1931-12-31 — Page 9

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HONG KONG DAILY PRESS, TRADE REVIEW THURSDAY, DECEMBER 31, 1931.

HONG KONG TRADE IN 1931

Of Local Activities

Full Review

Review Of

A DIFFICULT YEAR. ·

In-looking back upon the your, 1931, oud cannot, help... obrazy- ing that it has been one of the most eventful twelve months in the history of the Colony. The primary concern of the popula tim during the earlier part of the year was the question of the value of the dollar. New low records were reached day after day and. nothing and could be done to slem the fall. Fortunútoly,, however, "oiroumstances played an interesting part in the totally unfore- sewa, recovery of the dollag and the year closes with its value at about 19, Bd, which figure, low a‹ it is, is fifty per cent. higher than the value of the doilar at the epminencement of the year,

Just as the drop in the dollar seriously affected business in the Colony, so the rise affeeted marný commercial houses. The local handiers of piecegoods, for instance, found themselves, towards the end of the year 'when' the exchange began to improve, faced with - the" unusual situation of being landed with unrgo" ordered at

prien much higher thun current rates. But the changed mothods of business ir moderu days oinhind them to meet the sitaation, for they decided, after deliberating the matter among ¿emselves, to... declare a "piecegoods holiday" whereby no new goods” were to ba prdered aïti: all the old stock was practically consumed.

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For the greater part of the rear, however, the exchange was such that whatever businftss was sramneted, was done al

a Very beau proft. As was to be expected, cuation was the slogan overy. where and this no doubt enabled many firms to tide over the dif Boult year, and avoided the necessity of writing a more doleful his Lary. The recovery of the dollar towards the end of the year, coming practically at the same time as the Manchurian trouble,. insiped non-Japanese traders immensely, and, in sonis,enas, ua re- porté by various merchants reveal, it påt new life, into businesses which, were" the verge of colla paci

The ery today, among the buyers both in Hong Kong and in South China, is for cheaper prices. But whereas prics #as the chief consideration a couple of years ago, continued competition has led to purchaseru demanding not only low prices but also good quality. Extremely low prices were quoted in one direction for a orrtain trade, which enjoyed excellent business for a little over a year. The same goods borday are being hawked in the mar- ket though no buyers are coming forwarth The reason appeare to be that the goods in question failed to stand the test imposed, and were chaúpness did not help in holding the market as was done a' reat or so ago. Higher priced competitors who paid a certain aamunt of attention to quality are now enjoying good business,

While the year has been marked by the absenge of civil war in China, it cannot be said that conditions in the Republic were con- ducive to big business. The year will be remembered for the dix- astrous floods in Central and South China which caused immense low and suffering "and" the usual orders from those popular. districts were naturally not forthcoming in the latter part of

1911.

Coming to the question of inergased tariffs in China, while titis has rendered business more difficult in cortain ways, it ha had the effect of creating an enforced demand for mitive goods with the result that quite a number of articles produced in China now enjoy a good sale, whereas a few years ago they did not stand any chance in open competition.

The Manchuria situation with its consequential anti-Japanese propaganda has also done much to spar Chinese manufacturers où to new, efforts and in one or two lines where China had been mainly dependent on Japan she is either producing her own goods or buying from the cheapest foreign aupplier, other than Japan. A special flip was given to British trade during the latter. part of the year when Britain went off the gold standard. As far k dan be seen, orders increased towards the end of the year for British products, and denlers, who had been unable to buy owing to the low exchange, were phed more able to make bids for British goods.

#

The anti-Japanese activities have paralysed Japanese trade in this part of the world, and, since Japan formerly enjoyed a very big proportion of the business offering in, South China, it can be readily seen how good an opportunity was presented her busi- ness rivals towards the close of the year 1933.

Locally there have been no rig failure during the year but is cannot lie said that this in itself indicates a healthy state of af- fairs. Times are hard and the indications are that they are go- ing tu be harder, and, with fresh taxation during the coming". year, it does not appear as if there is going to "a boom year in Hong Kong. As will be remembered the business community rai- seil nó amall protest when fresh, taxation was introduced at the commencement of the period under review, but the community so far appear to have stood the new duties and taxes well, and to all appearances are determined on making a good job of the year. which begins to-morrow. We are certainly better off in Hong Kong than most places-East or West.

