1935-04-22 — Page 2

Page

HONG KONG DAILY PRESS, MONDAY, APRIL 22,

1935.

AN UNSINKABLE

SHIP

THE TRADE DEPRESSION IN

HONG KONG

ITS CAUSES AND EFFECTS

Another Chapter From Commisson's Report

CAUSE AND EFFECT

The one

U. S. BASEBALL

British Visitor Honoured

en-

To Explore Amazon Valley

GOLD COINAGE FOR FRANCE

Minting To Start Again At Once

F

(Svecia) Air Mäl Service) A

London, April 3. France has decided to resume the minting of gold coins, which will be placed in circulation again immediately.

"

Further details of the construc- tion of the Artabro, the vessel which is to convey the Iglesias expedition to South America reveal that the electrical power which is to be used as the driving force will M. Flandin, the Premier, in an-

decision be provided by two 205 kilowatt | nouncing this dynamos, each of 250 volts, work- Chamber of Deputies to-day, de- ing at the rate of 850 revolutions a scribed it as a matter of urgency minute. Jimmie Wlison.

These dynamos will be designed to release part of the driven, by Diesel motors.

huge gold stocks in the vaults” of the Bank of France,

It is dimeult in many respect always to distinguish cause and effect, but whether the cause be drop in demand or a decrease in

New York, Apr. 20. quality, exports from China have "St. Louis Cardinals 2nd New decreased in the last few years. York Giants, considered by critics while imports of foodstuffs have the best two teams in the Nation- increased with a fina) resultant in al League, both won their decreased purchasing power and counters to-day, the former at- decreased imports of goods other counting for Fittsburg 4-1 and than foodstuffs. A vicious circle. the latter beating the Phillies 6-4

ray of hope is that of

Miss Shella MacDonald, daugh- recent years China has beenter of the British Prime Minister making a vallant attempt to esta- was an interested spectator at blish industries calculated to sup the Glants-Phillies clash this ply common needs, and recently being her first appearance at a tu intensity agriculture. Very baseball match. much work remains to be done, manager of the Philies, present. but it is hoped that the movement ad Miss MacDonald with an auto- will continue on sound and careful graphed baseball. lines, and at the same time that taxation may so be decreased as to give an impetus to an increase in trade and prosperity. It need period of the previous two years, hardly be said in passing that as follows:-

}}

Below we publish another chapter from the Report issued by the Commission appointed by His Excellency the 'Govenor, · Sir William Feel, KOMG., K.B.F. to enquire "Into the causes and effects of the Present Trade Depression. In Hong Kong and make recommendations for the amelioration of the existing posi- tion and for the improvement of the trade of the Colony.

To-day's chapter which deals with "The causes and effects. of the Depression", says;

1932

1933

1034

(Miltons)

China is à country capable of krent development in many directions and that Hong Kong is in a not inconsiderable position to help therein it. It is given a reasonable $3021—£22,3 5237.6=£17.5.|"chance to co-operate.

Imports... Exports. $477.8£31.4 $352.3 £13.3 5381.125.5 $3070 £30.5

It will be seen that in terms In our "deliberatioris "we had.

of Hong Kong Currency imports however, to consider actual facts in the first nine months of 1934 As far as its commercial existence declined by 20.7 per cent as com- is concerned Hong Kong's "raison pared with the corresponding d'etre" is the entrepot trade of period of 1933: and 38.8 per cent South as compared with the correspond- ing period of 1832, while exports In the first nine months of 1934, declined in value by 22.6 per cent. as compared with the first nine months of 1933, and 32.8 per cent, as compared with the nine months

of 1932

China. The growth" of economic nationalism throughout the world has led to a reduction of International Trade. Many goods which were formerly manu- factured in one country because of special aptitude of other reasons and shipped to other parts of the world in return for the special goods of these parts, are now being manufactured in many countries. and the tendency is at present, in a great number .of countries, to- wards - an endeavour to produce their own requirements. China is increasingly adopting this policy and, inasmuch as it does this su the trade of Hong Kong must change.

