Saturday,
HONGKONG TELEGRAPH
February 25, 1939.
Chairman Refuses To Comment On Politics At Bank Meeting
Remarkable Year Reviewed
HONGKONG FEELS WAR EFFECTS, BUT IS CONFIDENT
Brilliant Achievement By Maritime Customs
the fareholders,
Ladies and Gentlemen,
to alloente as follows-
To pay a nal divi-
dend
of
53.
De
share (subject to de-
duellow of income (x)
Transfer to Bank Pre-
mises Account
Curry forward to New
Account
proposed,
1,000,000
3,400,634.26
it
will not be
Reticence Wise Says Mr. Hughes
Seconiting the motion, Mr. A. W. Hughes sakt: It gives me great pleasure to second the proposal that the Report and Accounts as present- ịed to this Mecting be adopted.
While our Chairman's opening re- mark to the effect that there is litte to my about the Balance Sheet mar be true in that the figures now be [fore us follow fairly closely those of
ve tast
st year,
am but expressing
fccl
the views of Shareholders in saying that the, nell Broßt shown in the 1938 General Proẞt & Loss Account
gives
hon
the
In the darula eircumstances in
I
CHINA RAILWAYS
IN
DOLDRUMS,
&
PROSPECTS POOR
Difficulties
New
Created Exchange
By
Power in the scrupied areas, while attention
and anticipations. Un-port after another, Sir
Tast
words
ed
of
have again been converted at 15. 27 North and Central China, Our im-unfortunate and innocent victims of and that partiality, vis-a-vie / While the dangers and dimeulties
IN ONE OF THE SHORTEST SPEECHES on the more so because of our know
is very gratifying to . This is all weighty reasons have restrained the the Yangisze to South Ching ports. record, Mr. T. E. Pearce, Chairman of the Board of edge of the difficulties under which Chinese Government from putting the Thus exports from Shanghat dropped are greatly while the majority of the the Bank's work has been conducted recent into effect, but we Directors, this morning addressed shareholders at the an-
sorry that this has not been done. South China ports showed consider- during the past year,
Apart from other things it has meant ably increased exports. The com- Strength thaws itself only nual meeting of the Hongkong and Shanghai Banking
that no foreign loan quota: have beenparison would be more striking were Corporation, when he reviewed in general terms the last few present to-day who are unaware Japanese control.
tested by adversity, and there 4 | remitted from the poris underit not for the closure of Canton and Moreover, we had some of the other Southern ports twelve months of finance, trade, and currency in the Farhat the past twelve months live hope
hopes that some sirnilar
The modus infter the middle of October, produced most of the adverse fartonsagrandi might have been applied Tientsin figures are a considerable East, though he refrained from commenting in detail, or
that an Institution such as ours van other dime questings of hiter-improvement over the previous year, in any controversial manner on the political or trade expect to encounter, If cenflimation national concerit. In spite of this the mainly because of the treat Increare conditions, because he regarded them as being too delicate, of this is required, me has but to payneals dur on Customs loans were of trade with Japan.
reflect upon the furt that dyre maintained wagut delay 11939 the world was in a continual
43。 berita-
Canton and Hankow, in spite on throughdut 1938. But early in jule ralds and various restrictions, Below will be found the oplaton been done in recent times by State of political and social "untest
damir the Chinese Government enjoyed a phantom prosperity for full speech delivered by Mr.publication of unauthenticated news out of the twelve were marked by fait since 80 per cent of the Customs immediate outlook is gloomy for the
.. | careless criticisms, rumours and the and that yo less than nine 76%
wenn driven to the decision some nine months of 1938, but the eventually International crites: each une Pearce, together with the items.
of revenue was out of their hands they handful of foreigners sticking it out I believe that recently there las injor importance and having rest of the business trans-been more controversy at home than market
uld no longer bear the whole burden in those places under unpleasant effect upon the Anancial
of finding the aptivalent of
seme conditions. The re-opening of the acted.