THE DOLLAR.

HOW IT STOOD FROM MONTH TO MONTH..

The quotations for the Hong Kong Hollar as it stood on tho first business day of each month will be found below. It will be seen

that the lowest quotation wuched in March and that the dollar mounted gradually towards the end of the year..

Irates:---

January 2 February 2 March 2 April 1 May June

.

August 4

September 1. October 1 November 2 Decembar 1 "Highest Quotation Lowest Quotation

13, 0-7/8d. 11-6/Bd. 10-7/83.

17-3/td. Ild. 18-1.

15. 3-1/8d. 18. 40. 1/53. 10-7/3d.

(1099

REPORT BY LOCAL DEALER

PAST LEVELS REACHED.

tals, lirici, ra. Ing they, oYAN OF RE AMERICAN FRUITS. serious position ising it is hoped thms the banks will reconsider the ve decision. No one wants to sugger for a moment that the bunka shouti be kept open to all hours so that (brukurs oan "earry out their muttli idnt leisurely, but should the necessity arise, the banke shout play their part and not throw the whole burden on the sharohrckors who have certainly done their bees ¦nt "all times”* *

AMERICAN UPPER LEATHER.

DURING THE YEAR,

EUROPEAN COMPETITION...

P

JAVA SUGAR.

NOT A GOODYEAR,

One of the leading handlers. ot

A:

During the past year, writer a Jera sugar in Hong Kong ataton local firm dealing in Atherios that the year under review, gen fruits, the sales of fresh fruits such rally speaking, has not been a good as apples, oranges, grapes, clo, your have reached the level of previous Toors were heary stocks in the years. The import of Californian | Colony when the your opened with and North Western apples during the result that there were no pur- the last quarter of the year alone chasos from Java during January. amounted to crer: 10,000 eusen ant At one time.exporters in Javi it is estimated that the total entertained a hope of doing some imported during the year was business with this Colony after the about 30,000 cases.

Chinese Now Year but owing to

лаж

Grapes have again" maintained the low, exchange and the. their position in spite of the ex duties imposed in China, the busi- change situation, and, if anything, Aces between Hong Kong and Java have shown an improvement over in sugar remained a daad lotter. the previous year--California There worn some" onquiries for now growers are sparing no efforts in arop sugar for November/Decem the improvement of the quality of bar shipment but thara was no the fruit and the result was clearly chance of connecting business evidenced in the grapes shipped by owing to the prices offered by certain growers during the year buyers in Hong Kong being con under review. Olivette gues siderably balow Java's idea. Dur howaror, unobtainable last sonsou no business doing at all in the way much prized by the epicure were, ing the month of March there was

due to the fact that practically of purchases from Java. April the entire crop destroyed by began with the failure of one of the sun-burn..

dealers but fortunately the amount involved was small.

A steady exchange is always good for the share market and .. spite of the average of is. quota tion on the Hong Kong dollar which people were getting used to SET BACK OF 35 PER CENT. during the first seven months-of- the, your, the share market was not much, affected with the exception ut! sterling stocks, which, of course.{ are entirely governed by the due- tuation in exchange. As soon as sterling depreciated, such stooka ag During the year under review, Banks and Unions followed in syn American uppers, according to any pathy but I would hardly venture to say that the exchange had much dealer, have received a real.set The figures below are the T.Tto do with prices ruling in locul book. This was to a large extent

Atocks at the moment.

"I think the Manchurian situa due to European competition. It

Over 10,000 packages of roughly tion had more to do with the basi-fia conservatively estimated that 300,000 lbs. were imported, testify- April proved to be a lifeless ness in the share market and lets implerts showed a decrease of about ing to the popularity of this fruit. month for the exporters of Java of would-be investors and peon's 18.

ora naturally keep out of the 25 per cent, over the previous your assential to its preservation during market was concerned, and in Maz Proper refrigeration which is a sugar, as far as the Hong Kong 31-5/8

market awaiting developments, 11d.

