HONGKONG TELI
TELEGRAPH.- EXTRA
TO-DAY'S BANK MEETING.
CHAIRMAN'S COMPREHENSIVE TRADE REVIEW.
:
THE SILVER OUTLOOK.
The Chairman (Hon. Mr. E. V.
D. Farr) presided, and there were
also present:Mr. A.H. Compton
(Deputy Chairman), the Hon. Mr.
John Johnstone, the Hon. Mr. P.H.
Holyoak, Messrs. G. M. Dodwell,
We
HONGKONG, SATURDAY FEBRUARY 26, 1921.
Mr.
It i
summer
.
Menagers and Agents hava In these circumstances, on the assisting our friends whose resources CHINA-POLITICALLY AND condition, and, so long as handled what must have been at assumption that the American are temporarily imunobilised by t
FINANCIALLY
Hkellbood of war between-the times very difficult situations. 1 purchases have been offset by the stagnation of the markets. T Little, if any, improvement can contending factions remains, DO am sure the Directors anticipated Continental sales and that India is policy has always been looked for be noted in the political or finan-loan can be considered. £r the the wishes of the shareholders weil supplied, it is upon China from the Bank in the past and hacial situation in C-ins during the other hand, the Consortium 1. * when they decided to vote a bonus that the burden will fall of ab invariably brought its own reward.past year. The overthrow of the it were, ■ notice to Chine at the of 20 per cent, to the staff on their sorbing an amount equal to the Speaking generally, the stocks o Anfa party in the Peking Govern- conditions under which the Creat salaries in recognition of their world production of silver. In imported goods-lying in Hongkong ment which was accomplished | Powers are prepared to lend the efforts in maintaining the Bank's other words, China's trade balance and the China Ports are not exces. last summer has not so far pro sinews of reconstruction, and if service in a high state of efficiency. is at present the governing fassive, and not more than what induced the results in the way of ro virtually notice that
As is well known to you, Stor in the silver situation and the normal in pre-war times.
form so confidantly expented by fuldiment of these condi Newton Stabb resigned the Chief prospect of her being able to in known that the markets in the in many and the immediate repudia-China will not be solo to ba Management at the end of the crease, or even to maintain, laat terior are bare of supplies of the tin by the Southern authorities of at all. If in result this should year, after filling that position year's import of 9816 mil goods, so it is to be hoped that i
thePresidential Mandate aanhang. lend to Chins borrowing at home Ilon ounces is, to
ing that the differences between rather than abroad ng much the with brilliant ability and untiring
ray the
trade will soon resume its normal North and South were practically better. Political and Financial Situation in China.
energy for a period of over ten feast of it, doutful,
The cumulative effects of de
course, and there are already wel oomposed, showed that there is The second featurs upon which years. During his regime the
still a wide gulf between the two wish to lay emphasis in the fact. The annual meeting of the profits permit and on this prestige and the business of the pression in the world's markets come indications of this.
|particularly affected Japan, owing The volume of engineering business parties. Meanwhile both parties that the policy of the Consortium, shareholders in the Hongkong occasion propose to allot Bank increased very greatly, and to the very exceptional expansion in North China was fair, but orders are themselves in a state of dia- if steadfastly pursued, rings the and Shanghai Banking Corpora- 81,000,000 for that purpose.
of the earlier the Directors wish to record then of her foreign trade during the placed during the war are in many sension, and in the South new death knell tion Was hold at the The great depreciation in all deep appreciation of the dis- four or five preceding years, and cases still in process of completion governments are formed and re-polley of apher: 8, of influence City Hall to-day at hoop, gilt-edged securities in the course tinguished services he rendered to were fully felt by April, when Further cotton mill and textil formed with bewildering rapidity. or interest. By the pooling af all
of the year has entailed heavy the Corporation. They wish also something in
and the nature of a machinery is required to a Inrge While this situation obtains, it is outstanding agreements writing down of our sterling and to tender him on their own be- crisis might well have overtaken extout, whilst the requirements to be feared that the first steps to options, and by an undertaking other gold, investments; this, half, and I am sure on behalf of the country. There was indeed a the Chinese Railways are very con representative Government suff-commercial results of all faturs wards the establishment of a really to share equally the financial and however, has been accomplished the shareholders, their congratula-stock exchange crisia, culminating siderable; new
locomotives and ciently powerful from the current profits and all tions on the honour conferred on in the closing of the Exchange rolling stock are badly needed it authority over the provinces, undertako to preserve China from to exercies business, the Powers in allest our gold securities now stand him by H.M, the King, which is a over a lengthy period, which namany instances. G. T. M. Edkins, A. B. Gubbay, either at well under their market fitting crown to his career in the turally affected
which it becomes more and more those encroachments upon her all investors. A.O. Lang, W.L. Pattenden (Court values, or have been adequately East.
