1931-03-26 — Page 2

Z

BANK S

HONG KONG AND SHANGHAI BANKING CORPORATION.

Authorland Depila!

$50,000,000

Javed and Fully Feld-up $20,000,000 Resorts Funda-

Kierling € 0,500,000 Hilver

nosno $10,000,001

Hlaverra Elability of Proprietors $20,000,000

HEAD OFFICE: HONG KONG,

BOARD OF DIRKUTORS1-

Hon. Mr. CO. 8. Mackim,

Chairman.

Hon, Mr. J. J. Valerion, Deputy Chairman,

W. H. Bell, K. T. E. Por, Eg.. A. II. Complom, Fig. 3. A. Plummer, Esq. Bandor Lewis, Eng. T. EL.

I. Bhaw, Eng.

d. Mulia, Eq. * 3. Warren, Ea1.

Chief z.

AMOT

BANGKOK

BATAVIA

BOS BAY

V. M. Grayburn, Yaq,

CALCUTTA CANTON CHEFOO

COLOMBO

DAIREN

PUCCHOW

ПАТРИОКО

HAMBURG

HANKOW

DARBIN

HONGKEW

110110

JOHORE

KOBE

KOWLOON

BRANCHES :--

KUALA LUMPUR

- LONDON

LYUNH

MALACHA

MANILA

MUAR share)

MURDEN

NADANAKI

NEW YORK

PEIPING

PENANG BANGOON

HAICK

SAN FRANCISCO

GIANOSIAL

SINGAPORE

BOUBABAYA

SUNOEI PATANI TJEKTBIN

ТОЕГО

THINOTAO YOKOHAMA

Current Accounts opened in Local Currency and "Fixed Deposilu istered for our your ex Borer periods in Local Corpooty and Sterling où on which will be quoted as applicsilou. Hng Kong, 29th Peltuary, 1831.

HONG KONG SAVINGS BANK.

The Buslar of the above Bank ta conduct

by the NO KOND AND SHANGHAI RANKING CORPORATION. Rules may be obialued on application.

FOR THE HasOKONG AND SHANGHAI RANKING COMPONATION,

V. H. GRAYHURN,

THE CHARTERED BANK OF INDIA, AUSTRALIA & CHINA. Incorperated by Royal Charter, 1863.

HEAD OFFICE: LONDON, Paid-up Capital

THE

THE HO HONG BANK, LTD. (Established 1917.)

HEAD OFFICE:-SINGAPORE. Hong Kong Branch: 13, Queen's Rd. C.

Authorised Capital Straits $20,000,000 Issued Capital

8,000,000 Paid-up Capital

4,000,000 Reserve

4,000,000 2,520,000 Branches, Agencies and Correspon- dents in the principal cities of the world.

Reserve Fund

.£3,000,000 ..£4,000,000

Resorve Liability of Pro-

prietors

Liabilitics

.£3,000,000

Agencies and Branches:

of Shareholders. Surplus

31

ALON STAN

KUALA LUMPUR

(Mainy Histo

KUCHINO

AMOITSAR

MADRAS

MANILA

BANGBOR BATAVIA

DOMBAY

CALOUITA

CANTOR

CAWNIORE

CEBU

COLUMINO

DAINEN (Dalny

Huvth Macberia)

DELIII

HAIPRONO BAMBURO

HANKOW

[Ann

IM. Maoshuries

IHONG KONG

110:40

An

KARACHI

KLANU

KITE

КНАТА КАКОЯ

(Perak P.M.B.}

MEDAN

NEW YORK

PERING

PERANO

BANGOON

SAIGON

BEMANANO

SEXGEMBAN

SHAKUILAL

SINGAPORE

TAUINO (8.3.

HOMILA BAYA

TAYDY

TIENIHIN

FOR YO

YONORAH (Bhawet)

TRINGTAO

УОКОНАМА

ZAMBOANGA

(Philippine letandaj

Foreign Exchange and Banking business transacted.

General

Current Accounts opened and Fix- ed Deporits received for 1 year or shorter periods at rates which will be quoted an application.

A. H. FERGUSON,

Manager. Hong Kong. 3th January, 1929.

THE NATIONAL CITY BANK

OF NEW YORK.

HEAD OFFICE: 55, Wall Street, Now York.