Prices on European calf wore con the voyage has been brought to the resumption of hostilition In During the year," Ching Lightsistently lower than from the high standard of officianey, en-China did not help matters. There claimed more attention than any

abling the grapes to arrive praeweze

4: tow

amall purchases...cf uther stock and an enormous bus United States, "a dominant factor tically in fresh ocndition. For molassos sugar, but buyers with- was negotiated during the which brought about this decrease this the various steamship lines drew from the market after making. months of August, September and

Patent sides also have been very concerned, deserve praise for their these tiny purchases. A few dents October Rumour had it that the quiet an account of a fairly large enterprise. Chinn Light and Power Company carry-over from the previous, yent

in brown sugar were reported, bur Oranger have also shown an ina further drop in oxchange clinan- were going to supply current alt which could not be moved. In grease, This year's prices havoed matter for that month and no the way up to and including Can Canton, Chinese tannories put out boen below those of 1930, a factor further transactions were report. THE SHARE MARKET. How far negotiations have

goue I don't know, but apparently found

a grade of patent leather which which has undoubtedly aided busted, the result was negative, us rats cheaper trade.

a ready market in the ness. About 10,000 cases, or 2,000, Improvement Aftor June,

At this time very low prices Were It did not offer any 000 oranges, were imported and depreciated when it was rumoured j that nothing had resulted from the competition to the imported skins, found the usual outlets both here offered from Hong Kong and busi-

and in the neighbouring country.. "negotiations. As far as I can re

but it certainly captured a certain

ness seemed impossible in Javn member, nothing official has been otherwise have been buyers.

There is nothing much to be said sugars, During June thera were section of the trade that would

regarding pears, melons, etc., asa few inlated enquiries but as far. announced.

those fruits have a comparatively as can be ascertained no business. small market here on account of resalted and while stocks had run their being highly perishable. The down to a pretty low level by July, usual small queta was imported by buyers were still hesitating to of some enterprising concerns having higher prices. their own cold storage facilities. the month overal crders were On the whole the year has been placed with Java for prompt dev satisfactory one for all concern livery and a fair amount of busi

ness resulted. Buyers Towered their prices almost immediately after- wards but in spite of this the Java. THE COAL MARKET. merchants managed to de fair amount of business with Hong

due Kong, principally to cheap freight rates offering at the time. The purchases in July were, not kept up in August "although occa- sionally small parcels were taken,

BROKER REVIEWS THE YEAR.

STEADY EXCHANGE AT 1s. APPRECIATED.

HOPEFUL OUTLOOK FOR 1932.

The following review of the shire market for the year 1031 is pr vided by one of the leading brekere

Now Telephone Line. "The Telephone Company's new line to Canton had a great effec: in strengthening the price of this stock and rates moved up as high as 43.50. This price, I think, was the high side, as, although Telophone shares are sound in- vestment at a reasonable rate they are not worth as much as 840 as

01

During the last quarter of the year there, were panctically no en quiries for calf skins or patent sides. This arose out of the drop on the pound sterling resulting in European uppers arriving with an advantage of 25 to 30 per cent, in price,

From the viewpoint of the im- porters, the year was an unsatis- tory one.

Proposed Arrangement of the New Green Island Cement 'Company's Works.

f.

and

investment.

LEATHER.

1931.

The

голвоп

ed:

INDIAN COAL MUCH IN. DEMAND.

JAPAN HANDICAPPED.

up.

