1923-04-16 — Page 2

Page

TAN HONGKONG " DAILY PRESS, MONDAY, APRIL 1618, 1923.

THE ORIGINAL HAIG WHISKY

JOHN HAIG & CO. LTD.

DISTILLERS, MARKINCH,

SCOTLAND.

be old and Good Whisky should thoroughly matured in wood, This is guaranteed by the above who are the Oldest Distillers Of Scotch Whisky in. The World.

Ask for John Haig Gold Label or Glenleven White Label.

SOLE AGENTS

́GANDE, PRICE

& CO., WINE & SPIRIT MERCHANTS,

LTD.,

Tel. Central No. 135.

No 9, QUEEN'S ROAD CENTRAL,

HONGKONG.

(183

DAIRY FARM NEWS

ICE CREAM.

The following flavours may be had in Brick Form on 24 Hours Notice:-

Vanilla Strawb:rry

Coffee Neapolitan

Lemon Chocolate

Raspberry

all

$2.00 per Quart Briok.

Deliciously Cooling and Refreshing.

Made at our Farm tidor expert European super- vision and from Ingredients of Highest Quality only.

VERYTHING

EXE

LECTRICAL

Installations and Supplies

for Every Conceivable Purpose.

A visit to our Showrooms

will prove Interesting and Educational.

HONGKONG HOTEL CO., LTD.,

ELECTRICAL DEPT

Queen's Road Central,

“FREE TRADE IN MONEY.

PURCHASERS OF STERLING

good feeling between nations are pleasant, but are not enough in themselves alone to account for the rise in the value of the pound sterling from the lowest point of about $320 per E, up to to-day, dollars and seventy cents, I am not

it prophesy how long

four

, when it will poing to

ta

NOW ON SALE.

THE

depends on other factors. Obviously there DIRECTORY AND CHRONICLE

SELLERS OF DOLLARS.

Mr. Robert Benson, Chairman of the Murchants Trust (Limited) in an address at the 4th ordinary general meeting of the last fence and reach 4.503-the |the Company, after disposing of the

park

when pounds and dollars

Ware both accounts of the Morchants Trust (Ltd.); war the value of sterling rested on con into goht on demand. Before the dealt with the effect of tight money and vertibility, viz.: our power to pay in gold; the 7 per cent. Bank rate in depreciating now that convertibility las guns its value the value of investments followed by re covery under the induence of easier innst have

been

more sellers than buyers | money which, beginning with gilt of dollars and anero bayers of edged securities, affected the lower grade sellers, to account for the phenomenal rise.

of sterling securities one after the other. He touched But cable transfera

bills of

of exelunge further on the theory of dear niones, stod no tale, and the visible debts and claims affecting Government finance and sterling between, Great Britain and the United exchange. Secondly, the use of the Bank States traceable in the figures of experts rate, whether as a means to restrict credit | ad imports do not explain the facts. and depress prices or merely as a buro-

THE KE IN meter of actual trade conditions, all of which led up to the phenomenon of the year--the rise in value of the £ sterling, and the cost theroof.

ECONOMIC THEONIES,

ATERLING

The problem is as insoluble as it was in 1875 to say what values were blind the bills which the French Treasury bought in 1871-3 to the extent of 5,862,807,200 francs for remittance to Berlin. Kor does the priating press, the fashionable scapegoat, The Chairman, in amplification, con afford any guidance. There is always a I would suggest that tinued: There is not auch in the fluctu- plurality of causes. ations that successive years bring about the chief causes are that Americans have

· The chief cause is dear money or cheap, been sending capital to London. Moreover, all Europe as the case may be. Stockholders may di London is the clearing house for all regard these fluctuations as long as income the United States of marks, francs, lim in matters of exchange; all purchases in is antisfactory. It has been our custom at these meetings to treat our business, are paid for by remittance to London

strength of

sterling viz, the investment of capital, both and contribute to the

It was

the Ecor.omist National Bank, Professor of a great national and international busi Anderson, that the debt of Etropeans ness, in which the British Empire is spe- to Americans in 1920 (over and above cially concerned, because it affects the the indebtedness between Governments), | welfare of everybody in Great Britain, in- was 3,000 million dollars. The templa

cluding every stockholder in the Mer- tion to American creditors to buy sterling chants Trust Trust companies and in was great. There was money in it, and they surance companies together played their had the dollars, but who sold them the pant in the war by lending their invest sterling? In the course of the long rise, as ments to the Government; and proved the i

"

["long money," and "short money," as part of the Chaseated by

QBO

truth of an cbiter dictum of the ex-Kaisers wok his profit another i

so it has gone on till there, of about 31 per cent. the possible loss?