The shell of the vessel is of double thickness steel and is divid- Boston Braves defeated Brooked into watertight compartments lyn Dodgers by 7-1. Babe Ruth making it almost impossible for was forced to leave the field in. the vessel to sink completely in the the sixth inning, having apparent- event of an acciderit The crew. ly strained his left leg.

numbering 24, will be lodged in cabins on deck, each cabm holding four men.

clore game.

1

Detrict Tigers. American League favourites, went down to Cleve land Indians In

The scientific section will be while New York Yankees and St. equipped with apparatus for firing Louis Browns accounted for their comets, a meteorological and call- respective opponents.

bration, laboratory, “talkie "`cine- The following were the results:ma, cartography. room, natural

R. H. E.

science laboratory, taxidermist's American League

photography laboratory, and to Phädelphia

pographical apparatus, New York

Boston

I

7'1

3 4 1

...... 4 12 0 0 4 1 Welch pitched for

- Washington John -Boston

Cleveland Detroit

27 0 T $.0

*ነ

Fourteen inring's played.

Chicago

St. Louis

4 10 0 9 11 0

· "West Homered for St. Louis. National League

The first portion of our terms of reference required us to enquire into the causes and effects of the present trade depression in Hong Kong. While we were unanimous- ly convinced that Hong Kong was suffering under a severe de- pression we quickly realised that a clear portrayal of this would be diffient owing to juck of accurate and detailed records over a num- ber of years. Particularly in re- gard to trade figures were we handicaped, as for the period 1925 to 1930 inclusive no sla:istics suitable for purposes of compari- son were kept, While, with the present modern trend towards ac- curate and minule statistical in- vestigation, it might by some be considered that there should be available more detailed dala re-

Another indication of depresston lating to the trade of the Colony is the fa 1 in, wholesale prices. In It must be borne in mind that 1931 the index stood at a peak of Hong Kong is virtually a free port. 136.6 whence it: has annually de- -

creased until for thestarst that the object of the authorities

hall Is to impose as small a burden as year of 1934 it stands at 95.9

Further signs of depression are possible

on trade and that the production of accurate and detail- not wanting. If we turn to the ed statistical information is cost- Treasury figures of Revenue for ly. To increase the value of statis- the years 1932-1934 we find therein

While there is every likelihood Sical

'relating information

a steady progressive decline to Hong' Kors

every item and a strongly mark that the importation of common more money would have to be spent. This

ed steep decline in those items consumable goods into China will money would either have to be provided, which may. be said to be the decrease in inverse ratio to the in some manner from present re- fruits of luxury expenditure. Ap-Increase in her Industrial activi- venue or further levies would have pendly ("B" gives comparative ties, there is also every reason to to be imposed on the merchant

of the Revenue derived believe that with more stable con- In either manner community.

from liquor, and tobacco duties. ditions imports" of capital goods, the "general burden on the Colony Bets and Sweeps and Entertain-Le, plant machinery and equip- would be increased. In the nature ment tax during these years. The ment or various kinds necessary of the trade.of the Colony the re-figures speak for themselves and for industrial development, will sultant, value is open to doubt, and provide us with clear evidence of increase Were it to be possible though it would be of interest and the effect of the depression upon for China to develop to a much of use if we could ascertain Agures the general public of the Colony. greater extent her fundamental showing the export of Hong Kong The world wide depression, &

industry of agriculture and there- products, we are of the opinion reaction from the post war boom, by obylate the necessity of import-

New York. Apr. 18. that further expense in this direc-was bound to touch' China and

ing large quantities of foodstuffs

Below will be found the results tion is to be deprecated In this therefore Hong Kong somewhat

this development would ensue of Major League baseball played present time of depresion.

change during the last two days as cabled

by Reuter.

been

THE CURRENCY

tables

"

rapidly. Sudden cannot be desired nor expected, but while it is generally realised by most economists that in order to cause the least disturbance during' change the movement must gradual, according to plan, and each step consolidated, China has

more later than the western and more highly organised countries. It would, of course, be impossible to prescribe a special antidote to this for Hong Kong and as far as the Colony's present position is the result or world depression so far awult the "general im- must we provement in world trade which the more optimistic of us believe be commencing, albeit how to slowly and under the doubtful aegis of economic nationalism.

one

be

by the rapid imposition of high tariffs handicapped the importa- tion of foreign goods while not yet having made adequate provi- sion for their replacement by local production.

