HONG KONG DAILY PRESS. MONDAY, MAY 1, 1933
MONEY AND MARKETS
THE CHARTERED BANK HONG KONG STOCK
ANNUAL MEETING
CHAIRMAN'S REVIEW OF THE SLUMP
INTERESTING REFERENCES TO
OTTAWA, INDIA AND CHINA
MARKET.
SATURDAY'S OFFICIAL
QUOTATIONS
There, inre, indications that the present low levels are beginning to prove attractive to investors, this in a special sense applying to the smaller issues,
Mr. Arthur d'Anyers Willis pre-1 Britain was driven off it. It was ́sided över the seventy-ninth-ording our icability to adjust ourselves
Enquiries today based on yester ary general meeting of share to infling level of wholesale holders of the Chartered Bank of prices which defeated our endea-day's closing rate for China Lights, bank's premises, 35 Bishops-gate, with gold, and it was for this response from sellers, neither for cash India, Australia and China at the vours to maintain sterling at parity Cements and Hotels, elicited no re
London, E.C.
son that foreign countries with nor for forward delivery. The chairman reviewed world credit balances
in London took There were no other changes of trade conditions and dealt' parti- fright and withdrew theni. The importance, but the general under- cularly with Britain's departurej gold standard countries are now her tone seemcil firuier. from the gold standard.
ing tested as to their adaptability to meet this contingency, and it is significant that since Britain, went off gold in September, 1931, there are now only six countries still re-
ExND
Was
The most disturbing factor of the last year, as far as the gold coun
tries are concerned, has been the continued fall in the level of wholsale prices expressed in gold, and this has helped largely to pre- eipitate the recent bank crisis in America.
A dividend of 14 per cetit. declareti.
Mr. d'Anyers Wiilis said: A com- parison of the figures in our balan- ce sheet with then of a year agomaining loyal to the gold stan- reflects the difficulties with which dard. all bankers have been faced during, the past year; mirvent and other newsunts and fixed deposits together show an increase of approximately £5,000,000; while our bills discount ed and loans (mainly consisting of advances to customers by way of overdrafts) show, a decrease of the SAME amount. The problem, of, utilizing this £10,000,000 profitably
It is as well also to remember under the conditions ruling has that long before sterling left gold most difficult, and has en the slump in gold prices had set gaged the constant and uneinitting in, and the current movement bas attention of the director and the really been gathering momentum management. Actually, at the close wing to the gigantic losses which of the year it was utilized in bills took place in the 1920 slump and of exchange including Treasury the lack of confidence rugendered bills to extent of £3,500,000, through it. Government securities £4,000,000. [ and £2,700,000 mare was held in cash as compared with a year ago In the gold countries the persis In times like the present. I tent fall in prices is now causing sure you will agree with me that a dead-weight of fixed-interest- it is most important that our rebearing indehtedness to assume in- sources should be kept as liquid as tolerable proportions, and it is possible, and the proportion of very largely this movement which eash, bullion, and bills of exchange is responsible for their serious bud- to our deposits-namely, 16.3 per getary difficulties now so much in cent, or, if we include Government evidence. and, other securities, 82.3 per cent. -shows an exceptionally strong position in this respect.
1:1
at
A Bargaining Weapon, One of the principal events at fecting the British Comninonwealth of Nations during the past year was the Economic Conference Ottawa; it is, of course, too early yet to prophesy what will be the outcome of the agreements reached there, but Great Britain is now armed with a bargaining weapon which hitherto was denied her. We are now in a position to meet un- fair competition where such exists, but, in my opinion, this weapon should be used sparingly. It will
Fall in Prices,
Sales.
Lane, Crawfords $4.40.
Buyers.
Chaton Insurances $1,360 H.K. Fire Insurances $250, Douglases $32].
H.K. and K. Wharves $130. Providents (New) $1,30, Hotels 86.70,
Chinese Estates 205. Hong Kong Trams $21. Telephones $26,85. Cement (Combined) $61. Lane, Crawfords 84.35. H.K. Govt. Loans 6 per cent.
Prem.
Sellers,
Union Waterboats $15. Telephones $27.20. Wm. Powells $2.00.
LONDON STOCK. EXCHANGE
(BRITISH WIRELESS SERVICE.)
RUGBY, April 99.