Capital, Surplus and

Undivided Profits..U.S.$224,554,208

Branches in:-

ARGENTINE

BELGIUM

BRAZIL

LONDON

MEXICO

Chief Manager.

PANAMA

Hong Kong, 10 July, 1930.

CHILE

PERU

CHINA

PHILIPPINE

COLOMBIA

CUBA

DOMINICAN

INDIA

BANQUE DE L'INDO-CHINE.

HEAD OFFICE:

36, Boulevard Haussmann, Paris.

Sube.ribel Capital .Frs. 72,000,000,00 Paid-Up Capital...Frs. 08,400,000.00 Barve Funds Frs.102,000,000.00

Bangkok

BRANCHES:

ISLANDS

PORTO RICO

STRAITS

REPUBLIC SETTLEMENTS

ITALY JAPAN

URUGUAY

VENEZUELA

Commercial and Travellers' Lotters of Credit, Travellers' Cheques, Bills of Exchange and Cable Transfers Current accounts bought and sold, Hong Kong. Qulphon

Saigon

and Savings Bank accounts opened and Fixed Deposits in local and for- at rates that eign currencies taken may be ascertained on application to the Bank.

Battambang Huo

ntho Cantan Djibouti

Mongtzo Shongha! Nam-Diah Singapore Neubica Thanhea

Tientsin

Fort-Bayard Paposto Haiphong

Peking Tourane Haskow Pnom Penh Vinh

Fandicherry Yunnanfo BANKERS:

Hapoi

We are also able to offer our Cus- tomers the services of the Branches of the International Banking Corpora- tion in San Francisco and Spain and also of The National City Bank of New York (Franes), S.A., i Paris

F. McD. COURTNEY,

Hong Kong, 20th February, 1931.

IN FRANCE: Comptoir National d'Escompte de Paris; Credit Lyonnais; Banque de Paris et des Pays-Bas; | and Nice. Credit Industriel et Commercial; So- clate Generals.

IN LONDON: The National Pro- vincial & Union Bank of England, Ltd.; Comptoir National d'Escompte de Paris; Credit Lyonnais.

IN NEW YORK: J. P. Morgan & Co.; French American Banking Cor- poration; Quaranty Trust Co. of Now York.

Interest allowed on Current Ac- counts and Fixed Deposits according to arrangements.

Every description of Banking and Exchange Business transacted.

Safe Deposit Boxes to let.

A. LECOT,

THE

Manager.

AMERICAN EXPRESS COMPANY, INC.

Head Office: 65, Broadway, New York,

,U.S.30,000,000 .IJ.9.$1,672,454 .U.E.$1,008,209

Manager

Capital Surplus Reservcs

Hong Kong, 1st May, 1929.

BRANCHFS:---

Ni Kaple Pirsous

Paris

Fea

Bluyow Hatak Hamburg Harco Interlaken Jeruenison Lido

London

Peking

Palermo

Amsterdam

Antwerp

Athe Barla

Barlin

Blardte

Bombay

Beer

Brusela

Bornos Aler

Liverpool

Calzo Calouste

Lazperme

Lugano

Causes

Marolles

Si, t

Monte Carle

THE YOKOHAMA SPECIE BANK, LIMITED,

Established 1880.

Capital (fully paid-up) Yen 100,000,000 Reserve Fund ........Yen 116,000,000

Head Office:-YOKOHAMA.

Branchen and Agencies at:

Newchwang

Colombo

Constantinople

Copenhagen Belaburgh Floranca

LALOC

Alexandria

Nagoya

Batavia

Bombay

New York

Osaka

Polping

Hangoon

Calcutta

Canton

Changchun

Dairen (Dalny) Rio de Janeiro

Fengtien (Mukden) Salzon

CHDATA

Branches

Manda

Manlab

Hootstr

Rilan

Botterdam

84al Shangbal Beuthampton

ângapore

Tintain Virna

Sorico

Yokohama Earich

of American Express

Every description of Banking and Exchange business transacted.

TAN ENG HOOI,

Manager.

NEDERLANDSCHE HANDEL. MAATSCHAPPIJ, N.V.

(HETHERLANDS TRADING SOCIETY;

BANKERS.

Estabilabad 183.

Hong Kong Gos1-11, Qumn's Road Gopiral.

