1932-03-08 — Page 2

$4,400,000 $10,000,000

THE CHINA

MAIL.

DANKS

TONG KONG AND SHANGHAI BANKING CORPORATION.

Antized Omplia!

$50,000.000

Tooved and Fully Puld-up 20,500,000 Reserve Funder-

Marling

Emervo Lésbility at Proprisloes $33,108,369 HEAD OFFICE, HONG KONG.

BOARD OF DIRECTORS 1

Hon. Mr. J. J. Palermo.

Chairman.

T. E. Pete. Eng.

Deputy Chairman.

4. Compton, Eaq. 2. H. B. Bhaw. Eag

Hos. Mr. C. G. B. Mackie. J. P. Warren, Roq.

1. Mulia, Res.

V. M. Üraşbum, Eaq.

Chief Mens.

DBANOTTER:

THE CHARTERED BANK OF INDIA, AUSTRALIA & CHINA,

THE HO HONG BANK, LTD.

(Established 1917.)

HEAD OFFICE SINGAPORE. Hong Kong Branch: 18, Queen's Rd. C.

Authorised Capital Strafta $20,000,000 | Iarned Capital Paid-up Capital

W. H. Ball, Eaş,

&MOY

BANGKOK

BATAVIA

BOMBAT

CALCUTTA

CANTON

CHEFOO COLOMBO DAIREN FOODNEW ELALFHONG

HAMBURG HANKOW

HARBIN

HON KET

TTAILO

ДРОВ

JOHORE

4088

BOWLOON

KUALA LUMTUR

Onemal

8,000,000

#

4,000,000

Incorporated by Royal Charter, 1869. Reserve Liabilities

HEAD OFFICE: LONDON.

of Shareholders. Burplus

M

'4,000,000 2,687,000

Paid-up Capital

Reserve Fund

£3,000,000 .£4,000,000

Reserve Liability of Pro-

prietors

£8,000,000

Agencies and Branchen:

ALON BIAB

AMRITSAR

KUCHING

BANGKOK

MADRAB

J. A. Plummer, Haq.

LONDON

LYORK

MALACCA

KANILA

BATAVIA BOMBAY

DALOUTTA

HAKRUNO

HARDIN

IPON

MANILA

MEDAN

PENANO

TORTO

Brandbes, Agencies and Correspon- dents in the principal cities of the world

Every description of Banking and Exchange business transacted.

TAN ENG HOOL

Manager.

THE NATIONAL CITY BANK OF NEW YORK.

HEAD OFFICE: 55. Wall Street, NEW YORK.

Capital, Surplus and

Undivided Profits U.S.$225,347,466.11

Branches in:-

NEW YORK

CANTON

PENING (Pking)

CAWNFORE CEBU

HANGGON

COLOMBO

SAIGON

DAIREN

REMABANO

DELHI

HEREMBAN

HAIPHONG

BILANGNAT

SINOPOBE

HANKOW

SITIAWAN

SOURADAYA

HỒNG TONG

TAIPING

ILOILO

TIENTSIN

ARGENTINE

LONDON

MUAB (Johor

KARACH

TONOKAH (Dhukat)

BELGIUM

MEXICO

FLANG

THINGTAO

NEW YORK

KODE

ТОКОНАМА

BRAZIL.

PANAMA

KUALA KANDBAR

ZAMBOANGA

CHILE

PERU

.

KUALA LUMPUR

CHINA

PHILIPPINE

Foreign Exchange and Ranking business transacted.

General

COLOMBIA CUBA DOMINICAN REPUBLIC INDIA ITALY JAPAN

ISLANDS

STRAITS

SETTLEMENTS URUGUAY VENEZUELA

MURDEN

PEIPING

FENANG

BANGOON

GMOON

SAN FRANCIS00

HITANGHAL

SINGAPORE.

SOURABYA

BUNGE PATANI

TIENTHIN

THINOTAQ

TOKYO

TOKOHAMA

route opened in Local Currency and Flized Paporita received for one year or shorter perioda in Loom Currency and erine wes which will be quoted on appliratos. Hong Kong, 27dr February, 1932.

HONG KONG SAVINGS BANK.

