1930-02-22 — Page 3

THAU

EXTRA

HA

The

China Mail

ESTABLISHED

SATURDAY, FEBRUARY 22,"" 1930.

HONG KONG BANK

MEETING

· CHAIRMAN....-REPORTS HEAVY

* LOSSES FROM FRAUD

Is

THE DOLLAR EVIL

RESULTS OF SLACKNESS IN FAR EASTERN TRADE

Heavy losses from frauds were mentioned at the yearly meet- ing of the Hong Kong and Shanghai Bank this morning, by the Chairman, Mr. W. H. Bell, who added that, notwithstanding the good record made by the Bank in a year of serious trade depression, the Directors thought it prudent to make a reduction of bonus.

The net profits for the year amount to $14,148,209.57, as com- pared with $13,430,061.61 for 1928-a return to approximately the earlier level of profits as calculated in silver.

Slackness of Far Eastern trade, the reaction to the civil war and the currency difficulties, each reveal their influence on the balance

sheet.

}

A brighter note was added to the meeting by the statement that the Bank's investments stand at well under market quotations.

REDUCTION OF BONUS

Mr, W. H. Bell presided at the meeting, and supporting him were Messrs. J. A. Plummer (Deputy Chairman), B. D. F. Beith, B. Lander Lewis, C. G. S. Mackie, W. L. Pattenden, T. E. Pearce, T. H. R. Shaw, J. P. Warren (directora), and the Hon. Mr. A. C Hynes (Chief Manager),

Among the shareholders present were the Hon. Sir. Henry Pollock, Sir Robert Ho Tung, Messrs. J. W. CBonnar, R. M. Dyer, D. L Lewis, H. G. Hegarty, V. M. Grayburn, M. K. Lo, J. M. Alves,

made. It is for these reasons that notwithstanding the good record made by the Bank In a year of serious trade depression- your Directors have thought it' prudent to make the reduction of bonus, the possibility of which was adumbrated in the Chairman's speech last year. A conservative policy of management is particu- Iarly necessary in the Bank and I trust that you will concur in the Board's decision and approve their recommendation in regard to the allocation of profits,

case of a

The Appropriations

£3 per share with bonus of £1 per share (subject to Income Tax deduc-. tion) Transfer

and in Shanghai exchange, and the notes of the three banks in Hong Kong (on the basis of which All business had for long been conducted following a mutual, ar- rangement among the banks of many years ago) became in the end completely divorced from their nominal silver value and rose to a high promium over the silver currency which they actually re- present.

a

A

sources, gives a total of 895 mil through the Communist troubles, | at a regrettably low level. lions-an increase of 12, millions while the figures for the north notable idcrease in the world's over the previous year. China's show a distinct decline, consumption "of rubber was out- estimated consumption was 143 This is especially the case in stripped by the Increase in pro- millions and India's 70 milliona, regard to Tientsin which found it, duction and export, and prices re- corresponding respectively to 141self starved. of cargo from up ceded in the latter half of the year and 110 millions in 1928. China country owing to the political unto abnormally low figures. The thus again achieved a record, rest and also suffered for the first tin industry presented similer Accumulation of Evils ́ ́half-year · from the --annavigable | features." The Import trade show- The trading conditions of last | state of the river which connects fed a 'corresponding decline and was year in India and the Far East it with the sea. The Manchurian very dull in the second part of the have, as I have already mention-Digures reflect "the" disastrous | year//

cline.

Silver Dollar Problem'

ed, been none too favourable. In effect of the Sino-Russian dispute |--Although trade in the Philippine The resulting disturbance to

the first place China falled to | and the 'interruption of the Ching Islands suffered from the effects of trade between the Colony and realise the promise of the previous eso Eastern Railway which, be world over-production of sugar as China decided the banks to revert year and relapsed into civil war sides increasing freight rates, up well as of the devastating typhoons to the circulation of the sliver fare; famine and brigandage play set the economic machinery of the of the previous year, general condi- dollar. Many of the banks thened their familiar roles and a for-country and severely checked alltions are by no means unsatisfac- sent orders for the minting of ther misfortune was added in the commercial development. tory, Considerable development is British dollars in London or Bom- fall of the allvor currency. This While on the subject of the Cus- taking place both by private enter Mexican dollars have been obtain-destroyed any chances of trade cognition of the very successful ment workch as new roads and bay, and 20 millions of these and accumulation of evils effectively tonin, let me add a word of re- price and in the form of Govern- ed, of which the greater part are expansion and I think we may manner in which the service, underprovement the economic state of ||-bridgegn:Alfs!- fundamental · im- already in the Colony. As the largest issuar