Paris New York
86 1/16
3.81
4,38
Montreal
Brussels
24.21)
Geneva
Amsterdam
Milan Berlin
17.54 8.43 651
..... 148
In
no
It is evident that unless these falling prices are arrested there are likely to be more difficulties in the gold countries. However, one has as yet brought into the scope of practical politics any sub- stitute for the gold standard. my view, the maintenance of the gold standard
ແ the orthodox world standard is just as import- ant to those countries who are "off gold" as it is to those who are still able to maintain the standard, and that if its existence were seriously threatened the powers of interna- tional co-operation would very quickly come to the rescue.
In common with all primary pro ducing countries India continues be a better policy, not only for to suffer from the present world ourselves but for the rest of the depression, but whereas other coun world, if it is used to arrange re- ciprocal agreements with friendly tries similarly placed see yawning disposed countries outside the Bri- gaps in their Budgets, India has tish Zollverein to the benefit of all not had recourse to fresh taxation concerned.
since 1031.
+
Stockholm Copenhagen
Oslo. Vienna Prague ... Helsingfors Madrid Lisbon
Athens
Bucharest
Belgrade
Rio
Buenos Aires Montevideo
Bombay Shanghai Hong Kong Yokohama
102 22.45
10 9/10
33 nom.
114
226
30%
110
6923
5791
250
5.nom,
41 O.R.
332 nom. 1/45/64 1/3 1./49
THE EXCHANGE MARKET
MESSRS. ROZA BROS., REPORT
DILEMMA OF
JAPANESE BANKS
NO CONCERTED ACTION FOR REDUCTION OF
INTEREST
Messrs. Roza Bros, have forward- ed LIN the following exchange market report for Saturday-
The price for Ready Silver drop demand of pound and healthy Tokyo-With the very restricted ped 3/16 and the Forward price nature
nowadays, commercial 1/4 yesterday making the quota banks feel a surplus of idle funds tions for Ready hnd 20.1/4 for much more keenly than before. Forward.-Advices received report; Their deposits at the Bank of Ja- ed America and Indin as having pao continue to mount. bought. China and speculators sold. The tone at the close was stevudly, In America the rate was quoted at 35.1/4 for near delivery, The market was firm
opening rate nt 3.72 and the clos Now York advices reported the
ingrinte 3.78. The market was erratic,
Market
Study at the opening but later ehset off slightly. Towards the close the market steadied up again following Shanghai,
Sterling.
Phúsiness was done shortly after the opening at 1/4.13/18 for June delivery. Later business was done at 1/4,13/ July followed by trans actions at 1/4.3/4 for near and 1/4.25/32 June. The market closed with sellers at 1/4.23/32 April 1/4 May and 1/4.25/32 June, buyers at 1/32 higher respectively.
Gold Dollars.
Business was reported early in the morning at 20.5/10 for new viel livery. The market closed with sellers at 6/16 May, 289/16 June and 26.1/10 July, buyers at 1/8 higher respectively.
The Tokyo Clearing House an- nounces that aggregate deposits and advances at its member banks and at, the week-end were Y2,166,334,000 Y2,112,237,000, respectively. Compared with the previous week- Y20,787,000, while advances indi- end, deposits show an increase of
caté a drop of Y10,805,000. The Osaka Clearing House puts aggre. gato deposits and advances wt its member banks at and
Y1,119,378,000
¥1,277,087,000, respectively. In comparison with a week ago, this reveals a decrease of ¥444,000 in deposits and ¥4,394,000 "in ad- vances.
These commercial banks have no alternative other than to invest their idle funds in uational bonds or deposit them with the Bank I Japan. It is reported that the Bank of Japan has already sold 190,000,000 of the new 43 per cent. at the Bank of Japan last week national bonds, Private deposity mounted Y38,038,000, and the tota is now Y220,011,000, the highest na record since the end of last year.
The expected lowering to the rate of interest on bank deposits may future. It has been believ far not materialise in the immediate some time that the matter would be discussed at the general meeting of clearing houses, but according to the Chugai Shopyo banks are Merchants were quoted at 111 for unable to take concerted action, at near delivery.
Yen.
present,
Shanghai Dollara.
The actual conditions of commer- Were quoted at 100 for near de banks, it is said do no feel much cial banks vary widely. A lew livery.
Shangha!. Quiet. Sullers were indicated at 1/3.5/16 May, huyers probably at 1/3.3/8 May.
