1934-02-24 — Page 7

SATURDAY, FEBRUARY 24, 1934.

THE CHINA MAIL.

BOOSTED SILVER A DETRIMENT TO THE TRADE OF CHINA CHAIRMAN'S WARNING

AT BANK MEETING

SURVEY OF CHINA 1 TRADE

"IT IS AN OMINOUS SIGN THAT CHINA SHOULD BE BEGINNING TO EXPORT SILVER TO PAY FOR HER EX- PORTS," DECLARED THE CHAIRMAN OF THE HONG KONG AND SHANGHAI BANKING CORPORATION. MR. T. E. PEARCE. AT THE ANNUAL MEETING OF SHAREHOLDERS. THIS MORNING.

In his speech, Mr. Pearce comprehensively reviewed the posi- 'tion of China's trade and finances, and spoke lengthily on the problem of silver.

Commenting on the upward frend of world trade, he express- ed an opinion that although the tension in the Far East and the uncertain political situation in Europe might act ne a brake, the movement to more prosperity seemed likely to continue.

"After making full provision for lusses and contingencies, the

:

tions in China was declared to be cial problem still centres upon mill to the Central Government, but it moment there may be no need for gare down about 124. - |null and voll, and the official rate tary and debt expenditure--with the is satisfactory to note that in anxiety, but it is always advisable. The fact that imports hav Jof exchange of 715 to the dollar emphasis upon the former. It in spite of this loss the Customs re-to go slowly when one is carrying dropped more than exports has of was fixed. A new standard sil-believed to be a fact that once again venue for the year was nearly $20 a basket with a good many eggs in course had a favourable effect oR ver dollar is being produced at roughly between 45 and 50 per cent million higher than in 1932, and it.

|the visible balance of trade, which the newly-opened Central Mint at of the total ordinary revenue from what is more striking is that if the Salt Administration

In 1933 shows an excess of importa Shanghai under the supervision|recognised sources was applied to revenue from Manchurian ports in "The revenue collected by the of $733 millions' as compared with of a strong international com-military charges. This has been the deducted from the total Customs Salt Administration remains fate the previous year's excess of $883 mittee

unenviable average of the past five revenue for the record year of ty steady, but the greater part of it millions Including, and $955 mile "Before I turn to deal with years. But the actual military ex-1931, it will be found that 1939 is retained by the Provincial au-

lions excluding, the Manchurian trade conditions in the various penditure is more than this since very nearly equals that year. countries in which we have in certain unofficial sources of revenue

thorities. Nevertheless there should

figures. "During the last few months the be ample fúnds to pay not only the "This adverse balance is roduced? terests, I propose to make a few are known to be applied to this ob-establishment of the independent annual service of the foreign salt by the outflow of treasure

which remarks on political conditions in fect. Although no public loans have Government in Fukien brought Loans but also some of the arrears, according to the 1933 Customs row China during the past year as been floated, the Chinese Banks have with it a threat to the integrity of and it is regrettable that the returns reached 83 million dollars in these conditions always have been called upon to make large ad-the Customs Service, but the dan- cord of the Salt Administration in value. The embargo on the export serious repercussions on trade. vances secured on Customs Trea-

"If one tried to look at China aury Notes on terms regrettably un-mittances of the foreign loan quo-par with that of the Customs,

İger was skilfully handled and re-regard to loans should not be on a of gold except with Government; from the detached point of view favourable to the Government and tas were never interrupted.

sanction still remains in force, but of a person with no particular the valuable security of the Customs

"Turning how to trade, the it is believed that smuggling off "There is, however, another side most reliable index which we have this metal out of the country hagy knowledge of the Far East. it revenue is being gradually frittered to this picture. I refer to the in China is the Maritime Customs been very prevalent though would. I think, seem a strange away.

gold and chaotic picture.

steady and serious tariff increases returns of foreign trade, but in stocks must now be at n low ekb." An unde "I cannot pass on without men which are

it bringing dan-order to make a true comparison clared war with a neighbouring tioning the American Cotton Wheat gerously near

"The boycott of Japanese goude! [country. civil war in

the uneconomic of the 1933 Customs figures with is no longer of serious consequence) THE CHAIRMAN'S REPORT the Far East the strained politi: provinces and a vigorous military Mr. T. V. Soong negotiated during already unquestionably too high, make allowance for the exclusion tive early in the year since, in

several credit of U. S. $50 million which level. In some cases the tariff is previous years it is necessary to but it appears to have been affec cal relations between China and campaign against a communist re his stay in America last May. This as is shown by the very serious this year of figures respecting the spite of the great expansion of The Chairman. Mr.