Authorised Capital ... Oulikes 150,060,000.

Pull-Up Capital Gaildaru 80,000,000

Beserve Fund mancanza. Gullkorn) 40,013,000

(23.800,000)

(3,509,170)

(40,241,5)

CHINA MAIL.

and

Commerce

Finance

J

་་

which they are drawn or express- ed. If the supply of, say, dollar bills in the market is about equal

to that of bills payable in English

GOLD STANDARD. WHY SHOULD FOREIGN RATES FLUCTUATE?

pounds the exchange rate would remain steady at around the par QUESTIONS AND ANSWERS.

of oxchange. But if there were more credits In the form of English London, Feb. 24.

pound bills being offered for ex- What is the gold standard? Why change into dollars than the should foreign exchange rates fuc-amount of American bills to cover |tuate violently? Why should the them, the buyers would give fewer Bank Rate be changed? What do dollars for the pounds, or, in other "Inflation" and "deflation" all words, the rate of exchange would amount to? How do these things fall. affect the daily lives and welfare of the whole of our These

Inst

population? been

are

Movement of Gold, questions have

Now the question of gold comes asked repeatedly over the in. It costs a certain amount in

derade, and

still insurance, freight and loss of in- being asked in spite of a spateterest to move gold from one coun- of speeches, lectures, and books on try to another. If, however, the the subject from bankets, econom-rate of exchange should fall be- iats, politicians and other authori-yond a point below par of ex-

change, ties.

that the difference is To deal completely with the all- more than equal to this cost, the embracing subject of "money" holder of a credit in pounds wish- Fed to:-ANŠTERDAM.

would take volumes. Eastern Houd. Do BATAVIA.

A few ing to exchange it into dollars #BANCUES :- Bandjarmasin, Bandrang", Bombay, overhend facta, however, can could go to the Bank of England

Calcutta, Charbon, Dambez, Bjøk jakarta The Hague, Jeddah, bebe stated which may help the man- with his pounds and buy gold, Esja-Radio, Makaras, Medan, Pačana on-the-road to follow future events which he could sell in America for Palombars.

Pekalongan, Pouliana Rangoon, hot In the international money market, its full value in dollars. It pays Samares Bhangal,

and perkapa enable him to see how him better to do this than to ac- [Bumstra), Bingapore, Boorables, Bourskarts (Bold), Tight, Tjilajap and † those may affect his trade.

cept dollar paper credits at the Weltevreden".

lower rate of exchange. We should thus see our stock of gold being) depleted.

Patang.

- These offices have sate deponit barva to Int. Lanion Bankers-National Provincial Bank Li Certerpondente ali over ike world Banking business of avery description transacted.

A. STOKKINE,

Acting Manager.

Hong Kong, 1814 August, 1990.

THE BANK OF CHINA. 行銀國中

ernment as an

INTERNATIONAL EXCHANGE

BANK.

Subscribed Capital ....$25,000,000.00 ..$24,710,200.00 Paid-Up Capital

..$ 3,820,503.82 Roserve Funds

Before the War the majority of people in this country heard little. and knew less, about the gold standard, foreign exchanges, etc.

What remedy have we to stop the and they found no occasion to outflow of gold? The principal trouble their heads about them. weapon is to make money dearer Then there were no Currency in this country than in other coun- Notes, but gold coin was in tries. If this is done then other circulation. The holder of A countries send money over here to Bank of England note knew lend at a better rate than they can he could get sovereigns in

ex-get in their own. This causes their change for it for the asking. The exchange rates to move in favour ordinary individual, a general way, of London, and their gold will knew that a

was come here. To make money dearer French franc

Reorganised October 26, 1023, under spcolal charter of The National Gov-worth about 91⁄2d., a German mark here the Bank of England can sell 1s., and an American dollar about accurities or billa and the money 43. 2d. With the why and where-paid for these will be taken off the fore he was not concerned. These market, thus reducing the supply. things went on smoothly. The gold It can also raise the Bank Rate, standard was in operation.

which is the minimum rate at which it will discount billa. Knocked Sideways.

this higher Bank Rate does not The War came and immediately stop the outflow of gold then it knocked the gold standard side must be raised still higher until it Ways. Sovereigns, disappeared has the desired effect. Thus it is from elrculation, and gold could that people in this country who not be withdrawn from the Bank have loans from banks suffer by

HEAD OFFICE: SHANGHAL

HONG KONG BRANCH:

4. Queen's Road Central.

and foreign banking and exchanges.

