1933-11-23 — Page 1

BEDFORD

MADE IN ENGLAND

THE HONG KONG HOTEL GARAGE.

The Bong Kong & Shanghai Hotels, Ltd..

incorporated in Bent Kang. rubbs Road. Happy Valley.

The British-

TRUCK

Economical 27-b.p. 6-cylinder engine -reducing vibra- Lion, reducing engine-wear, reduc- Ing time-off-the- road, reducing ex- penses.

The dollar, on demand, closed

to-day at 1/4 11-16.

EDITION

FINA Supreme Court

China Mail

Ext., 1845.

Esl 1843.

THE OLDEST - ESTABLISHED NEWSPAPER IN THE FAR EAST

No. 28,581 HONG KONG, THURSDAY, NOVEMBER 23, 1933. PRICE $3.00 Per Month.

་

R.M

Į Į Azim got.

BERNARDS' OF HARWICH.

FOR

CONSULATE SHIRTS & PYJAMAS : LILLEY & SKINNER FOOTWEAR : ROLLS RAZORS: WOLSEYS KNITWEAR: MACCLESFIELD SILK. NECKTIES: MOORES FELT HATS.

CHATER ROAD,

HONG KONG.

WALL STREET STARTLED BY

U.S., CHINA

AND VALUE

OF SILVER

METAL RISES MORE THAN EXPORTS.

CHINA'S PURCHASING POWER

Washington. To-day.

The silver authorities are intent- ly observant whether the ascending price of silver is reflected in the expansion of United States exports | to China, inasmuch as claims to! this effect are among the major arguments for silver rehabilitation, its proponents saying that a higher | value enhances Chine's purchasing power, stimulating Chinese imports.

The converse view is that silver is actually employed merely in settling an uneven balance: hence, whether the price of silver is high or low is not a major factor affect ing trade movements. Experts tabulaton showed that the silver exchange is up over 60 per cent, since January, while the United States exports to China have also increased, but not comi- mensurately.

MEXICO MAY

FORCE SILVER

ACTION BY US.

Issue At Pan-American: Conference.

LEADERSHIP OF S. AMERICAN REPUBLICS

BPECIAL TO CHINA MAIL.

By Telegraph, Copyright, Telegra phir Messages diner, 1884. R. cred Navrular 23, 8.30 6.10.)

DRASTIC INFLATION

FEARED

GOVERNMENT CREDIT

REDUCED?

DIFFICULTY OF REFINANCING $700,000,000 LOAN ISSUE

SPECIAL TO CHINA MAIL.

By Telegraph, Copyright, Telegraphic Messages Ordinance, 1894.

Received November 23, 6.28 a.m.)

NEW YORK, TO-DAY.

WALL STREET HAS BEEN STARTLED BY PROFESSOR PRESIDENT ROOSEVELT'S SPRAGUE'S WARNING THAT GOLD POLICY THREATENS A COMPLETE BREAKDOWN OF GOVERNMENT CREDIT. FLATION WILL BE FORTHCOMING THAN WAS HITHERTO ANTICIPATED. — UNITED PRESS. PER S. C. GOLD BAR CO.

PROFESSOR SPRAGUE'S

Lady Peel (left) at the A suunt Brownie Rally which was held at the Sandiland'a Kut on Tuesday afternoon. After the concert and dlspiny given by the Brownies, Lady Peel pre- sented the Totem Pole to the 2nd. Hong Kong Pack (Right) Brownles watching...... the displays. (King's Studio).

MANY FEAR THAT GREATER IN-SPRAGUE'S

SPECIAL TO CHINA MAIL.

By Triegraph, Copyright, Telegraphic Messages Ordinance, 1895.

Received November 23, 4.47 aằm.)

Washington. To-day.

Washington observers foresee that the Acting-Secretary of the United States Treasury, Mr. Henry Morgenthau, will have

in considerable difficulty refinancing the U.S.$700,000,000 in- debtedness certificates which fall due on December 15.

Because of the recent decline in prices, they believe that it will be! difficult to induce investors to accept a new issue for maturing issues.

United Press. per S. C. Gold Bar Co. WOODIN ATTACKS

SPRAGUE.

Roosevelt Proceeds With Gold Plan.

