590
"
R
$175,000 and at the end of the same year the 23 remaining Companies represented a paid-up capital of $25,158,000 and a market value of $48,355,325, or an increase in the market value of the 23 Companies for the year 1888 of $2,021,200. In the same year the shares of 13 additional Companies were placed on the Hongkong Market representing a paid-up capital of $3,709,640 and a market value at the end of 1888 of $5,596,000 giving an increase for the year of 10 Companies, $2,634,640 in paid-up capital and $7,081,200 in market value. Thus at the end of 1888, there were 36 Companies with an aggregate paid-up capital of $28,867,640, the market value of which was $53,951,325. Two of these Companies (with a total paid-up capital of $200,000) are now being wound up, but the aggregate values of the shares of the remaining 34 amount at present to $64,421,050 shewing an increase (after deducting $1,715,000 net increase to capital) of $8,874,725 as compared with December, 1888. In addition to the above 34 Companies there are 20 new Companies registered since December, 1888, whose shares are dealt in in the Hongkong Market. The total paid-up capital of these 20 Companies is $13,692,310 and the aggregate market value of this capital is $12,779,500 shewing a depreciation in the value of these new Companies of $912,810 as compared with the paid-up capital. A further analysis shews that of these 20 Companies the aggregate market value of the shares of 5 of them is $4,809,940 in excess of their total paid-up capital, while in 14 of the 20 there is a depreciation to the extent of $5,722,750 below the paid-up capital. Of the 14 latter Companies 7 are new Companies engaged in purely local business, the shares of which are depreciated below paid-up capital to the extent of $596,000 only, and the remaining 7 Companies whose shares show a depreciation of $5,126,750 below paid-up capital are Companies whose businesses or enterprises are situated entirely outside the Colony. There are now therefore 54 Public Companies with a paid-up capital of $44,074,950 and a market value of $77,200,550 as against 26 Companies in 1887, with a paid-up capital of $20,233,000 and a market value of $46,870,125 and 36 Companies in 1888 with a paid-up capital of $28,867,640 and a market value of $53,951,525 shewing an increase in the last 3 years of 28 Companies, $17,841,950 paid-up capital, and $30,330,425 market value.
44
Compared therefore either with what may be called the figures of special success, or with the figures of all Companies successful or unsuccessful, the figures of failure, or threatening failure, are puny indeed, and it is to be borne in mind that the present is a time when owing to losses in speculation all such securities are probably under their normal value. Now notwithstanding the fact that the shares of most of these Companies were in 1889 driven up by speculation to a price considerably higher than at present, I venture to think that from the point of view of the share market, there is nothing pointing to any serious or permanent decline of prosperity indeed after a careful survey of the position at this critical period I believe that any competent and impartial judge would say with confidence that the business of the Colony in so far as it is conducted by Joint Stock Companies is generally in a very sound condition.
Happily there are indications pointing in the same direction from several other quarters. Though the absence of returns renders it impossible to speak with certainty as regards Exports and Imports, it is satisfactory to find that the shipping statistics of last year point to an increasing rather than a decreasing trade. For according to the recent report of the Harbour Master, the tonnage of vessels entering, and clearing from, Hongkong reached in 1890, the enormous figure of 13 million tons-or considerably higher than those of any former year by 1,000,000 tons those of 1889. It would thus appear that my anticipation of 1889 is shewing itself to be correct, and that trade in other directions is compensating for the deficit caused by the decaying tea export, and the stoppage of emigration to Australia and the United States. And while on the subject of Emigration, I may mention that the accounts recently received of the condition of the Chinese in Mexico are so favourable, that if they should be confirmed I think it only right that the Government should encourage the emigration thither which it is desired to conduct from Hongkong. If it is true, as I am informed, that Mexico will welcome all the free Chinese which can be sent there. I shall expect that in no long time the trade which will spring up with that rich country,-rich I mean in its soil and its minerals-will not only equal but surpass all that has been lost by the restrictive laws in the United States and Australia. But, however, this may be the correctness of the indication from tonnage that the volume of trade is increasing was signally confirmed only the other day, since I began the examination of this question, by the statistical report of the Chinese Customs for the last year (for a copy of which I am indebted to the kindness of Sir Robert Hart and the local Commissioner). Though I have not had time as yet to examine carefully all the figures, it suffices for my purpose to take the figures shewing the value of the general trade between China and Hongkong which are Taels 122,358,507 for 1888, Taels 118,046,381 in 1889 and Taels 125,844,901 for 1890. Thus the value of our trade with China actually increased last year by more than Taels 3,000,000 as compared with 1888 and by over Taels 7,000,000 (or about £1,750,000 sterling) as compared with 1889. As also indicating that the volume of trade is not decreasing I may mention that from a return furnished by the Registrar General, it appears that in the first three months of this year 174 Chinese shops were closed, and 236 opened shewing a favourable balance of 62, and though owing to my being unable to get the similar return for former years not count this balance as proof of increase, I think the figures at least suggest the probability that Chinese trade is not falling off.