·Not "Inflation.”·

Owing to our numerous branches of England at will. Since then having to pay a higher rate of in- in China and large connections in the paper money has been in circula- terest because of gold withdrawals important commercial centres of the tion; we have heard much about for foreign countries, world, we are able to extend to our the evils of inflation and the clients speelal facilities for domestic merits and demerits of deflation, We also handle the issue of Bonds and seen German notes for many and other Public Funds of the Chia-million marks each offered by Lon- ere Government both at home and don street hawkers for one penny, abroad.

SHOU J. CHEN,

the franc fall to under 2d,, and our Manager. own pound drop at one time to Hong Kong, 6th March, 1980. nearly 18s.

THE BANK OF CANTON, LTD.

Established 1912.

Head Ofice-Hong Kong. Authorised Capital (11.K. Currency) $11,000,000 Paid Up Capital omstainsveg 0,000,000 Ilecarts Fund

1,100,000 Canton, Bhangbai, Hankow, Swalow,

DORRESPONDENTS

In April, 1925, we returned to the gold standard, except so far as internal circulation of Bover- eigns was concerned. Other coun- trles have since followed our lead as circumstances permittel.

The gold standard may be taken as the pivot around which the other questions and developments

An increase in the Benk of Eng- land's stock of gold is beneficial. When gold is received, the money paid for it increases the supply of credits outside, which in turn in- creases the purchasing power of the public, stimulates demand for

goods, and stimulates production. Thus trade is rendered more ac- tive. This is not inflation," be- cause there is the gold behind it. Inflation occurs when more credit than can be regarded as sound is created against the backing of our Chancellor of the gold. It Exchequer, for instance, instead of

Bengkok, New York and San Francios revolve. Gold in the unit by which balancing a large deficit in his

LONDON BANKEBS1—

The Lloyd's Bank, Iimited.

in a principal ofiles of the World.

Foralga zabango and banking businem of arg description, transacted,

Bata Deposit Bazas (varlose alase) si a zmarły matel of from $3 to $40.

LOOK POONG SHAN,

Chief Manager.

values in various countries are

Budget by increasing taxation, or measured, and in theory supplies saying in expenditure, were to bor- the method for settling the trading row the money from the Bank of and financial operations between England, a larger amount of credit, countries. In countries where the or notes, would be put into circu- gold standard operates the cur-

| Iation without any addition to the rency of those countries can be ex gold in the Bank, and that would changed at their central banks for

be inflation. With less gold be-

THE BANK OF TAIWAN LTD.old at a fixed price. In this coun-hind each note the value of the

(TAIWAN GINKO.)

try the Bank of England will al- ways buy standard gold at 778. 98. pound would depreciate, and prices quoted in pounds would rise. HEAD OFFICE: Taipeh, Formosa.per ounce and sell it at 77s. 104. Then more credit would be requir- per ounce. On these fixed prices ed to handle the trade as measured the value of the currency of other in pounds, and more Inflation countries on a gold standard basis would occur. It was continual in-

Incorporated by Special Imperial

Charter, 1899.

Central Duck in Formosa

Company in Principal cities of Unit-Bank-Notee and Average asocia Y 45,000,000 Is wurked cut. Thus an English fation of this sort, due to

ed States of America and Canada,

All classes of Commercial Banking Transactions undertaken.

Hamburg

(Temporarily

Hankow

closed)

San Francisco

Personal handled,

Harbin Hong Kong Kenolala

Kai Yuen

Karachi

Koba London

7

Los Angeles

Буона Manila Nagasaki

Beattle. Bemarang Shanghai Bhimonoseki Singapore Socrabaya Sydney Tientsin

Tokra

Tsingtau

investment

Kalung

pound is equivalent to 124.21 balanced Budgets, that caused the

German

collapse of the German mark and American

French franc..

un-

BRANCHES AND AGENCIES: JAPAN-Tokyo, Yakobama, Koba, Osaka. FORMOSA-G

French francs, 20.43 Malong. Mani4, Batashas, Talaba, Talaan reichemarks, 4.86.2/3 „Takan," "Tamedi, Toan, Ballo, Talto. `CHINA 1--Changhai, Hankow, Amor. Fochow, dollars, and so on. These equiva-'

Besi, Canton accounts OTEERS Hong Bang, King, lents are the par of exchange.