New York, To-day,

CAUTION ON GOLD

MARKET.

Dollar Falls After Sprague Resigns.

SPECIAL TO CHINA MAIL.

RESIGNATION

NO SURPRISE

Was Benched After

W.E.C."

ROOSEVELT REPORTED AS UNPERTURBED

SPECIAL TO CHINA.MAIL.

(By Tricgraph, Copyright. Thegro- phir Montages Ordinance · 1891.. Re ceived November 23, 0.08 am.)

Warm Springs, Mo-day, President Roosevel, who is spending a fortnights holiday here, is unperturbed by Pro fessor Sprague's resignation;

It is learned that the Admini-: stration leaders virtually benched

ARTIFICIAL INFLATION WILL NOT BRING RECOVERY

U. S. Economist Points Out Threat To Money Value

SPECIAL TO CHINA MAIL. (Du Telegraph. Copyrigh! Telegra- phic Mensagen Ordinance. TROL. "Re erived November 22, 5.28 .m.)

Washington, To-day.

Mr. Bernard Baruch, the pro- minent United States economist. writing in the Saturday Evening Pont, sid that temporary arli- ficial inflation will not bring re- covery.

Money cannot work in an at mosphere filled with a threat to destroy its value." he declared.— United Presa, per S.C. Gold Bar Co.

Professor Sprague after he return- GERMAN BANKERS

(Hy Telegraph, Copyright, Telegred from the World Economie Con- phic Messoger Ordinance, 1894. Brference, for a reason which was

eived November 23, 908 a.m.)

not divulged.

Wall Streef's view that Professor W Sprague's resignation from the post of adviser to the United States

New York, To-day.

His resignation, therefore, caus to have little Treasury, is likely

The fall in the United States the Government's gold dollar, due to Professor Sprague's ed no surprise. United Press. Der

Montevideo, Paraguay. To-day. effect on

S.C. Gold Bar Co.

WANT FREEDOM

Nationalisation Plan Defeated.

BY SOME

The determination of Mexico to policy is borne out by the reports resignation, has apparently caus- press for silver rehabilitation at the 'that President Roosevelt is defined Mr. Henry Morgenthau and Pan-American Conference is arous itely going ahead, with Mr. Heary the President of the Reconstruc- WOODIN CASTIGATES SPRAGUE STATE CONTROL FAVOURED ing the keenest interest among the Morgenthau in charge of the Trea-tion Finance Corporation, Mr. Jesse Jones, to leave the gold officials and delegates who are al-Hury.

to move ready here.

Stocks and the leading commodi-price unchanged and No definite silver ornjeet is in-tice fluctuated narrowly and in-cautiously.

The Wall Street undertone, cluded in the agenda, but it is ex decisively, while Government bonds

yesterday, was dervous, weak on the Foreign Seize were very pected that Mexico will

to the monetary uncertainty, pon the item of currency as an

but the outlook continues to be opportunity 10 push the

optimistic.

1980e.

,

Exchange. Bilver The flight of the dollar has been temporarily halted, and trading is generally very quiet. Brokers are of the opinion that the Government has intervened to steady the mar ket..

Mexico will propose a common bimetallic monetary system for all American Re- publics.

The United States Secretary of State. Mr. William Cordell Hull and the United States delegation, are arriving on November 28.

(Continued on Page 12).

MEXICAN PLAN FOR BIMETALLISM

The former United States Treasury Secretary, Mr. Wil- Ham H. Woodin, yesterday is- sued a statement criticising Professor Sprague's suggestion that the Treasury must bor row U. S. $2,000,000,000 from the people on bad security.

due

EFFECT OF FLIGHT FROM FRANC

SPECIAL TO CHINA MAIL.. (By Telegraph Copyright. Telegra phic Messages Ordinance, 1804. Re- ceived November 23, 0.08 m.)

New York, To-day.

Barrons' Magazine declare that Mr. Henry Morgenthau's assump-

SPECIAL TO CHINA MAIL (By Telegraph, Copyright, Telegra phic Messages Ordinance, 1894, Re- ceived November 28, 3.08 a.m.)

Washington, To-day.

