1927-08-01 — Page 3

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ANCHOR BRAND PURE MANILA "ROPE.

THE CORDAGE YOU CAN TRUST."

MARINE ROPE

TRANSMISSION-

OF

POWER BOPE

UABLE LAID"

HAWBERS

WELL

DRILLING

CABLES

ESTABLISHED 1896

ROPES OF ALL

SIZES FOR ATL

YNCHAUSTI

ROPE

FACTOR

MANILA

PURPOSES

MADE FROM

PURE MANILA

REMP

MANUFACTUR

ED BY THE

MOST MODERN MACHINERY

STOCKS ON HAND OF ALL SIZES ENQUIRIES SOLICITED.

ཟླ་

P.L. FACTORIES ----MANILA HONG KONG OFFICE:

KING'S BUILDING, TELEPHONE: CENTRAL $165, 7.3.]

́RIGAUD," 16′′ RUE DE LA PAIX, PARIS. NEW STOCK OF FRENCH PERFUMES.

"Us An ExBAUMÉ

JUST ARRIVED,

་

THE HONG KONG DAILY PRESS, MONDAY, AUGUST 1st,

"UN AIR EMBAUME" Grand Model

AGENTS IN HONG KONG:

HANDLING OTHER PEOPLE'S MONEY.

THE POLICY OF "THE BANKS."

SOME MISCONCEPTIONS.

"A PLAIN AND REASONABLE STATEMENT

OF THE POSITION.

In view of the many criticisms which, have been levelled against what has been called "the conservative policy adopted by the Banks in Hong Kong during the past two years, the following article by Mr. Henry Bell will be read with interest. It appeared in the International Banking Section of The Times and may be regarded as an authoritative statement on banking policy.

Brokers and others in Hong Kong have been far too inclined. to attribute dullness in trade to the fact that they have been unable to borrow all the money they required from the local banks. Mr. Bell makes the point that banks "ought not, must not and will not" lead over 80 or 60 per cent. of the total of their current and deposit accounts. When this margin has been reached further overdrafts are automatically refused regardless altogether of the nature of the security cfferell,

1927.

WOMAN RULER OF ISLAND.

LAND OF ONLY ONE TAX.

DAY'S WORK A YEAR BY EVERY MAN.

:

SARK, CHANNEL ÍSLANDS. In a quaint cld house tucked away in one of the glans for which the island is famous I found the wuman ruler of Sark-la Dame de Sercq, to give her the old French title.

She is Mrs Dudley Beaumon ty who has just succeeded her father in the Office of Seigneur, originat. ly granted by Queen Elizabeth 'n a charter to Helier de Carteret, of Jersey.

гр

A middle-aged, dark, active woman, atra. Beaumont is the widow of an officer of the Glouces

tershire Regiment who died during

the war.

"The island is really owned by the Seigneur, who is responsible to the King and the Privy Council," she explained.

28

We would commend the article to the serious perusal of "all disappointed would-be borrowers, Some days ago, writes Mr. Bell, Next in order come, bills of "ex- I read in the proceedings of Parlia change and investments. These

"The land is held by 40 tenants, ment, a short speech--possibly too hardly need description, though briefly reported to be entirely as the writer remembers a Chancellor who pay a ground-rent which is curate in which a member con of the Exchequer coming into the rendered in kad-grain, for exam- plained of the lack of banking sup- City, very sensibly, to see for him ple. Each tenant has a vote in port for the cotton industry in self the scrape of paper with which the parliament, known the Lancashire. Lack of support! The so large a part of the world's com- Court of Chief Plens, over which exact opposite is the case, for any-merce is financed. If all members I preside."

Sark is still in a primitive state one who knows the facts. is well of Parliament would ask their aware of the considerable loans of bankers to show them these pieces-without any real town; no trans- long duration and, in many cases,

of stamped paper they would be port other than carts; not even a"

instructed. The cinema or

garage. Asked whe ther she intended to make any changes, la Dame replied with an emphatic negative.

of dubious safety, made by the branks." This kind of complaint is both trying and ungracious, for it is atly untrue. As well blame the banks for wet bank holidays or "the big blue dics in the butchers' shops. Perhaps, every "one is a

interested and

bills fall due day by day, and the cash payments thereof are available for customers withdrawals or for the purchase of further bills. In- vestments, of the guilt-edged claan, can also be speedily sold it the arise. These,

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conscious, as the judge said, "of then, are the banks third line of one another's infirmities.".

But there is so much anisconcep tion to-day about the banka that it is necessary to write as simply as may be upon sore main principles that are ever present in the minds of those who are respon- sible for the safe conduct of these institutions.....

Safety First.”

defence.

"I fant everything to be car- ried on absolutely in the old way, to conform to the old regime,"

"I shall certainly she said. continue to exclude motor-cara; they would spoil the island en- tirely, hooting round every

corner."