T. E. Japan and between Japan and bellion all going on at one time was a bold experiment which has amount of smuggling which is go-Manchurian ports, which last year Japanese exports in 1933, their ex-

Russia are disquieting factors, or another, or even at the same not yet proved its worth. Pearre, said:-

"The Report and Statement of and it is of the utmost import-time-this is the picture in min-

ing on. Estimates as to the loss were included for the first six parts to China proper show a fallë that international diplo-lature.

"Whether it will ever do so re-of Customs revenue from this months.

compared with 1932. On, the other? Accounts having been in your ance

mains to be seen; it has certainly cause are of course largely con- "But those of us who have liv-not been the success it was original jecture, hands for for some days I will. macy should bring moderating

"If we do this, we shall find that hand exports from China to Ja influences to ed out here for some years rely hoped it would be and many of figures run into tens of

but even conservative] the total foreign trade of the pan show a fair increase. with your permission, take them and statesmanlike

bear.

kard such conditions

millions country (that is of China excludi "Taking a brond' view of the as real.

as, being China And Silver

almost endemic, and we are ables have all along been sceptical as rather than millions of dollars. ing Manchuria) has decreased trade of China, the indications "We are glad to know that the some 7% compared with 1932 and seem to point to the fact that pro- "The depression struck China to discount much of the disturb-to the wisdom of Governments med-

14 some 33% as compared- with 1931|vided external conditions get na net profits for the year amount later than the rest of the world ance, since we know from experiding in what is more properly the Inspector-General of Customs

con- taking this matter of smuggling in which was a record year.

worse China trade can hardly go to $15.206.62-4.73. # reduction and, owing to the depreciation of ence that trude will go on and sphere of expert commercial

hand with his customary energy. "In view of the notoriously de- further downhi!l. from the previous year of nearly currencies elsewhere and to the that the Chinese have an amaz-

"Reverting to the financial post- and we hope that he will also bring pressed state of the staple Chinese "Imports touched their lowest? $17 les as quoted in local cur-political troubles which have being way of localising their in-

tion of the Government. It must be his influence to bear with a view industries it may surprise some of point in September and exports. rency but a moderate increase in fallen her, it is to be feared that ternal disorders. Sterling, due to the higher rate her recovery may be delayed. But) "Nevertheless it is not a cheer.remembered that 1933 was the to obtaining tariff reductions. An-you to be told that the export f-should not decline further unless; of exchange ad which our ae-much depends on certain impon-ful task to look back on a year of first full year in which no revenus other unfavourable feature is the gures-again excluding Manchuria and here is the rub, silver prices derable considerations amongst disappointment such as the past. was received from Manchuria. Ac- continual mortgaging of the Cusactually show an increase of 7% rise much without a corresponding counts are taken over.

1 say disappointment because tually this seriously affected only toms revenue as security for do over 1932 though it must be re-rise in commodity prices in other "After deducting the interim which silver takes a prominent

early in the year much was ex-the Customs, as little other revea-mestic loans and advances to which membered that exports touched a countries. dividend paid at 4.12 and place.

Imports "Three years ago your Chair-Dected from the League of Na-ue was remitted from that quarter] have already referred. At the very low level that year.

(Continued on Page 9) Directors' remuneratin7. The amount available for distribution man in reviewing the position of tions intervention in the Sino- is $11.592.941.99, which it is pro-silver expressed the hope that Japanese dispute, and later on

governments concerned there were occasions when it! posed to deal with as follows: "the

To pay a final dividend of £3 would stay their hands from any seemed possible that the leaders' per share (subject ta deduction measures calculated to make the of the country would subordinate

Įposition worse." We still hold their personal feelings and ambi of income tax 56.630.215.83.

