1920-07-31 — Page 2

Page

THE HONGKONG DAILY PRESS, SATURDAY, JULY 318T, 1920.

THORNYCROFT

—FROMMYOZU?

& Co., En

SHIPBUILDURA AND ENGINEERS,

LONDON, SUUTHAMPTON AND BASINONCORE.

Shanghai Office: 65. Szechuen Koad.

119

Marine Motors and Motor Boats.

Motor Lighting and Pumping Sets. Shallow Draft Steamers,

Thorngeroft Water-Tube Boilers,

Thornycroft Oil Fuel System.

Commercial, High-speed and Pleasure Craft.

R. R. ROXBURGH,

Maangor for China.

DOUBLE CERAI BACS

The best bat for all outdoor sports wear. They afford perfect protection with the acme of comfort. Stocked to 2 useful shades of Grey in all sizes.

A LARGE SELECTION OF WHITE AND COLOURED PUGGAREES.

MACKINTOSH

& CO., LTD.

MEN'S WEAR SPECIALISTS.

6, DES VŒUX BOAD,

TILIPHONE 29.

JUST ARRIVED

FRENCH PERFUMERY

<

Toilet Soaps.

Perfumes....

"Rice Powder. Tooth Paste.

"Gelle - Freres.”

UNIVERSAL IMPORT & EXPORT CO.,

P.O. Bux 342. LOW]

HOTEL MANSIONS (Top Floor)...

Hougkong.

Telephone .3422

THE LEADING BRANDS

of

{

MANILA

CIGARS

EL PALACIO

IMPERIO DEL MUNDO.

SOLE AGENTS

THE HONGKONG CIGAR STORE "CO., LTD.,.

TELEPHONE NO. 151.

HOTEL MANSIONS.

HEALTHY SICKNESS.

By taking our "BOOSTER BRAND" MACARONI, FASTE STARS, ZÒG- NOODLES, VERMICELLI, or other kinds of Soup-staffs REGULARLY you mospe BIOKNESS, as all our Products, being manufactured from Floor of the Best Quality and under the most Banitary Method, can be EASILY DIGESTED and give you GOOD HEALTH and STRENGTH

Large quantities have been exported to various parts in the World Your esteemed Orders will repaire dur prompt and careful attention. Terms moderate, especially for Agenciai. **

THE HING WAH PASTE MFG. CO., LTD, HEAD OFFICE-Hongking Not 47 & 48, Connaught Road Central, Tel. No. 930. BRANCH OFFIOG-Bhangazi, Box 450 and 431, Neaking Bond: FACTORIES --Hongkong, Wind Hinz Street Causeway Bay and Shangbai, No 71-

rary Horta Bociekow Roedf

[69

THE SILVER MARKET. AMERICA'S SALES TO THEORIENT. The following, article is taken from the (Annalist (New"York) of June 14th:-

NO PLAW APPARENT...... If both the

id peg

thes trictions bad worked, thore would have been good profits, in short sales of silver futures on the decline front the high

The story of last week's sévérfibreuk in levels and then probably equally good -the price of silver top

below the profits on the long side on the recovery supposed dollar tertium"

','a' story 'of ƒ which seemed asured, as the thing turned many conflicting influences which go far out the profits on the short sales mate back into the Anncial history of the war, rialized but, there was not the recovery but mostly it is the story of a "peg" which which the speculators had: figured didn't peg and of restrictions which did: "", not restrict,”

In the Spring situation was approximate The silver market reached its top in this: The Chinese silver marked was January and February of this year when satiated, trade was moving against "the the New York price was quoted at $1.37

Orient and a break was inevitable. Silver, and the London figure was 594, both per

in the neighbourhood. Of 1.35 an ounce, seemed destined to break an even dollar, fias ogace. As usually happens with mar kets, very few realised that the market was

or possibly a cent or two under But, as the top at that time. A few did appre

rasped the Eastern speculators," "the ciate that it was getting toppy as the prices could not go under the dollar level, operators say, and these few ther the or at least could not stay under becauser few of the low who went ahead and capi of the Pittman Act, which "directed the talized their appreciation by playing the Director of the Mins to replace

| $250,000,000 of silver released a year or so market for a fall, have profited handsomely. ago, I was all worked out very nicely. But, it may be remarked in passing, that When silver got to a dollar the Director of of those who took the short side throw or the Mint would start buying and would four months ago, Home, matly among those continue buying until either one of twe ultra-clever speculators in China, aste since things happened; the price got well abore a dollar, or $960,000,000 available silver lost a good part, if not all, of their profits

If the

REVUE CONCERT.

time

D. F. AMELIAS CO. Presenting for the first

in-Hongkong-

at the

THEATRE ROYAL

For the benefit of

MLLE. ROSA - FILOCAMO TO-NIGHT SATURDAY, July 31st, at 9.15 pm.