MESSRS, HARRIMAN'S REPORT MARKET QUIET LAST WEEK
The market has again been very quiet during the past week with very little of note to report and rates have also remained more or less the same in the minor issues with
surplus, and are afraid that the
cent to 3.7 per cent. will affect auggested reduction by 0.6 per their deposits. Large banks which feel an oppression from idle capi- tal, are called on to acok a remedy,
WORLD ECONOMIC CONFERENCE
DEPARTMENTÄL TALKS AT JAPANESE FOREIGN OFFICE
Tokyo. The Foreign Office, the the exception of Cements Finance Department and the De- which had a slight setback to 88.20.partment of Commerce and Indus Providents (old) remained steady try, which have been studying at $3.05, Realties at 37.00, China separately the attitude to be adopt- Lights being a little lower oned by the Japanese Government to balance at 11.70. The investment wards the various subjects to be section was quiet but rates in the taken ap at the World Economic leading count remained
very Conference, have reached their con- steady, Lands having been done in clusions, and a joint conference of small parcels at 874), Trams at the authorities of these Depart $21.00, and Wharves at $129.00. ments, the Bank of Japan and the Electrics were in strong demand at Japanèse delegates to the Confer 872. The sterling section was fair-ence is to be held on the 2nd in- ly active with somewhat lower ratra stant at the Foreign Office to con- prevailing on account of a rise in cert measures. Silver (Spot)
exchange to 1/4 (official rate). be repented. Silver (Forward)
Banks were done at $1,715 and War Lonn, 3%, too 11/16 ex div. Unions at 8515. The closing tone
of the market is quietly rteady.
Banks Hong Kong Banks were slightly easier and were on offer at
$98.00. 81,725.00 Bank of East Asias re- mained unchanged with sellers at
South Africa
wherever we
1/25/16
£001-100%
per £100 sterling.
19% 197
Ineurances. Canton Fires con-
fis. 8$14.25.
This conference will
Lete remind you that this
The export of India's hoarded country's greatness in the past was gold still continues, and between Imilt up by trading with every nn Sept., 1931, and Dec., 1032, tional in the world, and however this had reached the colossal figure
legation representing the Finance As members of the Japanese de- estinable Call-Empire" trade may of £85,000,000-the amount export he in theory, a system which might ed in 1932 alone being about
Department, Mr. Juichi Tsushima, the Financial Commissioner abroad, bring about undue "canalization" £55,000,000,
ness on offer in these depressed
and. Mr. Kusuo Iida, Chief of the carries many grave pitfalls in its train Now that Great Britain tion which appears to be held in absolute vanishing point; secondly, I would like to correct a concep- times, and this was the effect of
Customs Section of the Taxation reducing exchange margins to
Bureau, will be appointed. Mr. is definitely eibarked on a tariff some quarters that this all repre- policy, pressure by interested par-sents "distress" gold, and that the
we have to bear an increasing load
Tsushima, who is now in London, will attend the Washington par- tes for higher duties always larks ryot is being compelled to sell his of Government and local taxation tinued in request in the back ground, and it is a ornaments, &c., for melting pur thirdly, in these days of nation on offer at $525.00.
at 81,360.00. leys as well. art represented; Unions eased off a little and were debatable point whether a great poses to pay the tax-gather, It is, ereditor. nation like ours can live of course, unfortunately true that assailed at more than one point in demand at 832. Waterboats set back and were sold at an low
alistic tendencies, we are now being Shipping Douglases continued under a high tariff system?
a proportion of the shipments With regard to British trade, comes. under this category, but I with threats of discriminatory le- had sellers at 815.00. little attention has been called to ar more inclined to think that the gislation, which, whether it comes Docks, Wharves & Godowns. Public Utilities. Small lots of the fact that in 1932 we recovered ryot, who is unusually shrewd in to-day or to-morrow, is a factor we Wharves had enquiries at 8130.00. Trams changed hands at $21.00. our old position as the largest ex- these matters, sees an opportunity I do not wish to end on an unduly 84.00 closing with buyers at 88.95.
must take into account. However, Providents (old) changed hands at China Lights (old) could fetch porting nation in the world. This of getting more rupees for his gold
buyers at 811.70. Hong Kong country's departure from the gold than he paid for it; that the pro- pessimistic note, and it, and when,
Hotels & Real Estate. standard has undoubtedly contri ceeds of a good deal of this gold revival in general world trade remained steady with buyers at Telephones were quiet steady and Hotels Electrics were realised at 8721, buted largely to this recovery, are not being spent is proved by comes about all these detracting 86.65/75, business. having been could be placed at 827.00. while moderate tariff has also been the increase in Post Office deposits factors should be offset by the transacted at 86.85/75 Hong Kong Miscellaneous. Cements (comb.) factor, as it helped our manu- and, sales of Savings Certificates greater efficiency and consequent Lands were dealt in at 875. closing fluctuated between 86.15/6.70 clos factures to reduce overhead costs during the past year.
greater earning capacity of the with sellers at this rate. by a larger output for the home.