The Shanghai cotton mills enjoyed evident is so necessary for the sovereignty which have followed Generally speaking, of Directors), Mr. A. G. Stephen
however, a period of unprecedented prosperi well-being and prosperity of the in the train of concessions in the provided for.
It is fitting that I should here though some important and well-ty. The demand for mill product country, (Chiot Manager), Mr. A. H.
The balance carried forward is refer to the already valuable ser-known names have unfortunately (particularly yarn) was consistent postponed.
must inevitably be paat. There will be no second "Battle of the Concessions, there Barlow (Sub-Manager), Mr. V. M.
$3,291,491.69 compared Grayburn (Chief Accountant), $3,262,847.20 in 1919.
with vices to this institution in many auffered eclipse and brought loss steady, and the milla have been able Financially the situation is suf- will be no more "Playing off" by. and the following shareholders:-
positions of trust of Sir Newton to others in their fall, and though to manufacture profitably owing tficiently serious. The Govem-Ching of one Great Power against Bir Ellis Kadoorie, Sir Robert Ho With regard to the other figures Stabb's successor, Mr. A. G. 1920 has been a bad year for comparatively cheap cotton. Handment, in spite of the large sume another: she will be met with Tung, Hon. Mr. H. E. Pollock, of the balance sheet, comparisons Stephen. Your Directors, while everyone all round, merchants, some profits were also made on locs that have been released to their faizuese and reason, we do not Hon. Mr. Ho Fook, Dr. J. H. With former years are difficult congratulating
Stephen manufacturers, dealers, and ali ly made cloth until the
use by the Customs and Salt doubt, but above all with rigid his well merited Bandera, Messrs. H. Hancock, G. owing to the varying rates of ex-on
pre-concerned faced their position cor months, when the effects of the
are unanimity, She will be allered Revenue Administrations, C. Moxon, H. Keswick, H. Bir. change at which the accounts are ferment, are confident that the rectly and prepared themselves to kett: A. V. Apcar, H. Sascon, A. presented; it is noticeable how Bank's best interests, and there suffer losses and pay their debts, piece goods orisis, began to be felt still in dire straits for money to for her loans the best terms that meet their many obligations and the financial world has awaitable, S. G. Smith, C. A. Roza, G. M.
ever that the depression in trade fore yours, gentlemen, will in his and such it is canain will con-ed that there are nearly 1,200 the heaviest item remains the pay cost favourable prices that From recent statistics it is estima administration expenses, of which and for all her requirements the Young, A. S. D. Cousland, P. is reflected in our cash balances hande be in the same safe keeping tinue to be their attitude, Lauder, J. H. Taggart, L. N. which show a large increase on in the future as they have been There are some difficult months active spindles in operation in of an army altogether beyond the public tender can reach.
In conclusion, I must mention Leefe, T. W. Hill, G. Grimble, those of the previous year. Our with his predecessors in the past ahead till accumulated stock of China, and there is little doubt the legitimate requirements of the E. A. M. Williams, A. E.silver deposits have also increased
imports go into consumption, and the future prospects of the cotto country. The fall in exchange, the question of the unification of Griffin.
The Silver Market. P. M. N. ́da considerably and the dollar totál
till exponts have revived, the last industry in this country are on by largely increasing the amount railways, a prominent, practicKİ Silva, W.E. Van Epa, R:A. Dastur, | of our assets and liabilities is the The silver market showed very a difficult state to bring about couraging, as is evidenced by payable in the coming year in part of the Consortium pro
The consolidation of T. E. Pearce, E. Howard, highest recorded in the history of marked fluctuations during the now, owing to the existing high continued expansion in the capacit; discharge of Chinese gold obliga-gramme. Dunbar, R. A. Gubbay, M. S. the Bank.
year. From 75.58 at the begin-cost of production in Japan, but of the existing mills, both as regar
tions, adds to the difficulties of the the railways of this country. Northcote, J. M. de Castro Basto,
Increase of Capital.
ning of January, it rose rapidly there is nothing to justify the pes-spindles and looms.
