"
The Customs Foreign Trader. figures for 1939 must again be interpreted with great caution owing to the fact that their method of presentation, the fluctuating exchange rates, trade In spite of dislocations at some controls and other complications, ports and the closure of certain make comparisons very unreliabla channels, new outlets have de-However, an examination of these veloped and the general rise in figures makes it clear that, com- the prices of commodities pro, pared with any of the last three duced in the countries where we years, import values increased operate has caused a welcome im-appreciably (and this omits war provement in recent months. munitions), whilst export values Stock markets in the important were lower.
The growth. In the centres
Fast have also re-
balance of trade, which was pati ticularly pronounced in the first half of the year, caused a strain which "fell almost entirely on the Shanghal exchange market.". This ' was so, because trade through the Chinese controlled ports was kept fairly well balanced by the mea- sures of restriction adopted by the Chinese Government, but in North
out
sponded this too has been de- cidedly helpful, although we are anxious that such rises should not be overdone.
FOREIGN LOANS
I do not propose this year to refer to political events in the Far East, except in so far as they affect certain topics with which particularly concerned.
WE afe
afraid
ELS
that it would be possible for the
adverse
and Central China conditions were stch, as I will show later, as to
In connection with the move-
The Chinese Government's work in developing trade despite transportation .and other difficulties, and the persistence and enterprise of individuals in keeping alive the channels of commerce, were favourably com-. mented upon by the Hon. Mr. A. L. Shields, Chairman of One of these topics relates to the Chinese Government foreign loans, the Board of Directors, at the annual meeting of the Hong-
in floating many of which we encourage a demand for goods kong and Shanghai. Banking Corporation yesterday.
took a leading part. During the while exports suffered from the Reference was also made by Mr. Shields to the servic-past year these icans,
situation prevailing in the hinter- ing of the Chinese Government foreign loans, He said
land Later on in the year the some of you are
fall in exchange checked the im- that the interruption of the debt service was only a tem- painfully aware; have gone porary measure, and that responsibility for the failure did into complete default for reasons port demand and the rise in not rest with the Chinese Government.
beyond the control of the Chinese prices consequent on the European Speaking on the effects of, this loss has been met out of the Government. The measures taken war resulted in an improvement
In the export' position. last Spring to set up a currency the Sino-Japanese hostilities year's earnings so that the re-stabilisation fund led to hopes MOVEMENT OF TRADE on Japan, he said that the sources of the Bank have not been economic system of that impaired. I trust you will ap-
prove of this action which is, I Government to come to a tem-ment of trade, what stands out country was undergoing
porary arrangement whereby dur-above everything else is the fact severe strain and it was by no think, the only sound policy.
ing the period of hostilities the that in spite of transportation means easy to judge how de-
transfer of funds abroad for the difficulties, military interference With ́ ́regard to our Balance velopments would work out!
service of the Customs and Balti and other hindrances, goods con- in the present year.
Sheet, there have been sundry secured loans would continue to tinue to flow inwards and out- changes, the principal ones being be possible, even though at a ré- wants in an astonishing volume culation in excess of our authoris-fact initiated by the Minister of long as crops are grown and es- a reduction in our notes in cir-duced rate. Negotiations were in considering the circumstances. So”
which is offset by a similar reduc-with ed issue by 15 million dollars, Finance and discussions took place sential manufactured goods are tlon in our holding of Government committee in London.
the Chinese Bondholders' available, so long will they keep Certificates of Indebtedness. Cur-
moving in China. rent Accounts are lower by some that time in the home press was prise of individuals have been. A question which was raised ab The sheer persistence and enter- 33,million dollars, but on the other that of the prior rights of certain responsible for much of this, but about 18 million dollars On the ed, and quite justifiably in hand Bills Payable are higher by loans. It was strongly represent the Chinese Goverment have our themselves taken a very active other side of the book, Cash is opinion, that under the terms of part in fostering the outflow of lower by 10 million dollars and their contracts the various loans exports: Naturally the Govern- securities by 20 million dollars, had claims on Customs, or Salt ment's difficulties are now greater have increased by about 35 million der of date, and that this distinc-loss of Nanning and the bombing Receivable Revenues, or both, ranking in or-than ever before as a result of the
Mr. Shields said certain aspects
cf the Colony's financial situation
Dave rise to uneasiness.
"I believe that most of us con- cur with the remarks of the War Revenue, Committee about the con- tinuous rise in the cost of govern ment and support their recom- mendation that an official Lavesti Eation should be held to ascertain
whether. economics cannot affected," he said.
be
The anal dividend approved yes- terday was £2,10s. per share, which was lower by 10 shilings
than last year's dividend.
