1912-11-08 — Page 3

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HAMBURG LETTER

ĮSPECIALLY WRITTEN FOR TES “HONGIOMS AILY PRESE."]

HAMBURG, October 18th, THE WAR AND THE MAREST!,

Politics have been the ruling factor in the markets for the past fortnight. Con- teneo which appeared to be slowly re- turning at the date of my last letter agar received a rude shock by the de erration of war against Turkey by Montenegro and the menacing attitude of the other three Balkan States. Panic once more seized the stock exchanges and "this time it was not only, the previously inflated securities, but others as well, that

THE HONGKONG DAILY FRESS, FRIDAY, NOVEMBER 8TH, 1912.” ⠀⠀

of consumption and in the returns of the saving banks. There were founded in 1876; in the first twenty-eight years of their existence the deposits reached a mil liard life, to which in the next five years, 1998/9, 600 millions were added, and at the present moment the total may be safe- ly put at two milliards.

The trade of the country likewise shows

a rapid improvement, the value of im- ports during the three years 1909/11 has increased by 445 million lire and that of exporte by 461 millions, and during the first eight months of the present year there has been a further increase of 22 and 103 millions respectively.

The annual receipts of the State rail

1911, from 408 to 488 millions, whilat an Vienna at one moment that the govern increase of 32.8 millions, compared with ment commissioner at the bourse after the same period last year, is reported for wards, by virtue of the powers vested in the time from October 1st, 1911, to Septom him, cancelled several sales at unwarrant ber 1st this year, of which only 7.8 mil. ably low rates. Altogether, with the lions are accounted for by the war tax exception perhaps of Paris, where a large on railway traffic, amount of Balkan stock is held, matters; Italian stock, thanks to the conserva- Heem to have been worse at Vienna thon tive policy of the Government in not anywhere else, owing to the immediate having continual recourse to foreign proximity of Austria-Hungary to the loans, has hardly been affected by the war; it stood at about 103 in the middle lations with the belligerent countries. of last year and is now quoted 98, in spite London, on the other hand, showed more

THE FAR EAST IN PARLIAMENT. I

THE CHINESE LOAN,

European supervision for a loan up to £80,000,000.

Mr. Watt (Glasgow, Collego, Min.) asked what were the conditions which were stipulated to the Republic of China hy the Powers before the loan which she desired would be permitted. *

M

FOREIGN CAPITAL FOR CHINA.

THE ESSENTIAL SAFEGUARD.”

In a lengthy article on the Loan situa

INTIMATIONS

Captain Faber (Hampshire, W., Opp.) asked the Secretary for Foreign Affairs. whether the surplus revenues from tjesty's Government would have no objec-aaye:-- Salt Gabelle, assigned as security for the tion to the publication of the conditions

tho

China's pressing necessities remain, a the proper moment, but before doing identical revenues required by the Six so it would be necessary to obtain the the amount which she has scoured by the Crisp Loan of £10,000,000, were Powers Group as the security under asment of the other parties to the agrea- Birch Crisp flotation serving merely to ment. Until, however, the question of discharge certain obligations in arrears; loans by the Six-Powers Group is de- it is, therefore, pertinent to inquire by initely settled it would obviously not be fair to disclose details. As soon as a settlement is arrived at his right ban. friond would seek the consent of the group to publish full particulars. His Majesty's Government had lost no oppor

We wanted on Sunshine - His Has the the COUPON

Sir E. Grey. For the reasons stated in reply to the hon. member for Glasgow on the 14th inst., his Majesty's Govern ment are not at present in a position to disclose details of the conditions put for ward by the Six-Powers Group.

THE CHINESE LOAN,

what means the British Government may bost avail itself of the present favourablo opportunity to reconsider and strengthen its whole policy on the vexed question of Chinese loang.

The declared aims of British policy in

headings-first, the development of Bri. tish trade; secondly, the maintenance of the political and territorial integrity of It requires no elaborate argu- China. ment to show that both these aims are

Sir F. Cawicy (Lancs, Prestwich, Min.)tunity of announcing that, broadly speak asked whether the Hongkong and Shang-ing, the objects which the Governments British representatives of the Six-Powers prevent the possibility of a return to the xuffered; in fact so great was the scare in ways rose from July 1st., to July ist, hai Banking Corporation was one of the concerned have had in view are:-To China may be roughly defined under two!