i wise and desirable about ques-Markets of the world. That 1480,000 each month to meet these Pearl and Yangtze Rivers to foreign
At wny, Bank's strennth www demonstrated kon Ferritenants. However, In proposing the ariuption of the tins of foreign relations.
shipping arenaturally matters of T necounts. Mr.
is abundantly clear that is during this period is evident from public default has yet taken report and
Erato
place very great importance to Canton and Majesty's Government are steadily the Statement now before us, and 1 and a may still be avalded. Pearce addressed
The Iankow, but Pongkong and Shang- strengthening the nation, while at would be lacking ingense f future of the Customs loans is bound bat ere also vitally affected and mer- and ide
the same time they are freeing their
eir appreciation
if, beat of
of all up with the outcome of the persent eltants of all nationalities are watch- The report and statement of ac. hands at this breaming more pre- ; Shareholders. I did not tender to the conflict, but we feel sure that the ing the situation with concern, chunts having been in your hands for pored to face future events witheat Board of Directors, the Chief Mona Chinese Government will do all thes
Mors erbarrasing entanglements.
rger and Staff our thanks for and can to set matters right as we believe disleration of trade and industry in The general disorganisation and the required period, I will, with your over, the Pawers most interested in congratulations, upon the the result that the maintenance of their credit China during the past year necessitat permission, take them as real.
me through these loans is a matter about After making full provision for the Far East have made their stand they have achieved it
position of rar: that the
their great pleasure to do 0.
which they take considerable pritle constant adjustment to keep in known losses and Contingencies, the
by the strict;
line with the changing situation. net profits for the year amount to nationals is governed by
RETICENCE WISE
Tribute To Officials
May 1 for instance remind you that $15,200,021.32 10 which must observance of international oblige-
he
turing The year the Japanese oc- addrd $3.303.004.53 brought forward tins such as the Washington Tren-
les and other international agrees which the world nt present ands it to record that in spite of adverse They advanced up the Yongisze be- Meantine it is pleasant to be able cupled the ports of Tsingtao, Chetoo, from last year.
Weihalwei,
Amoy and Cantor. After deducting the interim divi-ments, the alteration of which by self, it is understandable that you, circumstances the Castans service dend of £400,000 paltt at 1. 27ad, and unilateral action
con- Sir, have devisted from custom and has been able to weather the storms yond Hankow to Yochow and for sideerd. Director: remuneration there re-,
refrained from ingthy comment of the past year without any break-varying periods Wenchow, Fochow, 1322172: available for distribution
delicate subjects sasch Reconciling Japanese Assurances Polities. Trade and Currency condi-under one nominal authority in the ports were closed for one reason or as down in its centralised administration Ningpo, Swatow and other Southern $12.145.172.08 which it
Difficult
fian in the Far East.y, we iperama of the Inspector-General, hother. As matter of fact I be- are interested in all of subjects whom we must congratulate on just, lieve that I am correct in saying that From the Japanese side trene have and, because of the leading part the having concluded ten years of wat-Shanghai, Tientsin and Chinwangtag aten been cre explicit assurances, par that Japan will respect in the fullest Bank plays in the copomies of the standing service in his arduous post were the only treaty ports on the $ 7,744.537.82 extent the rights and interests of the For Fast, we listen each year with Notwithstanding the varying cond-China const which were not subject Chairman's tons of war that have existed at one at one time or another. That shows elther to closure or naval operations Frederic you what merchants and shippers leaving the der wid: open. Mevieves,
doubtedly, upon this occasion your Maze and his international staff of had to put up with. Yet this is by rola Bed these
reticence is wire ant January 22, 1938 and similar state, follow your example, making but a
I propose to Chinese, Japanese, British and some ments have been
twenty
other nationalities, have means the whole story, because been repeated by imhort comment upon one arpeet throughout shown factful Judgment even when ports were open to shipp- $12,145,172.89 tant Janneer effieink on the China situation. All I would say under unusually difficult conditions. all kinds of restrictions were fre-
¡ous
decasions. It is, however, 1. that thepest sympathy of every
More than ever is it of
10quently imposed. Moreover, in the The Agures of our balance sheet posible to reconcile such assuramers in the filled cum to that the international nature hinterland multitudinous forms of
of with the trend of developments la human feelings must go out to the Customs Service should be confifted regular taxation beesme prevalent. the "ame as last your.
