1940-02-29 — Page 9

PAGE 2-HONGKONG DAILY PRESS,

tion there. A welcome first step, the Colony has been spending, has recently been taken to tide and is proposing to spend, con- over the present, indeterminate (siderable, suas an unproductive period, but much remains to be measures which critall continuous- done

ly increasing, ofertrends, including CHINA'S FINANCES

provision for new salaries and About the financial situation of pensions, lasting for many years. the Chinese Government I cannot. Once such commitments are made say any more than your Chair-it is exceedingly difficult to prune man could last year. Recent off them down, so I believe that most cial figures show that the note of us concur with the redbarka of isstes of the four Government the War Revenue Cammite about Batiks have increased about 1,300 the continuous rise in the cost of million dollars in the past 18 Government and support their re months. Considering. amongst commendation that an oficial in- other reasons, the difficulties of vestigation should be held communications, the lower pur-ascertain whether economies can- chasing power of the dollar, and not be effected. the disorganisation of the bank- Ing system in many parts of the Interior, this increase is not re- garded as excessive..

to

cause.

THURSDAY, FEBRUARY 29, 1940.

I am quite sure that 'British subjects in Hongkong and the East generally are keenly anxious to be called upon to make any sacrifices that will help our

We do not want to escape because of our residence in this part of the world. Our friends at home "sometimes forget that out kere

British subjecta - have" often - had to put up with greater hardships and trials than are ever experienced in, the Home Country.

com-

Tied as we are by so many bonds to a not fully developed (China and so small when

pared to her vastness, all we could hope is to bear a torch to light her way.

TRADITIONS UPHELD

I think we can truly claim that this Bank has uphela our best tradidons and really has shown [China, by example as well as by

Precept, what is the way.

of

We are glad to hear that the staff in Hamburg got home safely. We are proud that some forty of the London staff are with the TIENTSIN CONDITION

fighting forces. The greater bur- Without going back further. den which will fall on those who take for instance the conditions are left will, I am sure, be gladly BUSINESS WITH JAPAN which Tientsin people have been borne.

characteristic Courage is a There was little change in the enduring for the past nine months scope of our business in Japan and the state of affairs at Han- the Bank, and I am glad that the during 1939. A considerable ex- Kow and many of the smaller Chairman's review leaves it to me pansion took place in the values ports, about which considerable to voice, however inadequately, of foreign trade, and exports to indignation has been expressed our appreciation of the staff who “ what the Japanese call the Yen- both at home and in the East, bloc countries were exceptionally' high-that is to China, Manchou- kuo and the Kwanting Leased Territory.

Such experiences now and in the past make us perhaps all the better prepared in firm- ness of determination to carry on out here and to face with. confidence whatever the fatura may have in store.

have worked with ebergy

די

and

the

can

more

A great deal of valuable agricultural and industrial development is taking place in West China which also neces-

loyalty to give us not only sitates un expansion of the

tangible result of their work of note circulation.

the year but also confidence in Notwithstanding the establish-

the future, which future ment of the Chinese Currency

It is clear, however, that the

scarcely be expected to be Stabilisation Fund last April, there

economic system in Japan is

difficult than the times in which arose throughout the year so many

we in China have lived. adverse chcumstances that it is undergoing severe strains and It is by no means easy to judge

GREATER remarkable how well Chia's cur-

And come what may we shall

SECURITY rency stood the strain. The un- how developments will work

continue, whatever others may do. To many of us whose constant out in the present year. atisfactory situation in regard to

steadfastly to uphold those tradi-endeavour is, by ways more devi- The European war has benefited tons which Lord Halifax receñuy cus and complicated than the the Federal Reserve Bank note issue in North Chiza further the country, but not yet so much described as "the old standards of simple way I shall put it to you," deteriorated after March 10th as was hoped. Japan is certainly conduct and human decency la-effectively to make two by two or when the se

of Chinese legal in a better position to take ad- boriously built up by mankind." two and two into four, there will tender notes was officially banned vantage of the opportunities now By these methods, we fervently still be satisfaction that the Bank by the Provisional Government at opening to the Far East as a re- trust that this war will yet result can make them five instead of Peking. This enhanced a tendency suit of the war than others, but in the establishment of a higher five pounds ten. Not that I wel- to seek safety in commodities or the many and increasing difficul- and nobler standard of conduct come the cut in dividend for ties resulting from the conflict between nation and nation and be-who could?but I am able to with Ching are a serious hand!-tween man and man.