Honging steady at 86.30. Ropes were market, and thus cheapened pro would hazard an opinion as to introduced.
He would be a brave man who many economies which have been 97.10, sellera asking rather more.
bank, and also by reason of the Kong Realtys were sought for at on the easy side and could be had duction for export. The export what is likely to happen to China'
at 88.75. Lane Crawfords were en- Cotton Mills. Ewos suffered figures for 1932 of our chief com-
alquired for. at $4.30. Watsons con- in the near future. The whole that there can be no revival such as
I would like to repeat, however, (Continued on next column). petitors in respect of manufatured
tinued in demand at 87.90. gvoda are illuminating. France policy of China's rulers in the pre- we are all looking for until we and Germany showed a falling off of isolation, but of firm resistance debts question, until the existing revolution period was one not only have a final settlement of the War of about 24 and 30 per cent. re-to the impact of Western ideas, abnormal tariffs throughout the spectively, the United States over and her, troubles of the last 20 world' are modified very consider- 21 per cent., while Great Britain's years, are mainly due to the fact figures were slightly higher for that she now lacks the power to combine change with continuity, which is the secret of growth. It These questions, of course, can is this, perhaps more than any only be settled by international co- Unfortunately
. our unemploy- thing elec, which has defeated the operation, and I sincerely hope ment figures are still very dis- well-meant efforts of the Central that the fears, jealousies, and sur- heartening,
Government at Nanking to bring picions which have brought about Trade conditions in the wide better order into being throughout the present state of affairs will give sphere in which this bank operates the Republic, and the recent hap- place to have, I regret to say, shown no im- penings in Manchuria and Jehol sanity at no distant date.
reasoned counsels and provement during the past year are bound to have repercussions. in fact, at nearly every point It is a most hazardous thing in where we are represented, with these days of such baleidoscopic values so low, the volume of busi-political and economic changes to
I have just one word more to ness has again shrunk, but never give any indication as to the fu-Bay. I cannot conclude without theless we are able to show a slight ture, and, is touching on the ques work of our staff, and I can assure expressing my appreciation of the increase in our earnings. I shall tion at all, I would like first of. have occasion presently to refer to all to tell you what we, as a bank, you that our, thanks are very fully conditions, in the principal coun- with branches in a dozen different deserved. tries there we have branches.
countries are up against 10% DAY That the Report -
now presented, together with the Balance-sheet and Profit and Los Account, be approved and adopt- ed."
1932 than 1931.
Unemployment,
The Gold Standard,
In any general discussion on the question of the gold standard it is as well to remember why Great
Taxes and Competition. First of all, there is intense com- petition for every serap of busi- (Continued on next column }
ably, and, finally, until exchange restrictions and quotes are entire- ly eliminated.
The Staff,
Mr. E. F. Mackay (deputy chair- Iman) seconded the resolution.
Asia Lands Limited
13
president liners
Fail 1,591,000 miles e
year
Weekly Sailings Transpacific
To San Francisco, Los Angeles & New York
via Panama Fortnightly sailings on Wednesdays Pres. Lincoln ***** Pros, Hoover ....
To Seattle and
Victoria
Fortnightly sailings on Saturdaya
...... May 10 May 24 Pros. Wilson.............................. June 7 Tras, Coolidge Pres. Jackson.......
Pres. Cleveland
Fres, Taft.........
Free Jefferson.....
June 1 ..............July 6
Pres. Cleveland
Pres. ft.....
May 6, 1.
May 20 June 3 ......June 4 ...July 8
Je to ROUND TRIP FARES TO EUROPE & AMERICA, Special through, rates to Europe via United States. Direct connections with all Atlantio lines. Choice of rail lines across United States and Canada, literal stop-ovor privileges for Sight-seeing. Full particulars open application.
Fortnightly via Suez to Europe & America
Fortnightly sailings on Saturdays via Manila, Straits, Colombo, Bombay, Suez Canal, Alexandria, Naples, Genoa, Marseilles, New York and Boston.
Pres. Garfield......... Pres. Folk..
TO
Next Sailing Prea. Lincoln Pros. Garfield Pres. Taft
Pres. Hoover
8 a.m. May 19
Pris, Adams
Ba.m
June. 10
May 27 Pres. Harrison..............Jan 24
MANILA
.......... Pres. Lincoln May 2, 6 p.m.