Turning now to the matter of Bank deposits I see as little reason for alarm or despondency. Having requested information on the subject from the four British Banks in the Colony, the answers obtained from three of them shew that as regards them, there has been not a decrease but an increase of deposits to the extent of over $800,000. The only one of the four which returns a decrease, the amount of which is not stated, is the Bank under the management of the Honourable Member, who in replying to my letter as Manager reiterates his statement made as Member of Council in respect of the decrease of "millions of dollars," but in this instance limits it to Chinese Banks. Now on this matter of Chinese Banks I have made enquiries from high authorities Banking and others as well as from the Registrar General. The estimates thus received vary considerably in amount, but I am most inclined to that of Mr. WEI Yes, Compradore of the Chartered Mercantile Bank, not only because it is the result, I understand, of careful enquiries at each of the Banks referred to but because it represents a mean between the extreme estimates on either side. According to his calculation the aggregate decrease of deposits in the Chinese Banks as compared with 1889 is about $1,000,000, the figures being $6,000,000 for 1889 and $5,000,000 for this year. Deducting from this decrease the $800,000 increase in the British Banks, there is left $200,000- so that there requires the large decrease of $1,500,000 in some unaccountable quarter to make up the two millions which would be the minimum amount to justify the Honourable Member's indefinite statement as to "millions of decrease."
I should mention that the Registrar General in forwarding his estimate of Chinese Bank deposits accompanies it with the statement that despite all losses, money is at present plentiful among the Chinese, and that the rate of interest among them just now is 42 cents per month per $100-this being scarcely over 5 per cent. per annum and is even lower than the rate among Europeans.
Now as regards Land which the Honourable Member says has fallen greatly in value, I do not doubt that as regards a considerable area of the less valuable land of the Colony, there has been considerable depreciation by comparison with the inflated prices of 1889, but I question whether there has been any depreciation at all as regards what is of incomparably greater importance, viz.: the large area of specially valuable land in Victoria. For though a seller of such land might not
590
"
R
$175,000 and at the end of the same year the 23 remaining Companies represented a paid-up capital of $25,158,000 and a market value of $48,355,325, or an increase in the market value of the 23 Companies for the year 1888 of $2,021,200. In "the same year the shares of 13 additional Companies were placed on the Hongkong "Market representing a paid-up capital of $3,709,640 and a market value at the "end of 1888 of $5,596,000 giving an increase for the year of 10 Companies, ' $2,634,640 in paid-up capital and $7,081,200 in market value. Thus at the end "of 1888, there were 36 Companies with an aggregate paid-up capital of $28,867,640, "the market value of which was $53,951,325. Two of these Companies (with a "total paid-up capital of $200,000) are now being wound up, but the aggregate "values of the shares of the remaining 34 amount at present to $64,421,050 shewing "an increase (after deducting $1,715,000 net increase to capital) of $8,874,725 "as compared with December, 1888. In addition to the above 34 Companies "there are 20 new Companies registered since December, 1888, whose shares
**
+
are dealt in in the Hongkong Market. The total paid-up capital of these 20 Companies is $13,692,310 and the aggregate market value of this capital "is $12,779,500 shewing a depreciation in the value of these new Companies "of $912,810 as compared with the paid-up capital. A further analysis shews "that of these 20 Companies the aggregate market value of the shares of 5 of them is $4,809,940 in excess of their total paid-up capital, while in 14 of "the 20 there is a depreciation to the extent of $5,722,750 below the paid- up capital. Of the 14 latter Companies 7 are new Companies engaged in purely local business, the shares of which are depreciated below paid-up capital to the extent of $596,000 only, and the remaining 7 Companies whose shares show a "depreciation of $5,126,750 below paid-up capital are Companies whose businesses or enterprises are situated entirely outside the Colony. There are now therefore "54 Public Companies with a paid-up capital of $44,074,950 and a market value “of $77,200,550 as against 26 Companies in 1887, with a paid-up capital of $20,233,000 and a market value of $46,870,125 and 36 Companies in 1888 with "a paid-up capital of $28,867,640 and a market value of $53,951,525 shewing an "increase in the last 3 years of 28 Companies, $17,841,950 paid-up capital, and “$30,330,425 market value,”
44
Compared therefore either with what may be called the figures of special success, or with the figures of all Companies successful or unsuccessful, the figures of failure, or threatening failure, are puny indeed, and it is to be borne in mind that the present is a time when owing to losses in speculation all such securities are probably under their normal value. Now notwithstanding the fact that the shares of most of these Companies were in 1889 driven up by speculation to a price considerably higher than at present, I venture to think that from the point of view of the share market, there is nothing pointing to any serious or permanent decline of prosperity indeed after a careful survey of the position at this critical period I believe that any competent and impartial judge would say with confidence that the business of the Colony in so far as it is conducted by Joint Stock Companies is generally in a very sound condition.