The Bunder of the shore Bank is conducted V the LONG RONG AND BHANGHAI BANK ING CORPORATION. Ru's may be obtaine

application.

FOR THE HONGKONG AND SITANGGA BANKING CORPORATION.

7. M. DĦATDUBN,

Chiel Manager.

Hong Kong, 17th February, 1932.

THE BANK OF CANTON, LTD.

Established 1912.

Head Office:-Hong Kong, Kikorised Captial (K.K. Currency) ...$11,000,000 *** 9.156,800 --- 1,100,000

Paid Up Deplial ...............

BBANOHES:-

Omaon, Bhanghai, Hankow,

Besion

Bangkok, New York and San Franta.

LONDON BANKENS --- The Lloyd's Bank, Limited.

CORRESPONDENTS

La Ali pelasipal chies of the World.

Fares change and banking batoses at

wwwry description transacted.

Depot Bases (various elusu) si a jourly

val of bears 80 to $40.

1

LOOK POONG SHAN,

Chief Manager.

THE BANK OF CHINA. 行銀國中

Current Accounts opened and Fix- ed Deposits received, for one year or shorter periods at rates which will be quoted on application.

J. STUART,

Manager.

Hong Kong, August 17, 1931.

NEDERLANDSCHE HANDEL- MAATSCHAPPIJ, N.V.

(NETHERLANDS TRADING SOCIETY: BANKERS

—

Retablebad 1814.

Boag Kone Off), Queen's Bond Central.

Authorland Capital. Oglīderu 150,000,000- Patd-Up Capits! ............. Qullára 80,000.000. Basers Fuad

Gutiders 40,018,000.

Head Office-AMSTERDAM”. Eastern Hand Omon:-RATAVIA. Broaches--Bandjermsain, Bandoeng",

Bombay, Calcutta, Cheribon, Djember, Djak burts, The Lages, Jedah, Kabe, Makamar, Medan, Palembang Poke longan, Penang, Bangoon, Botterdam, Semarang, Banghel, Biorapors, Hoara dein, Soerakarta (Sco), Tegal, Tilkijop and Weltevredan”.

• Those affione have Safe Deposit Bozus la Lat.

LONDON BANKERS—

NATIONAL PROVINCIAL BANK LTD,

Corespondents all over the world. Bauking Bual. awes of very description fracuxcted.

A. STOKKINK,

Hong Kong, let December, 1901,

THE

Keanger.

AMERICAN EXPRESS COMPANY.

FORTO RICO

(TAIWAN GINKO.)

HEAD OFFICE-Taipeh, Formosa.

Incorporated by Specini Imperial Charter, 1898.

Central Bank in Fornoes. Dank Notas fasued Average amount ..Y, $6,300,000 BRANCHES AND AGENCIES: JAPAN:-Toyko, Yokohama, Kobe, Osaka,

Takso, Tamani, Toen, Haize, T. CHINA-Bhanghai, Hankow, moj,

Swalex, Cazion OTHERS-Bong Ko Біндерого,

Professor Ramsay Muir.

Commerce and

Finance

EXAMINES A STRANGE THEORY

EXPORTS AND IMPORTS.

The Balance of Trade.

TUESDAY, MARCH 8, 1932.

“CONFESSIONS OF A CAPITALIST."

New Edition of Economic "Best Seller."

thinks of this Argentine stuff Being "dumped" in Britain: in the interest of balance of trade, he wants to prevent us from getting an interest on our Argentine in- vestment. It is all very puzzling. But, evidently we must take care lest, in restricting our visible im- ports, we may also be cutting down Jour Invisible exportal And this does not apply to the Isle of Wight, or to the Argentine, alone. When of

enthusiastically penalise the "The importation of steel goods or wool-tolist," and they are len goods from Germany, we may,

we

Among the many

admirers

Sir Ernest J. P. Bonn's

Confessions

of Capi-

numer-

for all we know, be rofusing to ous enough to have sent the book accept interest on investments, or into a dozen editions since 1925, the repayment of loans, we have thero,must be many who will wel- (made in Germany.

come its reissue in pocket form at

How are we to tell whether we had an adverse balance of trade or 35. 6d. net in Benn's Essex Library.