Pabout

are

twenty years ago My war chest," he is only a said,ny real reserves, are the foreign have been assisted by the conversion

left. But investments of my people, estimated at We 14.000 million marks, and not my gold at of a considerable amount of private debt comfortable Spandau." You have been very patient out of dollar inte the more with us, for the subject is vast and dry medium of sterling, and the British Govern- involving, as it does, theories of prices, ment, which needel, add still heils, dollara

to pay interests and sells

has had a unique oppor money, currency, credit, banking, and extunity to buy

Transver change. You stood it because it also in higher arid higher prices. volved practical questions of money so numerous and the speculation is sa making, or money losing, during the war enormons that sterling has again become and since. It involves further the ques the biggest market in the world.. Immensa tion whether the venerable theory of sums can be carried in that market and prices, as practised during the war by the Americans are carrying for as part of our Treasury and the Bank of England, is debt to themselves. true or fallacious, viz. that prices are governed by one relation, that is to money, especially gold, and that by expanding or contracting the quantity of money you can work a machine to raise or lower prices at wil

PLEA FOR PRECISE TERMINOLOGY. Now-a-days an accurate terminology is needed, and therefore I avoid the catch words "infation” and “deflation" which

have become street-cries, along with "the printing press," "stabilisation," and "pur-

chasing power" money is purchasing

power,

but all purchasing power is not money. In

Inflation and deflation beg the preliminary question, viz., whether an in- crease or decrease in the quantity of money (currency) is the cause or the effect of the

THE OUTLOOK.

I do not presume to guess whether, or when, the position will be reversed, mud America become a seller instead of a buyer of sterling

For the present

the only stabilisation we can expect is afforded by the breadth and momentum of that market. The idea that a balanced annual budget will of itself bring about stabilisation is chimerical; indeed, an un- balanced

not by doles but budget by productive expenditure curried. fill it fructified may be sound finance, as the administer the Trade Committer who Facilities Act well know. Let me

refer to one more settlement the consolidation.

of our railways into four great systems, whereby masses of securities and stocks that were doubtful have been made good and marketable; so

so that they can be used as

rise or fail, as the case may be, at what collateral-a zource of credit for ide

mey

prices. The word inflation assumes has got to be proved, viz., that expansion of enterprise and trade provide our the quantity of money is the cause. So it system is elastic enough, so that Lombard be, but not always. In England "the Street will always have money to lead. It printing press" is not at work; since the in- was the possession of Treasury Bills matur vention of the

currency has been the effect, banks to checkmate the forced liquidation and not the cause, of higher prices. In 1844, of 1920-21 and save their solvent customers. and, indeed, up till the war, the proud say. But Treasury Bills have in fact been re- ing was true in London that " a ten per cent, duced by 313 millions during the past twelve Bank rate brings got from the moon." That months. Our pre-war banking system, rest- is no longer true, and to-day, as throughouting on the command and manipulation

the war, our banking system rests on State credit instead of gold..

the quantity ofasury Note expansion in ing, every week that enabled the clearing

FREE MARKET FOR GULD.

mens

OF

CHINA, JAPAN, BRITISH MALAYA, INDO-CHINA, SIAM, PHILIPPINES, NETHERLANDS INDIA, ETC.

SIXTY-FIRST

ΤΟΠ

1923

YEAR OF PUBLICATION.

19 NOW DRING ISSUED AND CONTAINS

ALPHABETICAL LIST OF FORKION BUSINESSES, THEIR PERSONNEL AND AGENCIES, CLASSIFIED BUSINESS. DIRECTORY OF THE CHIEF TRADE CENTUÈÌ“ ALPHABETICAL LIST OF FOREIGN KEZIDENTS IN THE FAR. KAST

GOVERNMENT AND OFFICIAL DEPARTMENTS.

15 UP-TO-DATE COLOURED MAPS OF THE PRINCIPAL PORTS IN THE FAR KAST.

DESCRIPTIVE AND STATISTICAL ACCOUNTS OF THE VARIOUS COUNTRIIA AND

TELDA-CENTRES OF TEX FAR-KAST,

TREATIES, TARIFFS, STAMP DUTIES, BROKERAGE CHARGÉS, POSTAL GUIDE, ETO.

› BRITISH, AMERICAN AND JAPANESE NAVIES, "

1,800 Paros

Complete Edition

Abridged Edition

1,300 Pages

813 local currency

AN" EXTREMELY USEFUL" BOOK.