ere is very little to say about porkout stake in the economic struc- the prennt strife.
of transportation increased charges foreign merchants
different sheet which in the balance
total ure of the Far East naturally makes
enormously, Yet the movement of both import and export cargo went shows an expansion of about $20 mil-s very anxious that treaties, greens such as this the Banktionalities should be unimpaired.
with ollers in providing 1 mentioned just now that at en lions un vach side. Excess mate issuements and property, authentienledi succour for sections of the Com-time we had hopes of the application has increased by about $10 millionstatements should mean what they munity who through disaster are in of same modus operandi such as the This was largely due to the amaz- and is met on the other side by about and be encried out with good dire need. I feel sure the Directors Customs Agreement to other difficulting resilience and tenacity of the 4 similor increase in our holding of faith.
full questions of international concern. Chinese farmers and traders, which Hongkong Government Certificates In regard to the currency situation Folles in this respect has the
upport of its shareholders.
I was thinking of the Salt Admins-enabled
them, sometimes with of Indebtedness. Among our labi in China, you all know how matters
Mr. Chairman, I now formally tration and the railways, When the Government help but often withoul, lities current secounts have increased stand; that, as in many other coun- second the adoption of Accounts as Salt Gabelle was organised, at the to find ways and means of moving! around $24 millions while fixed de-tries, the currency has more than the presented at this Meeting
time of the flotation of the Reor-
teor-goods in spite of the adverse condi- posits have decreused $11 millions, exebange value, the official rate and
ganisation Loan, there were great|tions with which they were run- while among our Assets each has in the open market rate, which varies
hopes that this new Administration fronted. In Inet the volume of creased $42 millions, Investmente $30 in different parts of Chinn owing to Proposed by Mr. J. F. Macgregor, would net like the Customs Adminis-some mportant exports has been millions, while Loans have de-restrictions on the MOVYOICHis cfueronsted by Mr. J. H Taggartration and, with the help of the maintained at a level well up to bank notes. Until March the ex- Mora, J. E. Bousfeld. K. S. Morri foreign personnel, insulate the Salt average years. Significantly enough and Bills, Be we maintained satisfactorily on and T. E. Pearce were re-elected Revenues, and the loans
Secured there
has been a great increase in the thereon, from local disturbances and export of raw collon to Japan, from Political Position Too Delicate Reserval, but when the Federal directors,
Bank was formed in North Fere-elected atidi- certain extent the Suit Administra quintals last year. In West China Mr. J. Fleming, and Mr. H. R. even more serious eventualities. To 34.000 quintals in 1837 to 964.000 China and threatened to undermine! the National Currency, a system of furs, on the propel of Mr. H. Owen- tion in past years succeeded in doing development proceeds apace and the the custom for your Chairman to re- This resulted in operators chlaining!
For a good many years it has been exchange rationing was introduced, Hughes, aveonded by Mr. Fung Kong-so, but the Chinese Government have efforts being made to Improve from time to time effected changes agricultural methods and to promote view of some length in his Speech to their exchang
The Hon. Mr. A. L. Shields has requirements where!
as # result of which the foreign the production of goods of importance shareholders the political, currency they could and a "black market een eiceled Chairman for 1930 and element has been unable exert to the expert trade will surely prove, and trade condiitons in the Far East.
