FAR
Wednesday,
HONGKONG TELEGRAPH.
February 26, 1941.
Ubeary, Supreme Court
AND
FUTURE
EAST SITUATION
REVIEWED BY H.K. BANK CHAIRMAN
FROM PAGE ONE
your
then look at ports like Hongkong and statements have never been confirm-higher costs all round and particular- and when it is necessary. The past Chairman ly to demands for increases of pay year has been one of moderate pros- Shanghai and their trade and ship-ed. Last year ping returns, you will realise that estimated that $380 million lay in the and so brought financial embarrass-perity and we are satisfied with the
progress has Yoltohama_Specle Bank on Customs ment to the Municipal Council. The progress we are making in Manila, the upward curve of
Serving With Forces By now that figure must latter's powers of taxation being
Before concluding, Jadles and forced seeing that a considerable amount of shown a continual advance. Digtn-necount,
tors and others with perverted ideas have been doubled, but if and when restricted by the Shanghal Land
genliemen, I want to send a message . our property is in danger zones.
may slow the movement down, but the dullar quotas are released to the Regulations, they have been
increase in rates considerable European Situation
the staff of the Bank who members of will harnu Speele Bank, there will still advance During the year changes have oc- Jon the disappearance of them and Chinese Government by the Yoko-to ask authority from ratepayers for of encouragement to the sixty od
are serving in the armed forces and
in again al once accelerate to make up temuia the exchange problem, that is rather than to adopt other forms of curred in Europe which no-one could their like the rate of
to say, the problem of how to obtain taxation or subsidies.
to those solution
our Lonton office. Many possibly have foreseen. There was
I am afraid that a proper the invasion of Denmark and Norway for lost time.
No-one would however be so bold the requielte amount of foreign cur-
that they too were able to get away In April, followed by the invasion of
when the to share the dangers and discomforts in as to claim that the graph of pro-reneles. There has, however, been of the Shanghal problem in all its of our employers out in the East wish
pre-conflict no repudiation of the
aspects can only come Netherlands
is obvious Belgium and the Muy; the eple evacuation of Dunklrk;/sperity is at this particular menent foreign Issues, neither by the Chinese political problems of the Far East are their colleagues, but
the authorities oived. In the at Shanghal or
meantime let us of
that some must remain to keep the the war; pointing upwards the Italian entry into
an-Hongkong. The foreign trade figures Government nor the collapse of France; the
the
Lies...
where
serious obstacles
your former Chair-
value but
Chinn has
also
many
a
fr
manner
Mr
the
fostering in this
East. yourself think back and recall made publir, but you must chiefly 1800) is still up to date with coupon | uneasiness at certain aspects of the quarter of the globe. How wisely its
the inany the last two or three decades,
of
Stabilisation Fund
is
The Shanghai Foreign Exchange Market in 1940 thietuated between high mark of 4.29/32 pence and 8
on the
on
be
the
HATS FORMEN
Henry Heath
105-109. OXFORD STREET, W.;.
MACKINTOSH'S LTD.
HENRY HEATH AGENTS
Swan, Culbertson & Fritz
Investment Bankers and Brokera
Members of New York Collon Exchange
Chicago Board of Trade
Manila Stock Exchange
Winalpeg Grain Exchange
Commodity Exchange, Inc., New York
Canadian Commodity Exchange, Inc, Montreal
New York Coffee and Sugar Exchange IIongkong Sharcbrokers Association Shanghai Stock Exchange
SHANGHAI, HONGKONG, MANILA and BUENOS AIRES
SWANSTOCK
Cable Address;
dalism of the bombings of Eng- for China in 1940 are at first sight controling the Customs funds in the hope that there will be a realisation Bank going and most of those out land; the Italian invasion of Grecce: Jamazing, even allowing for Inflaten occupied areas, and the problem of of the vital compromise for the maingat are trained or training for Buch
may exchange may not be so diffleult for tenance of peace, order and the
be required. counter war-time prices of goods and for ex- China as for other countries when velhood of the large population of local service as
Anyhow, you will all join me in lutter's magnificent
that cosmopolitan city.
for a sale praying uttack and recently our own armies change depreciation. But for many the world geis back to normal.