situation, while the famine which under one administration, if ever D. V. Steavenson, A. Denison, Your Directors have had under till it attained the extraordinary simistic view of the country's on- CUSTOMS AND SALT REVENUES. the North, consequent upon the prove of the highest advantage. now exists over a large area in carried into effect, cannot but E.M. Raymond, G.E. Towne, A.B. Stewart, George Hogg, K. 8.
consideration the desirability of price of 892 on the 11th February.dition which lately has been ex-
The Maritime and Nativo drought of last summer, impar. Aside from the economy of Morrison, C. H. Edgcumbe, Geo,increasing the capital of the Bank, The keen demand then existing pressed in some quarters.
Customs revenue collection under atively calls for relief measures administration which will be Hastings, F. Smythe, A. S. Ellis, and have decided to issue the re-for China's products and the dis-
the Inspector General of Customs by the Government on a large brought about by such a stop. The China, with which we are, credit into which various paper F. Maitland, F. Bovington, P. V. maining
for 1920 amounted to H. K. Taols scale, involving considerable there is the more important Botelho, A. Murdoch, G.H.N.1 $5,000,000, which the present currencies had fallen among the course, nure intimately concerned. 49,500,000 and H.K. Taels 4,880,- extra expenditure if the lives of question of local administration Mody, Henry Humphreys, J. Mc-Ordinance authorises them to do. Chinese people, produced a very the year 1920 opened with a pheno 000 respectively, an increase of perhaps millions
of people which railways in partially Arthur, B.C. Lambert, H.M.H. The necessity for this measure strong demand for silver, which monal boom in trade the export Taela 314 million in the case of are not to be lost. The developed districts so often Nomazge, C. G. Alabaster, O.I. has no doubt been generally ap was not satisfied till the United trade was brisk and prices ruled the former over the previous foreign communities in Chica involve.
parent for some time past, as the States Government ultimately al-high, producers making large profite record collection for 1919, and a ere giving what assistance Were there a Chinese railway G. B. Dunnett, D. J. Lewis, G. Bank's business has kept pace owed the export to China of very during the first four months of the decrease of H.K. Taels 111,000 in lies in their power, service moulded on the same lines Miskin, Mok Mang Chee, Mok with the expansion of Eastern large amounts from their stocks year. During May the European the case of the latter since last This Colony and neighbouring and characterised by the same Kon Sang, Chau Siu Kat. Lo trade and its liabilities to
the of silver dollars.
and American markets, already over. year, the nett increase expressed British Colonies have contributed integrity as those of the Custome Cheung Shiu, Lo Man Hin, Chau public are now $480,898,000 com- The cessation of the demand for
being £2,242,709 over Shu Ming, Fung Kong, Un, Topared with, $215,280,000 in 1907, exports found China moderately stocked, samped heavily, owing to in gold at average exchange generously and funds have been Service, and were the satisfactory the opened in Europe and America by profits which certain of the lines | figures
1919 collection. means of which large sume have are able to earn, even under Kung Po, Cheung Wan, Howhen our capital was last increas well supplied with silver, and dur curtailed credit, and shipments from Chouk, P. K. Kwok, M. W. Lo.ed from $10,000,000 to $15,000,000.ing the latter half of the year she Chinese with inrge accumulated ions, including the service of ed in relief measures.
the East rapidly fell off, leaving tle. After moeting all obliga- been raised and are being expend-present conditions, devoted to The Improvements and extensions, The enhanced value of mer-was not able to absorb what was THE CHAIRMAN'S SPEECH. chandise of all Vainda entails offering. India was in the same stocks while have greatly deprecint the Reorganisation Loan, Taels excellent work performed in this the time would not be distant The Chairman said: Gentle-greater Calls on our resources than case and no Government in the ed in value. The fall in exchange, 23,150,000 surplus funds have direction by foreign missionarias when the end of railway barra men-The report and statement of formerly, making an addition to world was making fresh issues of which in normal times would have been banded over to the free use is the admiration of all who haveling would be in sight.
silver coinage. On the contrary, helped the producer, proved of littl of the Chinese Government. seen and had experience of it. All China has her own particular" accounts having been in your them urgently necessary. My
While it has to be borne in that has been done in this way, difficulties to contend with and hands for some time, I shall fol- predecessor in this chair in 1907 many Governments, including our benefit, as the fall in prices in bot
own, were either melting their sil- the European and American market mind that the increase is largely however, has scarcely more these have a compelling faterent low the usual custom and take remarked on a similar occasion
ver coinage and selling the bul-outpaced the decline in exchange. if not entirely due to the revision than touched the fringe of for the Bank, but she is suffering them as read.