The former Secretary of the Un- ited States, Mr. William H. Wood-

Berlin, To-day. A committee of experts yesterday decided against all-round nationalisation of German banks.

the big Representatives of

of the

in yesterday gave Messra. Dow Jones a statement, criticising Pro-banks supported some fessor Sprague's declaration that private bankers unanimously and complete freedom. the United States must borrow U. jinsisted on

s. 2,000,000,000 from the people on Others, however, favoured some bad security.

kind of State control.

To suggest

that

United

Dr. Schacht, President of the:

States bonds are bad security. Reichsbank. expressed an opin- that the banking policy Lion Impeaches Professor Sprague's common sense and competen- should not be absolutely indepen- cy," Mr. Woodin 'mald

¡dent of State policy, Reuter.

He added that Professor Sprague

tion of the United States Treasury was permitting his personal em direction, with the resignation of barrassment to be-cloud his judge- The suggestion that Government the Assistant Secretary, Mr. Daan ment-United Presa, per 8. C. Gold bonds can and will be bad security | Acheson, the sound money By Telegraph. Copyright Telepra reflects not only on the wealth and cate, is interpreted as definite evi- phic Mesenges Ordinance, 1881. Reintegrity of the country, but im-dence that Professor Warren's LIMITING US, OIL

SPECIAL TO CHINA MAIL..

ceived November 21, 4.47 pan.)

advo-

peaches Professor Sprague's own school of monetary thought is com- Washington, Yesterday. common sense and competence as a pletely dominant, with the distinct | Mexico is already circularising student of finance, Mr. Woodin as-Implication that the gold value of

the dollar will be lowered still für the Latin American countries pro-serts.-Reuter.

discussion posing

on

monetary

stabilisation through the adoption TREASURY SUPPORTS

of a common bimetallic system.

Mexican officials have declared that they will bring up the proposal at the Montevideo conference.US. United Press, per 8.C. Gold Bar Co.

RAILWAY STRIKE Texas And Louisiana Involved.

MARKET.

Government Bonds

Depreciate.

Washington, To-day

ther untill commodities advance to

the desired level.

Bar Co.

PRODUCTION

128,000 Barrels Daily Reduction.

PRICE-FIXING MAY BE

- SPECIAL TO-CHINA-MAIL.

MONETARY - PLAN ATTACKED

Controlled Inflation Denounced.

“BRAIN TRUST** ́ ́ MEMBER HITS OUT

الية

Philadelphia, To-day.

A vigorous attack on President Roosevelt's monetary_policy_wa made in an address by Mr. James Warburg, financial advisor to the

One of

WARNING

13 KILLED

IN SOVIET AIR

DISASTER

World's Largest Plane Crashes.

CAPABLE OF CARRYING 129- PASSENGERS

Kharkov, To-day. Thirteen people, including prominent Soviet air officials. were killed in a disaster to So-

vist plane, reputed to be the largest in the world

The machine, which was only built two months ago, was capable of carrying 129 passengers, besides a fairly large crew.

Largely constructed of steel, the machine was a marvel of comfort and contained luxur ious sofas in a promenade to enable passengers to view the surrounding country. the The wings, as well

16 body, were used for accom- modation.-Reuter.

ANGLO-SOVIET TRADE PACT.

Negotiations Resume In London.

London, To-day. The Anglo-Soviet negotia. tions for a new trade agree- meat were continued in Lon don yesterday.

BANK "RUN" SPREADS

NATIVE FIRMS

SURVIVE CRISIS

AFTER PANIC

NO WITHDRAWALS ON FIXED DEPOSITS

DIFFICULT PERIOD PASSED

The run on the smaller Chinese banking institutions, which com- menced last week in the Colony. spread to some of the large Chinese banks in the Central district, accord- ing to statements made by interest- j'ed officials to a “China Mail” re-

presentative.

It Was indicated, however, that the worst of crisis had been passed, and reassuring statements were received in all

banking quarters.

The Luk Hoi Tung Bank, ones

native of the largest of the banks, is the latest concern to experience embarrassment, but late yesterday it was learned that it is in no danger of closing its doors, although the current accounts have been practically drained.

Mr. Chan Fu-cheung, managing director of the Luk Hol Tang in- terests, who was reported to have left the Colony, was interviewed by the Chin Mall representative, and stated that there was no cause for alarm as the Company's assets covered more than their liabilities.