a safe return for those reasons, some of which were ment- One beacon of hope to bondholders
Chungking Problema
who have temporarily left the Bank's brilliant exploits in North Africa Tinned here last year, it is almost im-Is the continuance of the Customs
There are many important pro-service and for good fortune to those which have had a most heartening
reliable estimate Administration, in the form in which
years, blems facing the National Govern- effect in the East. Such are the possible to make highlights of events unparalleled in of the real value of China's trade in it has existed for so
able guidance of Sir ment at Chungking but it would take in London who have to submit to the Maze. the
it will not be for much Inspector too long to deal with them here. terroristic methods of Hitler, though our times which bring home to us as terms of gold or sterling currencles.undert
we hope nothing else can how precarious a Snuggling, exchange and trade con- Fredericit
Chinese ex-General. Fortunately It seems to There is the undivulged financial and p trols, unrecorded Imports and world this is.
serious economic Premier's Words Recalled Our London, office is carrying on ports (which must have reached big have been generally realised that budgetary position of the
the undue interference with the estab- Government; the variations
Finally may I remind you and ask proportions), var the
problem it is fncing-especially unscathed in the direct line of
e-lished principles of the Customs
un- regard to food prices and distribution you to take to heart in all your war and the fall of France of course methods of valuing goods, the ment the withdrawal of the British ployment of special exchange rates Administration would result members of our staff at Lyons: other-linking Imports to experts and so favourable repercussions which would (rice is about ten times the pre-war activities the words spoken by our One even outweigh possible advantages. There price in Chungking); there are the fighting Prime Minister who, when con-things looked so black last July, wise our branch offices have not been on, all affect the issue.
finds considerable dificulty in dealing is to my mind little doubt that Sir difficulties of communications,
the affected.
race and on their friends and well- of urgent importance; Here in Hongkong in with a single port like Shanghai: Frederick Maze himself is largely cerning which the state of the Burma called on all members of the British
wishers Shanghai and in Singapore, whe
every land "to play their main offices are situated, some of the anomalies disappear but responsible for this satisfactory state Road
of affairs, and his eminent services will no doubt be more clearly re- reintions with the Com- our three
rise to part, night and day, giving all, doing armies, which give results have been satisfactory in other complications arise.
Unhealthy Feature spite of abnormal conditions, and m
One unhealthy fenture stands out cognised when the smoke of conflict periodical friction as at the present all, enduring all to the utmost, to the time; there are the interesting in-end". He added there words. This other countries our branches have
Salt Administration dustrial and mining developments in is no war of chieftains, of princes, of
agreements dynasties or national ambitions, not met any serious complications clearly. Shanghai last year import-clears away.
The Salt Administration is, unfor- West China; the barter until recently in Japan, as I willed from abrond large quantities of native products which the hinterland
all strive", he concluded, without mention later on.
ran normally provide. For example, tunately, by no means so well placed with foreign countries and the pro-a war of people and of causes." "Le Trade Not So Bad
in as the Customs Administration. Ia blems affecting the occupied areas. not only in Developments in the Far East have followed the course which careful quantities the imports to that port of the areas it controls it has had its All of these matters are of great im- falling in faith or in duty, and the
our age." observers expected and foretold two rice, colton, coal, tobacco, sugar, flour task cut out to ensure that adequate portance and in one way or another dark curse of ifitler will be lifted
Mean-ly the future of China and our con-
I now beg to propose the adoption or three years ago. They perceived and artificiat silk in 1840 were all supplies of salt are distributed to the they must affect directly or indirect from
higher than in 1936, the last normal unoccupied areas of China.
