1921-01-22 — Page 3

THE HONGKONG TELEGRAPH.

SATURDAY, JANUARY 2: 1921.

NOTICE.

STOP

THAT

HEADACHE

AND ENJOY THE

FEELING OF RELIEF FROM

WHICH WILL COME IF YOU USE

CORRECT EYEWEAR

N. LAZARUS,

PAIX

OPHTHALMIC OPTICIAN.

28. Queen's Rd. Ct., Hongkong. Prescriptions accurately filled.

NOTICE

LANE, CRAWFORD'S.

WHOLE FRUIT JAMS

IXL. AUSTRALIAN

Blackcurrant, Apricot, Pium 16 oz. Tin 35c, 27 oz. 60c.

CROSSE & BLACKWELL, BRITISH

Strawberry, Raspberry, Black Currant, Gooseberry,

Plum, Greengage, Blackberry. 1 lb. Tin

BEACH'S. BRITISH

65c.

NEW DANCE RECORDS

can now be heard at the

Sole Victor Agents,

S. Moutrie &

Co., Ltd.

Tel. 527..

Tel. 527.

HALL'S DISTEMPER

THE KING? WATER PAINTS

W

andh ga montage

Show de deg s

WILLIAM C. JACK & CO., LTD.

The irritating cough and the obstinate cold will

speedily vanish if you take a few doses of

COLONIAL COUGH LINCTUS

The rapid Cold dispeller

Prices 50cts & 90cts per Bottle.

Warm Friends for Cold Night.

Our NOT WATER BOTTLES at moderate prices.

COLONIAL DISPENSARY.

14, QUEEN'S ROAD CENTRAL. HONG KONG.

Telephone No. 1813.

JUST

JUST ARRIVED

LATEST MODEL BRITISH MADE

MOTORCYCLES WITH SIDE CAR

"Bat" Jap Combination 'Matchless Model "H."

UNION ENGINEERING CO., LTD.

13 Chater Road.

THE LIABILITY OF BANKERS.

Misapprehensions Over Commercial Letters of Credit

the terms of the letter of credit issued by him have been lived up to, and he must hocaur drafts which are presented to him în re- gular order, regardless of any breach of contract that may exist between the exporter and the im- porter canceraing quality of goods, In recent issue of the jar similar questions, if the letter dereptance. Buletin of the Ameri) of credit did not coutain any ...th Acceptance Council, the stipulations in this regard that leading article is entitled had been violated.

Akers," Liability under Com- mercial Letters of Credit." It is by Mr. Fred 1. Kent, Vice-Presit. nt of the Bankers Trust Co. New York, and its reproduction may be of assistance to local

-xporters.

•

SHIPPING NEWS.

FOREIGN-CHARTERED JAPANESE

TONNAGE

Japanese ships now under charter of foreigners number 27 with a total gross tonnage of 104,700.

DECREASE IN VALUES. Prominent London shipbrokers, NO RIGHT OF INJUNCTION. reviewing the shipping position. Again, certain importers have siste that the value of steamers been led to believe that they could has undergone an extraordinary) protect themselves against frandchange since the beginning of last fulent shipments by an exporter year.

Then it was nothing un- made agulastan irrevocable letter (Common to find £40 to £äl per. The tremendous foreign trade of credit by obtaining an injuncton paid for new steamers of of the United States during the ion restraining the banker from from 4,000 to 7,000 tons, whereas las: five years could not have been honouring drafts drawn und today vessels of similar tonnage arried on had it not been for the such credits, whereas if the terms can be purchased for less, than Federal Reserve Act through its of the letter of credit have been ball these figures. A new 4,000- authorization of the bankers' ac-lived up togha haa, absolutely top steamer has actually been reptance and the regulations of no right of injunction against a withdraw from sale by suction he Federal Reserve Boardcover- Prumn Ad- negotiator or endorser | with only £8,183, per ton offered. Ling such financial obligat 018, of such a'draft. It is necessary.

