HIGHER COST OF LIVING.
REFERENCES AT CHAMBER MEETING.
THE HONGKONG TELEGRAPH..
TUESDAY APRIL 1, 1930..
as well as employees are affected change was over silver dollar tendant evil of squeeze, as to Before coming to a decision one parity and the silver dollar ranked which complaints have been made might well take into consideration equally, with the paper dollar, it in the past. Merchants will be whether the ordinary standard of was obviously profitable to mint free to maintaju a'running log of living in Hongkong is not un silver dollars and import them their imports and exports, with necessarily high at the present Into the Colony, Ordinarily this out any necessity to group them time, whether, in fact, tha-in-natural process of supply and de- by commodity or steamer, render- dividual's ideas on necessary command should have speedily reing the combined results, say, forts and his general mode of stored us to silver parity, but, un- once" living have not exceeded the fortunately, our demand coincided done as part of the regular rou
a week. If this work is MANY OTHER MATTERS growth and rate of progress, of with the currency adjustment of tine, I am sure it will be of very
the Colony, If such should prove Indo-China that resulted in abner-little Hon. Mr. B. D. F. Beith, the to be the case, to increase salarica mally large supplies of silver being has been decentralised to the ex- trouble. The procedure Chairman of the Hongkong at the present time would-be-tanta. placed on the market, and the tent that Shipping Companies be- General Chamber of Commerce, had mount to encouraging a continas Government of India, vety in- fore signing Bills of Lading or much to say about silver at the tion of this state of affairs. opportunely for us, also came out other documents of title will be annual general meeting held in There is a point where it is not as a heavy seller. Our demand, required to ascertain the name the City Hall yesterday afternoon. economically sound to ralse therefore, was more than mot by and address of the consignee and
Hon. Mr. B. D. F. Beith, salaries which in the long run these adventitious supplies, and addressing the meeting, said: Gen. must be considered in relation to the net result is that although we they do at present, coples of their or consignor, and to render, as tlemen, in moving the adoption trade and this should be borne in are much nearer parity now than manifests to the Import & Ex- of the report and accounts, mind just as much by the Govern- we were six months ago, we are port Office but with this addi- which havo been in your ment as it has to be by commercial atili very inconveniently over it. tional information. hands for some days, I shall neces. concerns. After all it is the com-If we are to get back to silver Companies have agreed to give Shipping sarily be brief. As stated in the mercial interests who, in the main, parity we must look for a further a trial to this system known as report, several important ques-pay, the taxation which provides fall in exchange, unless by a clons, to which the Committee has the wherewithal for such pay-fortuitous circumstance the price which we trust will facilitate the
the post-declaration system devoted a great deal of time and ments.
of silver materially rises." thought during the past twelve
These two factors have brought so necessary in these days.
compilation of trado: statistics months, have not yet reached a
It Fluctuations in the price of about a condition of extraordinary will be appreciated that con- stage at which they can be publicly silver and in the exchange value complexity. Silver dollars are still siderable additional work, and discussed. The most important of of the Hongkong Dollar during the being imported because the opera responsibility has been thrown these subjects is the draft Com-years 1900-1929 are shown in the tlon shows an immediate paper mercial Treaty between Great graph which forms an interesting profit, but there is no apparent this connexion, and we trust. upon the Shipping Companies in Britain and China, to which you enclosure to the Chamber's Report outlet for them. They are not that importors and exporters will will have seen references in the for 1929. The depreciation, with- really needed to supplement our
render them every assistance to We hope to be able to an in six months, of more than twenty currency and sooner or later their
ensure the success of the new nounce later that our efforts have per cent in the sterling value of dead weight will become a burden had good results.
system. Despite civil war and other in-cedent in recent years and calls as bullion.
our currency is a fall without pre-only to be relieved by their export ternal troubles, China's foreign for something more than a general trade shows Jittle or no sign of reference to this diminishing, which is an indication change that in the past year has of the great expansion that would so gravely affected us as a trading occur under more settled condi- community. tions. Too much stress cannot be
Preas.
The Dollar.
factor of ex-
the
V
ment made by the Chairman of the Hongkong & Shanghai Banking Corporation at the recent annual meeting of shareholders, "It is obvious that a small Colony like
I would refer here to a state-
concurs en-
our own cannot absorb unlimited silver dollars, and further imports of these are much to be depre- cated."
Your Committee tirely in this
view and regards with concern
the continued im portation of silver dollars, not only because the difficulties handling them are becoming in- creasingly burdensome
A fine of $250 is provided in the Ordinance for non-compliance|
with the requirement to render hope few of our members will statistical information, but I have to be haled to the Police Court
to receive a course of
memory training!