reckon it fortunate that there has Mr. Mate's guidance, has emerg the lalkade lects itself in the bad- of notes, and as

not been a more appreciable de-j'ed from the very difficult crisis get aurpina which the year is the Clearing Bank, we have seen

with which it was faced just over expected to prodhos... the majority of these dollars fores

The raising of the tariff in a year ago. In spite of wars and The Wall Street Collapse their way into our treasuries, state of affairs which reveals It-

February had little apparent effect civil, commotion the treaty-port-re- on the volume of import trade venues have been regularly re-tween Great Britain and the Far "Next year's outlöble for trade be- it is obvious that a small colony ing the first few months of the the maintained prestige of the for cast. The heavy fall in vaites Felf in our increased note issue. which was well maintained dur-mitted. Wo. have evidence too of East generally is omewhat over like our own cannot absorb un-

year, As the year progressed, eign administration in the fact consequent on the Wall Street col limited silver dollars, and further however the various hindrances that the Government have trauslapse and inflated money conditions deprecated. The increase in our felt. Wars and disorders in the control of important Native Cus imports of these are much to be to commerce became increasingly ferred to Mr. Maze's hands; the note circulation, I would add, has provinces together with the drop toms establishments in several only been rendered possible by in exchange checked the demand provinces. the Hong Kong Government hav-

for imports, while exports fell Railway and Shipping ing made a concession in regard away under the burden of military Railway communications to to the taxation of our issue, with- taxation and difficulties of trans-which I shall again réfer later, out which an increase would have port. In the, autumn came the been prohibitively expensive.. disturbance of the foreign marketa rosuling from the crash on the New York Stock Exchange, and the end of the year found business In China at an unusually low ebb with little prospect of an early

Civil War Reaction The only expansion which I have to record In our field of operation is the opening of a new Sub-Agency at Muar in the Malay State of Johore.

Of the affairs of this Colony there is little to say except that in addition to the currency dim- culties already mentioned, we have suffered the Inevitable reaction from the renewal of civil war in the two Kwang provinces."and other parts of China. The condi- tlons for trade being very simi- lar to those applying to Chins, I will refrain from treating them separately.

With

excess of aup over demand the silver market has trended steadi- ly downward throughout the

year

Hon. Mr. W. E. L. Shenton, J. T. Bagram, W. E. Van Eps, J.. As shown in the Profit & Loss Kotwall, E. D. Kotwall, H. B. L. Account, the amount available ply Dowbiggin, G. K. Hall Brutton, H. after deducting the interim divi- Dixon, Paul Lauder, L. G. S. dend and Directors' remuneration Dodwell, H. R. Sturt, Lo Cheung-fa $12,514,400.84 and the allocation wan, Chan Shu-ming, A. Stevenson, proposed is as follows:- R. A. Dastur, A. P. Samy, J. H. A final dividend of Little, F. W. James, F. W. Stapleton, F. R. Marsh, D. Temple- ton, G. C. Moxon, A. C. Kennedy, S. H. Churn, E. F. R. Sample, P. S. Cassidy, C. E. Johnson, J. M. 'McCutcheon, Hon. Mr. J. M. Owen Hughes, L. E. N. Ryan, A. B. Raworth, Pröf. C. Middleton Smith, Chua Seng-choo, F. McD. Courtney, J. Coulthart, Chan Wing- keu, Alfred Tre, F. M. Ellis, D. H. Cooper, J. E. Joseph, T. N. Chau, John Fleming, Devonport Brown, J. B. Montargis and G. E. Towns. Among the lady shareholders, prosent were Mosósmes E. G. Hegarty, A. C. Hynes, L. G., S. Dodwell, A. BE.. Raworth.

