1922-02-20 — Page 2

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THE HONGKONG DAILY PR SS, MONDAY, FEBRUARY 2018, 1923

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Caze Szac:"C" OTER ANS. PENNÄNT.

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"The Meries of Foreim Excbatures are not only puding the Banking World, bot also Exporters and Importers" For- Lazor investors in Foreign or English Securities are feeling the efect of Foreign Exchangemorements. Weure, therefore, happy to have been able to publish Treatise of oise 38 peges, profusely ilmawated with Maps and Charts, which explains, in the following chapters, the whole Foreign Exchange position.

(1) The Modern Chaotic Enlangs Situation (2). The French Exchange Position- (3) Gents Industry and the Park,

(4) The Italian Lira.

(5) The United States Dollar.

6) Miscellanous Exchange

{"

Belgium, Austria, Przed, Rasmania, six)

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HONGKONG & SHANGHAI BANKING

CORPORATION.

ANNUAL MEETING OF SHAREHOLDERS,

REVIEW OF CONDITIONS IN CHINA.

CHINA'S NEED OF PEACE. MILITARY RETRENCHMENT “AND ADMINISTRATIVE REFORM.

EFFECTS OF TRADE DECLINE.

J

Those

· EXTERNAL TRADE OF CHINA.

**THE ONLY WAY FOR CHINA. In striking contrast, to this financial

naturni resources

and

population of

China, and with a national debt of only 4.50 or twelve shillings a head, should place itself in the position of being called insolvent.

On the contrary, China's credit is capable of immense expansion, and there is no lack of native and foreign capital available for the development of the country so soon

"

.

to accomplish this.

The Maritime Customs collection for

F

The London money market is now about normal. A great number of Home and Colegial Igans have recently been success-confusion stand out the older forsigu fully Boated there. In the months of losas secured upon specile revenues, ade November and December, alons 50 mil.ministered under foreign supervision lions sterling of new issues were placed, they afford proof of the value of suck. It looks certain that a Government re-supervision, and an indication of the only strictions will soon be removed, and that lines on which Opina can recover hor London will be free to all borrowers and credit and Goancial stability. China. will resume its place as the unquestioned in fact has no justification for not pa chief financial centre of the world (Apig ber debts; no country with the area, plaus) In this connection it is gratify ing to record an appreciation. of the pound sterling compared with.gold, of nearly 10 per cent during 1991-(Ap. An unusual circumstance at the ordin

plause). It may be appropriata to men With regard to the other figures, the tion here that when China again appears ary yourly meeting of the Hongkong and Shanghai Banking Corporation, on rate of exchange at which the sterling in the foreign markets as a large borrow. Saturday, was the attendance of ladies, equivalents of our silver assets aader, which must be sooner or later, it is

as conditions of The meeting was held, as usual, at the liabilities and esce versa, is calculated, absolutely sure that London will be able

is 28. 7d, against 33. 23 at the end of to absorb as large a share of Chinees sebrity and good government are restor-", City Hall and was largely attended.

There were present: Mr. G. T. M. 1990, so comparisers with previous years nance and on as favourable terms as ed, and it rests with the people of China Edkins (Chairman of the Court of are not altogether easy. The outstanding can be obtained elsewhere.-(Applause) Directors), who presided, the Hon Mr. features are decreases in bills payable,.

The external trade of China and all | 1897) amounted to Ils. 84,500.000, an ins E. V. D. Parr, the Hon. Mr. A. O. Lang, acceptances account consituents and bills

crease of Tis. 5,000,000 above the previous common with the rest of the world, and Mr. D. G, M. Bernard. Mr. G. M. Dod receivable, and an increase in sterling other Eastern countries has suffered in

With one well. Mr. E. P. White, Mr. W. L. investments which increase, apart from the year has been an unprofitable one for record collection of 1920.

most merchants engaged in it. Very minor exception, every treaty port shows

realised on the

an increased collection, a fact which bears Pattenden and Mr. J. A. Plummer (Direcnew investments account the sterling re-

exponsive import goods ordered in 1919,

to the vitality of tors); the Hon. Mr. A. G. Stephen (Chief serve, is mainly in short date British large losses have been