Writing from Singapore, under date March 31st, 1922. Biz Godfrey Thomas, Private Secretary to E.E.H, THE PRINCE OF WALES, Bays:-

SIR,I beg to acknowledge the receipt of your letter of the 23rd instant and am desired by the Prince of Wales to thank you for the copy of the 60th enunal edition of "THE DIRECTORY & CHRONICLE FOR CHINI, JAPAN, THE STRAITS SETTLEMENTS, #2C., ETC.," which His Royal Highness has been pleased to accept, and which will be extremely useful during the remainder of the tour.

The Managing Director,

HONGKONG DAILY PRESS, LTD.

HONGTONG."

P.&O.BANKING CORPORATION - LIMITED. (INCORPORATED IN ENGLAND 1920) with which is affiliated

THE ALLAHABAD HANK, LTD.,

INDIA.

ACTHORISED CAPTITAL SERSCRIBED AND PAID Ur RESERVE FUND

£5,040,000

£90,000

HEAD OFFICE 123, Lendénball Street, London, E.C, 3

WEST LONDON BRANCH: 14-16, Cockapur Street, London, S.W, L.,

of gold by the Bank Rate, is gone past're- call. It is dangerous to tamper with the sub- stitutes which subsequent experience has Notes and Treasury Bills. evolved, of which the chief are Currency They are the of com and slump, feverish expant a 1 to be

escape from recurring phases followed by depression and natinployment with its heritage of industrai sufuring In-Bombay, if we cannot pay conclusion les ma ask-Are we definitely otective tariff the launched on a policy of easy money? Ur has made it as difficult as

would it be rash to act on that idea ?. Blad to

We have got to restore car position as a creditor nation before we can restore the free market for gold and boast, as we used, 1710 that we pay in gold if and when required must be paid interling. But

then we pay in

Immediate Delivery of PAIGE AND AUSTIN CARS

Phone or Call on the Sole Agents for particulars and demonstration.

ALEX. ROSS & CO. (CHINA), LTD. Bank of China Buildings.

Telephone: Central 2487.

in goods, and by her protective for us:

to pay by expart of goods. 11.2

see that rise of prices in America has been

enabling some British manufacturers-for: A "PROFITEERS' SOVIET." instance, tin plate manufacturers-to

Joup

مية

the tariff wall. It used to be an axiom that M. JACK JONES ON PARLIAMENT.

he dear and scarce in the country which owes much to foreign creditors,

money will b

and

Mr. Jack Jones, M.P., was the principal plautiful in that which has exported much.

uch." speaker at a Social Democratic Party It is not true to-day. In our case, the

thing to-day is free trade in money, Curious. demonstration attended by 4,CO, persons |

at Glasgow City Hall on March 4th.

EASTERN BRANCHES: Calcutta, Karachi, Madras, Colombo, Singapore, Hongkong and Shanghai..

The Corporation undertakes General Banking and Erchange Business of every description and in walition to its Branches bas Agencies in all the principal Citics of the world.

0. CHAMPKIN,'

Manager

22, Des Your Road Central, Hongkong.

BANK, LTD.

HEAD CYFICE:

York Bailding, Chater Hoad Hongkong

EBANCEES

Ty enough there are many people about who Rich people, he said, talked about un- preach free trade in everything except employment as if it were a perfectly THE INDUSTRIAL AND COMMEROLAS money; there is a National Association of natural condition of things. They, how- Merchants and Manufacturers "to resist State interference with trade," and if they over, never held meetings for the right to work, and there was an unemployed, de- should extend their principles to advocate free trade in money to meet legitimate monstration from the Westend clubs in demands for it on the part of trade they paid out £100,000,000 sterling, in doles, Trafalgar-square. The Government bad might split their party; auch is the present He called that a dope, for tas money was confusion of thought.

not spent as an insurance against un- employment, but as an insurance against, revolution. (Cheers,) The workers stood for the right to work or for maintenance, If that was good enough for dakes it was good enough for dockers. It was nearly time they were putting up their "dukes.

Shanghai. 51, Kiangse Hoad. HankowBritish Concession

CORRESPONDENTS IN: London, New York, Chicago, San Francisco, Vancouver, B.C., Honolulu, Singapore, Penang, Tientsin, Bwat, Macao, Canton and all Com- mercial centres of China and abroad.