Piracy Guards. Turning to shipping questions, during the year the prevention of Piracy on British vessels has been prominently before the Commit- tee and it is satisfactory to note that its efforts, together with those of the Shipping Companies concerned, to secure the provi- controlled military guards have sion of properly disciplined and
Let me state firstly that laid upon the urgent necessity for question as to whether high ex- abolishing the excessive internal change or low exchange is, in the taxation which so severely restricts long run, beneficial to the Colony, the free movement of goods, the is a doctrinaire point that I prefer volume of trade, and the pur- not to deal with here. Those chasing power of the peasantry, whose interests are definitely link who form the vast majority of the led to silver cannot be expected to Chinese people, and who are them-regard with complacency & shrink selves seriously affected, for, to age in the comparative value of quote a wellknown authority on their investments. There is, how this subject (Sir H. H. Fox):
"In this matter of irregular taxa-afforded from the personal stand-blem of their ultimate disposal a wider view than that banks, but also because the pro- tion the Chinese authorities can-point. The commercial prosperity may very conceivably involve the resulted in freedom of attack for not be charged with discrimination of this Colony could not have been against foreign goods, because re-achieved, nor is it likely to be main Colony in even greater difficulties all vessels so provided. Those of
ever,
ports from all parts of the country tained, without full consideration in the future. go to show that Chinese produce
being given to the economic policy Certain it is that the difficulties we have had to face in exchange during the past year are not due to any feeling of insecurity in our
In this connexion
to
we
of
the
us who travel from time to time up gratified to know that the Govern-been impressed by the efficient ser- and down the China Coast have
vice rendered by the military ment has appointed & local Com- mittee of Enquiry into our cur-guards, and realise that if anti- rency and other cognate matters, piracy guards are to be effective in future this discipline and con- points that have bearing on our with terms of reference sufficiently trol must be maintained. comprehensive to include all
When His Majesty's Government advised their intention present difficulties. We
to with- cannot
draw these guards on 1st April, anticipate the findings that
of that Committee and I will therefore that they should reconsider the earnest representations were made only add that we are justified in situation so as to maintain these these vital questions will be pro- however, decided that for the fu hoping that its deliberations on essentials. The Government have, ductive of good result.
coming down from the interior to of our neighbours. Le shipped abroad is taxed in many cases even more heavily than im- porta, chiefly for the benefit of military chieftains. Eggs geern to be singled out for severe treat-currency. So long as we function ment. A new-laid egg, for in- on a silver standard we have stance, on its way from the farm necessarily to accept the dis- to the port has, in addition, to abilities attaching likin, to pay customs duty, produce standard, but it has and examination tax, an educa- urged against us that our metallic Lional and a charitable tax." (Laughter),
With regard to the proposed abolition
of extra-territorial rights, I cannot do better than refer members to the remarks made from the chair at the recent annual meeting of the Hongkong & Shanghai Banking Corporation, as to the essential safeguards which will have to be provided in order to protect and develop trade to and from China.
to
never been
reserves are inadequate, that our note issues have been in excess of the public demand, or that any strengthening of our fiduciary obligations could natural corrective
replace the fluctuation-which is adjustment of exchange of local prices.
stand out
ex-
very
ncute
Trade Statistica. Merchant
correct.
members of the
ture
enter-
the
guards will be provider through the Hangkong Police, but: that until this force is available the
to know that the department for Chamber particularly will be glad will continue at the expense of the present system of military guarda
the compilation of Trade Statisties extraordinary position that in a Steamship Companies. It is an Process of Adjustment. ja about to resume its operations, matter which affects all trading The difficulty is that the process and, we hope, more effectively
interests the Steamship Companies of adjustment lag, behind the than formerly. Whether this should have to incur this exceed- movement of exchange. When, as
proves to be the case, or notingly heavy tax on their will depend largely The Salaries Commission.
in the present instance, we are
upon merprise. Recruitment, discipline, and faced with an abnormal fall in the chants themselves. I take this control is obviously beyond the You will note from the report price of silver, due to circum-
opportunity of appealing to all scope of the Companies themselves that the Committee was asked by stances out of our control, there business firms to see that their and your Committee is of opinion the Government for its views on must of necessity be a serious dis- staffs fill in the forms promptly that to be really efficient these the Report of the Salaries Com-tarbance in the state of gold com- and, I would add, intelligently, so should be maintained by the Naval mission, 1929. We are greatly mitments incurred in the over- that the totals of imports and ex- and Military Authorities. We un- indebted to the Hon. Mr. W. E. L. confident expectation that
ports at the end of the month, orderstand, however, that there will Shenton, Mr. M. T. Johnson, and change would function normally at the end of the year as the case be considerable improvement on Mr. A. Ritchle for serving as a within those limits to which we may be, are at least approximately the conditions existing prior to Special Committee to examine the had been accustomed and that we Report in detail. The drop in had regarded as covering ordinary matter in which, I am advised, the be under regular discipline, with the provision of the military There is one aspect of this guards, and that the new force will exchange occurred after the business risks. Salaries Commission reported and Two factors
Chamber of Commerce can usefully proper N.C.O.'s, and that the whole I think the members of that Com-clearly
co-operate with the Government, force will be effectively controlled. mission will agree with me when I collapse. The first is entirely be glad to do so. It has been
as causing the recent
and I am sure the Committee will say that a situation with regard domestic and may be traced back
Survey Regulations. to sterling salaries which they as far as 1925, when
pointed out that in regard to I desire to comment upon naturally did not envisage has political disturbances called for Cotton Piece Goods, for example, special work of great importance since developed. When
our prudent measures for steadying one Chinese character is generally to the shipping community which Special Committee was first ap-our exchange, that were best used to represent descriptions the Technical Committee on Ship- pointed to consider the subject, an carried out by counteracting the which, in the Import headings, ping Survey Regulations has been exchange in the neighbourhood of downward tendency of silver by would appear under half a dozen doing since its appointment in 18. 9d. appeared to be a likely a premium on our banknotes that items appear in the Export side this Committee are all busy men names. If these half a dozen February, 1929. The members of prospect, but the further drop to were then, as they have always of the statistics as one item, under and they have been holding fre- 1s. 6d. or thereabouts, places the been, the recognised medium for situation in a new light. The the cettlement of contracts in this one Chinese name, that particular quent meetings in the evenings Committee thinks it best therefore Colony.
