1919-06-25 — Page 6

THE HONGKONG DAILY CHESS, - WEDNESDAY, JUNE 25TH, 2918.

La Perla del Oriente's

HIGH GRADE

"BARONETS"

CIGARS

(MADE IN MANILA)

Popular CIGARS at POPULAR PRICE

$4.00 PER 30X.

Sole Agents:

TABAQUERIA FILIPINA,

15, Wyndham Street. HONGKONG.

OUTLER, PALMER & CO.'8" ASAHI BEER

NAPIER

JOHNSTONE'S

SQUARE

BOTTLE WHISKY

NAPIER JOHNSTONE'S

SQUARE BOTTLE WHISKY

SOLE AGENTS IN HONGKONO;

AND SOUTH CHINA

LANE, CRAWFORD & CO.,

And from ALL WINE cats.

PILSENER BEER GRAND PRIZIS

SAHI' BEER

* DAI NIPPON BREWERY

SAH

LAGER BEER

SPECIALLY BREWED

FOR

A

"EXPORT.

COMPANY

JAPAN

No office needed by those who own

CORONA

The Pruuna Fetting - Lambing

Come in, and leam what?

wil do for you. ALEX. ROSS & CO.. 4, Des Voeux Road Cl.

SOLE AGENTS

MITSU BUSSAN KAISHA

IT IS WORTH YOUR WHILE TO WRITE US about your requirements for ALL CLASSES OP BRITISH MADE

GOODS.

Some Specialiticat Facts and Shert. Frather Laces. Cloth Hats and Caps. · Children's and Mines', Fancy Hats. Khirts and Рузажан, Kærdien, Cation Pentaires,, Water £iidza,. Motor and Cycle Tyre.

Whe

THE EXPORT DISTRIBUTOR, Maswal House, Landou, L.C. 3. 'Special tarau før tria) geduru nad mispla other thin

[581

On Arising

A little Sal Hepatica taken the first thing in the morning has proved with millions of people practically a specific for sluggish bowels and Mild and other intestinal ailments. palatable, Sal Hepatica can be taken

freely, by every one, and is always - effective.

HORLICK'S

MALTED MILK

(Pull-cream milk enriched with barley and wheat) The Ideal Food-Drink for all Ages.

Science affirms its superiority. Experience confirms Gives strength and maintain it. «Gènerates beat and conserves it. Bulids Bona, Brata & Brawn. Refreshing and delicious. Easily digested and quickly absorbed. Broks in an inch by the simble oddalen af but we sold womĮ. IMPORTANT NOTICE.

HORLICKS

?

ORDINARY MILK is not always juze :

BOHLICE's guaranteed unllariniy sa. ORDINARY MILK in unsafe unless soaked

HORLIOK'is zaža anë needs no working.

ORDINART KLK olan Giangram † HORLION'S never does.

ORDINARY MILK deterioraios quekly : HORLICK'S EN INLARRIBLY.

ORDINARY MILK i mellem avalike when wanteds

HORLICK'Siman at hand.

· FORLICK'S may be used in Puddings, Bread, Da Costards, ite., in place 'ni ordinary milk.

Sold by Chouats and Bones."

HORLICK'S MAITED MILK

HALF A CENTURY REPUTATIONS.

PILLS FOR THE

DLE CLERC'S & grosirs

Læralpable, for; diensens of them important, organs, Gravel, Pains the Back, Gon, Rheumation, the Fr88, Jeading Chemists, or post. frse. - DR. La Czaso Mau, Co, HiTErgous Blad, WAL, LONDON, ENGLAND. «Depots : Paris, 12, Bur CASTIGLIONE; New York, 90, BEAN STREET, Torunto, LINA, Leo, Australia,, Ezziợt, Esos, Bydney and Erben NEW ZEALAND DECO CO Ln, Auckland, Christchurch, Pusedia, Welling Lon: India, B. K. PAUL & Co., Calca.

[130,

LOUGH, BUCKS, EXG &

(00

KEATING'S

WORM TABLETS

[79

BRITISH PRESTIGE IN CHINA.