little in- cern in that future. Some of them of the Report and Accounts as pre- that the trend of events would bring year. In that year cotton, cereals, while in occupied China
spots-like timme sented, and after they have been increasingly
tobacco and coal accounted for only formation has been made public as to are real dunger trade. But optimists can
can rightly 13% of import values. In 1940 they how Salt Revenues are collected and bombs which need the most careful seconded I shall be pleased to an- claim that
trade has not in fact accounted fur over 51. Meanwhile employed. It appears, however, that handling by men of outstanding skill over to the best of my ability any
Mr Sloss's Speech proved so bad as recent political de-
scemed to foreshadow, the export position is clouded over by Jupauese-controlled' Sult Companies and bravery--but I am confident to question that may be asked
Sloss, In seconding velopments Both the pessimist and the uptimist monopolies, controls and extraneoushave monopolies in the production with foreign assistance which is now which naturally have and distribution of Salt and that being made available, these internal Influences
Japan is now taking large quantities affairs will be tackled in a
nus set-back
Mr Chairman, resolution, said: serious can claim to be right. If you look serious effect on the balance of trade of Salt from North China to replace ich will avold any, resistance. On Ladies and Gentlemen, The balance
sheet now in our supplies from elsewhere which have
hands and the to China's powers of back at some
and on currency exchange. Speeches you will be pleom
In view of their bearing on ex been cut off as a result of the war.
the
external Bier hand, Chinn's
pro established opinion of all competent believe, dependent on judges make men's
to blems are, Chinese Railway Loans how often there have been
Europe.
it unnecessary Alone of all the Chinese Railway the outcome of the war received
Bank stories about "unprecedented diflicut change and trade balances, I should "bere mention the varinus credits and
Let us now pass on to other matters. elaborate the view that the "adverse circumstances,"
inans which
пделеу perhaps the chief
and Colony's Finances out during the year from foreign sources. Loons the Peking-Mukden Railway
Industry conditions," "uncertain out-
commerce been Loan (known as the Chinese Im- normal look" and so on.
Gold Loan of Yet if you, as a Detailed particulars have not
must be aware perial Railway 5%
Last year your Chairman expressed
policy
has been administered, this man of some years' experience in the el
witness. The that such loans were inade
sheet 15 and amortisation payments, and its The published turbulent perlons
economy: phenomenal growth of the Bank In for political reasons. and
announcement dealing with the most earnings remain excellent The Man financial situation of this Colony and policy
loans churian authorities have, however, urged the employment of
reasonables two recent of the United States
evidence of skilful control and showed that the donors were desirousi found difficulty in obtaining sterling I am satisfied that the new budget two generations or so of existence that "arrangements for purposes of exchange. Some of the British rail- has been kept down to
and
manage- way staff have been paid off but proportions considering the onerousound manotement. Had the Bank
expenditure necessary
de failed to full its function in manctury protection
of organisation this (the words actuntly used) their treatment was decidedly nig-
commercial avoidably incurred through the influx cou should be completed. That is satis-Kardly and caused a good deal of fence measures and the services un- fail factory so far as it goes but that dissatisfaction.
ng is very would long ago have been found out, In West China progress has been of Chinese. But we must continual-Colony and of the China ports it is all the information which
relegated to the limbo in which made on the early stages of the rail-ly remember that Hongkong
such and present available.
ways rumming north and west of susceptible to outside Influences in ineficient banks work out their own
the situation vis-a-vis Chinn.
ation the shortage damnation. Its growth, the slabic Kunming, but the severance of com- as
of confidence with which it is accepted. with Indo-China na- Japan, Indo-China, munications turally cut off the only feasible route, tonnage, movements of population cons
commitments are received, these are the clear in- for the supply of heavy materials, and so on. It is therefore of In- the respect with which its policies
been an admirable warning against J. Davies, the Hon. Mr S. 11. Dodwell, portance that fresh U.S. cents, which points were touch Some work has been done
facile political speculation and has Mr G. Miskin, Mr K. S. Morrison, the lion. Mr.T. E. Pearce, Uie Hon, Mr A. L:Shields theness, and of the skill and integrity
Sir Vandeleur Grayburn low mark of 3 Hengyang-kweilln Railway and also should be scrutinized with great care dications of its fundamental sound- ed in January, and u
with which it has been administered.