The assets of the Company, total- ling over $6,000,000 were invested in real estate in the Colony. Among..... the properties owned by the Com- pany were, the Queen's Theatre building, the Nathan Hotel Kow- loon, the new eight-storey Lak Kwok Hotel, at Wanchal, and extensive areas of land in the New Terri tories.

It was also learned that the Luk. Hol Tung Bank had met all demanda on the current account, but had re- fused to pay out the fixed deposita,

It is understood that some refused re- banking, firma quests for withdrawal of fixed deposits...

$1,000,000 Pald Out by Wing On Bank.

An official of the Wing On Bank admitted that the run had extended to their institution. The majority of demands had come small deposi-

tore on current accounts, and had all been met since. Sunday, when the run started. At a conservative es timate, more than $1,000,000 had been paid out No embarassment had been felt, however, as the bank had cash assets of $8,000,000, while; $10,000,000 was held in reserve pa These, reserves, the offelal point- ed out, were kept e the result of the experience gained during the. pended during the past fortnight runs of 1921 and 1925.

(Continued on "Page' 9") to enable the Soviet representa- tives to consult Moscow-British

ITALIAN NATION Wireless Service).

IN UNIFORM. Wearing Of Black Shirts,

The negotiations had been sus

AMERICAN COTTON FOR SOVIET.

......

Rome, To-day.. step towards, putting the whole Italian nation Into uniform is indicated by the decision of the Fascist Party to authorise opé tional uniform for all memberse from the Premier, Signor Musso lini, downwarda, in the Winter, when the weather is too cold toó wear the customary black shirt is likely to be a large potential : without a jacket. market for American cotton if

The Journal sees the Ameri- can gold policy combining with the French budget uncertainty and the position of the French

(By Telepraph, Copyright. Telegra-American delegation to the World Large Potential Market. Premier, M. Albert Sarrant, de-

nikio Massapes Ordinance, 1895. E- Economic Conference, who was 35 pending on the fight from the

colved November 28, 4:47 am) 11formarly regarded as a member of SPECIAL TO CHINA MAIL franc-United Press per 8. C..

(ly Telegraph, Copyright, Talegna, Gold Bax Co. Washington, To-day, the President's "Brain Trust

An order, Umiting the United Mr. Warburg denounced controll- phia Meesages Ordinancs, 1818. Be Mr. Morgenthau revealed that the Treasury is supporting the disclosed; but the amount, invested States production of petroleum ed Infiation because there was no nefred November 21, 9.05 am)

for December to 2.200,000 bar such thing, and even if there was, market of United States Govern will be announced weekly ment bonds, the prices of which A Federal alcohol "administration rols daily, was issued yesterday it was because it was uncontrolled.

Neither could there be Houston, Texas, To-day, have been depreciating recently, is to be created to supervise the by the Secretary of the Interior, The Committee of the Railroad The funds turned over to the distilling Industry, and to control Mr. Harold L. Ickes, Labour Brotherhood yesterday Treasury for investment by Govern the production of prices until Con- The figure is 128,000 bar. voted in favour of a general ment agencies including postal savegrets ezacia andtable legislation, rels below the present limit. strike on the Southern and Paci-ings, farm credits, delt sinding Mr. Morgenthau has modified the Mr. Ickes intimated that the o tell President Rooses fe lines in Texas and Louisiana funda and Federal deposit fnsurpress han by allowing Treasury off-administration might abandon American people were rea

give information without price-firing if producers agreed whatever there might be in the slow of recovery, he The stoppage will begin af ancés) are being used to purchase

reference to himself or to his assis to a fair policy United Press, and orderly proces

said,Beuter. noon on Saturday next. Reu-Government bonds.

per 8. C. Gold Bar Co The sum available has not been

a thing an a dollar of purckksing power, ka It was put to the lat

Hority

New York, To-day, The New York Cotton Ex- change in a statement issued Yesterday, declares that sal

This development is the re-

aku succeeda › in ber piano tesult of the recent order that bar

raise the standard of living- risters, in court, and students, on United Press, per 8.C. Gold examinations, must wear black

Bar Ca

Jshirts-Beuter.