It was the writer's first adventure The necessity of securing what is then there will be no danger of the not. We can tell whether we have called a "favourable balance of imports exceeding the exports. This adversa balance of payments; into serious authorship, and it may trade" seems to be the dominating will, of course, have some inciden.but there is another matter, onbe assumed, not his least profitable,

which we shall have something to

In our own

beem to

worry

he makes

more than

the

a constructive contribution

сиве of an author who starts by confessing to an income of £10,000 a year and then proceeds to tell the reader how he makes it and to defend the sys- tem under which it is made.

COMPANY RESULTS.

Clapton Stadium.

The accounts of

the Clapton

a supplementary idea of the economic policy not tal disadvantages. only of this country but of almost country, for example, it will involve say later. What we and our rulers since

that every country in the world. And the death by starvation of perhaps are concerned about is the balance confession

And how are we to know a quarter of a million copies have But what of trade, Rince the policy of Goveri ments half of the population.

or favour-[

been sold in English in addition to does not seem (to put it mildly) to a consolation it will be to know that whether it is adverge be leading the world towards pros- the figures of the Board of Trade able

The Board of Trade, year by year translations in six other languages. perity, one is tempted to inquire don't show an adverse balance!

us gives

An estimate. These In this "best seller" in the The Case of the Isle of Wight. whether their dominating ideas are

Great principles are often most estimates show that we have had economic field Sir Ernest sets out sound.

to explain the workings of A country is supposed to have a clearly grasped when they are work-large favourable balances (includ- "favourable balance of trade" ed out on a small scale, and it'ing invisible exports) in every year when, in the course of international would be a real help if we could from 1920 to 1930, except 1926; capitalistic system, as illustrated by He supports his Commercial and Travellers' Letters commerce, its exporte (visible and have a clear exposition of the ba-these balances come to a total of his own business. of Credits, Travellers' Cheques, Bills invisible) exceed its imports-that lunce of trade as it affects, say, about £1,000,000,000; so that it theories with facts from his per-

The Isle of might be thought we could stand of Exchange and Cable Transfers is, when it gives more than it gets. the Isle of Wight.

a lot for a year of exceptional mis, sonal experience, and in this way bought and sold. Current secounts When its imports exceed its exports Wight does not

opened and Savings Bank accounts and Fixed Deposits in local and for--when it gets more than it gives about its balance of trade; it goes fortune without becoming panic makes

taken at rates that it is held (according to the reign-on in a happy-go-lucky way, as if struck. But it is not very long to economic literature which is both eign currencies

Yet it must since the Board of Trade calmly valuable and unique. may be ascertained on application to tng theory) to be in a very parlous no such thing existed. tho Bank

plight. It appears, therefore, that have a balance, adverse or favour- told us that all the figures, for a We are also able to offer our Cus-international commerce must be able; and, of course (unless all our series of years, had been seriously There is no other

Why should we 188UM tomers the services of the Branches: of the International Banking Cor-conducted in accordance with the prophets are wrong), it must be wrong. poration in Spain and also of The Christian principle that it is more ruined if the balance is adverse, that they will be right this year? Now, the Isle of Wight seems to The Departure From The Gold National City Bank of New York blessed to give than to receive.

Standard. (France), S.A., in Paris and Nico.

The summary figures annually, have scarcely any exports, except!

Some experts, without having ac- R. M. MCLAY, printed by the Board of Trade show a few early potatoes and such-like;'

Manager. that there are very few countries but its imports include nearly all cess to all the Board of Trade facte to predict, Hong Kong, March 1, 1932.

in the world which enjoy a "favour-the clothes, food, building ma- and figures, ventured able balance of trade"; all the rest, terials, cinema films, motor-cars, during the crisis of last Summer, THE BANK OF TAIWAN, LTD. it would appear, are striding to- and other requisites of its inhabit that if we went on as we were then This looks like a positively doing we should have an adverse! In Europe the out-ants. wards ruin.