given us a basis for a sound genna (Directoral,
(Chlef Manager), Messrs. D. J. Sion, T. N. ace and 4.31/32 US. cents in May on the Western end of the Lunghai and that economy should
leism touching the present, and conchun, Chun Heng-chno, G. E. Cross, IL A penice
Conditions Never Normal rates about 3ine. The railways under the control watchword on all sides, The year ended with
It is however only right that long- -Gi- perve and- US. cents. The of Japanese companies, namely the
We have heard a finely balanced, sequently the future, of the politics Dastur, D. C. Edmondston, T. J. J. Fen- fon Fund Stabilization continued to carry Central China Railway Company kong should remit to the Home
W. Page, E. I. Pritchard, L. 1 Wood, L. as south of the Yangisze (but excluding: Government whatever contribution to discriminating report on the condi- of the Far East Belter one annual wick, Fung Bak-un, Fung Manier, 11. out its stabilizing operations
Hankow) and the way
war effort it necessary and, considering that the the railways centred
The periodical newsletters and hulletins Karaorie, F. W. Stapleton, J. A. Tarrant, in re been done during the past year. being the North China Railway Company, year it played in spare, and jast|tions in which the Bank's work has review of this kind than countless/Dawson-Grove, J. 5., 11o-wing, H
proper part
anfidence that Britain will D. V. Steavenson, 1. Rutonjer, II. R. B of exports are
the
and that so also lancock, F. S. Abraham, P. S. Cassidy. north of the Yellow River, are appar-mitting £200,000 out of revenue and Bank is accustomed to carry out its We have
I do not emerge
L. C. F. Bellamy, J. Fleming. S. T. W largely monopolised both by
in the occupied and eatly operating with a fair amount of a further £200,000 from the profit work under dimculties. authorities
However, the Raliway of the Exchange Fund. In addition, know what conditions were like in will China. The survey does not Ramson, M. II. Lu. 11. J. Armstrong, C. B. F. II. Hew. H. H. Forsyth, S. 1. Hoss, unoccupied parts of China, it is re-regularity.
are also unlikely to there is of course the Bomber Fund its ently years, but since the Chinese disturb our assurance: it is a whole- Brown, J. M. Alves, N. V. A Croucher. value of the bondholders
which Revolution conditions never have some cavent against facile optimism. G. G. N. Tinson, and the Rev. H. R, Wells that the markable
The Bank has had to I have probably less right than any (Shurchnldera). Chinese, currency has been maintain-reccive consideration until political now totalling about £100,000, been normal.
conditions become normal.
has been raised by voluntary
the "South China ed with so little alficulty.
scription through The establishment of the new Cen.
Morning Post" and "Hongkong Tele-city on in unsettled politieni con- person in this room to discuss the ditions, and amidst extemporised and service that the Bank has done to economic industry, commerce and civil govern- tral Reserve Bank in Nanking on
Paris Bandits Kill Japanese-
apart from the con- constantly graph.' Shanghai
changing ond in January 6th 1941
expenditure borne by the policles in Chinn, against appalling ment in the Far East, January 20th had lle serious effect controlled railway companies in East siderable
Bank Messenger currency difleulties, some inherent in Colony
Social Obligations and esc these whole network of amounts to a contribution we can be Chinese conditions; some, be gainsaid that the aware that n
4. On another aspect of its work I consequent
VICHY, Feb. 25 (Reuter)-Firing con- establishment of this Bank, coupled Japanese-operated
Unued on the same scale.
world economic and monetary
can speak with less hesitation. It has with the existing currency situation netive in those areas. The North proud of, but which should be con- not the lightest,
Banks In Japan
ditions of which China was rather a realised its social obligation In this in all direction in the crowded heart
and elsewhere
it et Paris, bandits escuped to-day with where in North China has made for uneasi-China Development Company is a rge controlling concern operation that further large
As regards Japan, recent regula-victim than a responsible agent. In Colony ness since it is feared
ling 18 subsidiary companies (there may measures may follow. All the leading 18
add to banking interests in the Far East lay be more by now). These control ions issued there seem to be de- these war years there has been the operates in a manner that calls for 3,700,000 francs after holding up three thest in the War Memorial Nursing hand cart containing the money to stress on the importance of the con- transportation, wharves, cotton grow signed to restrict or to drive for- derangement of all banking organisa- respect. The Chief Manager's inter- bank messengers who were taking a
Its
The messengeru were suddenly timuation of the existing free marketing, mining, salt production, tele-cign banks out of business altogether tlon at Home, and to
power stations in the same way as banks in Man tangle of impediments we have had, Home, we all well know, is not limit the Banque de France.