Government Treasury bills.

but it is gratifying to know that theseloquent testimony Manager), Mr. A. H. Barlow - (local)

fluctuations are eloquent of the great have been in a large measure liquidated, foreign trade in spite of the disturbed state of the country, and to the certainty. Manager) the Hon. Sir Paul Chater.

falling off of overseas trade, which statis- especially in North China, and that new C.M.C., Sir Ellis Kadoorio, the Hontics from all parts of the world indicate and probable business has been consider of an immense expansion were these ad Mr. H. E. Pollock, K.C.. the Rev. Father is 35 to 50 per cent below the figures of ably in evidence in recent months. Hong-

kong, although satisfactory progress has verse conditions removed.

THE SALT REVENUE. L. Robert, Dr. J. H. Sanders Meaars.990. The figures of our bills of exchange been made in the liquidation of old in hand and rediscounted faithfully co-

The total salt revenue paid into the E. W. Bird, Ho Fook, R. Hancock Hflect this. We may have to wait some stocks, has not been quite so fortunate. Hancock, T. W. Hill, G. P. Lammert, months before we can fully employ that has been in a disturbod condition during istrative expenses was $7.078,000 OF

Group Banks, after deducting admin- Our very important market-Kwongsi- R. M. Dyer, M. S. Northcote E. part of our resources which as tempor- Chapman, V. Graybura. Lo Chung arily hold in Treasury bills, but I think most of the year, and is still suffering decrease of 81.089,000 compared with Wan, Cheong Man Hling, Fung Kong we have good reason to expect that the extensively from brigandage and piracy. $79,081.000 in the year 1920. As a mattoc as is in a lesser degree our neighbour, of tact the actual collections were greater Un, A. W. Smith, J. H. Taggart, A. D. gradual improcement in trade will Gee, A. V. Apear, H. M. H. Nemazce, enable us to find a better use of these wangtung The authorities of these than in 1020. but certain extra depart- two provinces have our best wishes for mental expenditures were incurred dur- R. A. Dastur, Mok Kon. Sang, Mok Man resources than Treasury bills.

success in their efforts to restore peace and ing the year. Of the total "stm of Chee, Tsai Kung Po, Ho Kom Tong, Lo On the other hand, local business, in

$77.975.000 some 878,-152,000 were retained": Sheung Shiu, Chau Siu Ki, J. the East has been prosperous; local com- order. (Applause.)

in Reverting to North China, the cotton by local' authorities including those Our de Castro Basto, M. Manuk. P.panies generally have done well.

consider industry continues to make rapid strides. Kwangtung, Szechuan, Yuba and Tester, Lo Cheung Ip, A. S. Ellis, Chow silver deposits have increased

over 2 million Hunan. Ngan Ting, O. I. Ellis, A. M. Bowes ably, as have our bills discounted, loans it is estimated that Smith, C. A. da Roza, Hlo Wing, J. F. and credits, and there has been a good spindles and 9,400 looms are in operation, and it is certain that as time goes on Grose, A. P: Samy, Le Man Hin, Frank demand for enrrency locally, involving a

China will herself supply a great pro Smyth, C. E. H. Beavis, F. Bevington, considerable increase in our note issue.

portion of her requirements for the coarser grades of cloth A. Denison, Geo. Grimble, G. W. Barten, L. Dunbar, Chan Shu Ming, A. B. Ste wart, J; Bell-Irving. C. A. Hooper, D. J. Lewis, Fong Lang, H. B. L. Dowbiggin G. M. Dalgety, G. B. Dunnett, R. Bruce, W. E. Van Ers, D. B. Cooper, Ho Leung, J. McArthur, S. M. Churn, T. E. Pearce, W. L. Leask, G. B. Latham, S. H. Dutton, D. V. Steavenson, E. M. Ray mond, P...V. Botelho, P. K. Kwok, T. S. Forrest; W. E. L. Shenton, C. G. Adams, G. C. Moxon, J. R Kinghorn, E. full effect of the siamp in trade was not Franch, E. M. Wood, F. B. J. Adams, felt till the second half of the year. Dur E. Sim, J. E. Joseph and F. O. Falling the first half we were still deriving The ladies present were: Mrs. Pollock, benefit from the enormous trade of 1920. Mrs. Lifrentz, Mrs. Lennox Potter and We have had to contend with constantly