Sure balance at the end of the year: one! standing example of a "favourable terrifying adverse balance.

highest! balance" is to-day afforded by Gerly it is our duty to awaken the put it at £4,000,000; the many, which shows a very large island to the grim fact that, with- estimate was £100,000,000. But we surplus of exports over imports be-out knowing it, it is utterly ruined. did not go on as we were then do- cause she is compelled to pay out Surely, also, we ought to endow ing. In September we went off the far more than she takes in. For the County Council with the re- gold standard, which meant that Stadium provide further evidence that reason the Daily Mail pro-quisite powers to overcome this our imports were bound to decrease of the popularity of greyhound rac claims that Germany is the most dreadful peril in the recognised because we could only get 14s. or ing. Net profits for the past year A decrease of FORMOSA-Giran, Kagi, Kereska, Reeluns, prosperous country in Europe. Yet way-by appointing a large and ex- 158. worth of foreign goods for amount to £75,919,

This decline is more than Makong, Nanto. Bhinchika, Telch, Tainan, Germany is clamouring to the pensive staff of Custom-house every $1 while our exports were £5,364.

Poochow heavens that she is on the verge officers at Ryde, Cowes, Ventnor, bound to increase because the accounted for by the difference in Bombays, of utter ruin and must collapse and the other ports to shut out all foreigner could get £1 worth of the amounts received during 1980 Vor Bettle, Bunkey, London, New unless she is relieved from the imports in excess of exports or to British goods for 14s, or 15s. of his und 1931 as premium on new shares net trading profit at Nevertheless, our politi-Issued, the obligations which are the cause of fine severely those inhabitants who' money. her "favourable balance of trade"! are so wicked as to buy them. This, cians have gone on loudly assert 68,536 comparing with £68,297. In Asia the three greatest trading no doubt, will impose a good dealing that we had a definite adverse A final dividened of 26 p.c. is now The Bank des Correspondeals to all the principal countries. Japan, China, and India, of inconvenienco and even hard-balance, and naming the highest recommended, making 47% pc. Income. all have an adverse trade balance. ship upon the inhabitants; but figure that any expert had suggest against 40 pc. previously. But the "rest of Asia" (including everybody knows that any degree of ed as possible if things went on as tax reserve receives £7,500, compar And on this ed with £10,000 a year ago, but the Përsia, Afghanistan, Iraq, Arabia, inconvenience, hardship, and de-they were in July. Siam) is stated by the Board of privation is better than the mys- ground they maintained that we allocation to general reserve fund is Trade to show a substantial favour.terious horrors of an adverse ba-must at once put on tariffs to re-increased by £2,500, to £17,500.

Nothing is added duce our imports.

to special de able balance. These, it would lunce.

which received I shall be told that I am disre- The truth is that all estimates of preciation fund, seem, are the countries whose come mercial methods we ought to garding the "invisible exports" of the balance of trade, even the £10,000 twelve months ago.

In order to make the capital more ix.itate.

the Isle of Wight. Many of the in-ocial estimates of the Board of Statistics of Exports and Imports, habitants have large investments in Trade, are no better than guesses. in accord with the increasing assets All the great countries are striv- the neighbouring island of Great This is especially true of the of the company, it is proposed to for "Invisible exports. create 200,000 shares of 58, each, Ing with all their strength to secure Britain and elsewhere, and many figures

"favourable balance" to ensure tourists and trippers visit the laland, There is no means of telling with ranking pari passu with the existing that their exports exceed their im- bringing money with them. These certainty the amount earned by our shares, thus increasing the capital

our exports call "in- ships all over the world or the total from £100,000 to £150,000, ports. Yet it must be obvious that are

But are they value of our interest on foreign in- exports." they cannot all succeed, since the visible

the put exports of all countries put to- enough

How are we to in as "visible imports" and are fone would think) balance right? gether must exactly correspond with the im know? We must continue to trem-liable to be cut down by tariffs) ports of all countries. According ble for the island until the sum is or our earnings from insurance to the Board of Trade, however, all worked out and until the County and other financial, services. Even countries put together import from Council is endowed with powers to the figures for the imports and ex- one another £500,000,000 more than see that the balance is on the right ports of commodities cannot safely trade and other exhibitions, has they export to one another; and the side. It would be foolish to argue be regarded as absolutely sound. been a conspicuous financial success Dealers in Postage Stamps,

world as a whole has an adverse that if the islanders' foreign invest. The only real way of valuing our since its incorporation as a public balance, Ita exports being nearly ments yield reduced dividends, and exports is to find out what they company in January, 1929, in spite Garden Seeds, Picture Books,

10 per cent. less than its imports the number of tourists fall off in- were sold at in the places to which of the world-wide financial depres- Toys, etc., etc.