Group, and whether the right hon. gentle- former dangerous policy of unprofitable man was satisfied that this corporation international competition in China, and WES & puroly British one representing to discourage any loans which do not in their opinion offer adequate guarantees British capital and British interest.

Bir E. Grey-Tho answer to the first for the proper and useful expenditure of part of the question is in the affirmative. the proceeds and satisfactory security for likely to be attained by lending British The head office of the bank is, at Hong the payment of principal and interest. kong. The management and staff are purely British throughout, but I am aware that there is a minority of foreign directors who are resident in the Colony, representing firms the greater portion of whose capital is engaged in British tre.de. We understand that the capital is British

Mr. Ginnell (Westmeath, N., Nal.) asked whether the right hon. gentleman ber of shares which are held abroad.

would place in the Library, or make available to members in some way, the English text of the terms sought to be imposed upon China by the Six-Powers Group of financiers; and whether there was anything in those terms, or in the relations between the constituents of that group, calculated to restrict China in the development of any part or parts of Chinese territory,

scat. of war and its extensive business re-

1844.

E have pleasure in announcing to our Customers and Public of Hongkong and Coast Ports that under tas Coupon system introduced by the Distillore, M665, WILLIAM GRANT & SONS, LTD.. of Glasgow, in connection with our M.P. Whisky, Mr. H. D. IFFLER has turned up Es possessor of the number 1844 drawn,and we have provided him a First Class Pasinge home as stipulated in the Coupon.

H. RUTTONJEE-

& SON,

composure, speculation having been less of the reduction of the rate of interest with the exception of a very small num-/foreign control on which the Six-Power and special interests in the Yangtazo Wine and Provision Merchants.

Consols and German, French and other from 33 per cent. to 3, whereas English stock have experienced a considerably greater decline in the same time.

16 on the Continent, and it is stated rampent there during the summer months to have taken up a large proportion of continental offerings and to have been

The financial position of the Treasury prepared to take more if prices had

is highly satisfactory, the balances at its Since yesterday, recoded still further.

disposal being at the present moment however, there is a better feeling in the 63.7 millions with the Banca d'Italia, 75 market, the low prices attracting aton millions with various foreign banking tion, and although buyers at first proceed-establishraents, 93 millions in short Tres- ed slowly and with a certain hesitation, sary bonds, and 155 millions which it is the news to-day of the signing of the legally entitled to claim in advance from preliminaries of peace between Turkey the banks charged with the issue of paper and Italy has caused a regular boom at rapidly advancing rates.

It is a remarkable proof of the inherent soundness of trade that it should have bean so little affected by the political events; buyers may have held back some what awaiting further developments, but on the other hand the mobilization of the different armies created a sudden demand for materials of war and for warm cloth- ing, blankets, etc., in view of a winter campaign.

ITALY'S FINANCIAL POSITION.

money, or 387 millions altogether, of which about 300 are available at any time. The metal reserves of the three banks of issue rose from 1,250 to 1,595 millions during the eleven months of the war, and the amount of gold deposited by the Gov- ernment with the Cassa dei Depositi Prestiti as security for the paper money in circulation from 217 to 241.

Sir E. Grey. The reasons which pre- clude his Majesty's Government from closing at present the terms put for- ward by the Six-Powers Group were ex- plained in reply to the hon. member for Glasgow College on the 14th inst. The answer to the second part of the question is in the negative.

