1937-06-10 — Page 17

THE CHINA MAIL, JUNE 10, 1937.

WARNING AGAINST BOOM TENDENCY

AMERICA CHECKING SUPERFICIAL

RECOVERY

report "new highs" in these products. To these conspicuous markers on the highway to nation were added non- terrous metals such as lead, zinc, cop- per, tin, which as a group have risen 46 per cent. since the commodity boom got under way last autumn.

Time To Pause

As late as February tin was selling at 50 U.S. cents per pound. Early in March it hit a ten-year high of 663⁄41⁄4 cents, despite the fact that the Inter- national Tin Committee, threw the Lon- don market into confusion by suddenly upping second quarter quotes from-100 of 1929 per cent. to 110 per cent. figures.

Is America headed for another 1929 ? Although the average investor has not begun to take this question serious-| ly, it has been raised and Washington bigwigs are beginning to wonder is the crash of 1929 might not be duplicated In another year or/ two. Should America run into another boom period and crash similar to the hectic days of '29, there is no doubt but that the Roosevelt Administration would be dis- credited for every good thing already | achieved to date. In fact, it is more than possible that stockholders and Mr.

hold Average Man would

Roosevelt himself to blame, writes the "China Press" Finance Editor.

Not unaware of these possibilities is Speaking of the big copper boom, far-seeing Franklin Delano Roosevelt. already alluded to in these columns In mid-March the subject-inflation-several days ago, Mr. Bertie Charles came up for

discussion. President Forbes has quoted President Shattuck Roosevelt had alluded to the topic in Cates of Phelps Dodge Corporation as his "fireside chat" on the court when declaring: "This is no time to whoop he said: "The dangers of 1929 are things up, to send prices of copper sky- again becoming possible, not this week rocketing. The industry was mak- or month, perhaps, but within a yearing steady progress in a satisfactory of two." Cabinet officers-Secretaries way. It would be a pity to bring Wallace and Roper-have also taken up about hectic conditions which in the the theme, warning of the dangers of nature of things could not be expected

inflationary boom. Marriner S. to last.".

an

What Is Inflation?

Eccles, chairman of the Federal Re- Just how much the present "boom" serve Board, has issued a long state-on the New York stock market is link- ment on the subject.

ed with armaments, wars and rumours of wars is another question. Yet, this is the time to take pause. Men's ideas. become distorted in times just like this and it is not until the shouting dies down that they have been caught short, holding the proverbial sack.

To most people inflation means a rapid, uncontrolled rise of prices caus- ed by the depreciation of money as a result of the abnormal issue of paper currency, the abnormal expansion, of bank credit, or both. Mr. Eccles once defined it as "a condition brought about!

· in when the means of payment

the hands of those who will spend them' increase faster than goods can be pro- duced."

as

A rapid increase in commodity prices is regarded in some circles

the "danger signal" of threatening infla- tion, and recently some prices have been soaring. Some basic commodities in- -copper, wheat and cotton, for stance-have trebled in value since the depression low point.

JAPAN IN N. CHINA CONTROL OF RESOURCES

.control

of+

The rise of Japanese economic resources and industries in North China is traced by Mr. Tien- Mr. Eccles attributed sharp price in- tsung Sih, Research Fellow of the creases primarily to "non-monetary Council of International Affairs, in a factors, including foreign armament bulletin, "Sino-Japanese Economic Co- demands, strikes and monopolistic prac-operation in North China.” tices by certain groups both in industry

22

Control Methods

Sino-

BANKS

THE CHARTERED BANK OF INDIA, AUSTRALIA & CHINA

Incorporated by Royal Charter, 3858

HEAD OFFICE: LONDON

Paid-up Capital Reserve Fund

Reserve Liability of Pro-

prietors

Agencies and Branches:

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Haiphong >Hamburg Hankow Harbin Hồng Kong

transacted.

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HONG KONG AND SHANGHAI

BANKING CORPURATION

Authorised Capital

Issued and 1

·Reserve Funds:

Sterling

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Paid-up 20,000,000

Hong Kong Currency

6,500,000

$10,000,000-

$20,000,000

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BOARD OF DIRECTORS.

G. Miskin, Esq.,

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..£3,000,000

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£3,000,000.

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prietors

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Iloilo

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→Tongkah

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(Bhuket).

