THE HONGKONG TELEGRAFII, THURSDAY, OCTOBER 21, 1987.
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NOTE: This article was written three weeks ago, when the first signs of the slump on the American Stock Exchanges made themselves apparent. However, in view of yesterday's reports from Wall Street, the article is very timely and in- formative.
Plain Man's guide to a Stock Exchange
TT10-DAY is pay day on
Th
the Stock Exchange.
Once every fort-
Phone 27778-9 night the Stock Exchange has a settlement when all the business carried out during the previous fort- night has to be squared up..'
Genuine investors
We are offering a large number Hongkong Telegraph.
of
VICTOR and "H.M.V."
at
RECORDS
reduced prices.
Catalogues are available on application
THURSDAY, OCTOBER 21, 1937.
pay for
their purchases and speculators collect their profits or pay their losses.
Panic
by
STEWART GILLIES
Daily Express City Editor
Ile is then in a position to pose
as a pundit and advise people what they should do with their life savings.
He need know nothing about business, economics, foreign exchanges, accountancy or law. All he needs is a few wealthy friends and the gift of salesman- ship.
Such a state of affairs is not tolerated in any other profession, and should not be allowed on the Stock Exchange. Even the in- telligent minority of brokers whe do know something of what
China's Expectations
The word has been passed, and Republican Party leaders in the United States, with the advocates of American Isolationism, are in full cry. Led by Governor Alfred Landon, Republican can-
What is all this slump about? didate for the Presidency in the
When the man in the street |last election, they are tearing to pieces the carefully constructed opens his morning paper nowa policy of President Roosevelt days, so often as not the head- who has pledged the United lines tell him Stock Exchange States to defend the sanctity of prices have slumped again, while versa. treaties and to use his influence in the next column another head
end aggression. President line' announces that
company Roosevelt in accused of assuming profits have risen to new record the responsibility of a one-man Jovels.
To-day's pay day will be one
Few, if any, can tell the dif- The sensible investor who took is happening in the world find it of the largest for some time, as ference between a blast furnace advantage of these abnormal difficult enough to be right about the losses of speculators who and a coke oven, and not one in conditions to purchase such investment matters, and agree. have been caught out in the re- a hundred has ever been down a stocks was, therefore, paying with this vio cent slump on Wall-street run coal mine, although they are now nothing for a share in the plant,
In financial affairs, as in poli- strongly recommending "coal machinery and other assets of into many millions.
shares to their clients.
businesses, which in many cases tics, there will always be ex- The bulk of their news they were worth some millions of with better training on the part aggerated hopes and fears. But As pounds. gather from each other.
of the salesmen there might be with all goship, the final. story
little relation to the IN London during the fewer booms, but there would
almost bears
certainly course of the past year slumps, in security prices.
to
Government and abusing the He finds these announcements powers vested in his office. The hard to reconcile.
original.
ba
fewer
The result is that if Wall prices of many shares were street falls London falls, and vice forced up to levels where pro-
spects and dividends were dis- WE would pay more at- tention to the fore. Price movements under such counted many years ahead. conditions are usually
bodinga and elations of stock- so ex- As a result of the recent set- brokers and the fluctuations of aggerated that they take little back, however, many shares are the Stock Exchange as genuine- account of the realities of the to-day giving yields which are indications of the trend of trade situation. For example, in the undoubtedly attractive in view and international affairs, if- summer of 1929 American secu- of the favourable trading out- stockbrokers would make a real rities were pushed up by over- look.
effort to learn more about the exuberant speculators to such an But booms and slumps seem major industries of the country. extent that the dividend return to me to be due in part to the
If they would get out and in many cases was reduced to make-up of the Stock Exchange about more.
itself.
II-entrance to the Stock Ex-
·STOCK EXCHANGES around 1 per cent.
In October of that year Wall- are peculiar places street crashed. For days on end broker needs no qualifications knowledge of the subjects.on. In the first place the stock change was made conditional on ----On the face of things, Presi-inhabited by rather peculiar prices of the leading securities whatsoever for his job. If which you propose to charge for www.dent Roosevelt is in a shock-people.
fell by 20 to 30 points, until even- young man is a failure in other your advice. proof position as far as his for-
tually it was possible to buy the walks of life and can find a cer- The London Stock Exchange shares of many first-class com- tain amount of capital, he can school for young stockbrokers,
If there was established has ever 6,000 members herded panica at prices which represent- always as a last resort go on the the curriculum of which would together in an out-of-date build- ed less than the cash in the com- Stock Exchange on a half-com- include world finance, economics,
panies" till.
accountancy and company law.