Mr. Ginnell.-Can the right hon. gentleman account for the fact that not. withstanding the very special support given to the Six-Powers Group by the British Foreign Office that group is still unable to make any progressi

capital to China under conditions that secure its honest expenditure upon re Mr. Ginnell (Westmeath, N., Nat.) productive works. Equally easy is it to asked the Secretary for Foreign Affairs prove that neither of these aims can pos- on the 15th ult. whether, as the willing sibly be advanced by supporting a cosmo uess of British Snanciers, if allowed, to politen group of financiers which at one lend money to China on terms satis-orient conciliates Germany by the factory to both sides showed the so-called gratuitous surrender of British rights Group alone insisted to be unnecessary Vallay, and at another admits the parti for British interests, he would say in cipation of Russia and Japan for the what interest the British Foreign Office undisguised purpose of assorting their rights and special interests" at China's supported that requirement of the non-

nor the development of British trade is British members of the Six-Power Group expense. Neither the integrity of China to which China obiected.

likely to be assisted by associating British have underlain the "Six Nations" recent capital with purposes of the kind which loan negotiations at Poking-purposes which frankly aim at proventing China from developing her northern territories or reorganising her military forces,

Sir E. Groy (Northumberland. Ber wick)-I must refer the hon. member to the statement made in reply to the hon. member for West Hampshire on the 8th inst. To lend money to China without proper and adequate guarantees for credit; it might even lead eventually to useful expenditure will impair Chinose the bankruptcy of China, which would provoke all sorts of undesirable foreign interference and would damage the trade of China, and therefore British trade with China. It is in this interest that we have acted.

THE REPUBLIC OF CHINA.

PROPOSED NATIONAL EXHIBITION.

AGRICULTERE AND FORESTRY. ·

THE QUESTION OF SECURITY:

I, in accepting these possibly inevit- able results of China's defenceless state and the ambitions of her powerful neigh- bours, the officially-supported group of British financiers had shown conscienti- ous appreciation of the necessity for pro-i tecting the British investor, and the best economic interests of China herself, by insisting on satisfactory safeguards, there would be less ground for the criticism which has been so freely directed against the Foreign Office's policy of "exclusive But what are the facts The apport.

The conclusion Herr von Flöckher ar- rives at is that the war has not in aay way interfered with or retarded the normal progress of the country, which has Herr von Flöckher, German councillor remained quiet throughout that there has of legation in Rome, Las just sent in a been no change in the ordinary course of most interesting exposé of the financial life of the people; and that the activity situation of Italy during the oloven in trade, with the exception of some What is the objection to making these the Bureau, which will contain Depart proved to be productive of the worst

months the war with Turkey has lasted; it proves, what nobody could have fore- seen, that the government has been able to defray the cost of the war out of the ordinary revenue without having to raise a loan, which speaks volumes for the economic development of the country. The chief sources of revenue are the tasse ̈suggli affari, the imposte di consumo, the reddito delle privative, the imposte diretti and the preventi delle poste which since the outbreak of the conflict on October 1st. 1911, have produced altogether 1874 mittion Lito up to August 31st, compared with 1,803 millions in the corresponding period of 1910/11, showing a surplus of 71 millions, of which the tasse suggli affari have contributed 9.886 millions, the im poste di consumo 16.899, the reddite delle privative 23,881, the imposte dirette 18.706 and the proventi delle paste 12.453 mil- Jions. What is particularly striking is that this surplus should exceed of the previous year over 1909/10.

that The

Sir E. Grey-I can only refer to the answers I have previously given as to the reason why support was given to the Six- Powera Group. The reason why no loan was concluded was that they did not come to an agreement with the Chinese Govern Mr. Watt (Glasgow, College, Min.).- ment with regard to certain conditions.

conditions public?

branches, has continued uninterrupted.

Bir E. Grey. It was stated, I think. The building trade in particular has been brisk, Government having spent 20 mil in a reply given on the 4th. If that reply lions more on public works than in the does not cover the point, and the hon member will put down a question, I will previous twelve months.

Modern Italy, he says, has passed give what further information I can.

Mr. Harmood-Banner (Liverpool, Ever through the ordeal in a manner worthy ton, Opp.) asked whether the conditione of its splendid past. Twice the country originally laid down by the financial has reached the pinnacle of its glory, group monopolizing the support of the once in the times of ancient Rome, and Six-Powers in the Chinese loan negotia then again during the Renaissance; the tions were considered essential to make any loan sound and really advantageous present poriod of prosperity promises to China; and, if so, why the Powers were to last longer than the former ones, the now prepared to give fair consideration industry of ber people and the wire fiuanto amendments put forward by China.