commodity will erroneously appear throughout summer and winter, for to withhold from publication, for the present, the comments which adoption
to be sold more freely than it is the purpose of advising as to the The second factor is the recent bought, and the other five articles adaptation of Board of Trade Rulea
of a gold exchange on the Salaries Commission Report. Indo-China and the incidence of Hongkong. I mention this as an were forwarded to the Government standard by the Government of will, also erroneously, appear to to local shipping. These Rules have been entirely consumed in have naturally: had in view mainly Obviously something will have to heavy antes of silver by the Go-example of the way in which the tic and Continental trades. Cir European conditions and the Atlan be done to help Government vernment of India. officials -on. sterling salarica As regards the first of these statistics may be vitiated. I hope cumstances in the Far East are, of through the present exchange factors, public confidence in the it will be possible, with the help course, very different, and. It is situation, but it is by no means wisdom of this
of certain of our members who simple economics thất coolies, car. policy wag evident that the method of in- evidenced by a demand for our fect, both from the language and given (and would not, in fact,-ap have special knowledge of the sub-ried at very low fares cannot be creasing sterling salaries (already banknotes that, however gratifying the technical points of view, to preciate) accommodation compara in most cases on a full standard) it may have then appeared, became assist the Government in prepar-blo with that provided for, say, a is the right one, and I imagine that in time a serious embarrassment. if silver continues at the present, Our note issues are, of course, sub. ing an explanatory guide to classi-European emigrant to the North very low level the whole subject ject to Jegal limitations. These cation in both English and American Continent. Furthermore, may have to be reconsidered from limitations are sufficiently wide to
Chinese.
if the conditions governing the a different angle.
provide for
grant of the Hongkong Passenger all conceivable Increase of Salary,
Certificate are made too onerous, currency needs within the Colony,
I gladly acknowledge that the it will follow that shipping will be The Committee has been consult but they were not designed to en- Government have done all they can driven from the port to the detri ed by some of its members as to courage, or to cope with, outside to overcome the drawbacks which ment of the whole interests of this what increase of islary should be
demands dissociated from
our many people complained of in re- Colony, and British Shipping Com- Kiven to employees generally to genuine trade requirements. It gard to the former system of col-panies will find themselves severely compensate for the higher cost of not part of the functions of lecting statistics. Mr. Lloyd, the handicapped in compoting with living consequent upon a depre- of money, and when the premium Extorts Department, has been most survey requirements are less
banking to facilitate the hoarding Superintendent of the Imports & ships under other registries whose clated currency. Sterling exchange on our notes became unwieldy a helpful in all our discussions. acting. Climatic differences compensation arrangements are
also already made by somè firms
reversion to the strictly silver Under the new system, it will no come into the question. More im. and it is a matter which must be standard established by law be longer be
came imperative.
necessary to send a portant than all, valuable trades left to individual action, as circum-policy of the banks to rehabilitate office with a declaration form to established and satisfactorily con- The declared messenger to the Import & Export in Eastern waters which have been stances differ so greatly in each the silver dollar resulted in a be chopped before the cargo can ducted, as long as, or even longer case. If present exchange levels heavy fall in exchange, or what he received or deliveres, and, than, the foundation continue, a corresponding increase was essentially the same thing, a
of this In the cost of living for some will heavy decline in the premium on
furthermore, documents may be Colony, cannot be jeopardised by result and firms, and companies the paper dollar.
in either English or Chinese. the imposition of rules framed to will doubtless do what they can to
This will obviate the necessity meet entirely different conditions. for re-establishing the special am glad to say that this has been fully recognised by the Government occupation of "permit writers,” and queueing up at the Import and its advisers, who have consis and Export Office with the at-
(Continued on Page 10.)
help their staffs, though. It must
be remembered that both employers
A Further Fall.
Now, with regard to the second as sterling ex-
whose profits are greatly reduced) factor, so long
The New System.
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