that whatever political changes
needs of the famino- also from the re-actions of the lion, or replacing the existing Imports coming on the marke of the Customs tariff which began the The statement shows a not pro- may be in store for China, there
regions. and the war, like the rest of the world. fit for the year of $8,841,166.30, can be little duust but that the coinage by one of interior fine-during the first four months of th to be effective in August, 1919, it stricken
Consequently the price year were laid down at relative'
is none the less a remarkable handling of the situation is one FREEDOM IN TRADE REQUIRED. which compares with $7,386,862.09 ultimate outcome will be a witter rapidly fell throughout the year high sterling rates of exchange, and fact that in spite of the unsettled of the most serious problems
The outstanding cause of the for 1918. Enst June, as the pro-field for the operation of foreign and reached 40.718 on the 31st De- very large profits were being mall state of the country, and the requiring the immediate attention world's trade troubles today is spects seemed so favourable as to capital, and a considerable in-
political dissensiona which of the Chinese Government.
lack of capital, logs of purchasing justify an increase of the dividend, crease in overseas trade. I think cember, The China exchanges re-all round. Owing to the prosperit resulted in, active hostilities
power. No quack remedies, such curtailment
THE CONSORTIUM. we made in interim 'distribution that this is as true to-day as it acted similarly and from '93d. for of the import trade in 1919 inany and considerable
as a new international money or the tael and 62d. for the dollar, new dealers appeared, particularly of trade for many weeks was fourteen years ago.
The speech of my predecessor unit of account; no further ins they declined to 41d. and 82d. in piece goods. Enormous ordon last summer, a record collection last year contained a reference flation of currency, with 'The question of the issue price
respectively.
were placed in England and America, can still be shown, and bears to the preliminary negotiations attendant evil of higher prices of the new shares was closely con- Even the high prices generated where manufacturers, flooded with striking testimony to the vitality for the re-establishment of the extension of Government com of, making in all £8 for the sidered by your Directors. In by the extraordinary demands of
of Governm year, the game as in 1919. We arriving at the decision to isane war led to no increase in tha an indents, were in a position to com of the country's trade and of the Consortium on a four Fawer or increase propose also to continue the at £70, they were guided by anual production of the metal: it
to great possibilities of its expansiun basis; that is to say, the group- restrictions will help us to asil policy of strengthening our re-long view of the permanent inter-remains at about 195,000,000
deliveries, Consequently many under more favourable conditioning of British, French, Japanese our exports, or to correct que The Salt Revenue collection for and American bankera for exchanges, for, next to peace, serves, and accordingly $2,029,- eats of investors in our stock. ounces, 'But this amount its orders placed in 1919 for the Spring
the year has also been maintained co-operative work in China. The freedom is what trade requires. 411.76 out of the year's profits is. This figure confers a substantial not all available. We must de-market in China were not delivers added to the Silver Roserve. As bonus, while the addition to our dact from it 60,000,000 ounces bi till well on in the Autumn of 1900 at a high level in spite of the year which has passed has Governments can do muok to stated in our report, the transfer Reserves of the funds to be re- the United States production to be Owing to such uncertainty as to de: unfavourable conditions to which brought these negotiations to establish both peace and freedom I have already referred, coupled successful conclusion. Mr. T. W. but the larger part of government of £1,000,000 to our Sterling Received will considerably increase purchased by the American Gov. liveries, exchange in many instance with the fact the Balt Re- Lamont's visit to the Far East in expenditure in mast Europes n serve was effected at a favourable not only the earning power, but arnment in accordance with their was unsettled at time of arrival venus Administration has not the Spring had the happiest re- countries is in the nature of war rate during the year, and that also the prestige of the Bank.. fund now "áfands at £2,500,000. In due course a special circular undertaking to replace the 200,- with the result that a very large profound it possible to resume ile sults in removing certain pre-expenditure, which is torippi
|000,000 ounces sold to the Gov-portion of stocks had to face functions In the important liminary difficulties, and every-trade and industry by its dem
Ellis, P. C. Potts, G. B. Archbutt,
and Ho Wing.
of £8 per share, and on this oc-
casion we propose to distribute 'a final dividend of £3 and a bonus
40,000
shares, Say
1088.