that Previous to 1914, our foreign

every banker 47 irrevocable letter trade had largely been faced hy commercial letters of credit of credit, and every importer who with two firemen who deserted issued in pounds sterling, and apthorizes a banker to issue such from the ss. Cloutsham at New |

To

therefore, issuing

patract that may exis: betne the importer and exporter, an that failure to so

accept will ubject the hanker to penalties that may involve Beria money if his refusal injures innocent third parties.

letter of credit, realize that drawn upon British banke. tollar sceptance was unknown coriaters of drafts under the letter of credit see that all of the throughout the United States ir regular practice. As a market has terms of the latter of credit ar been built up in the United States) carried out that such drafte mue: be accepted upon presentation if [for the dollar acceptance as

authorized under the Federal Regular order, regardless of anx serue Act and the regulations of the Federal Reserve Board,a con stantly growing number of Ameri an banks have been engaging in the acceptance business. This has been undertaken in part through the issuance of commercial letter of credit for the iraportation made into the United States Under the tema of such letters of credit American banker: have agreed to accept upon pre sentation drafts-drawn upon them at sight, 30, 50 or 99 days after sight, or other perius, wher Loompanied by certain

cuments described in the letter of credis showing that the goods zovered by the credit had been shipped according to the terms of the letter of credit, soch as bills of lading, insurance certificates.

etc., etc.

The acceptance under a com mercial latter of credit is not ang more familiar to some of ur Touris than to many of our bankers, and until it is better understood it is natural to expec the issuince of a few irregular ajunctions, even though they must be removed upon appeal. The foreign negotiator of drafts

gains:

American irrerocab etters of credit should understand, -ven 03 should the issuing anker and the importer, that in spite of untenable temporary is junctions be is fully protected an ler our law just the same as he would be under the law of Great Britain if he negotiated drafts drawn under irrevocable redits iri exact accordanc with the term: of such credits. Of course, if foreign negotiatora of such draf s find hat certain American Fanks at tempt to dishonour them, they willip the future refuse to bug bills drawn on such banks.

DESERTIONS FROM BRITISH SHIPS.

A Glasgow sherif, in dealing

Orleans, declared forfeit all the

men's wazes both on the ship. rom which they deserted, and on that on which they returned) to the United Kingdom, and

เวล found them liable

in EXPIRES. In addition, he commented 9:rongly on the Practice, unfortunately now only 100 common, of British seamen Jeserting their ships in American ports because of the higher vates, etc. offered by American sipowners.

JAPANESE LINE LATS UP VESSELS. According to the Kobe Yushin. the Kokusai Kisen Kaisha has decided olay up quite a number of its ships. The company ha put all its vessels into the European, Mediterranean, Indian and South Sea liner, bas most of them are handling very small cargoes due to the small move- ment of stocks and the lowess of freight rates. It is said that the company recently filed to conclude 30 engagement for hipment in Londos even at as ow as 10%. per ton. The company has now 45 ships of an aggregate of about 500,000 tons.

NOTICE TO MARINER Notice is given that the posi- fion of the wreck of the sis.

WHEN FRICTION DEVELOPED.

During a period of stable or rising prices, operations under uch commercial letters of credit are carried out with little or no friction, as there is generally a market for goods covered by the eredit upon their arrival in the

sintah is nor as follows - country of import. When, how

From the wreck, South-exat evrr, prices are falling and im

Shantung Prompasorg Lighthouse portations lose a large percentage

bests S. 75 W., magnetic, dis- of their valus while in transit,

tant 1.5 miles. The wreck lies erious difficulties

may arise.

in about 9 fathoms of water with Throughout the entire period that

her masta and top of fannel American banks have been able to "It is so vital to the foreign trade showing abova bizh water. accept in dollars agains: letters of of the United States, however, These parts of the wreck may be credit issued by them, there has that the credit of the dollar ac-9xpected to wash away, leaving: been steady increase in prices, septance he maintained through the wreck totally submerged. with occasional periods of partial out the v o 'd that it is conceivable

The ss.. Hsintah stranded on the steadiness, until the recent severe that the Federal Reserve Board Ears Rock, Shantung Promon- drop in the prices of many staple |

tory, during November 1920, and coramodities took place.

it was during recent salvage operations that she foundered in the above position.