Chairman's Speech

The Report and Statement of Accounts having been in your hands for some time I shall, with your permission, take them as The net profits for the year amount to $14,148,209.57 as com pared with $18,430,061,01 for 1928

read.

8 7,876,923-08- to Bank Premises Account 750,000.00 Transfer to Silver

Reserve Account 500,000.00 Balance carried for-

ward to the new. Account

owing principally

to

turn of the tide.

facturers and restricting their pur- are without doubt affecting manu- chases of raw material. This will bear heavily on firms handling Face Eastern produce such as rubber, fút hemp sugar and Co-produce generally, making it dificult to mar bavo, shown some slight improve ket the steadily Sinofellsing pro- ment over the conditions of the ductlón: Unfortunately British tex previous year, but military Inter the celexporters gémilly have ference has prevented or crippled Bechorrespondingly - Hand!- traffic on nearly all main Tines capped by high cost of production, The construction of 600 miles of they are" condemned to see the railway track in Manchuria "dur market supplied by the cheaper pro ing the last three years is a fact | ducts of Japanese mills and of do- worthy of notice. -

mestle 2õücput\fo?"Isdis" and the Far East. The drop in allyer cur- rencies has also adversely affected the demand for British manufac tuses, especially cotton, woollen aud artificial silk fabrica and it is to be feared that the marked falling- off in British exports to the East, dating. from last October, may yet continue t

The Cotton Business Taking the staple Imports, for- Coastal shipping has had a dim eign cotton manufactures have cult year and again: met with had to compete with a substantial tragic experience at the hands of increase of output from the local pirates. Foreign navigation om mills. The raising of the Japan- the Yangtaze passed an unevent ese boycott also brought a flood'of | ful year, the effect of reduced Japanese cotton goods onto the volume of trade being partly off market. making competition ex- set by Government commandeering tremely difficult for British manu- of native vessels for military facturers. The trade in woollens transport.

to

be ranked as

|

China's Political Situation was dull in spite of lowered prices.

The Tea Industry

|| "To take the reverse side' of the The engineering business showed In India the past year cannot picture, cheaper money and 'a saner welcome signs of recovery from a

a very prospercila perspective as to the limits of trade long period of stagnation, thanks period, the trade of the country expansion may lead to Business largely to the quickening of in having shown a decided tendency being in future conducted on sound- dustrial developments

er economic lines. We day-ven- OR the to sag. The jute and gunny mature, too, on the hope that an A falling off in Indian demand. Yangtze and to greater activity kets, two of the most important, increased trade activity in other Continental sales of silver, pre in the sphere of public works. have suffered from lower prices parts of the world will counteract sumably released when French There was an increased importa- than had been seen for several

the feared decline in Amerim's pro- Indo-China decided upon the trans- tion of railway material, includ- years. The tea industry also saw sperity and so prevent a lessen- fer of their currency to a gold ing engines and rolling-stock, a a steady drop in values due to Ining of the world's demand for com basis, an operation which they considerable demand for aircraft creased crops and the existence modities is metieni mal bove now virtually accomplished, for both military and commercial of unusually large stocks in the, and, finally, &

Let us paga now to the political continuance of use and a good market for motor | United Kingdom. The last mon- situation in China which more than sales by the Indian Government vehicles corresponding

the soon was a fair one and should any other factor in the present state As regards this last it is reason-rapid extension of motor roads in improve the position, in regard of affairs, regulates the fortunes of able to suppose that in future, most provinces of China, British foodstuffs. Native manufactures, those whose business lies in the Far with the Refinery now working in products, I may add, were fairly have been favoured by better re Enst. The year has witnessed slow Bombay, surplus coin in the silver well represented in the supply of lations between employers and progress in the movement towards 8,387,477.76

currency reserve will generally be industrial machinery, only moder- labour...

consolidation: A series of import refined and sold locally as opporately so in regard to railway re- Japan's trade for 1929 shewed, and counter-movements have threat- $12,514,400.84

tunity offers, thus narrowing the quirements and very slightly in marked improvement over the lowened the stability of the Gov- Eastern Trade Slackness

outlet for the world's production. the case of the motor trade..

level of 1928. Exports showed, aernment and the peace and security Following the example of three

A Weight on Silver Market:

* Custonis Returns Increased, large Increase and the adverse of the population: None of these years ago we have made a trans-

The increase in the reserve is The Customs returns for the trade balance for the year, standing has succeeded, indeed, is overthrow- fer from sliver to sterling reserve, with conditions

a weight on the silver market and year show a gross revenue of Tacis at Yen 674 millions, ie the lowasting the Government of Nanking and as they are in 152 millione against 82 millions for ten years. The new Govern- so far, at any rate, there is no evid- visable to build up the latter in probable source of a consumptive represents an increase of 86 perously to appreciate the value of the absorbed, however, is of the your Directors considering it ad China one looks in vain for any in 1928. Reckoned in allver this ment which took office about the ence of any alternative to that Gov- view of the uncertainty in regard demand of sufficient strength and rent. reckoned in gold 68 per Yen in preparation of restoring country's energies and record of middle of the year set Ifself strenuarament These repeated uprisings to silver prices. The amount, endurance to effect an appreciable cent. in this connection may the currency to a base With the the year, which I will attempt: to shown in the report, is $5 millions recovery in prices. As I have add that, under the new tariff, the help of credits, broadbroad-to summarise in a short space, If, as converted at 2/

An regards the balance sheet stod on local requirements in proportion of Customs revenue or which this Banfibuted as a will be seen chiefly taken up by

Bald, our re gures I will only remark that limited. the slackness of Far Eastern

Indemnities at current rates of dicate this was accomplished on Hopes Shattered

member of London banking syn military operationsgel

fe

a were however doom-

Ema return to approximately our Trade is evidenced in the increases The extreme quotations of the exchange fa considerably less than January 11 last when the embargo- 4 Thgireen opened with the Dia- earlier level of profits as calculat- under the feadings of current ac as follows:-highest 26.7/18d made available the comparative Tho rizo in the exchange vaice of Nation The hopes which attend- year for the price of silver were one-half. The Custome have not on the.export of gold, was removed bandments Conference, in session at ed in allver." This would be satis counts and fixed deposits, while lowest: 21.5/16d., per standard figures with former years which the Yen had the Immediate resulted this first round table of the factory. were it not for the heavy wholly to Shanghai, also reflects record for the metal (since then of the increase or decrease of tricting commerce and Industry.ed to be short-lived. Within a

the cash increase, attributable ounce, which constituted a low are necessary to furnish an index of depressing home prices and rus military o fall in the rate of conversion from the disturbed trade conditions there has been a further decline), trade, but one may infer by calThese sacrifices conséquent on the couple of months, and before a start allver to gold corresponding to a fall, in exchange of just under which have had the effect of res- The quotations for Shanghal exculation a falling off though not delicate operation of restoring eres had been made to apply the 25 per cent, between the opening tricting circulation of ellyer. *r* and closing of the

Our favestments stand at well lowest 2/1d per tael for tale vious year's volume.

change were highest: 2/7.d, of serious extent from the predit by artificial measures are, Conference plans for demobilise ygar-which substantially diminishes the sim under market quotations.

of course, Inevitable, and though, tion, the country had, slipped back available for our dividend in ster

graphie transfers to London. By Conditions In China every effort will no doubt be made to a state of alvil strife: quarrol Currency Dificulties curious coincidence the Shang- The increase of $16.1 millions.

The figures bring out the into minimize the effect, we must look arose, between the Central Govern- in our Head Ombe note Ladue is bottom,

exchange touc

top and cressi preponderance of Shang forward to some continuance of the ment and the Wahan military group related to Ho

on the first and last bal 6 in relation to that of aliness in trade, et centred at Hankow By the end of Kong's currency days of the resp dificulties of the

China they also in year

Surin MarchAlt, had; flared Into acti odaction the first nine months the

reasing of the balance From fairly promising tar warfare the first renewal of flg

northern and the trade conditions in the Straits Set ed to res

Jag açe; the establishment of the uth having tlements and Malaya: détériorated,Natio in the price of

«Government. The revolt, ibiathek round lost through" the year and finished!.

on blar

Frands Cause Henry Losses In addition the Bank has stiffer per more.

try for

Added to 500millious from onta

Straits and Malayn ↑