Programme including Sangg in Costume Brad Selections by the WILTSHIRE REGIMENT

3

BOOKING AT MOUTRIE'S

PRICES AS UBUAL,

THEATRE

."

[1957

ROYAL

MR. T DANIEL FRAWLEY

PRESENTS THE

by switching their market position too soon, removed from the market. FRAWLEY

And the reason they have lost out recently is because they believed in the peg and the restrictions which didn't peg and didn't

restrict,"

prio reseted upward there would be a Profit for those who bought a dollar, and if it kept down long enough to allow the Mint to cover,the mere fuct of the removal of this considérable amount" "from

Those two ficturs mentioned are more of less technical. Nevertheless, they have bad the market would calise a shortage and the Aad, avail- mus positive influence in recent weeks Price would go up, anyway. and, at least for the time being, they have able stocks of silver would not be coming ben more itapartant than the great basic out of Continental Europe to add to the

floating supply because of the restrictions. And gynges which, ai thẻ khay analysis dictate the major swizgs of the market. A

It was a premise seemingly without a technical influence is a temporary one, and

flaw. in the long run it will make little difference but while it is functioning it may result in big profits for those who recognize it, and for big losses for those who ignore it.

THE PRICE PEGGED.

Silver, it will be

IMPORTANT. CLAUSE OVERLOOKED.

COMPANY

In Repertoire of the Latest London and New York Succeasca.

FAIR AND WARMER

MONDAY,

AUG, 2ND:

TUESDAY

AUG. AND:

WEDNESDAY,

ACG, 4

AVG. STUA FRIDAY.

Ave, Gen:

"SCANDAL"

THREE WISE FOOIS"

"LIGHTNIN

POLLY WITH

PAST

IT PAYS TO ADVERTISE

Ace. 7TH:

PRICES AS USUAL.

and continued selling all the way down

"Thi far-sighted speculators wild at $1.34 THURSDAY: to, but $1.05. That was three weeks ago. Then the quotation fell to a dollar and they stood around figuratively sponkidg., recalled, start and awaited, for the Mint to begin its par SATURDAY, ed its great rise in July, 1918, chasing. But the Mins did nothing of the when the Pittman Art came along and sort, And for good reason. made it possible for Che United

In the Pittman Act there is a little clause Staten

Treasury to divert the silver dollars and silver bullion,

which apparently has been overlooked. It held in its provides that while the Director of the vaults into commrreia channels. Ia August of that year control of the world's Mint shall bug to replace the silver sold silver market was taken over by the British be caly the product of mines situated in to the Orient, the silver thus bought shol} and American Governments. The price the United States and of reduction worke " pegged at '4948.; in London" and ut $1.01 in New York The silver which was this section effective are left to the dis

so located." The regulations for making released By the Treasury was used, in cuncretion of the Director of the Mint. who siderable part, for export to the Orient to is empowered to draw up his own terms liquidate allied indebtedness occasioned by the abnormal trade developments due to the

and conditions. And these regulations, sa * present existing, make it almost im- war. This control came to an end in May. possible for anybody to well silver to the 1910.when the artificial restraints were Mint for the time being, or at least that. removed and a free market re-established is what bullion dealers who have tried to During the period of matre y prices were kept stationary, there were ports constantly coming up which indicated that beneath the urine prices were really rising After control was removed the price shot ap..

i

ficial

take advantage of the replacing clause of the Pittman Act say.

bars

in Mexico for example, is not eligible. Silver mined outside the United States, Nor is silver mined in the United States | and converted into commercial In November of last" year silver sold in New York at $1.87 an ounce and in Lon eligible if the reduction work has been done don at sid. Then, while price in London somewhat difficult to identify a bar of outside of this country. Obviously, it is continued to advance, the New York price silver. There are a good many big redue hesitated, thanks to the fall in sterling ex tion plants in this country, and there are change and the fact that the New York some large, mines hot the trouble is that oficial price is based on the London quat the reduction plants have been in the hubit tions in January of this year silver here of accepting foreign ares, mostly Mexicus, sold at 8147 on a bulge in London which and passing them through without putting did not come to an end until February 7th positive identification marks on each bar. when the Londun figure was sad., the high- Lest price of which there is any record,

The tender of silver bara to the Mint | must make affidavit that, the moral is the Then the decline started. The Orient product of American mines and American chiefly China. had been the big bayer. reduction plants. Then he must obtain the During the first two or three years of the affidarite of the miner who mined the silver war China had been pretty nearly dead and of the smelter and reduction. people ed of silver by allied purchase, mainly for through whose hands it passed in process of the purpose of keeping British exchange gotting to the market. If he can comply with India stable and at the same time pro with all these conditions and the silver is tecting British-gold-stocks. When the emof proper quality and fineness the Mint bargo on the white metal was lifted, in will pay him the dollar sa ounce rate. May, 1919, China began to buy heavily and

THE PEG THAT DIDN'T PEQ.