Fast started, which eve
Mr. W. H. Lock, Deputy Chairman.
their value in the course of time. eventually became
those neutral influences which normal
There were present at the meeting: would have wisited. The Salt Re- delicate and the currency and trade\SRT2010], us distinct from the clowels! von. Mr.
open market fur Air, T. P. Pearce (Chairman), The venues of China remain of Creat
Shanghai's Conditions situation so abnormal that while malt-i
J. J. Paterson (Deputy ing some references to each of these ments at the official rate became more A. H. Compton, Hon. Mr. S. II. Dod-able value in the eventual rehabill-have outwardly changed very Httle
As allot Chairman) Mr. J. K. Bousfield. Mr. security which may be of consider itself to the new conditions, importance and
tential
Shanghai has perforce had to resign headings trust you will not be dis- limited, the, open market
which Appointed if I confins my remarks In away gradually. Thus the dollar well, Mr. W. 11. Lock. Mr. K. Station of the country, If confidence during the year. In spite of its malu the main
to generalities and leave at about 10d, in the middle of May. Mr. H. V. Wilkinson (Directors). Sir
wis Morrison, Hon. Mr. A. L. Shields still exists in the administration. untouched or pass but lightly Pyrr A month later it was down to ad.
As regards the railways, the situa-severed, the past few months have
arlery, the Yangisze River belo to Vandelem maffers about which you honed for.
M. Grayburn (Chief tion naturally deteriorated as the 7d. was reached early in August, hohlers:--Mr. A. S. Adamson,
shown a distinct improvement, both servations. I am sure you realise S
Support was then forthcoming and J. M. Alves, Mr. H. J. Armstrong, Dr. Chinese Railways
Mr. Hallway is now alone. of all the how foolish it would be for one in soon after the tide turned and the 1. Balean, Mr. P. S. Cassidy,
running fairly my posliion to attempt to enlarge on rate recovered to around 81d. Since Chun
Alr normally. subfects which at the moment are then the rate has kept reasonably Mr.
choo, Mr. S, M. Churn,
There is no point inspeculathog both controversial and of great poll- steady and there have been, com-R.
A. Croucher, Mr. about the future of the other railways tlent delicacy. We are of course not paratively speaking, only slight flue-
Dastur, Mr. D. C. Ed-In which Brilish bondholders Bre unoniston, Mr. J.
Fleming.
Mr. Interested. They have all suffered Mr. S. J.
Hsevere damage and it is clear that so more I say the more easy wil it be At the end of the year not only had tins, Mr. H. Dawson-Grove, Mr. Is no sign of an end-the railways local rumours Fox, Mr. Fung Kong-un, Mr. II. Git-long as warfare continues and there for misinterprctallons to arise. flight from the currency ceased, but R. B. Haocnel, Mr. ft. S. ilorrison. will generally speaking be liable to
there had been a fair amount of res Mr. Hu Wing, Mr. A. W. Hughes, Mr. constant attacks. matriation of funds.
J. Owen-Hughes, Dr. F. H. Kew. Mr. You can read between the lines. F. Kotwall, Mr. A. N. Macfadyen, how diflcult and tense a time ex- Mr. J. F. Macgregor, Mr. M. Nemazee, stock and destroyed large sections of a very cumiderable amount of rolling change bankers had throughout the Mr. J. A. Plummer, Sir 11. E. Pollock, the track and many bridges before first nine months of the year. Even fr. J. II. Polls, Mr. P. C. Potts. Mr. they retired westwards. As a con- now there is an ever-present fear C. A. L. Rickett, Mr. C. C. Roberts, sequence, the Japanese have had to
what I may call "external in-
Mr. S. H. Toss, Mr. F. W. Stapleton, bring much rolling stock over from fluences." The Tientsin and North Mr. D. V. Stevenson, Mr. J. H. Tug-Japan and unlerlake a great deal of Chinn exchange market has partgart, Mr. J. A. Tarrant, Mr. G. G. N. reconstruction work at heavy cost. rularly suffered from these "Tinson, Mr. S. T. Williamson and Mrs. There has been a lot of talk about the ternal Inductees" and the outlook F. B. Winter. there remalus under this cloud.
creased $13 millions ceivable $40 millions.
For Comment
This year the political situation is so the
and
oficial market.
rate fell.
On occasions
Litt.
OTHER BUSINESS
re
of.