Enough has been said above, to show that the existing depression in Hong Kong has its sole cause in external factors. We are suffering from the world wave of depression and as far as that is concerned Hong Kong can only wait patient- ly for the turn of the tide. A :

I

Brooklyn Boston.

7 1

1

....... 7

11

1

Cincinnati" Chicago.

3 €

4

+4

9

0

Riggs homered for Cincin- nati and Hartnett for Chi cago: game went to ten In- rungs.

St. Louis Pittsburg

New York Philadelphia Reuter.

4 13 1

ទ

0

4 16

6' 12 1"

3

BOSTON BLANKED OUT

AMERICAN LEAGUE,

Boston

R. H. E. 0 8 0 Johnny Broaca, pitched) New York

0

H

Chicago

4 12

0.

5. 13

0

3

2

0

2 6

I

(Radcliff 'homered Detroit

Chicago Detroit

--(Gehringer. homered)

Philadelphia

The wireless apparatus will con- sist of telegraphic and telephonic radio-transmitter operating" on all waves between 545 and 800 metres und between 1,875 and 2.725 metres. a short wave transmitter, operat- Ing' on between 15 and 60 metres. a receiver for waves between 135 and 250 metres and others for wavelengths between 250 and 5.000 metres."

A radiogoniometer will also be carried for the purpose of estab- lishing the vessel's position by means of wireless waves...

THE ATLANTIC CROSSING

The Artabro is the first electric- ally driven Diesel inotored ship to be constructed in Spain, and its launching in the presence of the President of the "Republic on Feb.. 16, brings the date of departure appreciably nearer.

#bo

The ship of the Iglesias expedi. tion takes its name from that 'given to the original inhabitants"

of Galicia,

were called "artabros." The connection lies in the fact that Captain Iglesias is a "gallego" having been born in El Ferrol. The town of his birth has shown its interest in the expedi- tion by presenting the Artabro with its fag, brodered by daugh- ters of the aristocracy of El Ferrol. Artabro is that the vessel should The surprising feature about the have been constructed on such amall lines, when the first stage of the expedition is an Atlantic cross- ing. This was the main difficulty of the designer-to construct a ves- sel capable of crossing the Atlantic, and yet at the same time adapted to river work.

It is believed that this difficulty

will be overcome by the use of

ballast, in this way giving a differ-

ent draught according to cireum- stances.

J

The size of the vessel can be gauged from the following dimeri slons:tonnage 300, length 67.30

metros, beam 10.80, draught two metres, Diesel electric mother of 500 horsepower

18 peletas "an

5 10

0

་;'P་

6 11 I

hour to run,

(Foxx homered). Washington

The match between Cleveland that China has also suffered a de-count of cold. partial cause of our depression is and St. Louis was postponed on ac-

line in trade with a consequent decrease in revenue and the par- tial result that Her Government has endeavoured to maintain re-

venue by increasing taxation on

It is a generally adopted axiom that the truest comparative por- trayal of a country's trade is that made in its own currency and it will be seen from the statistical appendices to this report, in which sterling Bgures are also given, that and until after the Great War 1924 the trade "of Hong Kong in common with that of the rest of the world appeared to be steady

If we examine available statistics and prosperous. During that time there ruled a high rate of ex-more closely we will find that a change with sterling. Unfortun- great proportion of the trade of ately, owing to the hiatus in Hong Kong is with China, It is figures, we cannot see the trend indeed quite apparent that Hong from 1925 to 1930. It will be re- Kong performs the function of a membered. "however, that trade seaport for China much in the was badly hit "by a big shipping | same way as does Shanghai, strike 1925. When we come to Hong Kong handles about 1931 we perceive an increase in quarter of China's coastwise and the Hong Kong dollar value of foreign trade. She suffers, there both imports and exports but the fore, not only from the effect of sterling value of the dollar had the world depression on China, in become less than half what it was which respect there is a decreased in 1924. Since 1931, while there demand for China's products and has been as gradual rise in the labour and therefore a decreased, imports. China has also, although average rate of exchange there has purchasing power for imports, but

