1937-02-27 — Page 5

THE CHINA MAIL, FEBRUARY 27, 1937.

BANK MEETING SUPPLEMENT

Page

BRIGHTER OUTLOOK FOR

FAR EAST TRADE

Annual Meeting Of Hong Kong And Shanghai Banking Corporation COMPREHENSIVE REVIEW

BY CHAIRMAN

•

MANY HOPEFUL SIGNS IN

CHINA SITUATION

There is a wide realisation that the international

trade outlook is still obscure

there

in

basic economic factors which are

backs caused by the

attitude of

the other side. Finally the seizure of Chiang Kai-shek at Sian and the subsequent develop- ments in Shensi so pre-occupied the Government that discussions were held up and the negotiations between the two countries remain for the moment in suspense.

Seizure of Generalissimo. The seizure of the Generalissimo at Sian on December 12, which the Chinese now refer to as the Double Twelfth affair, came as a great shock to China, and although he was released within a fort known to be awry. But apart from night, a tragedy was at one time.

feared. political situation in Europe which I believe that the Generalissimo gives rise to hesitation if not alarm, has repudiated the title.of Dictator. influence is felt Our Home Government are facing all the same his very difficult task in struggling to everywhere in China, and either di- preserve Europe from getting em rectly or indirectly his hand can be broiled in a general conflict, and the traced behind most of the progressive many political and economic problems schemes of development which have which they are facing are appalling years. He has done much for China, been initiated during the last few

in their complexity.

economic factors there, is also the

Patience In China

ati

Kwangtung's States

and his removal would be a serious It is a relief that my task to blew to the progress recently made. is an artificiality about the boom

day is not to review the situation Prior to the Sian incident the many countries the word is applied with little as it has existed in Europe during country seemed to be reasonably. the past year. What I am called quiet and the Central Government real basis. the new wave of prosperity upon to do is to direct your minds firmly installed, but since then is liable to disappear like a pricked balloon to the countries in which we there has again been uncertainty, if steps are not quickly taken to put right operate and particularly to China, though the Plenary Session of the where conditions have at any rate Central Executive Committee just certain basic economic factors which are not been so depressingly tense as concluded has we trust cleared the known to be awry

in Europe. These were some of the points made in the course Let us start off with China. I-must before passing on men- of a lengthy survey of world affairs, with The year 1936 has in some ways tion the change which has taken particular reference to the Far East, by the been typical of recent years. It place in the states of Kwanghing. has again been one of changes, Here in Hong Kong we are parti- Hon. Mr. J. J. Paterson, presiding this morn-bright periods and periods of cularly affected by the transfer of ing at the annual meeting of shareholders gloom, marchings and counter-control, and it has been a matter

marchings. Nevertheless the of considerable interest and im of the Hong Kong and Shanghai Banking bright moments have definitely portance to us. We were glad to Corporation.

had the best of it and, although see how firmly and yet adroitly there will almost certainly be bad the Generalissimo dealt with the Paterson paid tribute to Chiang Kai-shek, the Chinese patches from time to time, yet we situation prevailing last summer, Minister of Railways, to the Customs service and to the feel fairly confident that in due and while we do not expect, and National Economic Council, declaring that the bright course; as the stability and au- indeed do not want, very rapid moments have had the best of it in China in the last twelve thority of the Chinese Govern- changes the situation is stil months and that the outlook for finance and commerce had ment become consolidated, the out-too impermanent for that grown much more promising.

look will still further improve. It look forward to close collaboration DISCUSSING THE SILVER SITUATION, MR. PATERSON must not be forgotten how im- between Hong Kong and Canton in POINTED OUT THAT SILVER HAD NOT BEEN CAST mense is the task of unifying and all inter-connected matters and OFF, BUT ITS FUTURE INFLUENCE IN CHINA WAS governing such a great country as trust that the good foundation LIKELY TO BE VERY SMALL.

China. It has often been pointed laid by His Excellency Sir Andrew out that the proper comparison is Caldecott, when he visited between China and Europe rather last year, will be productive

country. This indicates that pa- Your Board of Directors fully tience is needed and too much associate themselves, with the many public expressions of regret The Chairman (ME J Jhad to take place during 1936, the must not yet be expected vet

at the transfer of Sir Andrew to Paterson) said: After mak-difference in our figures is not so Relations with Japan have a Ceylon after so short a period as

dominated the political scené, and the ing full provision for losses great as one might have expected outstanding feature of the year is the Governor of this Colony. Our

GRAVE COMPLEXITIES IN EUROPE than between China and a single benefit to both sides.

we

and contingencies, the net profits and can roughly be stated to be that China has maintained the status loss is their gain. We feel sure for the year amount to $15,107.-as follows: On the liabilities quo. In spite of difficult periods she that he will win the confidence 175.19 to which must be added side Notes and Current Accounts has show that she is more than ever and esteem of Ceylon as quickly $3,327,060.03 brought forward are up some $8.1/2 and $80 mil-determined to stand her ground. In from the previous year.

lions respectively, while Fixed De-North China, at any rate outwardly, as he did of Hong Kong. After deducting the interim posits are down $20 millions, and Hopei-Charhar Political Council re dividend of £400,000 paid at among our assets Investments and mains under the control of General 1/3.5/16 and Directors' remunera-Loans show increases of $39 and Sang Che-guan, and the autonome tion, there remains available for $58 million each, as against a de regime of Eastern Hopei still distribution $12,085,327,66 which eline in Bills Receivable of $20 under in Jn-keng-

u;:",

it is proposed to deal with as fol- millions. lows

To pay a final dividend

of 53 per share (sub- ject to deduction of In- come Tax)

transfer to Bank Prem

ises Account-

5 forward

Account

The figures of our

have been taken:

173.578

Depression Moving Away

there is little change to be gee.

Sino-Japanese Talks Negotiations or at any conversations, between the

Currency Questions

I will now turn to currency questions, In Hong Kong we started the year with exchange [at 1/31/2, rising to I/8.578 where

it remained until the middle May By the middle of Septem- inber the rate declined to 1/23/4

It is generally agreed that the

ese Foreign Office and the Japan- but recovered to 1/27/8" at the trade depression which developed

ese Ambassador, with a view to end of the year in 1929, has now moved away from $7,744,537-82

a fundamental readjustment After a full year's trial we may the greater part of the world. In the relations between the two say that our new currency has 1.000.000.00 fact that almost ill-omened word

count have been proceedi

in worked most satisfactorily, with "boom" is again being used” in

minimum of fluctuations, 8,340,789.84 regard to conditions in some countries, particula England and the United Nevertheless.

ese attitude has if fen the

has been a great help

you all know

free suver