CRITICIAN OF RESTRICTIVE POLZ: Y. 5. As it stands, many people are for free trade in goods and restriction of mary Personally I would urge (as I have said bes fore in this room) that freedom, and not restriction, in this greatest of all marketa, viz., the Money Market, is indispensable if (Laughter.) Instead of 500,000 horisos Inquiries are welcome. we are to pay our debts and restore the they had got 170,000 brick boxes with slate position of London as the banking contre of lids, hardly big enough to swing a cat the world: To adjust the Bank rate from

om in. There was nothing in the House of time to time to

changing conditions of Commons that any workman need bo trade is a delicate operation; to try and conditions by the யர்

afraid of. It was not a people's Parlia

·PROMPT. SERVICE: Attractive rates for all kinds of Deposits

T. R. MAL,

15691

alter prices and trade mind, is not only as at present constitated: it was THE KEY TO GROW..

of the Bank rate, tomy

dangerous. Rightly used, the largely a profiteers' Soviet,

delicate, but dapa

Bank rate is a consequence of

existing con

a cause of new ones. It

ditions, and not a call

ought not to make capital dear and. scarte,

uncertainty

CASE LASTS HINE YEARS.

firm of engineers. In 1913 the firm,

but merely establish the fact that it is A startling example of the difficulty of 40. Next after British. money policy, the settling private, business matters involving most important event of the year is settlement of the American debt the firms in Germany is provided by a leading cise in the value of sterling, in relation to brought an action for infringement of dway. Thanks to British Conan English patent against an American mination, personified in Mr. Standley Contern in Germany. 275 was deposited Baldwin and Mr. Norman, to stand for in the German ourts. The case was heard sanctity of contract and never to be in July, 1914, and the plaintiffs won, numbered among the defaulters, we know subject to appeal. The war intervened, now that we have got to pay in dollars and in 1990 the firm trich to recover the 14,000,000,000 with interest at 3 per cent deposit through the Enemy Debts Depart.

after ten years to 3 per cent. and a ment. The matter was referred to rind spread over 623

What we years don't know exactly is how many pounds it tribunal, and the case dragged on util is going to cost us.

have reaped a

December, 1922, when the firm were in- roward, already in the confidence of the formed that their claim had falled American pablis in British solvency denote that £d was to be paid to the German ed by the rise in sterling. Confidence and Government for costs incurred.

Manerer

BICH

THE OHINA INDUSTRIES DEVELOPMENT BANKING CORPORATION, LIMITED DUDDELL STREET, gives to all its Depositors

Handsome Rate of Interest,

AUTHORISED CAPITAL $1,000,000.00 NTEREST

For Fixed Deposità----

1 year

Per cent

9 months 6 months 3 months For Current Account For Special Deposit... PersonalArrangement. For Current Barings. For cent For Fized Savings.......Regulations Obtainable THE CHINA INDUSTRIES DEVELOP- MENT BANKING CORPORATION,

Yours faithfully,

Gabrixy THOMLB,

(Private Secretary,)

THE

AMERICAN EXPRESS (CO.. INCORPORATED.

HEAD OFFICE: NEW YORK CITY.

INTERNATIONAL BANKING-SHIPPING-TRAVEL

Eighty Offices are established in the Principal Cities of the World to provide Commercial Organisations and Frivate Individuals with a complets World Wide Banking, Shipping and Travel Bervice,

COMMERCIAL LETTERS OF CREDIT. DEPOSIT AND CURRENT ACCOUNTS,

FOREIGN EXCHANGE.. LETTERS OF CREDIT. TRAVELERS CHEQUES. LETTERS OF CREDIT. STEAMSHIP PASSAGES. HOTEL RESERVATIONS BAGGAGE INSURANCE. CABLE AND POSTAL REMITTANCES, PURCHASE OF BILLS OF EXCHANGE.

Every approved Banking, Shipping and Travel Transaction.

RUSSO-ASIATIO BANK,

CAPITAL (FULLT»FAID) RESERVE KUND

Boubles. 53,000,000 28,950,000- Kep. Tis $3,500,00

11. 1,750,000

CAPITAL, COFTRIBUTED BY TUE

CHINESE GOVERNMENT RESERVE FUND

HEAD OFFICE; Paria 9, Rue Boudreau.

EWOON OFFICEí,

84, Uld Broad Street, E.0.2.1.

A BANKERS:

LONDON: Mears: Glyn, Mills, Currie & Co.

Sqviste Generale pour Favoriser le Developpement du Commerce et de linda- trie en France.

PARIS: Societe Generale pour Favoriser le

Developpement du Commerce et de Pindus trie en France.

Banque de Paris et des Pays.Bas. LYONS: Societe Generale pour Favoriser le Developement du Commerce et de Pindas. tric en France.

New You The Irving Bank-Columbia

Trust Company, SAN FRANCISCO: The Crocker. National Bank

of San Francisco,

· ÉRANULES IN AJA : Changchun Hankow Manshwali Tientaïn Chelco Harbin Newchwang Urunteki Dairen Hoon

Yokohama

Heillar

lar | Kashgar |

HONGKONG-BRANCH,

Interest allowed on Current Accounts and Fixed Deposits. Terms on spplication. Local Bills discounted

Foreign Brohange on the Prinsipal Cities of the World bought and baki. a

KARODGERS,

Manager.