Sir E. Groy The Six-Fowers Group cial policy of her Government having

consideration to any counter-proposals placed her in the front rank of financial-bas always been prepared to give fair put forward by China. No change bas ly independent States.

laken place in the attitude of the group in this respect. It was the general lines, not all the details, that were essential.

TIBET,

WRECKED BY A WRECK.

TWO HAMBURG-AMERICA STEAMERS BUNK IN

Two

THE ELBE.

to

the

Colonel Yate asked the Secretary for Foreign Affairs whether the Russian Buriat Dorjieff had returned to Lhasse and whether a British Agent could now Hamburg-America Company's Fandialia, coming down stream, collided engagements regarding Tibet were duly steainers sank in the Elbe on the 6th he be sent to Lhassa to see that treaty

Sir E. Grey, According near Krautsand with a floating dock observed. which was being tugged up the river. The Vandalia sank in the middle of the information which has been received by fairway, only her mast and funnels re. his Majesty's Government through the British Trade Agent at Gyantse, Dorjief Shortly afterwards, adds Reuter, the was recently at the monastery of Sam- Graecia ran into the wreck and was dam ding, naar Lhasa, but was not there as aged. Her commander ran her ashorea Russian Agent, and left this place on Both crews were saved, but the cook and Beptember 4th to return to his own carpenter of the Vandalia, who were country. With regard to the second part below at the time of the collision, are of the question I would refer the hon. missing. It is supposed that they were and gallant member to Article III. of the drowned.

Angio-Russian Convention of 1907.

RUBBER DIVIDENDS,

A London telegram to Straits papers states that the following dividends are declared:-

ΡΙΝΑΣ

THE OPIUM TRADE AND CHINESE LOAN,

abuses.

RECEIVED from Mener, H. RUTTONJEE & SON, a frst class ticket free, under the Coupon System introduced. by the Distillers in connection with their M.P. Whisky.

(84) H. D. IFFLER

133

Chs. J. Gaupp

& Co.,

ÅLEXANDRA BUILDINGS,

CHATER BOLD,

CHRONOMETER-MAKERS, -

WATCHMAKERS,

JEWELLERS AND OPTICIANS.

FINE

DIAMOND

JEWELLERY

The Ministry of Commerce suggests the holding of the proposed National Indus-ecarity for the investor, which the official group accepted in the case of the trial Exhibition at the time of the second Bukuang Railway Loan (after arranging anniversary of the outbreak of the Re for German participation on the usual plea of eliminating competition) was of a kind which their own previous experi- volution.

The Bill for the formation of the once had proved to be entirely inade- Agriculture and Forestry, provides that placed another £10,000,000 at China's dis Bureau of Experimental Researches in quats. The Currency Loan (April, 1811) the Minister of Agriculture shall control posal under conditions which had already In the recent negotiations, intend- ments of Agriculture, Forestry, Cattle ed to provide China with £60,000,000 breeding and Fisheries. The Staff of the sterling (four fifths of which would have Bureau will consist of eight professional been drawn from London and Paris) experts, sixteen assistants and four super-stress was laid upon the broad margin of A Government Delegate security to be found in the revenues of intendents.. explained that representatives of the the Salt Gabelit. It is only to-day, when Bureau would be appointed to investigate the same security has been pledged for the Birch Crisp loan, that the Bri the forests of Manchuria and cattle-breed-

the Salt Gabelle, namely, that BS ing in Shantung. With regard to the fish investor learns the simple truth about realisable security it is of no value, in sheries, be said that if measures were not taken foreigners would soon mono-

It was intended that asmuch as it could no more he adminis tered by the Imperial Maritime Customs polize the trade, the Bureau should be opened early in 1913. The Forestry Department would be than the lekin revenues, which were

control of the Customs by the Edict located in the Temple of Heaven while similarly pledged and placed under the the Departments of Agriculture and March 2nd, 1898, as security for the Cattle-breeding would be situated at

Anglo-German Loan Kalgan. The Bill was referred to a Com- Every financier concerned in Chinese

affairs was well aware (before the Tispec- GOLD AND SILVER BRACELET tor-General had stated the fact) that the mittre.