However, during

end of

The business in coal during the Hong Kong during September. About 50,000 tons were shipped to year in Hong Kong and in South With this large arrival, plus stocks China, generally was not so satis in the Colony, coupled with the. factory as in the past year due fact that the exchange began to principally to the drop in the soar, business was hold up for the price of silver during the earlier time being. Towards the part of the year. The table given that month, there were enquiries at the foot of this article shows the quantity imported into Hong Kong purchased The first week of Octo again and small quantities wer and Canton of various kinds of ber saw higher prices offered from coal Miners had plenty of stock Hong Kong but in spite of this. in Japan and North Chias this only a small business was year owing to the decreased con through 48 dealers adopted sumption, which is chiefly due to and to the depressed state of the industry October shipments to Hong Kon

mouth" policy, The and of the freight market, many were about 28,000 tons including steamers being laid up in Japan sugar for refining purposes, whic. and other places in the Far East. could not be considered very ex The tonnage from Europe to the tensive. Far East was also smaller this year compared with the past and this enough for local requirements was The policy of buying only just must correspondingly affect the kops up towards the end of the coal market.

this was

put

Prices in Hong Kong were a little year.. There is quite a larg higher than in former years, bat quantity in stook to be worked off. And with the uncertainty of the dus principally to the political situation in Manchuria, unfavourable exchange. The rise, prices offered by Hong Kong mer however, was not sufficient to make chants fell lower and lower to up the difference caused by the exwards the end of the year. The change. In the beginning of the exchange also has been scaring year a bigger quantity of North which is not conducive to good China coal was imported this be-business. The political situation ing due to the suspension of export is causing some uneasiness 218 for about two months frem Kailan.

Indian and Borneo coal did not asked to take a chance on

dealers are, in some instances, the Anancial stability of buyers from as the

although the boare tried to make extreme cases,

голо ог two hours, and, in some the prices were fairly high with oca as it seems that the business

RICE EXPORTS.

BUSINESS GOING PAST HONG KONG

NEED OF BANKING FACILITIES.

the

in the Colony. In it be gives the return on onely money at the survey of the year's business ani, figuro is not much more than closes on a distinctly optimisticke. The lucky Dues got put of now with regard to the future of their holdings and showed good UNEVEN BUSINESS DURING the share markut in Hong Kong, judgment. Even at the present He says:-

** level of 820, the shares are still too "The share market during the high to be koked upon as a scand

Information past year has been decidely healthy,

from

a reliable locking at it both from an invest- "I don't think there is any risk source is to the effect that the ment and a speculative point of for investors and speculators if leather trade in 1931 opened very view. There was really no fress they buy any of our local stocks well, there being a brisk demand figure very prominently in or wild speculation in the market to-day at about present prices, as for all kinds. This went on for local market during the first half the interior. this year, and, taking things all the future. Icoks very hopeful and the greater part of the year, des of the year, but as soon

It is not anticipated that the round, I think the sharebyckers the return on some of our best in pite the fluctation in the exchange trouble in Manchuria began, which market will be activo next year, deserve a good deal of credit: vestraents is reasonable considering but for the last two or throes instantly followed by s Chin and in any case very little enquiry A deeldeuse boycott of things Japanseo, can be forthcoming before the "Owing to the midden politica day.

the glut of money in the Colony to months there has been

change.

Japan coal. was superceded by Chinese New Year. trouble in the Nerth and the

importations from India and repeated fail in the value of Banks and Closing Time.

Buyers Iceally and upcountry. Borneo, no lower than 60,000 tons atorling, the prices of all shares.

seemed to stop handing in orders coming from these places into Hong depreciated rather suddenly during for the banks here to grant brckers stagnant.

It has always been the custom and the trade was more or less Kong and Canton during the the months of September

that months of October and November, October,

extra facilities on settlement days there is a large quantity of The coming year promises to be a bub rateg were not dangerously high at the time and by extending the clearing time by supplies which were ordered when bright one for importers of Indian a lot of this reaction, even going beyond this limit. Recently, how buyers began banding will replace, for the time being at it has even gone the result that when the prices fall, will continue for some time, and ac far as to compare it to 102-1 which is certainly absurd-I think ever, a new ruling came in to the orders and taking delivery only of least, the big business in Japanese the way in which the settlements inde and that

that no extension

can is the goods ordered on the new. September, October, November and cheques had to be paid in before the old figures were left in the go-

meant that a prices. Those that were booked nt. coal recorded yearly in the past. December were negotiated was very certain, wealthy Chinese are not downs, and, even now, there docs Import of Coal to Hong Kong and creditable.