"

it was this beying demand from the Far There is the alternative that the Director East which did most in putting prices up of the Mint may modify his regulations to their record quotation.

But this spring the trade pendulum start-out of necessity, and then the Mint's Many in the trade believe will do this, ed to swing against the Orient. The ex-buying may become an actual peg to the port business of Japan and China, which market, although even then the efficacy of had expanded to huge and unprecedented the peg may be open to question for there proportions during the war, began to conis & lot of silver produced in other parts tract and the demand for silver for China of the world which cannot be made eligible and India started to abate. There were under the low. Also, there is the matter two factors at work here; one the lessened of the question of policy. Do the United expert trade of eastern countries, which States Treasury and the United States cut down their credit balances, and the Mint desire to hold the bag while other other the fact that they were beginning to nations pour their silver into it. It is [be "fed up on silver. The demand for one thing to pratect American silver the metal showed signs of satiation and the mining interests by paying them a dollar market price did the logical thing by dean ounce, but it is quite another to peg the clining.

world's silver market. At this stage the ** frestrictions became factors. During Now about those restrictions.

pegand

Thus, the peg hasn't pegged. the war the Pittman Act had made avail-exist all right," and reports from abroad able American Treasury silver. Under the sy that great efforts are being made to terms of that législation, however, the silver enforce them. In some Continental_coun disposed of had to be replaced. The actres banks are relieved from the necessity says that when the Secretary of the Tres of paying out more than a fraction of de sory sells an ounce of silver he shall and obligations in eoin.

direct the Director of the Mint to re- remains that a great amount of silver But the fact purchase it as not more than 81 fine ballion has been pouring out of Continental ounce." Notice that it says direct," but countries into Loadou, as witness the does not specify when the direction, shall London market reports of imports. In the be carried into execution. That is import

the

carefully as might have been resulted in

They

The failure to not this phrase £1,000,000 worth of silver, which means at three months something clow to dose to 4.000.000 ounces, has reached the belief that the direct-portion of the London from France alone. aot constituted a "peg" at $1 an ounce.

*

As for "rostrictions" they were imposed breaks occurred in London and was re Last week, when the Erst of the diurnal by most of the Continental European coun-flected here, the word was reached from. {tries to protect their small-silver-quins abrood thes Ohinem interests and the The high prices reached by silver and the Indian barsara were "selling for forward low prices put on Continental exchanges. delivery"; in other words, were selling by. the war resulted in the establishment thair future contracts. These future, con of a great premium on these small silver tracts, it was supposed, were the ones these coin and brought about a movement Eastern spoculators had purchased in antis whereby everybody who could take the coins cipation of the rebound from the dollar and melted them down for their silver level which failed to appear according to bullion value, sold the bullion in the schedule. What the volume of fature con- high exchange countries America and tracta held by these speculators amounts to England, and took an additional profit in nobody knows, but they must be consider exchange. To protect the color the rerable, for the Easterners-are-always-big trictions were put into force, first to pre operators, and just now are well supplied rent melting down coins and then, in a with funds with which to gamble. And in number of instances, embargoing export of this uncertainty fies the uncertainty of silvor

the silver market."

BOOKING

SOLE AGENTS

MOUTRIE'S"

(1278

THE FUJI TRADING CO., LTD.,

(Inc. in Japan).

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SILK GLASS

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Sample on application to

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THE SUNSTRAND

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25· DES VÕEUX-ROC GARAGE KOWLOON

TEL: 27

TELK417

ادي الدر المالكية

IMPORTANT NOTICE.

[995

Manufactures the most Important Fount is Improvement, and in Dietiace Ulsanliness; Bcience always insists on these Maxima

Groundnut or Feanut Oil can be used as a substitute for Olive Oil, Butter or Lard, but when Slightly Dirty in injurious to health.

In China, by the Ordinary Med

Methods of Extraction, Dirt and Dust are not guarded against! Our Method al owe a grant adrange. By the use of New Machinery and New Methods Berapatous Cleanliness is Aswared.

Car Machinery during the Process Filters the Oil while our Factory is Free from Dust. Our Oil in Olear, Sweet and Fragrant; and Compares most favourably with other Oils used for Culinary purposes: there is no residus.

Prices are moderate so as to induce new business,

Analysin is always given before Bhipment to Foreign Countries. Foreign Correspondence wanted Capacityzer day 20 tons.

NAM CHAU OIL_FACTORY, Office --No. 227, Queen's Road Central, HONGKONG, Tel. 1202)

Factory No 28, Kwei Lin Street, SAMBHUIPO.

The Sole Proprietorship of this comoea belongs entirely to's Chinese Citizen.