varying world exchanges, but our opera Miss Elizabeth Addis

tions have been fortunate and otherwise the earning power of the Bank rests on All losses that very solid foundations. have been ascertained or anticipated have been, amply provided for out of the year's earnings

The CHIEF MANAGER read the notice com vening the meeting.

8000

THE BANK PROFITS. Net profits are $1,050,129:12 in excess of those of a year ago. (Applause.) Apart from the earnings of the new capital, three factors have helped towards this favourable result; one I have spread mentioned, viz. the fact that no inroads on the profts have been necessary for writing down our securities; aicther is the activity in local trade in the East, the third and, most important is that the

THANKS TO THE STAFF.

A regards the export trade of China it has suffered generally from the world conditions. and particularly from the fighting and foods in the Yangtze Valley fast summer; there has been no particular development in it calling for remark

I will refer to political conditions later on.

་་

CONDITIONS IN JAPAN.

The collectio of duty by the Depart- ment in the Swatow area, which was voluntarily discontinued in January 1910 owing to the introduction of ob jectionable monopolies by the Canton authorities, was resumed with effect from the 1st November, 1921, but the revenue retained by the Canton authorities as is the rest of the province.

eral purposes of the Chinese Government The actual amount released for the gen- during the year amounted to 831,081,900

as compared with 240.108,000 in 1920.

Owing to the financial position and the fall in exchange, the reserve for the ser-" vice of the reorganisation loan in the group banks was increased during the year from 20,000,000 to $7,000,000.

CHINA MUST FIRST DO JUSTICE TO

HERSELY."

J

In Japan. as elsewhere, overseas trade figures, icr 1921 show. a very considerable falling off as compared with those of 1990. New business in imports has been hampered by the still considerable unsold. stocks of high-priced imports carried over We have beard a great deal about from 1919 and 1920, although appreciable justice for China and the restora progress in their liquidation has beention of sovereign rights to which her made during the year.

place among the nations entitles her, and THE CHAIRMAN'S REVIEW.

On the export side, raw silk and silk we must all of us sympathise with these The CHAIRMAN said: Ladies and

goods have found good markets in the natural and legitimate aspirations; bút, Gentlemen,-The report and statemeat of

United States, but Japanese exports to before the can convincingly, press these accounts having been in your hands for

other countries show a heavy decline, due claims, Chits must first do justice to some time. I will follow the usual protion of the zealous and loyal service of turing costs are not the least, and unlessous masses

We have again to record our appreciato various causes of which high manufac herself, and to the patient and industri- cedure and take them. as read.

who live silently suffered. I am glad to announce that the sew the staff from the Chief Manager down-

same can be very considerably reduced, under the misgovernment of the past few- issue of 10,000 shares was readily sub wards, which service, in view of the diff the prospects of an early improvement years. Let her leaders abandon political scribed and the premia on them, viz: cult year we have passed through, special in the export trade of the country are rivalries, and unite the country under 22,000,000 and $360,281.71, were brought y merits your recognition, and I am sure

not very bright."

one government, reduce her army to an efficient force commensurate with the into the accounts during the closing you will heartily approve of our action

modern needs of defence and the main- months of the year." I think the decision in awarding them a moderate bonus of

In the Straits the disastrous alumpitenance of internal order, and introduce to issue these shares at "$70 has been 15 per cent. on their salaries-(Ap-

their two principal products, tin and

reform and honesty into her administra- amply justified by the result.Ap. Plause.)