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Foreign Exchangs and General Banking business Current Accounts opened and Fixed Deposits received for one year or shorter periods, at rates which will be quoted on application

The Bank's Head Office in London undertakes

Trustee

claims businesa,ani Executor recovery of Britiah Income Tax overpaid, on terms which may be ascertained at any of its Agencies and Branches.

R. W.. ROBERTS,

and

-26

Manager. Hong Kong, 1st January, 1935.

THE BANK OF EAST ASIA, LTD.

Authorised Capital Paid-up Capital Reserve

Profits

and Undivided

$10,000,000.00 $ 5,598,600.00-

.$ 2,776,726.76

HEAD OFFICE --HONG KONG. 10, Des Voeux Boad, Central.

BOARD OF DIRECTORS:--

Chairman; Li Koon Hon. Sir Shou-son Chow,

Tuo Wong Chun, Esq., P. K. Kwok, Esq.,

Chan Ching Bhek, Esq., Li Lan Tong, Esq. Sang, Esq. Wong Chu Son, Esq. and Kan Ying

Fung

Ping Wah, Esq. Fo, Esq.,

Kan Tung Po, Esq.; Chief Manager.

Manager. Li Tse Fong, Esq.,

BRANCHES AND AGENCIES:-

Semarang

Amoy

Manila

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Batavis Bombay

Melbourne

Calcutta

Magamkia New York

Peiping

Honatalu Kobe Kowloor London

Rangoon

"Saigon

enang

San Francisco

Shanghai Singapore Sourabaya Swatow Bydney Taiboku Tientaln Tckyo

VanoGUTRI Yokohama

Chief Manager.

Although negotiations, for and labour,” Administration critics, Japanese economic co-operation were however, suggested that the govern- not successful, Japan has take direct ment's own policies had created the action to seize control of various econo- situation, since price-raising had been mic enterprises, according to Mr. Sih. one of its avowed aims.

Plan Elaborate

Every description et Banking and Exchange "The plan is an elaborate one, parts business tranzanted. Loans granted an approved

securities. To check a too rapid upward ten- of which have already been carried

Current Accounts opened in LocalCurrency dency in the business world the U.S. out," writes Mr. Sih. "This plan in-and Fixed Deposite received for our

shorter periods in Local and Foreign Currencies government more than a year ago be-volves activities along four lines: na-

On terms which will be quoted on application. It raised- margin gan to move.

retural resources, communication, indus- Safe Deposit Boxes To Lok, ma

KAN TUNG. PO, quirements, thereby restraining stock tries and power plant." market speculation by forcing those in

To satisfy her tremendous need for the market to put up more cash when coal, Japan has obtained extensive in- buying securities. Later it raised the terests in the coal mining industry of size of reserves which banks must North China, maintain as a basis for deposits; a few

Salt, which is important also in the weeks ago reserve requirements were manufacture of poison gas and explo- again raised.

the sives, is another great need of

Head Office: Hong Kong. On Capitol Hill the suggestion. of in- Japanese. They have bought

much

26, Des Voeux Road, Central. creased taxes has found small sym-Changlu salt under contract and now

Authorised Capital $10,000,000 pathy. Senator Harrison, chairman of plan to establish a Japanese concern

LONDON BANKERS:- the Senate Finance Committee, declar- to produce 50,000 tons of salt annually

Westminster Bank, Ltd. ed there would be no new taxes this in east Hopel, year. He asserted that prices were not

Foreign Exchange and -every des- Japanese are also gaining control yet too high, and added that he did not over the transportation systems of cription of banking business transact- share Mr. Eccles's views on inflation. North China with plans for a

Shih-ed.

THE WING ON BANK. LTD.

A balanced budget met with greater chiachwang-Tsangchow Railway, the Current Accounts and Savings Ac- Congressional approval, but economics establishment of a Japanese-controlled counts opened. Mixed Deposits re- were preferred to taxes.

aviation company, and the reorganisa-ceived at rates which will be quoted tion of a shipping company to put it on application. under Japanese administration.

Despite Senator Harrison's optimism, building materials and iron and steel products have been in new high ground for some time. Almost every week surveys issued by Swan, Culbertson & Fritz, reviewing the New York market,

ཞ

MINERAL WEALTH OF THE BRITISH EMPIRE

Expanding Industrially

The Japanese are also gaining con- trol of various industries in North China, including textile, rayon, match, etc., according to Mr. Sih.

"Only last year," he pointed out, "the Japanese bought three Chinese mills out of five in Tientsin, in addition. to`amill acquired some years ago.