THE BANKS AND EXCHANGE. WHERE THE GERMANS FAILED

[BY PROFESSOR C. A. MIDDLETON SMITH.}

EONGKONG

of the neutrals to stay with him, in the near future, at Government House, but there was another building that the Ger mans coveted more-it was "The Baak." For there is only one place in the Far East where the British have a "Govern ment House," and that is in the British Colony of Hongkong. Bus in all of the treaty ports. in the south in Singapore and the Straits Settlements, and now in the northernmost part of Asia. in Vladi vostock, there is the Bank," and it is the pivot of the import and export trade in China.

At

There recently applared in a New York inancial journal the following statement ande by Mr. Oria de Moite Walker, late

GERMAN BANKS. manager the International Banking

The big German houses began their Corporation in Peking He wrote: It business by establishing themselves

But the so- is strange but true. that none of the Hongkong and Shanghai. forsign banks in China has over seriously called German merchants of this Colony were really often financed' direct from undertaken to cultivate the Chinese Germany, and the local German bank was their business. He proceeded to deplore planted in Hongkong, as was the mere- the fact that very few American bankers tricious German Club, to impress the Chinese and others in the Far East. But speak Chinese, and he was quite dränite the German banks for all their fostering in his opinion that the two most even by the State, were not the banks in tial elements in developing business in China. China ay to get into personal touch with Chinese customs, and secure their confidence and cooperation. It may be true that the foreign banks do not calt vate the Chinese, although it is it the opinion of 901216 British residents in China, but still it may or may not be true. What is true is the statement that the Chinese have faith in some of the, fomign bunks.

2

A

Of course, there are several other banks, British, French, Japanese, etc. in the Far East. But in this matter of exchange they are dragged into synchronism by the premier institution in Hongkong. This is no attempt to deprecate their power or their enterprise. The other banks are undoubtedly most important factors in the business of the Far East. But the manager of each of them bas only one eye on his own concern, and with the other he watches the movements of The Bank.' The great axiom of that very stable institution is this: We will prevent, as far as lies in our power, vio

For of lens fluctuations in exchange. course, the variations of trade and the... price of silver must ultimately affect the matter, and the Bank dor: not ect- trol, but adjusts itself to these conditions.

As an Englishtun in China, two facts give me great pleasure whenever I am reminded of them. One is that the prg mier bank in the Far East is a British institution. The other is that the largest insurate company in the world-if it is "not actually the largest, as is often said It would be difficult to give details of locally, it is certainly one of the largest how the British banks have assisted trade in the world is directed and governed by in China. But it is noticeable that, in a board consisting of British residents of working up their enthusiasm for trade this Colony. On some other occasion it in the Far East, our American friends may be possible to write down something are doing all they enn to establish bank- about insurance work in China. Just now ing facilities. Said Mr. Walker quoted the matter of banking is very much in my above, when he oatlined the work of the mind. For during the last few days the American bank that he longs for. it must chairman of the premier bank in the Far be

"prepared to Anane American Further, it must give Ameri East has made a very able speech in this trade." Colony on the subject, and it has been can business fair credit reports and not my privilege to discuss it with some of the discriminate against it. And he hopes cading local merchants.

that it will be one which will compete with the other banks, and make joany upon the same terras and collateral. Nor did Mr. Walker hesitate to say that it must be American 'in spirit and above all American in personact and policy" There is plenty of room for friendly trade rivalry the Far East; but it will take a lot of work to gather up the reputation of oldestablished institutions, especially in China.

י

This British hank is the premier bank of all the banks in this part of the world. It is a unique and remarkable institution. I decides daily the most important thing In the commerce of the Far East. quotes the rate of exchange, and it is not, too much to say that all other banks follow its lead.

It

The picture which springs to my mind as I pass the head office of The Bank" in Hongkong is that of the room wherein

EXPERIENCE, SHIPS AND "CHARACTER.

is seated the chief manager. His real Why have the British banks in China concern is the rate of exchange. How succeeded? It is of interest to mention many dollars will be sell för, or buy with,, some of the causes.