as yet but poorly industrially the also from other factors. In 1991, developed, adopted in a persistent drop in

common dollar value of both imperts and having the power of tariff auto-with many other countries the exports. Thus in 1931 imports nomy, China began to increase her principal of economic nationalism were valued at 6524 million dollars Customs tariffs for the main pur- which is tending to or 344 million pounds sterling,pose of increasing revenue. This volume of international trade, and while in 1933 the dollar value of factor in itself may be held to to allow it only under high costs Imports had decreased to 432 mu-have, tended to

decrease foreign when there is any chance of the. llons an equivalent of 20 million trade while encouraging local in-

commodities concerned being pounds. This decrease has been dustrial efforts. Unfortunately, manufactured within the country. accentuated in 1934 and an es- however, in spite of the declari timate based on the

(To be Continued) first nine tion by the Chinese Government months of the year gives for the contained in Annex 3 to the Tariff whole year a dollar value of im- Autonomy Treaty of 1928 regard- porta of only $402.8 millions, a ing the abolition of internal taxa- rough equivalent in sterling being different classes of taxes in many tion on foreign imports, many

parts of the country have been from time to time imposed, not only causing a decrease in pur- chases owing to increased prices, but also decreasing the will of people to trade freely owing to constant uncertainty. The result of this increasing taxation the rise from time to time of political uncertainty with interne cine brigandage and warfare in the interior, together with de- homered) creased world demand and the rise of alternatīvs markets has been to decrease production or baste pro- ducts in China both in quantity Chicago: and quality.

29.7 millions. ・・・

The same tale is told with re- gard to. exporta which in 1931 amounted to 542 million dollars or, 29 million pounds, in 1933 to 403 million dollars

27 million pounds and in 1934 (estimate for the whole year based

gures for the first nine months) only 318.8. million dollars.or.about. 23.3 million pounds. }

or

on

the

· THE TREND OF DEPRESSION Perhaps the trend of depression as assessed by trade Agusts may -be more accurately shown by those of the first nine months of 1834 "compared with those of the same

NATIONAL LEAGUE

9 11

radius of ac-

tion of 3,000 miles. As speed 16

in the

This action, he declared, should prove the Government's formal determination to 'deferid the gold frane.

Suggestions that the Belgian de- valuation would' be 'followed by similar action in France were un- founded. The French banking position, he pointed out, had no- thing in common with that of Belgium. There was no 'link' be- tween the French and Belgian currencies.

''+

High Yield of Taxes M. Flandin şaid that there was no justification for pessimistic statements regarding the nation's Anances. The yield from "taxa--| * 10

was higher than last year and there was a "surplus for the first two months of 1935 of 105.- 000,000 fcs. (1.500,000),

The stock markets, which were a good deal shaken by the unpeg- ging of the belga, have now, it is pointed out, quite recovered. Rentes rose as much as a point and a half to-day, and during the

PORT

ARMS OFFER TO THE WORLD

Germany's Attitude

If all other States agree on totali disarmament, Germany will dis-

arm

If one Power insists on intensive armament, then Germany will arm. intensively,

This was the challenge which Hitler issued to the world in" bis conversations with British „Minka- tera in Berlin. The talks lusted altogether thirteen hours.

Well-informed opinion in Ber- lin last night, advanced this as the one clear-cut state- ment which could be made with any certainty concerning the two days' discussions that have been shrouded in the strictest secrecy.

Germany, said Hitler, could no lenger risk remaining defenceless in a world that was rearming.

Again he emphasised the gigan- ile sepie on which Soviet Russia

Was arming, and relterated his conviction that it was Germany's mission

to stand as a "bulwark against Bolshevism.

Once in the talks swift drama. brought tension into the atmos- phere of the conference room, heavy with the destiny of nations,

Like a bombshell in its effect the news that four Nazis had been sentenced to death in Lithuania broke in on the discussions.