rubber, has had effects that are only too

tion and China will then not need to plaase.) The statement shows a net pro it for the year of 810,821,295.42 compared

notorious, but the Government and the

press for recognition of her claims. Such merchants are handling the situation with $8,841,166.30 for 1020-(Applause.) In Juse we made an interim distribution

courageously and we have no doubt what recognition will be spontaneous, and the ever but that these two industries will assistance of her foreign friends will of £8 per share and, subject to your ap:

always be at her command on terms con- Boon adjust themselves, to the new condi; sistent with her national self-respects mad proval, we propose to distribute a final

tions, dividend of £3 and a bonus of £2 per

with the consideration due to the sus- share on the old shares and a correspond

ceptibilities of a great people. (Ap ing dividend and bonus on the new

plause.) shares, viz.: £3 53. and 15s.

shares,

THE SILVER MARKET.

The silver market during the year has to been free from substantial ductus tions, the price at the beginning of 1921 was 40.1/6 and at the end of the year 31.5/8 having been down to 31.3/8 and up to 43.3/8 in the interval.

China, as

on

STRENGTHENING THE SILVER RESERVE." I am sure you approve of the policy continue, viz: the we propose to strengthening of the silver reserve, and we have allotted

that to

reserve $1,360,718.20 from the year's profits and $830,231.71 from the premium on the new

making

reserve the silver $23,500,000-(Applause.)

Gilt-edged securities in which part of our reserves are invested, have shown considerable appreciation during the year. The market value of our gold investments now shows a handsome surplus over the value at which they stand in our booka. No provision for depreciation 1 has thereket steady during the summer and fore been recessary On this occasion. Our profits have suffered, it common with thos of every British joint stock bank for some years, past, from the deprecia tion of these gilt-edged securities, which are necessary in our business, but I think that in view of the considerable margins we now have in band, there are substan- tial grounds for hope that we may have soen the last of these annoying calls on our earnings.

"NEW BANK OFFICES.

IN THE STRAITS.

AA

far as we can make out from the some- CHINA'S, CONDITION GROWN STEADILY Woasa what unreliable statistics available, ab- Of the political and financial conditions sorbed on balance Oz.63 millions com in China auring 1921, I am afraid it can

THE CONSORTIUŢI, pared with Oz.08 millions in 1020. In anly be said that they have grown One other matter I may possibly be

The reckless and in- the Badges speech of the Governor Gen- steadily worse.

expected to refer to is the Consortium. eral of Indo-China, it was disclosed that provident policy of the past is now bear. I have little to add to what my predeces that Gorerament had purchased Oz.21ng its inevitable fruits; and for, the first sor said in some detail at the last meet- millions during the year, in the different time, with an empty treasury and ing In the interval, Consortium matters markets of the world, for the purpose of exhausted credit, the Peking Government have furnished the press of the Far East

copy enabling it to resume specie payments, bas been unable to meet the service of with a goid deal of

and there which has since been done. Our French publicly inued foreign loaus concluded have appeared re-iterated and somewhat neighbours are to be congratulated in recent years, without the safeguarde unuecessary explanations of its aims and having thus arranged their currency and in respect to security which were wisely objects. These are, and have been from

the past. or having carried out the large opera regarded as indispensable in

the first entirely obvious to every intel- with so little disturbance to the market. external, taking the £1 at an exchange require no elucidation, and in my opinion tion of buying 02.24 millions of silver The total debt of China, internal and

ligent Chinese public man. They should. Undoubtedly, however, this extra demand of 37.50, is estimated to be not less than unnecessary and gratuitous explanations was the main factor which kept the mar $1,800.000,000 of which 83,000,000 is for possibly do nothing but create an atmos

the most part entirely unsecured. Of phere'ci suspicion and distrust in Chinese this latter figure, $216,000,000 representa circles. autumn months

The Indian Government has silver re- foreign debt, and $148,000,000 debts to

We are as convinced as ever of the serves of about 74 crores of Rupees and

tative banks and individuals, arrears

necessity in present circumstances of In should therefore be out of the market for pay due to government departments and ternational Co-operation in Chinese Snan- The immediate fature of the like. The suit revenue surplus avail ciul affairs. We believe we are serving many years, silver depends on the requirements of able after providing for the loans direct- the best interest of the Chinese people by China and of the Indian bazaar-bothly cured on the salt revenue. has been declining to support any particular fac very uncertain factors.