been restricted more recently and neorer
orer home, the ed to his personal acquisition of at. Shanghai. Any rash action, preel-graphs, telephones, on. The 50
Central Chianchuria have already pitating its closure or tending to its and
example messenger was shot dead and another tina, readjustments in funds for war purposes French Indo-China, restriction, whether from Chungking Development Company concerns it- and in some enses driven out. The continued state of unsettlement in chief treasure. In the efforts to raise attacked by the armed bandits. One
position awaits further clarification, Fres or Nanking, might result in unfor-self with similar operations but in the meantime we have notified the Dutch Indies, in Thailand and in has been signal. I can refer with full was wounded. Failing to open the
In addition tunate reactions not only in Shanghal Yangtze Valley, and
and flatures, our diplomatic authorities, as their India. These, with a long war on knowledge to the support given by handcart the bandits hitched it to with silk production
the unly our door-step, make an environment both the Chief Manager and the the rear of their car and made a clean itself but also in Chinn generally,
river and doastal steamshiv, fish intervention seems to be
still being made to Perspective Corrected
marketing and real estate. Many if action now possible. will therefore in which the contest banker might Manager to efforts that have been getaway. The record Itevenue collection of
service of our war end
ends. the Chinese maritime Customs has not most of these companies have say no more about this, nor will fold his hands and resign himself to made, and are been welcomed perhaps tou effusive-monopoly trading rights; sume or deal with trade in Japan slice it a wall on some kind of Providence to organise Hongkong industry for the
I have Difficulties Surmounted
experienced ly by those who have not studied the them munke profits but others are now under very comprehensive gov-solve his dificulties.
Malayan Picture
The policy of this Bank and of its
the close dating interest that situation sufficiently carefully. Al-handicapped by shortage of
has been shown in the affairs of the As regards other countries. Malaya management has been far different, though a record in terms of Chinese ment and local difficulties. dollars, the figure of 475 millions re-
I will not elaborate the obvious gives the brightest picture, Tin and and the success with which this ac University. Like every other In- very cumulation of alinost Insolvable stitution of a like kind in the Empire presents only about seven & three
is we have fallen on evil days. The quarter million pounds at the average effect of these developments on for- rubber exporters have had a rate of the year, whereas the previous eign frins. You may have read an good year and this has of course difficulties has been surmounted
brought prosperity to the many con- shown in the records of its work that fact that we carry on at all is in large measure due to the skilful manage year's collection of 331 millions was illuminating statement published
a quarter little time ago by tlie Tientsin Ameri- cerny (Including Banks) which are are now in our hands. eight valent to about.
This is our warrant for taking a ment of the University's finance, first cose these
of the by Dr Arthur Morse and now by Mr and the average value can Chamber of Commerce com directly or indirectly concerned with
moderately cheerful view two important products. It million pounds, and
That even now the Edmondston. hnt future. It would be a bold man who in Sterling over the ten years prior menting on the much quoted phrase
to lay University can proceed to build for none." door nowhere to the Sino-Japanese confilet was no of Mr Mutsuake, "we shut the open must not however be forgotucers would venturo dogmatically
Other the present prosperity of
of Englandt and
and the teaching of modern science and less than 10 million pounds.
to the purchases made down what kind both British and is
is due largely to
The can undertake new work in preven- will emerke States Government for Europe United Sta The Moreover, owing to the continuance organisations,
cks and these:
1L war. We know will five and curative medicine is due to present of the Sino-Japanese conflet, the American, have been equally frank, by
Reserve Stocks
vastly
the discernment and old generously different for over. be
from position of the foreign loans has in and I need do no more than refer
and some given, if always critically, by the have known, world we Singapore no way improved in the past year. you to the last Annual Report of the purchases will not go on Quotas in Chinese dollars are still set Chinn Association, and to the Speech Exchange control in aside by the National Government of the Chairman at the last annual working smoothly and the rates pro- of us are going to have to make some vide a fair though not excessive vast readjustments in our attitude to both Chamber of Commerce. of
is not even In the Central Bank of China to meeting of the Shanghal British of profit on banking operal- Íute. I am not sure that the future 1 and economie welfare of the Colony,
margin cover their estimated shares
This Is not the occasion to refer in Jons. The two 3% war loans Boated of the Pacifie the Customs and Salt Loans.
