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THE HONG KONG WEEKLY PRESS &
[March 1st, 1929.'
HONG KONG AND SHANGHAI
BANKING
CORPORATION.
CHAIRMAN'S ANALYSIS OF EASTERN SITUATION AND
PROSPECTS.
SYMPATHETIC VIEW OF NATIONALIST GOVERNMENT'S TASK.
AFFAIRS IN JAPAN AND F.M.S.
The shareholders' meeting of the Hong Kong & Shanghai Banking Corporation was held on February 23rd at the City Hall when Mr. A. H. Compton, Chairman of the Directors, gave a lengthy review of the Bank's activities during the year 1928, the financial position in China, India and Japan, and the political situation in China.
Mr. Compton was, on the whole, optimistic. The Nationalist Government, he declared, were damaging their reputation for good faith by holding themselves free to alter contracts by their The failure to introduce a own arbitrary decision, especially with regard to the foreign loans budgetary system and the irregular nature of taxation, especially that levied by local authorities, were as prejudicial to the authorities as to the merchants, while the whole country suffers incalculable loss from the hold up of trade.
The Nationalist party
On the other hand they must take a broad view of the situation. had held the country together since their victory of last summer, the outlines of their programme there can be no doubt would "form an admirable ground work for national reconstruction," and that the spirit of progress is abroad throughout the country."
The Chairman referred to the improved relations between Great Britain and China, adding a tribute to the work of the British official representatives both at Peping and Hong Kong. As regards the Bank itself, their net profit had been $13,400,000 compared with $14,200,000 we have had to suspend for 1927. They were able to declare the same dividend and bonus, but
The result was by no means unsatisfactory our practice of making an annual addition to reserves. considering events in China, Janan and Malaya.
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The Hon. Mr. J. Owen Hughes, who seconded the adoption of the report, on behalf of the shareholders, warmly congratulated the Chairman. Directors and staff on the results of the year, and fully endorsed a proposed 10 per cent. bonus for members of the Bank's staff-
SATISFACTORY RESULTS OF A DIFFICULT YEAR.
THE CHAIRMAN'S SPEECH.
Including 83.411,430.90 brought forward and after deducting the "Our Earnings."
interim dividend of $3 paid in last (viz. £480,000 at Addressing the shareholders, the August Chairman said: The results of 2/0.3/8=$4,726,153.85) and $50,000 to Directors, the the year's working are, you will remuneration have noticed, somewhat less favour-balance available for distribution able than in recent times, the net is $12.065,338.66. The allocation of profit of $13,430,060.61 comparing this balance recommended by the Our Directors. which I hope will meet with $14,239,288.14 for 1927. earnings, I am glad to say, justify with your approval, is as follows: the Board in recommending the same dividend and bonus as before, but you will observe that we have had to suspend our practice of making an annual addition to re-
serves.
That the banking year in the Far East should have proved less pros- perous can cause no surprise when we consider the unpropitious con-
A final dividend of £3 per share with bonus of £2 per share (subject to deduction of Income Tax), ab- sorbing $7,917,525.77; transfer to Bank Premises Account $750,000: balance carried forward to the new account $3,397,812.89.
The Balance Sheet.
comment.
The figures of the balance sheet ditions in three of our fields of do not require much operations the commercial depres-Money being easier in most of the sion in China, the legacy of civil principal centres of our activities, wars and successive political up-bills discounted, loans and credits heavals, the unsettled economic have declined about $16 million in- situation in Japan, the causes of which is compensated by an which I propose to analyse later,
crease in our cash and bullion in and, in the case of the Straits and hand and in transit of about Malaya, drastic curtailing of $20.3/4 million.
a trade consequent on the fall in the price of rubber.
As I shall show presently, there is reasonable ground for looking to an improvement in each of these cases and I think that we may be fairly hopeful of seeing during
re-
the next twelve months that vival in the business of the Bank without which it will not be pos- sible to assure to shareholders a return on the continuation of a high level which has been main- tained for these several years past.
I
outside the period under review, should like to refer to the opening on January 2nd of our Kowloon sub-agency. In establishing this new office on the mainland we are keeping in step with the rapid growth of the Colony in that direc- tion and are, I feel sure, provid- ing the increasing body of re- sidents with a much appreciated convenience. The sub-agency serves also to relieve the pressure of work which falls on our Head Office.
The Silver Market.
Among the subjects dealt with by the Chairman at our annual meet- ings, the silver market holds an always important place inasmuch as, by its effect on the China ex-
change, the price of silver exer- cises a probably greater influence than any other single factor over the operations of foreign Banks and commercial houses in the Far East.
During the past year the trend of the market has been quiet and steady with few very sharp move- ments in the price, ready prices
between 26.1/16d and 28.7/8d per ounce with an average price for the whole year of 26.1d compared with 26.1/32d in 1927.
The only other considerable dif-ranging ference is in our holding of securi-
which is ties
lower by about $29.4 million, this being to a great extent accounted for by an increas- of bills receivable ed holding
which are some $10 million higher
and a reduction in current ac- I counts of about $11 million. would mention that
invest.- ments stand in our books at well below current market prices.
our
Although the event falls actually within the current year and so is
An estimate of the total amount of the world's production of mined silver in 1928 is 268 million stan- dard ounces. This was supple- mented by some 25 million ounces sold by the Government of India from their Currency Reserve and by over 30 million from the melting down of British, French and Bel- The total addi- gian silver coins.
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