The Crisp Loan was discussed by the provision for handing over the Salt National Assembly on the 31st ult. Wang Gabelle revenues, either to the adminis Shu-sheng said that the House was ob- tration of the foreign Customs or to a liged to pass the Loun because it was separate German-controlled-service, was ENGLISH MOUNTED CHINESE JADE

JEWELLERY. already an accomplished fact, but it was useful only as ornamental material for a only right that the Government should prospectus. Had not Sir Robert Hart. know that the National Assembly only after three years of strenuous efforts to agree to the loan because of the country's control the General and Selt lekin of the need of money and not because the high Yangtze ports, admitted the thing to he

Wang Chiu-yu moved the bowed them. striking out of the words, The Minister aware of the truth that there exists only handed policy of the Government has impossible? of Finance reported the main points of one condition under which foreign capital the agreement to a closed session of the can be made of benefit to China and be National Assembly," which, ho said, were itself protected, the same condition which conduct in the only reliable asset in the country and the untrue. Other members dwelt upon the has made the foreign Customs revenue the Government's irresing Shih-yi argued Northern Railways its only profitable

NATIONAL ASSEMBLY AND CRISE LOAN.

Batter of the Loan.

thet of

of

year.

Every Legation and every bank is

The actua}

the British and French Governments, -by to give an explicit statement of their ex- that it was necessary for the Government Government undertaking. Early in 1900 penditure. He understood that the Gov-an exchange of Notes, agreed to unite in

all future Chinese loans. ernment still held the first instalment, maintaining this essential safeguard in which proved that no definite plan of ex- penditure had been prepared. The Bill formula used was insistence on "Canton- etated that the Loan was contracted Kowloon terms, owing to the rupture in the Sextuple Loan negotiations, but it was still a ques tion whether the Government would re- sume dealing with the Sextupla Group, Sun Chung criticized the price of the loan, which, he said, represented an onor mous Insa. Finally, the Agreement was passed by 40 votes to 21.

the Canton-Kowloon railway agreement, concluded in 1908. having been the last to contain these conditions. As the result of German in- trigues at Peking and German influence in Lombard-street, these good intentions were subsequently abandoned. The result of the Birch Crisp loan and the necessity

A SPECIALITY.

ENGLISH, AMERICAN

GOLD AND SILVER WATCHES.

WATCHES.

AND

SWISS

MAPPIN & WEBB'S

OUR

SILVERWARE,

OUTLERY and

PRINCES PLATE.

a surpine, have been left out of the cal- import duties on grain, which also show tulation, as their yield varies, being entirely dependent on the result of the Italian harvests. The large surplus revenue has not only sufficed to cover themaining uncovered. additional expenditure-of-the campaign, but the Government has even been able to devote a portion of it to increasing the amount allotted in the budget to public works, having a balance of 57 inillions in hand from the previous year. The remainder of the cost of the war will

In reply to a question from Sir J. D have to be borne by the present financial

Rees (Nottingham, E., Opp.), year beginning on July 1st, of which

Mr. Wedgwood Benn (Tower Hamlets, the receipts are estimated at 1,079 million

St. George's, Min.), in the absence of the Lire or 72 millions less than in 1911/12,

Secretary of State for Foreign Affairs,

for a decent interval before the Peking Government resumes ngotiations with the STUDY hat as the two months of July and August

said:Information received from his Majesty's diplomatic and Consular re-

"Six Nations banks present an already show a surplus of 26 millions

presentatives in China gives evidence of

cellent opportunity for redeeming the

OF orer the corresponding period of last

Orent indignation has been aroused errors of the past, for putting Chinese the inability of the Central Government Tromelbye (Selangor) Rubber Co., Ltd., at Feking to impose its will on the year, they may be expected to exceed the

Besides,,streau-35 per cent.

authorities of the provinces. The same among China Merchants' S.N. Co. share-loans upon a businesslike footing, consist ent with the avosved aims of British estimate considerably.