Happily there are indications pointing in the same direction from several other quarters. Though the absence of returns renders it impossible to speak with certainty as regards Exports and Imports, it is satisfactory to find that the shipping statistics of last year point to an increasing rather than a decreasing trade. For according to the recent report of the Harbour Master, the tonnage of vessels entering, and clearing from, Hongkong reached in 1890, the enormous figure of 13 million tons-or considerably higher than those of any former
and exceeding year by 1,000,000 tons those of 1889. It would thus appear that my anticipation of 1889 is shewing itself to be correct, and that trade in other directions is compensat- ing for the deficit caused by the decaying tea export, and the stoppage of emigration to Australia and the United States. And while on the subject of Emigration, I may mention that the accounts recently received of the condition of the Chinese in
Mexico are so favourable, that if they should be confirmed I think it only right that the Government should encourage the emigration thither which it is desired to conduct from Hongkong. If it is true, as I am informed, that Mexico will welcome all the free Chinese which can be sent there. I shall expect that in no long time the trade which will spring up with that rich country,-rich I mean in its soil and its minerals-will not only equal but surpass all that has been lost by the restrictive laws in the United States and Australia. But, however, this may be the correctness of the indication from tonnage that the volume of trade is increas- ing was signally confirmed only the other day, since I began the examination of this question, by the statistical report of the Chinese Custoins for the last year (for a copy of which I am indebted to the kindness of Sir Robert Hart and the local Commissioner). Though I have not had time as yet to examine care- fully all the figures, it suffices for my purpose to take the figures shewing the value of the general trade between China and Hongkong which are Taels 122,358,507 for 1888, Taels 118,046,381 in 1889 and Tacls 125,844,901 for 1890. Thus the value of our trade with China actually increased last year by more than Taels 3,000,000 as compared with 1888 and by over Taels 7,000,000 (or about £1,750,000 sterling) as compared with 1889. As also indicating that the volume of trade is not decreasing I may mention that from a return furnished by the Registrar General, it appears that in the first three months of this year 174 Chinese shops were closed, and 236 opened shewing a favourable balance of 62, and though owing to my being unable to get the similar return for former I do
years not count this balance as proof of increase, I think the figures at least suggest the probability that Chinese trade is not falling off.
Turning now to the matter of Bank deposits I see as little reason for alarm or despondency. Having requested information on the subject from the four British Banks in the Colony, the answers obtained from three of them shew that as regards them, there has been not a decrease but an increase of deposits to the extent of over $800,000. The only one of the four which returns a decrease, the amount of which is not stated, is the Bank under the management of the Honourable Member, who in replying to my letter as Manager reiterates his statement made as Member of Council in respect of the decrease of "millions of dollars," but in this instance limits it to Chinese Banks. Now on this matter of Chinese Banks I have made enquiries from high authorities Banking and others as well as from the Registrar General. The estimates thus received vary considerably in amount, but I am most inclined to that of Mr. WEI Yes, Compradore of the Chartered Mer- cantile Bank, not only because it is the result, I understand, of careful enquiries at each of the Banks referred to but because it represents a mean between the extreme estimates on either side. According to his calculation the aggregate decrease of deposits in the Chinese Banks as compared with 1889 is about $1,000,000, the figures being $6,000,000 for 1889 and $5,000,000 for this year. Deducting from this decrease the $800,000 increase in the British Banks, there is left $200,000- so that there requires the large decrease of $1,500,000 in some quaccountable quarter to make up the two millions which would be the minimum amount to millions of decrease. justify the Honourable Member's indefinite statement as to
"
I should mention that the Registrar General in forwarding his estimate of Chinese Bank deposits accompanies it with the statement that despite all losses, money is at present plentiful among the Chinese, and that the rate of interest among them just now is 42 cents per month per $100-this being scarcely over 5
per annum and is even lower than the rate among Europeans.
per cent.
Now as regards Lund which the Honourable Member says has fallen greatly in value, I do not doubt that as regards a considerable arca of the less valuable land of the Colony, there has been considerable depreciation by comparison with the inflated prices of 1889, but I question whether there has been any depreciation at all as regards what is of incomparably greater importance, viz.: the large arca of specially valuable land in Victoria. For though a seller of such land might not
No comments yet.
Private notes are available after approval.