detall to Shanghai's Muntelpal and by the Stralis Settlements and dificult to envisage. Most of us in tion to the intangible, but not less quotas are based on the pro might other problems, but I feel that you M. 5. Governments totalling $45 the earlier days of the for which unoccupied China
wish me to say how much we millions, were fully subscribed and spent many hours reading estimates munity.
the experta self-styled of be regarded as liable if quotas were uino provided by the occupied parts sympathise with that great city in its remitted to 11 M. Treasury as war Bankar & Co., P.O. Dọx 785, Hong Kong. of China. It must be remembered embarrassments and with the Chair- contributions, while 3% War Savinga (economie factors that ettlement. 1. Report and Accounts be adopted,
are estimated by man and Secretary General of the Certificates are proving very popular, induce this or that
for one, have given up his type of that such sums
Conditions In India
Ingenious the escaped
wants working out the amount of Chinese Shanghal Municipal Council who
In India conditions have been sub-reading. dollars due, nt the former omelat have both, narrowly
and erline Ilterature sterling rato scheduled loan payments. Actually year.
Cost of Living
there has been a better feeling and of detecilve the sums deposited in the Central
Restrictions on the movement from confidence exists that the trade altun much more entertaining and just as Bank of Chinn last year averaged
production developments of the future of these parts. by
Informed Survey enly about 11% of the sums so due. the interior of rice, that very im- tion will remain satisfactory, helped useful as an aid to a sound forecast portant item in the Chinese diet, and which are now being hastened for- Unconfirmed Assurance
The survey we have just heard ward. Various unofficial statements have of other native produce, which were
The Philippine Islands are realis from the Chuirmon is in a different been made by members of the Nan-potent factors in causing exchange lo king regime to the effect that fall, have driven up the cost of living
British Judicial and at no point tendentious. portion of the Customs funds depo- over 250 points since January 1940; int how much their welfare in de category. It is informed, temperate,
Those at the meeting, wérd: !
J. Paterson (Chairman), plied in the Yokohama Specle-Bank the price of rice increased 120% in pendent on trade with the
to rely on the lid on opportunity-of-hearing-or-Mr-W-11, Lock Deputy Chairman), Mr in occupied poris has similarly been the year and over dd0% since the Empire and Europe, but they are for. As in all the years in, which I have carmarked for foreign toan payments, Sino-Japanese conflict commenced tunate to be able but so for as we are aware such in 1037, This has naturally led to United States to breach the gap ne reading it, the Chairman's speech has 3. K. Borteld, Mr. A. 11. Compton, Ar
Did you MACLEAN your teeth to day
I never miss
For sparkling white teeth,
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Sales Representatives;
MACLEANS... PEROXIDE TOOTH PASTE
"BRITISH
·To the Tealik".
TAPEN
on
Japanese Lines Iti addition 10 the
but · Exchange Market, and North China, you are of course
on the
These
companies Bre
equip
Foreign Firma
to
This
'
ernmental control.
their War
that
|
onc
from
on
the
maximum
Nearer
Chief Manager. In celebrating the
services of the Bank to the industrial we should not overlook its contribu- "Incident" essential, elements of a healthy com.
more
on the
were going to
Mr Chaleman, I have much pleasure in secondiing your proposal that the
of 1/2.1/4, 10 meet hands of, assassins during the fleet to fluctuations, but recently action there is nt hard a vast mass
war
of
The motion was adopted.
Election of Directors
Mr L, Ол tho proposal Kadoorie, seconded by Mr T. N. Chau, the lion, Mr A. L. Shields, the Morrison were re-elected Directors.
Mr J. Fleming and Mr II. R. Hon. Mr T. E. Pearce and Mr K. 8.
Forsyth were re-appointed Auditors on the proposal of Mr H. R. B. Hancock, seconded by Mr P. S Cassidy.
The Hon.
Only a fragrance ..
got
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Makes
amart
something." you .. tankes
·HIM
you look gay niskeng
feci
romantic! Very chic ... very interest- ink and not very costly, And ALWAYS fresh on frocks, furs, undies, hankies.
SAVILLE'S
Кесра
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APS COSMETIC SHOPPE opposite HONGKONG HOTEL