This strange state of things is due dividual islanders will be im- they were sent, and there is no pos- sion that has since Intervened." No. 10, WYNDHAM STREET, F.O. Box No. 620, HONG KONG. to the different basis upon which poverished and will have to cut sible means of discovering that: new record is established

the values of imports and exports down their expenditure, which will the Board of Trade values them at year's accounts, which show a net are computed, importe being valued put the balance right. Because, if the prices paid down in invoices py revenue of £149,082. This repre c.i.f., while exports are valued fo.b. we argue in this way, what will the exporter, and does not even sents an increase of £5,524 over that Clearly this is a fact which ought become of the theory of the balance allow for the cost of freight and of the previous twelve months, an to be borne in mind when the figures for larger units like Great Britain insurance. The only right way of improvement which the

in regarding`as for ally one country-our own, for and the need for redressing it by valuing our imports is to find out are justified

what was paid for them by the first satisfactory. example-are being analysed; be- tariffa?

After deduction of Interest, taxa- I wonder why these tourists and British buyer of them, and there fors we strike a balance we should either add 10 per cent. to the ex- these dividends are called invisible is no means of discovering that; tion and other charges, there is a Porhaps because they the Board of Trade values them at net profit of £98,568 for 1981, com- port figures or deduct 10 per cent.exports? from the import figures.

LONDON DAKSERO:-

York, Darren.

Barclays Bank, Ltd., Lloyds Bank, Lid,

Midland Bank, Ltd., Westminster Batık, liti.

Commercial Centres throughout the world.

INC.

į

E. NAGURA.

Bead Office:-65, Broadway, New York.

Xansgot.

HONG KONG BRANCH; --

1. Doe Vous Road Central. Hong Kong, Donstmber 24, 1931.

special charter of The National Goy-

Reorganised October 28, 1928, under

Capital

Surpina

..U.S.$8,000,000 .U.S.$1,572,456

eriment at AN

Reserves

.U.S.$1,308,209

INTERNATIONAL EXCHANGE

BANK.

BRANCHES:—

Amsterdam Aniword

Pak-Up Capital

.$24,710,200,00

Athana!

*Gesz

Glasgow Havana

Nlow Nupla

Pirata

Flamburg

Paris

Reserve Funda

.$ 3,820,508.8%

Bailla

Палто

Penang

Blartits

Anberlak

Peking

Bombay

Jerusalem

Palarmy

HEAD OFFICE: SHANGHAI

Brunes

Bellarda

Brussels

HONG KONG BRANCH:

Subscribed Capital.....$25,000,000.00

4, Queen's Road Central

Owing to our numerous branches in China and large connections in the Important commercial centres of the world, we are able to extend to our chonts special facilities for domestic and foreign banking and exchanges.

مقدمة

Buenos Aires

Cairo

Cebutte

Carm

Color be

Lido London Liverpool Lucerne Lugano

Lazor Kamalian Constantinopla Monte Carlo

Dopenbare Manila Edinburgh Munich

Fiore

Moni

Ростав Blamboul

FOR SALE.

Stanley Gibbon's Postage Stamps

Catalogues

for 1932

Whaagbal Southampton SL Trits

Whole World British Empire Foreign Countries

.$12.00

.$ 5.25

.$ 8.00

Tienteic

Vienna

Ventos Tokohama Zurich

Branches of American Express Com-

We also handle the issue of Bonda pasy in Principal cities of United and other Public Punds of the Chin-States of America and Canada. ese Government both at home and

abroad.

-

All classes of Commercial Banking SHOU J. CHEN,

Manager. Transactions undertaken.

Hong Kong, 6th March, 1931.

THE YOKOHAMA SPECIE BANK, LIMITED.

Established 1880,

Capital (fully paid-up) Yen 100,000,000 Yen 110,200,000 Réserve Fund

Head Offer: YOKOHAMA.