pledged for some of these obligations totion and by preverting recouple, to fur- the extent of 274.000.000, a som represent ther recklessness in

foreign borrowing The United States Government is ing at least 18 months of the average capital for unproductive purposes.

resolution adopted zt steadily carrying out the tering of the surplus available in normal times, which, the words of the

Up to the middle of last in the present disorganized state of the the Washington Conference, Chine, must December their purchases of domestic country, is almost the sole source which be provided with the fullest and most silver amounted to Oz.81,800,000 out of the Peking Government can look to for unembarrassed opportunity to develop. the total of Oz.208,000,000 required by its current administrative expenses... that Act. If they continue to progress at this rate, it will take about two years from now to complete the operation After that the domestic production of

B. FURCHASES OF SILVER.

Pitman Act.

of

CHINA'S HUGE STANDING ARMY. The country is still being forced, by the exactions of political and military rival- rics, to continue the struggle of main.

and maintain for herself an effective and stable Gavernment.

POLITICAL INSTABILITY SEOULD FOT DELAY RAILWAY CONSTRUCTION.

In the meantime the Consortiums:

Turning to the balance sheet: you will observe there has been a considerable in crease in the item of Bank property My predecessor in this chair foreshadow ed this increase. Since we met last year, new offices have been completed and occu- pied at Canton, Manila, Bangkok, Dairen and Sungei Patani, while Harbin Office the US. will come on, the market on the taining, or attempting to maintain, a and the additions to Head Office are on some terras as silver produced elsewhere. standing army exceeding in numbers the prepared to give the most corded the point of completion. Seven dwelling There should then be an over-abundance combined armies of all the other povers effective assistance to China wherever it houses for the Staff at Singapore, and of the metal, and it is very likely the who have recently been sitting in confer-is called upon to do so, by cooperating with Chinese banks in any well-considér Penang were also completed."" Building Governments, including our own, which ence for the discussion of disarmament. operations are now in progress at Chang have abandoned their old silver curren- The constant demands on the two governed scheme for funding the floating debt has, Calcutta, Singapore, Johoro and cies for unsightly substitutes will regretment banks for funds with which to meet of China by the issue of internal Ivans in silver, or by raising foreign capital Although the total cost will their action.

the over-pressing needs of the militarists bo

depleted their reserves to, an

on approved terms for construction con formidable, your directors are that the policy of providing

Trade and the money markets all over which recently soriously threatened, the posea. It may take a long time to form ample accommodation for the. future quirements of our business is a sound the world are still in a state of disorgan solvency of their northern branches. The an effective and stable government, but At the same time, thanks to the isntion, but there are encouraging signs same is true of every branch of the ad- I myself see no reason why, in the im- purchases made by the Bank in the car that a morn rational mood is beginning ministration; education is at a standstill portant field of railway enterprise, for ler years of its history, it is now pes to prevail among workers, and the Bri- for lack of funds, railways have been example, the development of China should needs of property of immense value in tish Government at last appears to be depicted of their revonnes to satisfy the be held up for an indefinite period of the principal parts of Asia (Applause)ontemplating taking drastic steps to general need, and are unable to meet years, perhaps for a generation, while

It is, in my judg Meanwhile we propose to allot $1 milliorwards economies in administration. We payment of their contracts for materiala, new, political system is being evolved in from the year's profits to writing down hould therefore, within a reasonable and the Ministry of Communications. this vast country.

a healthier condition of which was once the wealthiest of all the ment, for Chinew public opinion to pro property account.

now as nousee how soon the knowledge and re- We carry forward to time, reach

sources of the Consortium pre to be next year $3,331,776.50 compared with effaint than prevailed during the years government departments, is

immediately following the Great War straitened for funds the zest. $3,291,491.69 a year ago Applause).

Colombo.

ode.

ᏆᏓ .

SOME ENCOURAGING SIGNS,

*