S. MOUTRIE & Co., Ltd. critics warn that a mistake on
York Building
Chater Road
N.Y.K.
San Francisco via Japan Ports & Honolulu.
(Starts from Kobe).
Chichibu Maru
Taiyo Maru
Tatsuta Moru
Tues., 9th Nov. Mon, 15th Nov. Tues., 30th Nov.
Seattle & Vancouver (Starts from Kobe),
Ikawa Maru
New York via Panama,
+Nagara- Moru
*
Sut., 23rd Oct.
Sat., 10th Oct.
South America (West Coast) via Japan, Honolulu,
Hilo, Los Angeles, Mexico & Panama,
Takaoka Maru (Starts from Kobo) Sat., 20th Nov. London, Marielles, Antworp & Rotterdam.
.... Fr. 5th Nov. Sat, 20th Nov.
Torukuni Maru Hakusan Maru
Liverpool via Port Said, Beyrouth, Istanbul, Piraeus,
and Marseilles.
+Lisbon Maru
Sydney & Melbourne via Manila & Ports.
Kliano Maru
*M.V. Neptuna"
Kamo Maru
Sun, 14th Nov.
Sat.,, 23rd Oct. Wed, 3rd Nov.
Sat., 27th Nov.
Bombay via Singapore, Penang & Colombo.
Toyooka Maru
Ginyo Maru
Wed., 27th Oct. Wed., 10th Nov. Calcutta via Singapore, Penang & Rangoon,
Tue, 26th Oct. Thura., 4th Nov.
+Nagato Maru
Mayebashi Maru
Kebo & Yokohama. (Omitting Shanghai)
Kamo Maru
Haruna Maru
Katori Moru.
↑ Cargo Only,
Fri, 22nd Oct. .Sat, 23rd Oct. ..Sat., 6th Nov.
*Joint Passenger Agante for Burns Philip Line General Passenger Agents in the Orient for the CUNARD WHITE STAR LINE.
Tal, 30291..
"TELEGRAPHS"
EVERYWHERE COUNT THE
his part may lead the country into war.
eign policy is concerned.. In the first place, he has made no posi-
I don't blame him.
ing much smaller than the Albert Hull.
tive commitments. He is send- ing a representative to the Brus- sels conference, but that does
Communication with the out- not even mean that the United
side world is mainly by tele- States Administration will back phone. Stockbrokers seldom, i action the powers decide upon ever, go near the company in there--if any action is taken. whoss fortunes they are interest-
cd. Mediation is his intention.
There is no suggestion that the United States, or any
that
mission basis.
L.S.D. OF THE B.B.C.
➜ESPONSIBLE omciuls
about the state of the Corporation's
Ci
British Radio's
Handicap
a
The Government read the Ulls- water Committee's report, "O.K.'d" the 75 per cent, but declded that the portion should provide for sound and vision services. The Treasury smiled. be The general public should interested in what happens to the money spends on radio licences. By the end of this year it
sets
Rs.1.C.e seriously concerned other Japanese cause against Russia exchequer, they see a Dnancial crisis power, will take drastic steps to and China. It is fairly obvious, ahead.
Many people were surprised last) curb Japanese aggression, or from the first meagre messages, Apell when the price of the radio was hot increased. They the quarantine" which that Japanese influence at the licence
believed that the Chancellor of the President Roosevelt suggested as Outer Mongolian capital is in the Exchequer, faced with the task of financial embarrassment. It is in estimated, nine million ructio a means of ending violations of ascendancy, and will continue so. alsing national revenue, would turn that part of the money derived from will be in use in Great Britals, and his eyes to that 10s and be persuaded the issue of licences that the Tren- the man in the street will pay treaties and defending, obliga. But as Japanese prestige grows that it might well become 15s or a sury lays hands on
£4,500,000 for permits to sten-in. When you pusly a 10s note over a If the DB.C. were tions of all sorts in the futuroj in that aren, so the danger of a
to receive That did not happen. But there is post office counter and get in return per cent. of each licence fee its in- will be put forward as a remedy collision with Russian interests good reason for believing that the radio Beence, a shilling of your come would be increased by £700,000 Ifcence fee, may soon be increased to money goes to the Post Office to pay over the figure holding under the in the present ease. It ia a increases.