Then there follow those "loans

Questioned as to the quaint old to customers"-a much less easily realizable asset-the proportion of rights and customs still observed, which the bandar considers he may she mentioned "poulage," under safely give to the amount of 50 per which the Seigneur receives yearly cent. (at present, generally, 65 per a live fowl in respect of every cent) of the total of his current chimney of the tenants' houses. and deposit accounts. How much These are "paid" in the autumn, controversy there has been under when there is much chuckling and this heading! No would-be borrowing as the seigneurie (her off- The most important of these prin rower can fathom why his request cial residence). ciples isSafety First" "How may be refused, yet the reason is I shall receive also a tithe of unexciting-and-commonplace this simple. Bo his security indubitable the wool of the island's sheep," 'la sounds, to be sure How much and his honesty unquestioned, it Dame continued. more interesting it might be to put may none the less be necessary to forward just a little inflation, or restrict lending if a bank's pro- a larger proportion of lending, or portion is already at its maximum. "I have to pay fifty shillings participation in half-fledged pro- Bat let it be stated at once that it yearly to the King half-a-ni it's fecta But no banker with a real is very rarely that loans have to be f to give the levy its proper sense of his responsibility as a withheld from this cause. The name.

We are, of course, practi- trustee, for that is what he is, can point is that every well-ordered cally free from taxation in Sark; ONE FIRM ACCOUNTS FOR ever forget that he is the custodian bank must fix a limit (be it 60 or there is no income tax and

128,713 IN A YEAR.

of other people's money, The even 30 per cent of the total of its death duty, but a anall direct tax writer has hoard numbers of critics current and deposit accounta) over on capital.

bank's deposits as and above which it ought not, must' speak of a what the banks own, and not what not, and will not lead. It is not they owel Teth little thought sense of discrimination against the have brought home to them admirable when the other that when they open accounts with of the alphabet have already ex

RAT CATCHERS IN CITY TEASHOPS.

annual report for 1928, are em-

to one

J

معاد

The King's Levy.

20

"Under a Napoleonic law, each able-bodied man must give a day's work yearly to the maintenance of the roads or pay someone to do it

-fow him.

"The language of Bark is the old Norman-Freach and is almost as pure as at the time of the Con- quest; it is purer, in fact," than in Jersey or Guernsey."

La Dame de Sercq presided at a special sitting of the Island Par liament recently and addressed it is French.

Sark is 3 miles long and two miles broad, and its cliffs are so indented that the actual coastline measures 35 miles. The population. numbers about 600, and the chief. 1.re fishing, dairy. occupations farming, and catering for visitors.

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"A Good Friend But a Terrible Enemy.

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If is a concentration of the actual essence of Parest Malt Scotch Whisky which can only be acquired by age. Because it is an essence, its wonderful bouquet is enhanced and brought out "

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Ras catchers and poisoners, says the medical officer of health for the City of London, in his gaged on contract in many of the

banks they implicitly trust their hausted the bank's landing cap- multiple teakhops, restaurant banker to give them their money city. He has a case if A, B, and hotels, and business premises."

back on demand, or a very short G. are not paying off their loans in One firm of professional rat cat notice, just, as and when they may a reasonable time but it is the chers during the year caught 28,713 happen to require it. That is just hardest thing possible to make A, rata in the City,

1. think it can be safely said," what the banker is always bearing B, and C see it. Their security, in mind. If he fails in that mat- too, is undoubted; why call in their adds the medical officer, that the ter be is damned. His first duty loans? There was once an attack number of rats in the City is being how ofter one has to repeat it is on "the banks" because they kept down, but the old English not to his shareholders, or borrow-called in overdrafts," and what black rat appears to outnumber the era, but to his depositors. To the ceuld be more wicked than that so-called sewer rat by at least three first two, of course," he has duties It is some consolation to barkers too, but his paramount responsibi- that complaints against them often "Old City men have said that lity is to those hundreds of thou cancel themselves out. thirty or forty years ago they were sands of people who alone make the

Bad Debts. unable to enter their offices in the banking system possible by their morning until the rats had been trust

Dividends in him.

and

To refer to the general rather cleared out. We hear of nothing loans, important as they are, are than the particular, it must always alarming nowadays These rats conditioned on this, and no honest be remembered that the careful were probably of the brown variety, man can wish it otherwise.

conduct of a nation's banking cyn Overhead Travel.. »

What then is the praction of "the tent is of the greatest concern not "Now that the sewers and drains banks as the custodians of the only to the banks themselves but payment. These were for the most to the community. If the part small institutions, but it is of the City have had so much atten- great sums entrusted to them by occasional critics were aware of clear that "Safety First" was not tion the brown rata have been companies and firms, professional what had taken place in European their motto. In 1793 in Grest

me, the small trader and shop banking in post-war years they Britain there Wert 100

bank greatly reduced in numbers.