find comfort in the fact that the gap.

foreign currencies. “

CONFIDENCE UNDERMINED

In May came the. Inauguration in Central China of the Hua Hsing Bank armed with authority to make another new issue of notes. These actions were in themselves sufficient to undermine con- fidence. Moreover, to the existing keen merchant requirements for exchange to cover imports, as al-

OTHER COUNTRIES"

I have little to say about the other countries in the East where we have branches. Up to the out- break of the war conditions were dull and featureless, and it is a cynical reflection of

The tragic

I now beg to propose the adop-greater security the less, the di- tion of the Report and Accounts Vidend, while I believe that the as presented, and after they have smaller the dividend the greater will be our securi- been seconded I shall be pleased should be - to answer to the best of my ability ty.

The Bank functions in so many... parts of the Empire that not only any question that may be asked.

SECONDER'S SPEECH

its staff but its shareholders and Mr. E. Cock, in seconding, said: its clients must be considerably

Europe.

ready mentioned, was added fur state of the world that when war Mr Chairman — Lidles & Gentle involved in the grea; upheaval in ther pressure in the early summer broke out trade at once improved men.-Before I second the Chair-

In these difficult and danger- by an even more vigorous demand India, Malaya, the Philippines man's proposal that the Report

We and Accounts be adopted, I would ous times may we all, working or" for import goods, and particularly and the Netherlands Indies.

bear fighting for that freedom which for raw cotton. This was in turn trust that while traders in these like, if shareholders will

followed, as so often happens, by/countries will obtain reasonable with me for a few moments, to will surely bring with it happier

tumours and speculative demands for exchange. As a result the rate could not be held at the higher

levels,

Eventually, after falling as low as 3.3/8d, the outbreak of the European war brought a revulsion of feeling and, with a better export outlook, the end of the year showed steadier trend,

2

The existence of the Stabllisa- tion Fund' remains a powerful fac- tor in the background, and there is every reason to expect that it will serve its purpose.

observations, need-

times for one and all of us, up- Own hold our great traditions.

the adoption of the accounts for I now formally beg to second

the year 1939.

advantages from the rise in the submit some prices of the primary commodities less to say derived from my which they produce, they will at opinions

The first and rather obvious the same time remember the les- sons of the past,

comment is that net profits, com pared with the results or recent years, are down about two.millor

explanation dollars. The

that mvestments in Shanghal, and presumably, in China generally, are

The Hon. Mr. S. H. Dodwell, Mr. responsible, was hardly necessary. A. H. Compton and Mr. G. Miskin We know only too well the un-1 were re-elected Directors upon be- certainties which exist and per- ing proposed by Mr. 8. T. William- isis, since the outbreak of what is son. seconded by Mr. Wong Ping- known as the "China Incident."aun.

it is satisfactory that the Home Government, as well as local authorities. are taking measures to check speculation and profiteering which was so rampant in the last war and which resulted in such a" dis- astrous reaction.

The report and statement of accounts were unanimously ap- proved

OTHER BUSINESS

CONSERVATIVE POLICY Finally, Gentlemen, I want to Let us hope that the distressful Mr. John Fleming and Mr. H. E. emphasis that we must not re-ordeals to which. her people have Forsyth were re-elected auditors gard the coming year with com- been subjected will result in upon being proposed by Mr. P. B. placency. We are recommending China finding a yet greater soul Cassidy, seconded by Mr. J. H.