Transfer to Bank Premises the view that from the point of tions to the good of the nation. view of China, governmental in-ut in both cases nothing came Account $1.500.000,

Acterference,

During the aiming at bringing of these hapes. about an artificial rise in silver, first five-thonths of

the year will almost certainly do more North China (by which I mean Total $11.592.943.93,

than good, and for this the Peking-Tieptsin `area) was in "Sume of you may think that harm

not applaud the a state of turmoil, but since the our appropriation to Bank Pro-Trason we did

a modus mises Account is on a generous Silver Agreement reached at the end of May. when

Conference in rivendi was patched up with scale, but your Directors feel that World Economie

Japan. things up There have been in view of the heavy expenditure London. involved in putting up on new

at precedent for at comparatively quiet. head office, it is a wise policy to tempting to control the supply of

Communism Menace To Trade write this expenditure down as silver, and though its effect on

"Fortunately the important. You have values has been and is likely to trading areas" liberally as possible.

of the Yangtsze recently seen the demolition of remain small owing to the com- Valley and the Canton delta the old Bank which has housed Paratively small quantity with have throughout the year been. Built which it deals, the fact that undisturbed by political changes. our business for 50 years, in 1884 it was entled "Jackson's successful international agree. Nevertheless the communist en- Folly" because it seemed so un-ment has been reached, providclave in Kiangst have been

There have, ing an artificial silver market and constant menace. however, heen many changes in restricting the free play of sup have continually harassed the the East and so much expansion ply and demand, is uncouraging troops of

Carry forwirel

count $3.462.728.10.

necessarily large.

10 new

"It i

Their forces

the Generallissmo,

in our business has taken place in silver speculators. The de Chiang Kai-shek, and they have these 50 years, that the old build-preciation of currencies through also made bold and successful ing has latterly proved to be too out the world has had the effect raids into the provinces of small. The City Hall and Thea of

raising proportionately the Kwangtung and Fukien. General! a state of price of silver in terms of those Chiang was at one time handi- tre having renched dangerous decay, we approached currencies and concurrently has capped by having to send some the Government and came to put up the price of China's ex-of his best troops up to the

terms for buying Wardley Street port commodities.

Great Wall, but he staged n and part of the City Hall site. "It is an ominous sign that vigorous offensive in the autuma We hope that in something un-China should be beginning to ex- which made some progress but der two years the new building port silver to pay for her im was

finally held up in conse will be completed and that we ports,

quence of the Fukien revolt in "If we glance at a few figures November, shall then be able to offer every

which. however, comfort and facility to our con- the position will be clearer.

crumpled up before serious con

year

stituents. In the meantime I "Taking the 7 years up to the sequences arose. would ask for patience with us end of 1930. on an average In **If we turn to the West of in our temporary premises since, diu and China together consum: China we will find that in one! like the man at the piano, the ed about 66 per cent. of the world or another part of Szechuan staff is doing its best.

¡offerings of silver, say about 200 there was throughout the year "Another

This almost continual fighting either has passed, million ounces per annum. leaving behind it a gloomy pic consumption dropped in 1931 to between local warlorda or be ture of the world buffeted by the 116 million ounces, in 1992 to 52 tween warlord and a communist waves of depression.

million ounces, and now in 1938 brigand forces. In Chinese Tur The pic the Indian consumption is 'estim stan, on the Tibetan frontier, ture looks different in every ated to be 10 million country, but we are thankful that while China is estimated to have vinces, there have also been dis

ounces, and in the North-Western Pro- there are definite signs of an abatement in Great Britain and exported some 15 million ounces turbances of fluctuating inten- that there is a moderately op more than she imported. laity, as also to a lesser extent

timistic feeling everywhere. The!

"So we find the consumers ofjin other provinces of China pro- trade cycle is perhaps slowly and two-thirds of the world supply of per. steadily revolving upwards, and silver have gone out of the mar "In spite of these conditions the

DA O

When Mr.

while certain factors, such as the of silver has dropped from an have maintained their position.

ket, and although the production Central Government at Nanking] experiments in the United

of about 240 million States, the unsatisfactory politi-average

"Perhaps it would be better put cal situation in Europe and the unces to 163, the total offerings if we were to say that General tension in the Far East may act of silver last year reached as Chiang Kai-shek has maintained his brake, yet the up-grade much as 273 million ounces which position, since he is the power Be- movement seems likely to con-15 mot very much under the hind the Government. tinue on its way towards a brigh-average supply of the last 7T. V. Boong resigned from the ter future.

years. The consequence is that Ministry of Finance last October over 150 million ounces of the there were fears that the Govern- "As regards the United States, supply of silver remain whether the monetary policy of accounted for and are presumed from going into opposition and un ment would break up, but he refrain- that Government constitutes aably in the hands of speculators, continued to work with the National serious danger to this Improve-] ment or not it is difficult to say.