TILST the private The overhead travelling facili- keeper,

und would cease to cavil at the firmness failures, and between the years 1810 and other woman! First, it is clear, they of bankers in wais country in exer- and 1817 there were 600; that is to PILLSic electrice... cables

things have given the black rate must keep an adequate proportion sing that care on which alone the say, on an average nearly two s their chance, and, being "wonderful of cash. The doors of a branch climbers, no place is secure from bank swing open all day long, but proper carrying on of their work week! It is fatally easy to lend depends. Even on careful lines at random; the dificult part is to their invasion. An open window, the incomers do not always pay in, a skylight, of a chimney are their for many come to withdraw and the banks, to speak frankly, have lend only what can be safely lent chist places of ingress, and ones the deft teller handles his till bad deble. These are inevitable if prudently possible, daha

their share of disappointment and and only to that proportion that is inside the building they find ample money to the familiar formula of

Interest Rates," ahelter for meating and breeding." "How will you take it?" The there is to be elasticity in meeting customers' demands; the point is practice of the banks is to keep that they exist! That is the for- Another stumbling block with the cash reserves of, approximately, 10 per cent of their current and de tune of war, and the banks do not bankers more critical friends is the posit accounts, a part of which aplain. The difficulties and ac question of interest rates These. reposes with the Bank of England, cidents of trade are quickly reflect in fact, are mainly conditioned by the mother of all the banks, who, ed, and bankers are as dependent factors quite outside the banks however, gives her children no in- on good and bad times as are control If the Bank of England terest! Cash, then, is the first line their neighbours. They are ever rate is high, and the Government intent upon reserves, which, tooaly able to borrow on Treasury of defence against withdrawals.

gether with capital, constitute a bills expensively, they and not the A Mysterious Entity. further source "of strength and baaks set the standards. It is con- restantly being averlooked that DLECLERC'S 11 12

The second line is not quite so stability. In addition, there __VEG, APERIEK70, stital statistics for the first quarter wase7beThere is a mys maine the large uncalled liability credit, like tes or cotton-or-woolyi OLLECLERC'S AN

of 1927, just published by the simple to French Government, which show terious entity (to the man in the upon the share capital, most of it is of the mature of a commandity, dear when it is scarce and cheap that nearly one marriage in seven-street) called the Money Mar-only callable in case of necessity. teen ends in divorce.

ket, and books have been written Behind such strength and care when it is plentiful, and that be- Sociologists are appalled by the about it. The men composing it ful regard for sound banking prin. hind State banks and Governmenta ever action "much number of anhappy marriages, for borrow from the banks at low rates ciples, the safety of depositors is forces are the official figures of 83,497 mar- of interest against excellent cover assured, while nocommodation is more important still. Famine, the riages and 3,500 divorces during the (mostly short-dated Government freely given if it is considered fe failure of crops, the disasters of period under review represent only securities) for seven days fixed or and funds are available. From Nature, strikes, and above all, that a small proportion of the number from day to day, so that the banker this atitude it is inconceivable most stupid of human evente, war, of mésalliancee or unsuitable may always have his loans repaid, that British bankers will ever tura disturb prices and bank rates in Aying, during which the weather unions. Many of these end tragic if he so desires, in a short time. It is their faith and charter, and common with even graver things was sometimes favourable and at where a forced landing world in- ally, and breaking-off of many No settled proportion of the bank the essenes of the best banking If we could but live at peace, trade other times filthy," Capt. Ringe volve risks equalling a landing in

current and deposit accounts are system the world has known. In freely nation with nation, work ford Smithy and Mr. C. Ulm com- the 20 others is never recorded.

The airmen need a Bristol Tourer Under these circumstances, it is so employed, for the totals vary the United States during the last hard, and save carefully-old and pleted the circuit of Australia not surprising that the excess of from time to time, and with each 12 months, if the writer is not mis tedious but sensible prescriptions covering a distance of 7,539 miles. aeroplane ten years old, with 4 “On Sale at:

--Their-time cuts the previous re-Siddeley Puma engine fifteen years deaths over births during the first bank. This is the second line of informed, Bos local banks stopped the growth of wealth would adjust

defence.

(Continuad, on next Column.). the cost of credit HONGECO DAILY Pams” Offon." quarter of 1927 was 32,232.

cord in half, but Capt. Smith is old.

Sure and certain for all Female" complints.Everyladyshould keep a box in the house.

Chemists and Storm sell them throughout the world.

Proprietor –MARSEN, Cheindole--Bradhamyim, England

OVER HALF" A "CENTURY REPUTATION-S

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Pam: Leading OverSER, DIT -

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