Branches and Agencies at:

Alexandria

Batavia

*Bombay

Calcatta

Gamtos

Changchan

Dairen (Dalný)

Nagasaki Nagoya

Newchwang

New York

Osaka Paris

Polping Rangoon San Francisco

Pangtien (Mukden) Rio de Janeiro

Hamburg BANKOW

Harbin Hou Kobe

Honolulu Kal-Yden Karsch!

Loden

Eés Angeles

Singapore Sourabaya Sydney Tiental Tokyo „Tringten

· Tätségét allowed on Current As

·rates to be obtained

Personal Investment sccounts handled.

The Company offers to intending Travellara the use of its "Travellers Cheques" and Lotters of Credit and, In addition, the world-wide services of its thoroughly equipped Travel Department.

E. W. DUGGAN,

Manager.

GRAĆA & CO.,

Bring Your PRINTING, Problems to Us

THE NEWSPAPER ENTERPRISE LTP. GMINA MAIL ́ILDO. SA WYNDKAN ME.

Established 1918.

HEAD OFFICE).

10, Des Voeux Rodă, Central. HONG TỔNG

what

to

adverse

*vestments (which in any case come

OLYMPIA PROGRESS.

Olympia, the recognised centre of

A

in last

directors.

are not axports, but Imports, and cost though we are constantly told pared with £92,805 for 1930. The

In their desperate eagerness to they are not invisible, but highly that they are sold here at less than dividend on the Ordinary shares is obtala a favourable balance, near-visible-in the case of the trippers, cost price, and it makes, in the maintained at 10 per cent. for the ly all countries are pursuing the only too visible! The kinds of in-case of imports ample allowance year, while the carry-forward is in- same methods-inethods which we visible exports are also and at the for freight and insurance. Clear creased from £84,944 to £51,825, have latterly begun to initiate with same time visible imports; which is ly the two sets of figures cannot A subsidiary known as Kensington one Property Co., formed during the THE BANK OF EAST ASIA, LTD.real. They are striving (a) very confusing, and may lead to safely be compared with

another.--Manchester Guardiän.

past year, has been utilised to pur- to cut down their imports and (b) bad mistakes,

chase further. freehold properties › We have, for example, immense to expand their exports. They can reduce their imports by means of Investraenta in the Argentine, the 'PHONE'S HARVEST FOR LAW. adjoining the company's premises.

Balance-sheet changes are in the more and more prohibitive tariffe interest on which comes to us in!

"Ever since the Introduction of main unimportant. Total assets at Bat they can't increase their exports the form of vast supplies of wheat If all the other countries are ar- and meat. The wheat and meat, the telephone," said Judge Craw- £2,291,675 are about £6,900 lower, cluding importe. The only thing from our point of view, are "in- tord, fit Edmonton County Court, There has been no alteration in the they can do is to throttle interna- visible exports" and in that capa-it has been the cause of much book value of land and. buildings, tional trade. Indeed, the destruc- city the enthusiast for a favourable liigation. Telephoned conversations still amounting to £2,228,712. This tion of international trade is the balance of trade must wish to ex and the different interpretations valuation, it should be noted, was way in which a general ba pand and increase them. But from placed on them have caused endless made as recently as February, 1980. lance can be obtained; for if one another point of view they are litigation, and, I suppose, have been Debtors are lower, but cash re country obtains favourable ha most certainly visible importe, a fruitful source of income to bar sources have increased The lance it can only be by causing one and in that capacity the enthusiast isters and solicitors. He sug- balance of the cost of new, buildings Lor.ore other countries fo 'ruin- for a favourable balance must be gented the possibility of a monument, has been charged to capital reserve ical elger to shut them out, Lord to the telephone being erected in account, which at 2358,800, as com ed by adverse bals will have been attained when there Beaverbrook for example, positive the Temple as an expression of bar, pared with 2878,228 2 year ago,

ports for ly foams at the mouth when he risters' gratitude to the Post Office, still quito substantial. are no exports, and no

Capital and Surplus Total Resources

over. H.$ 8,000,000:00 over H.380,000,000.00

Every description of Banking and Exchange business trazanetod.

Current and Fixed Depogi Accounts in local and for frn earrencies opened for ellente.

Savings Account and Bafe Deposit Boxes, Branches and Agencies all over the world.

KAN TONG PO,

Chief: ManayËT.