With 122 other Naals, the four had been tried on a charge of plotting to seize Memel and hand It over to Germany.

last two days have entirely re- gained the losses of the past week.

AND

GEMENT

EMERALCRETEX

RAPID HARDENING

PORTLAND CEMENT

IN PAPER BAGS OF 94LBS NETT

PRODUCT OF

GREENSLAND CEMENT CO. LTD.

་

EXCHANGE BUILDING.

HONG KONG

not essential, this is as low as n THE TAIKOO DOCKYARD & ENGINEERING

miles an hour.

Designed by Naval Officer

Brooklyn

The vessel is the design of a (Boyle, Frey and Lesile homered)

young ravá lieutenant-colonel, Philadelphia

10 18 - 2 (Camill hit two homers and Jaime Gonzalez Aledo, who kept. Watkins and Moore one each.uppermost in mind dependability. There were ten innings)

of the machinery, and ease of repairing and manoeuvring.

Control will be as easy as that on tramcar, steering being effected from the bridge by simply moving a Joystick, which avoids the mar- *gin of error-present with system of

ringing down to the engine room.

St. Louis

1. 6. 1

narrow the

11

(Joe Medwick homered)" Chicago

0 80. (Paul Dean pitched)

Ciricinatti Pittsburgh

י.

AMERICAN LEAGUE

New York-Apr, 19 OR EAS 3 8:0

Chicago

Detroit

... 2 6 1 (Gehringer homered) The match between Cleveland and St. Louis was postponed on account of wet ground.

(Cyblanton pitched) Pittsburg 3-12

Brooklyn Boston

Brooklyn.

(Taylor homered) Boston

2

4 11 2 Bu g

0

0

Philadelphia

and New York.

6

I

John-

3 11

1.

(Wally Moss. and Bob 83son homered)

The electrical, machinery is prac- tically all Spanish mahufacture, Fand is designed to avold vibration and noise, and to occupy as little. space as possible.

The motor drives's single' screw made of specially hardened steel, which can be replaced without re- moving the vessel from the water. The object in having a single screw is to reduce the possibility of breakage from floating logs or un- seen entanglementa,

To guard against the latter, an ingenious device is fitted. This

automatically cuts off the current

when the load on the motor 10": "14" 0) threatens to become too great

(Including sir runs in the through the vessel becoming en- Beventh innings)"

12

New York

3

Lieber homered).. Philadelphia

.18 (Camilli (2) and

23

2

Boston

Watkins

Washington

10

2

D

(Campbell homered).

(Johnson pitched)

"NATIONAL LEAGUE » St Louis

01 0

Cincinnati

tangled in weeds,

A special system has been in corporated to prevent moisture be Ing deposited on the motors during stops, Rana result of the damp

[Continued on Previous Columns), climate.

COMPANY OF HONGKONG, LIMITED.

BUILDERS OF ALOOF SHIPS.

BUILDERS OF RECIPROCATING STEAM ENGINES. BUILDERS OF MARINE AND LAND BOILERS. BUILDERS OF TURBINE MACHINERY

Under License From Messrs Parsons. BUILDERS OF DIESEL ENGINES

Under Special License From, Messrs Sulzer Bros., Winterthur.

Licensed To Manufacture Lanz Perlit Iron, Specially Suitable For Internal Combustion Engine Working Parts.

DOCK & SLIPWAYS

FOR BOCKING VERY LABOÉ, AS WELL AS SMALLER VESSELS

ON ANY TIDE.

ALL CLASSES OF SHIP, ENGINE AND BOILER

REPAIRS

· AND EXTENSIVE"

BOTH WELDING, BOTH ELECTRICAL AND OXY- ACETYLENE SKILFULLY AND PROMPTLY CARRIED OUT.

BUTTERFIELD & SWIRE, Agents,

TONG TINH, GIA GIAPIN

*TILKEHOFE:, 802112

DOCE," Hora Foxo.

CALL: FRAM: "NUMHAT ONE” OYRE » PARKINS ANK