Brieb Rubber Estates, Ltd. (Krian), 10 information also shows that, since the holders in the South and elsewhere over

the monopoly of support." ar ous exertions have been made for several

outbreak of the revolution, China has the recent action of the Board of Policy, and for gracefully withdrawing THE

rangemant.. An understanding between years back by all Government depart per cont.

Federated Malay States Rubber Co., signally failed to carry out the stipula Directors, acting under the instructions ments to reduce their expenditure as

tion in Article 1 of the Anglo-Chinese 65 per cent. much as possible, the annual savings

Galang Besar Rubber Plantations, Ltd., Agreement of May 8, 1911, providing of Deputies despatched to Shanghai by Downing-street and the Quai d'Orsai effected amounting on an average to 31 7 per cent.

for the progressive diminution of opium the Board of Communications, in dis would suffice to define for practical pur supervision over the expenditure of loan the million Lire during the last five years. Consolidated Malay Rubber Estates, production throughout the country. His charging Mr. Tang Fanz-tze, from the poses the essential condition of effective right hon. friend could not say that there: Roard of Directors. Mr. Tang, says the funds. It is true that French finance in

China has lately been subjected to The prosperous state of Italian finances Ltd., 30 per cent.

pressure of Russian political ambitions in Kuala Lumpur. Rubber Co., Ltd., were any indications at present to is all the more remarkable as the country

warrant the hope that the Central Gov- Shanghai Mercury, has been in the com- has within the last few years passed per cent...

erament would be able in the near future pany for a number of years and the last Monogolia; but if Great Britain and their legitimate com through serious visitations of Provid- The following interim dividends are to enforce the discontinuance of poppy few years has been on the Board and had France are once agreed upon, a policy

cultivation, but he trusted that the charge of the company's affairs and had calculated to gradual restoration of normal conditions,

the resources of the Triple Entento's ultimately lead to this result. His right of his discharge becoming known, letters diplomacy should suffice to persuade the to the necessitics and special interests hon. friend had no information to bear of protest poured into the office and Russian Government to adapt her "rights out the suggestion made in the fourth part of the question that the revenues of during the past few days telegrams have of the situation. the Chinese Government had been largely been received by the Board and Mr. Tang

A Chinese was yesterday at the Magis- reduced by the fall is opium importa from shareholders representing over 10,000 tion. The loss of revenue which might shares in Canton and Hongkong protest have resulted from the decrease in the "

Mr. E. A. Irving, in passing quantity of opium imported had been ing against the action and advising Mr.tracy fined $10 er in default one month's offset to a large extent, if not altogether, Tang not to accept his dismissal, but to imprisonment, for playing the three card sentence, remarked that men like the by the increase in the import duty imposed retain charge of the company's affairs tas trick. on foreign opium under Article VI. of usual, until a regular meeting has been

held to decide the matter.

defendant were not gamblers but cheats. the agreement above referred to.

announced:→

INTERIMS

35

Sumatra Consolidated Rubber Estates, I which he believed to be in progress, might given general satisfaction. On the newsmercial and interests in Chion,

ence: There was the commercial crisis in 1907, followed by the earthquakes in Calabria and Sicily in 1908, and a most Ltd., 10 per cent. unsatisfactory state both of trade and Bagan Serai Company, Ltd. (Perak), health in 1910 and 1911, the result of short 5 per cent.

Malacca Rubber Plantations, Ltd, has crops. That in spite of these untoward

authorised the issue of further capital, events the economic condition of the which now amounts to a million storling. people should have improved at the same rate as the finances of the State is a proof of the rare vitality of the young nation,

Cebu and surrounding ports were again whilst further evidence of this is to be isolated as the result of another typhoon found in the steady increase in the yield which swept over the Visayan islands on of the taxes on commerce and on articles November 1st and 2nd.

EYE

45

and its anatomy and our long experiones in correcting defective vision enable us to tell beyond doubt if your eyes will be benefited by wearing glassES,

Our method of testing is scientifio and Bocarata. If you do not need glassen we will tell you so. If you do need glasses we can supply and it them at ertremely moderate pricer.

MAKE CERTAIN.

WE WILL TELL YOU.

CIAMS

DARK & Co. i YORK BLOGS, CHATCH RO

HONGKONG &

76