The Germans have And the Japanese. been excluded from China the last bad

£100 in London, or a thousand yen in

First of all the British had had their" Tokyo. or 10.000 gold dollars in New York, unique experience in India. In this or the pesos in Manila. or the guilders matter of banking the only nations that in Batavia? The answers to those ques-count just at present in the Far East are tions are the important thing in the the British, the French, the Americans, trade of the Far East. This exchange business reminds me of steam the chiot manager of The Bank" is the man with his hand on the throttle valve; be turn they did us was to occupy berths on steamers which were to carry some of regulates exchange as the river of a

+ home." But they did not want to steam engine opens or closes the valve ad- mitting steam to the engine. The huge Bo, although they should have gone when China declared war. However, they are The ia China. machinery of commere in South China

no longer in the sun goes on with its varying speed-it must Russians do not count. The Belgians may not slow up altogether. and it must aut suddenly increase its rapidity of motion, reappear, but they have suffered so ter ribly in their own country that they may or the cranks and the levers would be so be too occupied to think much about strained that a crash would be inevitable. China, although if they come they will

115

CHINESE LOVE OF SPECULATION. be welcomed by their Allies. But none of these other nations have had the experi The Chinese must acknowledge the soft ence of the East that has fallen to the lot impeachment that they love to gutable, of the British. They have had India and and the speculators and the gamblers China as training-grounds. The Parsees would soon wreck the whole of the beauti who have settled in Hongkong and Shang fully balanced mechaniam if the man at hat are British subjects. and they under- the stop-valve lost his nerve. I have stand very much indeed the way of Asia. stood within the entrance of the Bank "The shuttles of commerce fly to and fro on s day when Empires were crushing in between India and China, and they carry the West and no man knew what would threads in the shape of drafts, bills. and happen to exchange. Hongkong dollar other documents of the banker. The men had recently been worth 3. 76d., but it who had to do with the beginnings of th had only been worth about half of that premier bank in China, who, nursed it amount soon after the declaration of war through its infancy, had learnt some The There was a crowd of Chiness customers thing about the business in India. waiting within the entrance of the directors of to-day live in Hongkong and Bank and they were not thinking about, have had many years of experience in the the crashing Empires, the liberated commerce of China:

"Four

peoples, or President Wilson and the

The second factor is.shipping. League of Nations. They were thinking out of five belong to Us,

wrote Kipling. of something that might mean ruin in Hongkong some 25 years ago, as he riches to them: the price of the dollar lucked out from a veranda upon the ships The Bank was, just for a moment, which crowded one of the most beautiful taking breath. Someone, it was rumour harbours of the world. It is said that ed, had been buying gold in big quan trade follows the flag", but trade goes tities. He won't sell," said the lying

jade, rumour; and every one knew that with the flag of the British mercantile "he was the chief manager, just on the marine, We had the carrying trade of other side of the building, who had his the Far East more or less in our hands. hand on the throttle. Would he shut down, for 50 years until 1814.

the huge machine because he feared a Then there is the third reason, and it is. sudden rise in the steam pressure? Was the national character, which comes out the Bywheel big enough to provide the in the struggle for trade as in war. No- necessary momentum to keep the engine body has summed that up in better words moving if he did almost shut down? than the greatest philosopher and prophet The crowd of Oriental faces were not of the United States. It is 70 years ago concerned with the Kaiser, Mr. Lloyd since Emerson analyzed our own national George, or Marshal Foch; it was that chief character, and he saw our faults as well manager' well-known features that made as pur strength. But this quotation ex- What are the ele a picture in their mind. And the plains something. Bank" behaved, aa machine, wellents of that power, which the English. There were, of course, jerks, but in a short time the engine was running again test of national genius universally ne- at its normal speed, and the cranks and cepted it is success; and if there be one the levers were unstrained. Thus it came successful country in the universe for the last millennium. that country is Eng about that in February, 1916 actually land" And then he answers it in a line *** yesterday" as these words are written The shopkeeping nation to use a the annual general meeting of the shop word, has a good stand. That is Bank" was held; the chief manager

hold over other nations? If there be ene

merely read the notice convening the just the secret of our success in China. meeting; he never appears much in We have a good stand. With our base, on publie, and is not a director, but he holds the transformed island of Hongkong, we have spread away along the coast and up a unique power in this trading centre the rivers. But there is an atmosphere the hub of British commercial interests in of commercial security in Hongkong that the Far East. He never makes public is found nowhere else in China. The speeches. It was the chairman who con- gratulated the shareholders and exnfair directors of some of the largest trading ed the situation, speaking thankfully concerns in the Far East live in Hong- the splendid year

kong, and with their long experience of which "the Bank !' he

the Chinese and the peculiar trade condi.. completed.

There is a local story that when the tions of this part of the world they keep in motion most of the machinery, of German Consul in Hongkong departed at British commerce in China.-Times Trade the outbreak of the war, be invited some Supplement.