'get-at-able until about tifin, time not seem to be any sign of buyers "Quite a number of small specs-13 p.m. This appears unreasonable taking up these goods. As for the lators who made money during the for the simple reason that, oven up-country dealers, they have dis- AMERICAN PLAYING up to the time of writing the as-first half of the year were reluat though the brokers should start continued buying.

"cumlated stocks had been and to part with their profits when their Battlements at 8 am. on Reviewing the year generally. Faahun cleared. Bolgian and other Ethe latter half of the year, but which does not leave very much Colony states that the trade had Tonkin

things went against them towards Rettling days, it often happens that one of the biggest dealers in the

Kaiping

The erstwhile ocnsuming centres pean cards which normally find after a little pressure was brought time te deliver the shares and get improved very enormously in 1931 Indian

of the world are now producing ready sale on acecunt of their to bear a few cutstanding accounts the cheques in before 3 p.m. In and the figures returned are in thBorneo cheap prices have also suffered and

ries to a large extent and would were settled.

view of the fact that the brokers neighbourhood of 50 per cent. Natal

only import sparingly to fill up the deslers everywhere, report slackness

gap, from Saigon, Bangkok, and. "In this connection, the brokers doing their utmost, it seems higher than those of the previous Welsh in trado.

Rangeen. The standardization o were fortunately able to bear the unreasonable that the banks should year; this despite the fact that, the An idea of the depression in this less and had to part with a lifts take this autocratic stand. It is value, of the dollar has been jump North China

Australian

rice by the Hong Kong General Chamber of Commerce has un The business in American play under review can easily bo ap- only one instance of a letaulting the share market of Hong Kong of leather not taken up, and trade

particular line during the year bit of their hard-earned money, and very possible that the coming yearing up and down incessantly.

will see an even bigger business in

Native There is still a very large stock

doubtedly improved the local grade ing cards during the year was vory preciated when it is said

at delivery by the Chinese packers small according to a firm which normally this market uses between mittes and the unfortunate gentle sattlemant in any month and the stock is going to be liquidated. negotiating banks for confirmed The cld markets are now closed"

that stockbreker onme before the comand, if we should have a very lug in 1832 depends largely on how this and-fast rule demanded by the tory to New York buyera, et

but it is far from being satisfac had formerly done a fairly big 200 to 400 cases of United States man was dealt with.... business In this line.

brokers find this cannot be cleared Without being pessimistic, our and irrevocable bankers' letter of to us and it will not be out of. "There is still a lot of loose up by 3 p.m. in spite of their ut-informant states that, cent for a negligible quantity of money available in Hong Kong termost efforts, I am afraid we are opinion, there is going to be a ference of this lucrative business to loss of this trade is primarily due in his credit had resulted in the trans place in this review to say that the The year closed with practically higher grade cards, were placed sound investments and ss rates are going to see a real mess up and the slight fall in this line of businers other places where finance may be to the need of banking facilities to nothing being done. The cnary-rosulting in a normal titraver of to-day, I don't think anything Islame must then certainly be in the New Year-for the first few obtainable for documentary ac negotiate shipments The hard- over, from 1930 was very heavy, and about G870,000 going by the beard. I toc high to invest in...

placed at the door of those res- months at any rate.

ceptance of drafts.

(Continued on previohs column)

CARDS.

SMALL BUSINESS REPORTED DURING THE YEAR,

carda... Last year

not

no orders, ex

effect

Canton" During 1981,"

Jepan coal Formosan

Hong Kong Cantoni Vikons tons

245,000 1,000

128,000 78,000 186,000 180,000 118,000 77,000 176,000 90,000

41,000

25,000

47,000

$2,000

27,000

19,000

3,000

500

2,000 90,000

A prominent firm of rice ex porters have supplied the following report on the rice business in Hong Kong

This cerend which net so long ago stood on top of the list of exports from this Colony, is now placed at bottom...