Economic Council, so the danger

Adoption Of Tael

Nanking Finances

"It has at any rate been and "You will, I think appreciate subsided. His resignation - was, still is a disturbing factor which that the present state of uncer- however, a serious loss to the Gov- has made the exchange bankers' tainty due to the possibility of ment position a very difficult one... Ar- the sudden adoption. of some] tificial methods of currency de- governmental measure. which The last financial report of the preciation lead to artificial rises might overnight change the Government was published In in price and to reactions giving whole outlook, makes the trad- December 1982 and covered the two rise to political as well as econo-er's position very difficult and fiscal years ending June 30th 1982, mic dangers. To rid the world adds very materially to the bur Since then, excepting for an outline of the lack of confidence which den of the exchange banker of the Customs revenge, no officiat In hindering business some de- "On April 6 last the use of the Sgures have been issued. This lack gree of stabilisation of curtasl as a medium for official, of statistics, is very unsatisfactory, rencies is urgently required. In commercial and legal transse i However, we all know that the Gann-

cerns.

How

KALZANA

acts

Your body is built up of millions of living cells, the vital part of which is dependent upon Calcium for its Health Any shortage of Calcium weakens the whole constitution and causes disturbances in the functions of the internal organs, resulting in undue pains and excessive loss. Kaliana con taina the extra calcium needed to overcome Calcium-deficiency -the root of your trouble-and so, in a natural way, will quickly bring you back to real, carefree health again.

"Kalzana is of great valan în the treatment of manorshagia and dysonnorrhaa (und we loss and paine)."

writes time well-known

· medical paper *MMENT Pros and Circular, **

KALZANA soothes Irritable Nerves

*Nerv-cells in order to function. progesty, must have their calcium," writes a well-known physician Marry "capes "of „obstinate (nerva trouble can be traced to a lack diis al emportant mineral. It may bemooduses" in children, źri- tability in women, fatigue in many it may show ftwell in any number of

such as lack of simplesensor

*

↑amera ¦¦ are at the bottom of it

201

By taking Kalzana you will correct any calcium shortags in the nerve „Your nerves will bromme Bankhy memes and all symptomen of 6 breakrisis will be rooted' out. (^.

"I suffered unnecessary

pains since

since I was

was 15"

Weakness due to Lack of Calcium

Kalzana will quickly overcome all kinds of weakness due to Jack of calcium such as

General Debility

Kalzana strengthens the cells of nerves, bones and blood and has a remark- able tonic effect on your health.

Weak Teeth

Weak, decaying teeth are simply under - nourished tooth. They lack ezlcham, the food that makes the teeth strong and healthy, Weak teeth are a constant cause of pain and trouble, Moreover, they mar_the beauty of your face. Start taking Kalzana, the Cal- cium food, and take your teeth strong and white' again.

Signs of Old Age

Kalzana lowers high blood pressure; strengthens the heart-muscle and stimu lates the action" of "the internal organa

MTOGEN Å FORMAME

"Kalzana tablets are a boon to such girls as myself who suffer a great deal of pain at certain periods. I have suffered these unnecessary pains since I

was fifteen

years of age, as a matter of course. Kalzana has done

for me all it claims to do and I only wish I had heard of the preparation before."

Miss M.A.-L.

Why suffer these periodic complaints and irregularities? They can so easily be overcome. For they mean that your body lacks sufficient calcium and simply by taking "Kalzana,” the Calcium food, this necessary element will be brought into your system and

· you will very soon enjoy undisturbed health. Being a food, "Kalzana" is absolutely harmless and is frequently prescribed by leading physicians.

Of all Chemists

Kalzana

THE CALCIUM FOOD.

"The British Journal of Tuberculosis,” April 1929;.' “Wa.hare amployed Kalzane with amachi ndywistage is the management

· of delipase clilidren," it seemne to be: of considerable section 'in cases of rickets and otlar morbid conditions of bone and also as a prarastire, „al, ducéal cncies. For prognant womán Kálzana li citam beneficial.”

The opinion of well-known 'mediaal papers about KALZANAT

"The Pharmaceutical Journal of New Zealand,” Jan. 1930. **Kaltana has been wood with vary good romelia in usos of calcium deficiency, miah as bone diseases, 'dantal sadan, rickets, woskness fin growing children, during pregnancy and lactation-in fact, in all casas sebanda din witha, ma quomasiun onlokuma contant? ja pinpaszary,”. Rickás too say a typical 'sign of a lack of calikan Kaleina will wat all that night, nad very soon your child' 'will be happy and hookdiy again. A.