CHAIRMAN'S SPEECH The Hon. Mr. A. L. Shields, Chairman, sald: Ladles and Gen- tlemen. The report and statement
of accounts having been in your hands for the required period, I will, with your permission, take them as read ..
BALANCE SHEET
against which
dollars.
Bills
13
tion should therefore be re- of the Yunnan Railway. In 1938 your Chairman warned cognised as a matter of principle. Shanghal merchants, both Chi- shareholders that. conditions in
ACTION SUSPENDED
nese and foreign, have also played the Far East were more serious Unfortunately before final prominent part in keeping the history of the Bank. Last year culties which arose in the Shang-year they managed to overcome than they had ever been in the decision was reached, the diffi-wheels of trade moving, and last
your Chairman noted how pre-hal exchange market forced the many of the obstructions which carious and changeable the out- Minister of Finance to suspend existed in 1938.
After making full provision for look must inevitably be willst action. He made it clear, how- A remarkable fact is that the all known losses and contingencies China and Japan remained anta- ever, that the interruption of the tonnage of vessels, which cleared and after writing down lavest-
gonistic. Now we find ourselves in Debt Service was only a temporary from Shanghat for foreign coun the third ments, the net profits for the year
year of this Sino-measure, and that the Chinese tries was in 1938 only 6% lower amount to $13,353,085.43, to which Japanese conflict which has been Government had every fatention than in 1938, the last normal year, must be .. added $3,400.634.28
taking place on our very doorsteps of resuming the full service of and the port of Shanghal, thus brought forward from last year sight. On top of this our own possible moment.
and the end of which is not yet in their obligations at the earliest shows that it will în dué COLTEN The. Interim dividend of £400,-
have no difficulty in recovering 000 paid at 1/2.3/4 and Directors country is involved in a war which
As a gesture of good-faith, es- its position as one of the first remuneration have to be deducted. may prove to be the most serious timated quotas of the shares due half-dozen ports in the world. There then remains available for this state of affairs as well as our which still
in its long history, Considering from Customs and Balt offices, Of great importance too was the distribution $10.165,111.08, which it
remain under the manner in which last year Shang-
is proposed to allocate as follows: Proposal to reduce the final divi-direct administration of the Gov-hal re-established Itself as the dend, shareholders would have ernment; have throughout the past main manufacturing, and supply justification for expecting a year been regularly set aside in depot for such parts of the interior gloomy report from their Board of the Central Bank of China in as can be reached (and these are tion of income tax). 6,453,781.51 Directors. But as a matter of fact national currency reckoned at the many), for coastal ports and for
To pay a final`dividend
of £2.10/- per share
(subject to the dedue
Transfer to Bank Pre-
mises. Account Carry Forward to New
Account
the strength of our balance sheet 300,000.00
is only too apparent. It is the $.411,329.55 politicul outlook that is depress
ing $10,185,111.06
CLOSED TO TRADE ·
The figures of our balance sheet have been converted at the rate of 1/27/8d. per dollar.
official rate of 1/2.1/4d.
countries - further afield. A clear
The total revenue collected by indication of the growth of this the Chinese. Maritime Customa industrial activity is seen in the Administration amounted to 331 consumption of electricity supplied milion dollars in the year 1939. by the Shanghai Power Company I wild remind you that, several But in fact roughly 83% of this which at the end of the year ap- of our branches such as Hankow, revenue was collected in. ports un-proached the record output. This Canton, Foochow and Swatow are der Japanest control, and we es was in spite of the fact that Chi- in treaty ports which are virtually timate that at the end of the year nexe factory owners still left un- Your Directors regret that it has closed to trade. From Hamburg some 380 million dollars of Cas-occupied and unworked Important been necessary to recommend a We of course have no information, toms funds should have been lying plants in the Northern and East- reduction in the final dividend by but the British members of the in the Yokohama Specie Bantern parts of the Settlement. 10/- this year, but I am sure you staff got home safely. Other awaiting the outcome of the Sino- will realise that the heavy decline branches are in places where trade, Japanese conflict
“A REDUCTION.
in the value of the Shanghai dolls greatly handicapped by political -lar necessarily means a decline in dificulties, currency experiments the Hongkong dollar value of in- and trade controls. Yet we have vestments which such an Institu- weathered the Far Eastern war tion as the Bank must have in for two and a half years without Shanghal I am glad to say that suffering any severe exec
It is clear, therefore, that responsibilities for failure to meet the service of the Cus- toms Loans does not for the time being rest on the Chinese Government.
While there is a strong under- crament of optimism in commer- dial and industrial circles Shanghai, we must emphasise that long as the administrative problems of Greater Shanghai: sme unsettled there will be reasons. for dissatisfaction about the sitca-