I now refer

COLONY FINANCES As regards Hongkong, "your Chairman last year said that the currency and finances of the Co conservative policy in the dis than that which she has so all Bett

This concluded the business of lony were sound and that we look-tribution of profits and are conantly striven to preserve,

FOREIGN LOANS

the meeting. The Chairman then ed forward to the future with serving our resources in order that we may face the uncertain future

to the Chinese announced that dividend warranta confidence. Taking all things into consideration, our confidence with a reserve of conndence. Iovernment Foreign Loans. To were ready. has been fully justified; trade has trust that all British firms will me, as the man in the street in kept up and our local companies likewise, for there are few anancial matters, it appears odd

signs of any striking change for that any group of people should be the meeting:

The following were present at have done well despite many

the better being likely to come permitted to be in Ching and anxieties; Government

The Hon. Mr. A. L ́Shields. has been maintained in a wonder. Over the political situation out try to take over her assets: while (Chairman); Mr. H. V. Wilkinson. ful manner and the Colony's cur- here or in Europe in the near-ignoring her liabilities. As I see (Deputy Chairman), Mr. J. K. ture. We have been warned by it, the right to collect China's Bousfield, Mr. A. H. Comptan, the rcicy is as sound and as sold aspur Government of the difficulties revenues oblige, the collector to Hon. Mr. 8. H. Dodwell, Mr. D. F.

EYET.

revenue

There are, however, certain aspects of the financial situs-" tion of the Colony which give' rise to uneasiness. In the past three years expenditure has increased by no less than one-third.

to

ATTENDANCE

ahead.

pay her just dues.

Landale, Mr. G. Miskin, Mr. K. §. The Chancellor of the Exchequer

I am glad to hear from the Morrison, the Hon. Mr. T. É said recently that the nation will Chairman that the Chinese Gor-Pearce and Mr. C. O. Roberts in all probability have to swallow enmans will resume the full ser- (Directors), Bir Vandeleur M. drastic medicine to escape the vice of their obligations as soon Grayburn (Chler: Manager) and diseases which very seriously

as they are able. In doing this the following shareholders;— threaten us

|they will continue to hold our Mesars. E. Cock, 8. T. William-

respect.

son, Wong Ping-sun; P. 2. Cassidy, J. E. Seth, A. Morse, D. C.

None of us can tell what this mad world holds in stare a few months ahead. This being so it is immensely Important that we should concentrate all bur attention on helping to bring the war to a satisfactory conclusion.

SHANGHAI RECOVERY

It is true that there have been "some special reasons which partly account for this, and fortunately

I fully share the Chairman's Edmondston, T. J. J. Fenwick, J. revenue has kept pace with the

view that Shanghai will recover M. Alves, Ho Wing, A. Morris, D. additional expenditure. But the

its_posidon, "for, I believe, that V. Eteavenson, H. W. Pagė, F. C. outbreak of the war with Germany

natural things which have come Fotta, J. A. Tarrant, Fung Kong- has brought about a change in the

into being of themselves will con-un, C. Huang, F. W. Stapleton, J. attiation. It has been necessary!

tinne for the very reasong which; Fleming, W. Allen, R. A. Dastur, to impose vexatious war-time re- Some 40 of our “staff employed created them, Nearer home is M. Nemages, H. N. Ferrers, L. C. strictions, duties have been in London at the outbreak of war Canton, cut off now from both F. Bellamy, H. Owen Hughes, G. creased and new taxation is are now in the armed forces, and China and the world, meeding B Brown, N. V. A. Croucher, H. R. envisaged in order to enable a few others are gradually being unly conadence and contact for B. Hancock, L. Kadoorie, 8. M. Hongkong to bear 113 share of the mobilised. Moreover, the source its restoration..

Churn, G. G. N. Tinson, AW. war burden of the Empire.

As a consequence the oến diňary revenue of the Colony may Be Indirectly" "Affected be- fore very long."

Bub apart from penditures for deres

of supply for our Eastern statt has Likewise I am in accord with Hughes, A Bommertals, F. B. now dried up, so the time may the Chairman's remarks about Winter # 1, Armstrong, H. B. come, and I fear undoubtedly will Hongkong. I would like toase Start, Lo Kal-wing, L. 6. Hilis, J. che, when we shall have to put a greater proportion of the Co-Macgregor, E. 8. Abraham, H ap with serious dislocations and lony's revenue ploughed back in Forsyth, A N Manfadyen, H. asential e inconveniences. When this is to the Colony, it polley Dawson-Grove, Dr. H. Kew, the

Rev. H . Wells and others. purposes | nécemary we shall not complain. which I believe always pays.

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