The China Markete.
mand their OWA
terms
ay
of
for
to for
The Sliver Reserve, with the pro-will be sent to each shareholder, ernment of India. On the other overstocked market, with declining Swatoa area, which were dis-one concerned is much indebted on ospital posed addition, will stand at and an extraordinary meeting will hand, economies in the use of sil- prices, caused by the heavy drop i continued in 1919, owing to to him and, through him, to Political instability, still dari $21,500,000.
be called, when the resolutione ver a currency already referred the price of raw cotton, plus a dry, interference by the local antbori, Messrs. J. P. Morgan and Co. Ale proper hearing to the org With regard to Bank premises, necessary to obtain your sanction to have compensated for the loss of 50% in the value of the tael and ties. The total revenue amounted meeting of the Four Groups took economic needs of the situati the expenditure on buildings in to the scheme will be put before of the American production as a dollar, as compared with rates rul to $79,200,000, a decrease of place in New York in October The fact that the urgency of recent years. has, been heavy but you.
source of world supply. On the ing at the time orders were placed $1,400,000 compared tothe revenue and the agreement which they need has so farÍMI entirely unavoidable. Our busi- Since we met last year the re Centinent, where paper issues The position was further embarrass, for 1919, but still 87,661,000 more reached and the resolutions which nations into pat Hess has gradually dutgrown our action that was to be expiceted have supplanted the old metaliced by political disturbances in the than the figures for 1916. It has they passed were subsequently universal pesce Accommodation and in addition to after the great trade boom of 1919 currencies, silver has been large Northern and Central Provinces, total revenue no less than $44,000 The aims and objects of the of the read
however, to be noted that of the made public.
evidence of Gradi the new buildings referred to last and carly 1920 has taken place. ly demonetized and sold, as where trade during Jane and Jul year, it will soon be necessary The disorganisation of the world's securities are sold, in order to ob was practically at a standstill, owing risted locally by the Provin understanding has sometimes turbance 000 was retained or Appro: Cogsortium, as to which min, nousumary to rebuild our Singapore Office. exchanges became more protein credit in other countries. When it And the other buildings 'nounced in the bourse of the year,
to the presence of unpaid and uncl For the reason stated the ordin
Authorities, or Military arison, should now be sufficiently squilibrium. antrolled soldiery. `now under construction are com, and in Asia, tørrencies normally ary mint demands for silver coin
to their own clear, but I will just touch upon of conditions pleted, the Bank will be housed based on "gold, such as those of age, both in England and the Con. The fact that the products of Asiduses, a striking testimony to the the salient features. In the first which no a 'în all its principal places of busi- India, Java, the Philippines and tinent, are in abeyance, and it have been confronted with over almost entire lack of control ex, place, I should like to emphasize pansion can ness in the East in modern and Japan, moved in orbits of their seems unlikely that they will be restocked makes and declining prices ercised by the Central Govern the point that the Consortium is everywhere hind commodious" premises, sufficient own, with variations not always vived in the near future. A con- in Europe and America, has naturalment overbertain of the provinces. & partnership which contemplates unida for our requirements for many easy to foresee and provide for.siderable part of the trade demand ly had its effect on the purchasing After meeting all obligations transactions, spread over con years to come and no further con- Still, notwithstanding these handi- has been met by the melting down powers of India, China, Japan a escured on the Salt Revenue, the siderable period of time. @whi siderable expenditure should be caps and the vagaries of the silver of silver plate. In India the re, all other Eastern countries. In de amount of $64,000,000 (inclit provides general machinery for
eluding -36,033,000 refunded by the Future borsolows of China, I necessary unless, of course, we market, to which I will refer later, serve of aliver rupees, some sixtying with the situation, thus creat
[the Ahlaridirae Customs In respect, dose mot, contemplato a large lai. decide from time to time to extend the camming power of the Bank crore, is larger than it has ever we are necessarily proceeding wzrica of the Reorgan), mediate loan. Indeed, in: lop the area of our netivities. Mean was more than maintained, and I been, and seems ample to meet si caution, but we are also carrying sation Lean) was released to the as the hold at the Central time, we propose to continue write think we should record our ap- requirements for some time to out the traditional policy of the unt of the Chinese Gorer, Government of the Province in ing down these properties when preciation of the able way our come,
Bank, and liberally, if judíolously, hangtey
Commanders
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