Securang Batavia, Bombay, Caloutis, Lowdow."New Tork, Dairou.

LONDON HARKERS

Values of Paper Credits.

THURSDAY, MARCH 26, 1931,

THE

HONG KONG

PENINSULA HOTEL:

HONG KONG HOTEL: REPULSE BAY HOTEL ;

PEAK HOTEL

AND

SHANGHAI

ASTOR HOUSE: PALACE HOTEL.

HOTELS,

LIMITED

In nasociation with the Grand Hotel des Wagons Lits, Peking.

THE HARBOUR VIEW PRIVATE HOTEL,

9-12, Chatham Road, Kowloom. Finest Situation on the Peninsula.

Large Airy Rooms with Fall Benefit of the Cool Ses Dreeres. Unequalled Cuisine.

Cable Add. "Harviaw."

T'hone Tel. 56784.

with

Proprietress-Mrs. Gardiner.

Modern bath-

TOGMA

ENCLOSED IN ORIENTAL FERNERY AND EASTERN CHARM.

SELECT PRIVATE HOTEL. Furnished ал вус to the comfort of its tenants. Luxuri-

and single double rooms large and atry.

ons

THE MARBLE HALL 21, Nathan Rd., Kowloon, Telephone 57089.

Overland China Mail.

A WEEK'S PAPERS IN ONE.

to each

attached

room,

and private gar

ago benefits moborists.

Interesting comment on methods of land valuation in the Colony were made by Mr. Justice Wood when delivering Judgment in a case in which a bank was sued for damages for alleged wrongful sale of property under a mortgage deed. It was claimed that the premises had been sold at grossly under-value, His Lordship, in the course of his. judgment, stated that valuers called as witnessea for the defence had not taken into account any variation in the purchasing power of money in the Colony over different periods. He awarded $42,000 damages. A complete report of the statement appears in the OVERLAND CHINA MAIL.

The question of the Colony's jurisdiction in cases of piracy was the subject of legal argument during the week, in connection with the trial in which a Lower Court had found twelve men guilty of piracy of Pedro Blanco in January this year. In the course of the pleadings, it was stated that the case was one "unprecedented" in the Colony. The OVERLAND CHINA MAIL contains full details.

1

* *

Disquieting statements as to the tangible Increase in the spread of cancer were made in the course of an address to Rotarians by Dr. J. H. Montgomery. The talk dwelt in part with the radium treatment of disease, and is fully re- ported in the OVERLAND CHINA MAIL.

Activities amongst local schools, including the Central British School Sports, the St. Stephen's College Sports, and the prize distribution at St. Joseph's College, are also chronicled in the OVERLAND CHINA MAIL.

*

*

In the sports world, a minor sensation has been the suspension from League activities for an indefinite period of the Ewo F.C. At the same meeting the Hong Kong F.A. Council decided to request the Royal Artillery second eleven to resign from the League,

There is no phase of the life of the Colony or of China that does not receive attention in the OVERLAND CHINA MAIL — the weekly paper that YOU MUST ORDER NOW.

"Deflation" can be effected by a curtallment of credit by the Bank of England and other banks. It In actual practice the amount of would bring about reduced pur-

"Overland China Mall,” The Bank has Correspondente in all the primele gold which passes between coun- chasing power and theoretically,

The Company offers to intending | The Loulou County Westminster and Pure's Book. Travellers the use of its "Travelers Chequed" and Letters of Credit and, In addition, the world-wide services of its thoroughly equipped Travel De-

partment

Afulated with

X. XAOURA

Domarofal Cantine throughout the world, Hoxe' LONG DRANOH:

Manager.

1. Des Youx Road Central. Rang Kong, 19h Jinowy, 199

tries is very small compared with should cause prices to decline. the figures of value of the trade With prices lowered, however, the and other operations. This brings value of the pound would be us to foreign exchange rates. The greater again, because it would rates quoted daily represent the buy more.

In addition to the state of trade values of paper credits, and fluc-.