help, not the national Exchequer, for collection expenses and one or present arrangement. pity, but for all the fino phrases It is certain that Russin will half-a-crown, it all of it went to the straight to the national Exchequer the B.B.C. dnances on a more satis- but the BB.C. An increase of only | two minor services; Is Cd. goes; The alternative, in order to place spoken on China's behalf, extol do everything possible to keep Corporation, would swell ita income 78. Od. goes to Broadcasting House, factory basis, le to charge more for the radlo Hence. But there is no ing the virtue of her cause and out of trouble in Mongolia and b,000 a year.
Television has proved the radio
this should condemning her
£300,000 opponent's, Siberia, and her severance
roughly of bogey. When Parliament reassembles Treasury official could justify the 15 apparent reason why
per cent. deduction from each licence happen It is probable that the B.B.C. will fee which his department carries out onmanly is being diverted from its there in small prospect of the treaty bonds with Mongolia, ask the Government to provide a One, mny any there is never any more proper purpose. Brussela conférence doing any-guaranteeing assistance against Advisory Committee as to how the it is time a little was introduced.
quick declalon by the Television morality in taxation. If that is so,
thing more than expressing dis- any attack by a third power, is London television station shall con-
It is doubtful; whether
even
while
In the next few months the matter is likely to develop into a tug-of-war between the Treasury and the public..
the to Treasury 15 per cent. used Alarm at Broadcasting House is
as rope.
aggravated by one or two other facets.
To the plain man who does not approval of the whole, affair, and| highly significent, if true. The tinue to be Ananced,
Service from the Alexandra work in Whitehall It appears rather unfair to take part of the fee paid of Japan's irresponsibility. Russian retreat is not altogether Palace, since it began in over for a specific service and to apply it
lost, has swallowed £200,000. Two to entirely different enda. President Roosevelt's critics are dignified. But Russia's caution hours of television daily for six days
For instance, soon the number of a little previous.
zete in use in this country will. is due to her. fear of attack on a week has cost that sum.
Nine Million Sets
reach saturation point. reckoned as But if China is to be dis another frontier, and until con- Costly. Baby
10,000,000, Whether or not this war what the
Radio manufacturers do not re- appointed by the result of the ditions are more certain, else- The B.B.C.'s troubles began to Ullswater Committee thought, one gard this with much misgiving, for knows, they are banking on a "fashion" in Brussola conference, she may where she will be slow to move appear in the intter half of last year. cannot say. As everyone
this Committee last year surveyed radio-on people changing their sets. had been the whole of the B.B.C.' activities annually as nowadays they tend to find reason to congratulate her to resist Japan's expanding in- By December £124,000
spent on television. The Corpora- self on the turn of events in the flucnice. With Italian and Ger- tion regarded that figure with mis-fand standing, in preparation for the change their cars.
But, in the case of the B.B.C., giving and stated openly that it was new (1937) charler, the previous one direction of Urga. There, re-man support at Brussels, Japan no muide to future costs; It included (of 1927) expiring on December 31, enturation point will mean that the
1936.
Corporation cannot look forward ports yesterday indicated, things would feel her position moren good deal of money spent on pre-
The Committee recommended that every year to a steady increase in charges work and testo,
Income at January are moving with rapidity. The accure, but she is carrying her which, generally, should not have to for the next ten years 76 per cent. llcence revenue, nredicted Japanese move in campaign into a place of deadly, be incurred again. But 1938 saw of total licence fees should go to the 1927 was £000,000; by last year it purposes other than had risen to £2.510,000; corn- Outer Mongolia, appears to be diplomatic quagmires when the only two months television service. B.B.C. for
The B.B.C., in both their spoken television, and that the remainiler paratively soon it will reach a point and their wrlilen word, are very (minus the Post Office costs) should from which conceivably, it will fall gaining momentum, with Prince tampers with Mongolian auto-rect put it le obvious where be available for broadcasting if it alightly Teh definitely supporting the nomy and Russlan sovereignty." they consider a remedy lies for their were needed.
(Continued (on Pagë 5)..
paratory