NO BREACH OF FAITH TOLERATED.

may well find it advisable to re- commend to the Federal Reserve Binks that they stop buying the acceptances of any American banker who has so litt e rogard for his credit, or that of the United States,, that he

will

SHANGHAI FREIGHTS. Messrs. Wheelock and Co.'s

It was not unnatural, therefore. that the acceptance business of American banks should have run on smoothly during the time of | rising prices, even though it was

new business to most of them.refus acceptance of draft fortnightly freight market report. and that friction should have drawn ander bis irrevocable dated Shanghai, 13: January developed since the fall in trices letter of credit when all the dates: To United Kingdom and started in, because it is a bow terms of the credit have been Continent:-The situation as re business to them. Irrevocable complied with, even though the gards the amount of cargo offer- letters of credit worked so easily law later forces him to bonouring for export remain unchanged and profitably during the first such draft and to make good an interest to shippers is the fact

and the only information” of: period that many bankers engag- loss that may have been caused ing in such transactions did not by his breach of faith. While that since last writing the London realize that they were assuming the foreign or domestic buyer Conference Lines have dropped obligations just as binding when of American bankers' acceptances their Eomeward rates 25% all issuing such letters of credit as and bills of exchange drawn in round with the exception of seeds when signing choques or receiving conformity with the terms of beans and pass, the rate on which deposits. Asa result, since prices

dollar letters of credit will find bad been lowered about two of commodities began to fall some himself fully protected ander weeks ago. To United States vik American bankers have had the the law, the banking and Paclic and vis Panama and idea that where their client, the business community ought not to Sues There is no change to intrporter; had bad goods leave any doubt that it unrsser report on this berth as far as shipped to him by foreign ez edly condemns any wilful attempt cargo is concerned bat obloges porters that wers not according to disregard sacred pledges, and have been made in the Tariff. to contract, the banker could pro- that it will not permit mistaken Coastwise This market shows tect the importer from such fraud or misguided actions of a few to slight in vement as far as by refusing to accept drafts drawn jeopardize or damage the good the "lines" the regular trade upon the banker under outstand-name of a class that is jealous to us are concerned, but otherwise

outside ing letters of credit, wereas the keep its business reputation bethers is very little "

business offering. banker has no such right if all of yond reproach,

1

Strawberry, Raspberry, Black Currant. 1lb. glass... $1.10.. Greengage, Apricot, Stoneless Plum.

Gooseberry

1 lb. glass

$5c.

BRANTFORDS. CANADIAN

Strawberry, Raspberry, Black Currant, Apricot, Peach, Gooseberry, Plum -

CRAWFORD'S.

LANE,

1lb. glass 802.

The finest LIQUEUR THE

Watson's

Very Fine

OLD BROWN BRANDY

25 years in wood.

A. S. WATSON & CO., LTD.

THE HONGKONG DISPENSARY.

Telephone No. 16.

WHITEAWAY'S

GREAT " PRICE WRECKING"

SALE

BARGAINS BARGAINS

BARGAINS

CREAT FURNISHING BARGAINS

When visiting our Sale do not forget to laspect the Splendid Bargains wa are offering on the first foor of our Big Store.

BARGAINS

BARGAINS

BARGAINS

BARGAINS

BARGAINS

BARGAINS

BARGAINS

IN

IN

BLANKETS

RUGS

IN

CARPETS

IN

IN

TOWELS

IN

SHEETS

IN

BEDSTEADS

CROCKERY

SPECIAL

144 Dozen.

White China Cups and Saucers.

Good chias.

$4.50 doz

Special Sale Price

THOUSANDS OF BARGAINS IN ALL DEPARTMENTS.

WHITEAWAY, LAIDLAW & CO., LTD.

HONGKONG.