Interest allowed or Current Ac. THE CHASE NATIONAL BANK tuste according to the supply and between countries, there are other

counts:

Daposits received for fixed perioda

at rates to be obtained on applica

4DD.

H. MORI,

Manager.

Hong Kong, March 24, 1931.

Resources ..Over G$2,500,000,000

C. B. BENSON,

Manager.

THE BANK OF EAST ASIA, LTD.

Established 1918,

HEAD OFFICE:

If, Des Voeux Road, Central ·

HONG KONG

Capital and Sarpine Total Resources.

övér: H.S ́8,000,000.00 *** over IL180,000,000.00 Every description of Banking and Exchange busineca transacted.

Current and Fixed Deposit Accounts fa local and fore afkn éürrensies opened for cllentami Posti

Savings Account and Bufo Depdalt Boxes,"" Branches and Agencies all over the world.

KAN TONG PO

Chief: Manager,

demand of those credits. How do factors which affect the gold poal-

COASTWISE these credits come to being? We tion. The principal of these are

by

ALGIE" BENNETT.

An interesting book of Cartoons depicting. "Happenings on the China Coast

PRICE $1.00.

Noto on sale at Par

BREWERS

WHITEAWAY, LAIDLAW EXCELSIOR BOOK STORE and at the Publishers

The Newspaper Enterprise,

China Hail Building

can take a simple example. An ex- the granting of loans by one coun- porter in America sells goods to a try to another. The borrower 18 buyer in England for, say, £2,000. placed in the position to draw on To obtain payment he draws a bill the lending country. At the pre- on the buyer for that amount, sent time, also, there are the War payable at a certain date, and debts, which cause the transfer of when the bill has been accepted" credit on a large scale from one he has a negotlable instrument, country to another and are the' Similarly an English exporter solls principal reason why America has ta an American. buyer and obtains the largest share of the world's. a bill of exchange for s0 many gold at the present time,

The

are

dollars. If the holders of these

Post-War Problems, bills desire to get their money in

points mentioned. advance In the currency of their general theory in the gold own country they can sell, their standard, but they touch only the bills to a bank or dealer in foreign fringe of the whole money ques- axchange. The banks and firms tion. In actual practice, also, the who collect bills in this way con- theory, has not worked so smoothly stitute a market for foreign Ex over the last decade na bofore the change. The banks and firms who War. Post-war internationsi finan- collect bills in this way constitute cial operations have presented #market for foreign exchange many problema never before con- operations. The bills in their templated. They have shown that possession give them power to ob tain the foreign currencies in

Continued on Page 3)

7

.

Letters to relatives and friends inj tla, and Canada testify to the kaan other parts of the world frequently pleasure and interest its weekly fall to be written oven by the most arrival brings. ardent correspondente, ' It is a For your folks at Home to re- kindly thought, therefore, to ensure ceive this weekly budget, or to keep that those away from the Colony, yourself posted with affoirs during or folks at Home, should have an ygur absence, all that you have to wnfalling supply of Hong Kong do is to drop a note to the “Ovari and Chinese nowe ovary wiek-by|land Okino Mail” means of a subscription to the

The word "Overland" is a co- | minder of the experianss bekind the Without any trouble of packing production, it having been publish- and worrying about the Post Ofoe ed since the early days of the on your part, and at the cost only Colony, to be sent OVERLAND of $4 for three months, the bocause there was no Sues Canal, "Overland China Mall" will be and that was the quickest route sent Home for you every week, by which to get mati, Home. ` In · catching the mail regularly. It the march of time the "Overland contains the Tietoa and special China Mail" has become the most features from the daily "China nopular weekly news budget, os it Mail" that make a studied appeal has been compiled just to mult people with any interest present-day requirements, as it has whatsoever in Hong Kong, and done all along. What more could mány letters frojs Home, Austra-be desired ?

to

READY TO-MORROW

Mail via Suez closes at 10.30 a.m., March 28.

SINGLE COPY

25 Cents.

[Bold on the streets and at the bookefalls or YOU CAN DINË your

anfscription to the bilico-HE. $13 par timom,

$16 Including postage« abroad. "Half-yearly

cor quarterly perlade pro rata.);

No. JA, WYNDHAM STREET PHONE 298922.

“THE OVERLAND CHINA MAHA”