W
o
stronger words or more detailed ob eventually the lowest point of Manager), and the following share-war prolonged. The Peking-Mukden In Imports and exports, over the low
A.
In the inner confidences of any Gov-tuations caused by military or piti. R. Forsyth, ernment, and it is obvions that the cat developments or
optimi
Chair-
of
The Chinese succeeded in removing
Rail-
(Conturd on Page 4.)
CONTINENTAL
STURDY
And
STRONG
CARLOWITZ & CO
4. Queen's NO TE SPRIN
Our balance sheet and statement of account show that in spite of all dimeulties we have managed to hold our
and thic measured of last year's man has proved to be justified. But all of us who have I solid #lake in Business and trade out here are aware how precarious and changeable the Ananelal and econo mic outlook must inevitably be so long as the two great neighbouring Eastern countries remain antagonis-
Burma Road and the Burma 1le. The present conflict has also
way. The completion of the former led to on unsatisfactory situation In
I undoubtedly n magnißeent feat regard to the maintenance of the
Burragement, it has been kept well in though
pructient importance hand. "Open Door" and British rights and
should not be over-emphasised. The Interests in China.
we have watched with unxiety the railway is still in the preliminary There are some who blame our but the latter have been assisted by to the Ch'nere
Bances of the Chinese Government, developments taking place in regard stages and what its future will be. it How many of these words are
Maritime Home Government for not phing good crops in the Western provinces Adhuinistration.
Customs too early to foretell. Mtronger line of action both here as and by the fact that remittances of called Anglo-Japanese Customs agrto-
"Although the well as in Europe. I do not, how-money, from Chinese residents abroad ment of Inst May has not yet been The Customs Returns of Trade for criticise British bave been remarkably well maintain-endorsed by the Chinese Government, 1038 are not easily comparable with ever," "propose SO polley. In times of international ed. Perhaps I can sum up the cur- we are tiled that it did in fact those of provious years, but the "crisis” freedom of speech and tres-rency and financial situation in China serve valuable purpose in aiding the export figures do indicate how suc- dom of the prem have their draw-by saying that, portly through good Administration to pass safely through cessful the Chincan Government were ines of these words will be found on backs and much harm has in my fortune, but more through skilte period dongerous to its integrity, in gradually diverting exports from page 13.
China's Financial Position "Well In Hand" War-time conditions govern Une!
¤O-
Good Export Figures
Spelling Bee
correct and what is wrong with
the others?
bountyfu! gregacha
bowdelerize
freize
bower knife
grieveous
English Oxford Dictionary spell-
"You can't help liking them!”
"Let me offer you my idea of perfection: the kind of cigarette I used to smoke in London."
"du Maurier! You extravagant man! Aren't they supposed to be a great luxury?"
"Oh, luxury isn't always extrava- gance. For their quality they were never expensive."
"If they are all I've heard about them, they must be good.” ·
"Well, what's
the verdict? Did
you ever taste
anything to equal that for coolness and smoothness and flavour?"
"They are marvellous! Apparently even the best tobacco can be improved by filtering."
20 cents for 10
95 cents for 50
du MAURIER
MADE IN LONDON
THE EXCLUSIVE FILTER TIP CIGARETTES
Agentia Tabaquesta Paigema, a, Queer Rd. Denzl, Bobaking.
D 130
MANCIAL TURTHS (11
Owing to the fact that the building in which
our premises are situat- ed will be shortly pull-
ed down and rebuilt,
we have pleasure in announcing a
NAUKIA FIGARETTEN, A
1. Hankow 1., Kowloon. DISSVILAY, LONDON, W. I
Bargain Event
CLEARANCE
SALE
in which our entire stocks of latest goods will be sacrificed at incredibly low prices.
THE DAINTIEST, MOST EXQUISITE
Silk Lingerie, Fine
This
Household
Linens and
Ladies' & Gents'
Handkerchiefs
Opportunity
will not occur again
Call early for
the best choice
HONGKONG & SHANGHAI
LACE COMPANY
50 QUEEN'S ROADĖ