In his conclusion, Mr. Sih declares that although Sino-Japanese economic co-operation in North China is not un- desirable, it will not be acceptable to China unless it is achieved on a basis

The British Empire has a bright future as a mineral producer, says the survey made by the Imperial Institute..of equality.

Trusteeship & Executorship under- taken. Safe Deposit Boxes for hire.

PHILIP GOCKCHIN, Chief Manager

QUALITY PRINTING With Quick Service

The Newspaper Enterprise Ltd. China Mail Bldg. - 3a Wyndham St.

Hon. Mr. M. T. Johnson,

Deputy Chairman..

J. K. Borisfield, Esq., EK.8. Morrison; ¡Esq.,

Hon, Mr. J. 3. Waterson

A. H. Compton, Esq.,

3. H. Dodwell, Eaq.......... Ti E. Pearce, Esq., A. L. Shields, Esq.,

J. R. Masson, Esq.

In coal and iron ore the Empire has “While economic co-operation has a enormous reserves, it is stated, the place of importance, it must be stress- enterprising use of which should enable ed here that the urgency of political it to maintain a high place in the readjustment must not be neglected,”? world's industries.

he wrote. "Under the existing circum-led by the mère display of force, while The production of coal in the United stances, North China has become prac- the high sounding altruisms of equal- ity and reciprocity are thrown to thọ Kingdom is not only the chief mining tically a Japanese military outpost. industry in this country, but by far the "Consequently, whatever project winds. If the Japanese really wish to most important in the Empire, repre- which the Japanese may propose sa- bring about a more favourable, situa- senting, according to the latest figures vors of a military character and pur- tion, it is time for them to ponder available, 87 per cent. of the value of pose. It is hardly to be expected that carefully and to start co-operation in al

Chinese susceptibilities all mineral production.(Benter),

Sir Vandeleur M. Grayburn, Chief Manager.

AMOY

BANGKOK-

BATAVIA BOMBAY CALCUTTA CANTON CHEFOO

FOOCHOW HAIPHONG HAMBURG HANKOW HARBIN

HONGKEW ILOILO IPOH JOHORE KOBE KOWLOON

BRANCHES :-

LUMPUR

LONDON LYONS MALACCA AMANILA A

MUAR (Johor) MUKDEN

PENANG BANGOON SAIGON

SAN FRANCISCO SHANGHAI SINGAPORE SOURABATĀ - SUNGEI PATANI TIENTSIN

·TOKYO'

TSINGTAO

YOKOHAMA

Curront, Accounts opened in Local Currency and Fixed Deposits received for one year or shorter periods in Local Currency, pnd Sterling on terms which will be quoted or application.

ALBO up-to-date BAFE: DEPOSIT BOXES in various sizes TO LET.

Hong Kong, lat. March, 1987.

HONG KONG SAVINGS BANK

The Business of the above. Bank is conducted by the HONG KONG AND SHANGHAI BANK- ING CORFORATION. – Rules 'may be obtained: on application.

FOR THE HONG KONG AND SHANGHAI BANKING CORPORATION.

M. GRAYBURN,

Chief Mana;

Hong Kong, 1st March, 1987.

THE YOKOHAMA SPECIE BANK

LIMITED

Established 1880.

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

Yen:132,650,000

Head Office: YOKCHAMA

Branches and Agencies, cre

Alexandria: Bangkok Batavia

Berlin Bombay

Calcutta

Canton

Dairen (Dainy)

Fengtien (Mukden) Hamburg Hankow Harbin Hong Kong Honolulu

Hsinking Karachi

Kobe London

Manila

Los Angeles

Moji Nagasaki Nagoya New York Osaka Otaru:

Paris Peiping Rangoon

Rio de Jeneiro San Francisco Seattle

Semarang Shanghax Singapore

Sourabaya

Sydney

Tientsin

Tokyo

Tsingtau

Yingkow

Interest allowed for Current counts.

Deposits received for fixed periods at rates to be obtained on applica tions.

Y. KANO,

Managér.

Hong Kong, 10th March, 1937.

THE

SHANGHAI COMMERCIAL & SAVINGS BANK LIMITED

· (Incorporated in China)

Capital paid up

$5,000,000, $$7,500,000, $500,000.

Reserves NINJA Capital Savings Dept. Reserve Savings Dept. $600,000,

4%Head-Office-Shanghai

A Bank having as its mission the industrial development China, and the fostering of her commercial relations abroad. Hong Kong Office...

6, Queen's Road, Central Phone 21116.