Pres. Polk...May $7
..May.. 2
May 13
Prs, Jefferson... .........................May 27
May 13
Pres. Wilson
May 16
Pres. Adams
May 30 June 10
Connecting with S.8. MAYON To CEBU, ILOILO, ZAMBOANGA
N
DOLLAR STEAMSHIP LINES AMERICAN MAIL LINE
PEDDER BUILDING-HONGKONG... CANTON BRANCH:—4, SHAREK ROAD,
PACIFIC ORIENTAL
MONTHLY CARGO AND PASSENGER SERVICE
M.S. "FALSTRIA", Sailing
on 8th MAY
CARGO AND PASSENGERS "ACCEPTED FOR
SHANGHAI, SAN FRANCISCO, VANCOUVER,
SEATTLE, LOS ANGELES, ETC. THROUGH BILLS OF LADING ISSUED TO- OVERLAND POINTS. Excellent Passenger Accommodation
Passenger fare Hongkong/San Francisco
(1st class only)
G8120.
For Freight and Passage, cic. please Apply to:
THE CHINESE AMERICAN SHIPPING COMPANY
THE EAST ASIATIC CO., LTD.
Agents
JOHN MANNERS & CO. LTD.
Agent: HONG SLING
Office: MERCANTILE BANK BUILDING (rox 71008), 7, QUEEN'S RD., CENTRAL, TELEPHONE: 24071.
NEW YORK STOCK EXCHANGE
ASIA LANDS, LTD., QUOTATIONS
(INCORPORATED IN HONG KONG.) Tel. 28380-Gloucester Building, Room 206.
(BRUTER'S AMERICAN SERVICE]·
New York: April 29.
Dow Jones Averages: High-1932
30 Industrials
20 Rails
20 Utilities
40 Bonds
88.78
41.30
36.11
83.96
Low: Apr. 28 Apr. 29 Change 41.22 73.10- 77.68 4.58 up
.
.. 13.23 30.87 32.37 1.50 up
18.03 23.71
25.09 1.38 up €6.78 76.45 78.56
11. up
Asia Lands, Limited, has received the following report from their. Now York correspondente, E. A. Pierce & Co. The market speaks for itself. We believe that the main trend is still upward assuming of course intercuptions and reactions which, however, will not last. Whet advanced on inflation talk and poor South-West crops. Farmers are still holding. Silver responded to the advance of stocks and other- commodities and closed with a good tone. Cotton demand was general and much broader. Frofit taking on the advance was well absorbed. Business Done: 3,390,000 shares.
1932 Div. 8
LAST SALE Low' PER. SH
American Smelting..
HIGH 84
Apr. 28 Apr. 29
30
3.00 Air Beduction
··2041·
Ag
48
8.00 Allied Chemical & Dye
87
75k
4.00 American Can
744
97
B
287
137
70+
9.00 American Tel. & Tel.
Tel
05$
89%
198
1512
.261
5.00 American Tobacco “B
Anaconda Copper Mining 9.00 Auburn.
75
114
443
43
199
1.60 Borden Company
201
Gloucester Building Tel. 28380. We offer you a complete brokerage service for the purchase or sale of New York Securities Daily quotations sent-gratis-upon request. See our investment news on the Financial Page of The Hongkong. Daily Press
200
Canadian Pacific
11
60
J. I. Cast
53
21
B
1.00 Chrysler Motors
16
681
21
4.00 Consolidated Gos of N.Y....
47
57
3.00 Drugs, Inc,
402
583
22
2.00 Du Pont de Nemours.........
481
3.00 Eastman Kodak
87
02
48
26)
0% B. Electric Bond & Share 0.40 General Electrle...
401
198
2.00 General Foodsromis
J79
31
248
74
241
101
1. Gillette Safety
11
34.
100
29
108
081
7.00.
97
bit
16
101
67
34
78
37
142
10
22
Canton Agents
10%
37
23+
20
54
24
33
John H. Ferguson & Co.
32, B. C. Shameen.
Tel, 18624.
12
⚫1:00 General Motors.................
0.60 International Harvester .....
(Preferred) International Tel. & Tel.
4.00 Liggett & Myers "B".... 1.00 Loew's IKO,
Montgomery Ward ...... 60 National Biscuit TIMES
2.00 Pacille Gas & Electrie
0.30 Pennsylvania Railway
Radio Coron
-Bears Röbbuck.
1.00 Standard Oil Co. of New-
Jersey
ཅུ་རྩཧྲྰི་ཨྰཿཧྲྰི་ཨྰཿཛོཨོ་བྷཱཎྜ་མའི྅8བོཚོ་ྲ་ཨྰཿ ཉྩ
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