1926-02-27 — Page 11

EXTRA

THE HONGKONG TELEGRAPH,

THE BANK MEETING.

SATURDAY, FEBRUARY 27, 1926.

1

in

REFERENCES TO THE BOYCOTT gaat to avoid unduly disturbing August and to 45%, on 1st October. ly good when the year opened, but thoroughly dealt with in the paners which period the Chinese Govern-

MOVEMENT.

FAITH IN COLONY'S FUTURE.

WORLD TRADE CONDITIONS

REVIEWED.

Si

J. M. McHutcheon, Chan Lini-pak.

D: Templeton, J. D. Kinnaird, S.H

of the usual. bonus.

10

the market.

THE COLD STANDARD.

"ו

The

the

Cooke, C. A. da Rozą, J. Walkes, cash and bullion in hand $5 mil mémorable for the return to the of Central Europe by a policy of country thus slipped back into the system of militarism. For the me- Anancial integrity, which

28th.'

THE SOUTH LINA TROUBLES.

has

quarter being on a seale suicient tent independent of outside in-trade by political disturbances or It is unnecessary to refer to the fiscal and Anancial system to influence the price, It seems fluence. The Bank of England rate boycott. On the other hand, com- events leading to the outburst of China.

Tarif autonomy-that ls, free- hurdly likely, however, that large remained at 4% throughout the petition, has been very keen and June. I should like, however, to

a minimum. The remark in this connection that the dom in fixing tariffs-has already quantities of the metal will be dis whole of 1924, while during the profits cut to posed of at present, and, in any past year the rate was raised to prospects for an improvement in charges of exploitation of Chinese been in principle conceded after cnse; sales would probably be 15% in March, lowered to 4%% in the cotton mill industry were fair-labour by foreign employers "are the lapse" of three years, during Early In December, chiefly owing labour troubles intervened, which published by H.M. Government, ment is to effect the abolition of foreign-controlled likin. The questions before the The total production of silver to the withdrawal of gold for ex-led to an entire stoppage of all showing that throughout the world last year isport, the rate was raised to 5.1mills in Shanghai for about four factories compare well with Chin-Conference are," therefore, the estimated at 258 million standard Discount rates al times ruled con- months; the new cotton crop is, ese, and that both our own authori measure for abolishing likin, the ounces, 62 million standard ounces siderably under Bank rate, but, on however, a very good one and, ties and the municipal government levy of temporary surtaxes to pró- being shipped from Europe, Aus- the whole, the rate was effective, given peaceful conditions, this in-of the Shanghai International vide additional revenue during the Settlement had been keenly con-linterin period, and the disposal tralia and America,, to China, and and towards the end of the year dustry should, quickly revive.

CIVIL WARS IN CHINA. cérued for some time past with under adequate safeguards of that 109 millian standard ounces to In-there was no appreciatile difference ala. Included in the latter figure, between the market rafe of dia-

The political events in Chinn Practical steps for improving la-additional revenue. In the present however, are standard' ounces six count for bills and the Bank of of the past year, have so deeply our conditions. In its carry state of the country, the prac "million re-shipped from India to England rate of 6%.

engaged public attention, not only phases the movement threatened ticability, of making effective and China, bringing the latter country's

here but also in England and the safety of foreign lives and pro-lasting arrangements with the EUROPEAN OUTLOOK. Imports of silver in 1925 to an

elsewhere, that there is no noedperty at various points in China. de facto rulers of provinces for together

European reconstruction mude

From an agitation set on foot by the abolition of likin and other to insist on their magnitude or The ordinary yearly meeting of tax), amounting

orgarded as doubtful; one can only Shareholders in the Hongkong and 2800,000--this big payable at estimated total of standard ounces Shanghai Banking Corporation was he rate of 2/43/8, will absorb million, as compared with up- low but upon the whole steady the surious effects they have had students, it rapidly developed into obstructive taxation, must be re-

In dealing riots in foreign concessions, ounces in the previous year. greatly assisted by bountiful har on foreign interests. held at the City Hall at noon. 6,766,519:82-Transfer to Sil proximately 1 million standard progress during the year. It was

new Customs re- with developments which cover so ganized strikes and boycotts, at hope that the offer of compensa- to-day, the chair was taken by Mr. er tenerve Fund, $500,000; Write,

It is estimated that gold to the rests almost everywhere.

broadest survöy is possible. Itile mob demonstrations and viru- venue will supply the necessary 6. M. Young, and with him were if Bank Premises &c. $1,000,000; azmount of diy million was im-neficial effects of the Dawes Pian wide and, varied a field, only the tacks on foreign institutions, hos- tion from the

lent press abuse combined with inducement. As regards the dig the following members of the al carry fortsard to the current ported into India in 1925, as com- may be inferred from the fact that,

ru- shall therefore confine my

strong propaganda in favour of thposal of surtax proceeds, the first Court of Directors Mr. H. Pear the balance of $3,397,722.76 pared with £261 million in 1924. for the first time since the war..

We have not come through the Prosperity in the Straits Settle- no reparation, crisis of any sort marks to a few generalisations. White Deputy Chairman), Hon.

The frat In the sphere of domestic poli abolition of the so-called unequal and most vital need in the The British were the national Interests of China, 'and in Mr. P. 11. Holynak. Bon. Mr. Aeur without losses, but, as full ments and Java has led to accurred during 1925. 0. Lang, Mr. W. H. Bell, Mr. Division has been made for all moderate but steady demand for car's payments, however, were lies the year's record, like that treaties.

The doubt, to our leading, position, invent their finding their way, as G. M. Bernard, Mr. A. B.Complead and doubtful debts, and con gold in the form of both sovereigns made chiefly out of the proceeds of of several years past, is one of chief object of attack, owing, no those of foreign trade, is to pre- Mr. W. L.. Pattenden, Mr. J. A ingencies, und, is view of

our and bars, and, so far as we can the International Loan, and it must wars and rumours of wars. Plarme, ait Mr. T. G. Weal IL reserves, your Director estimate, importations by thus not be forgotten that, even if we programme of constitutional re. Shanghai where the trouble had under the present system, into There were also present, Mr. A. feel fully justified in recommend countries from London, Southforourable view of the forms, which Marshal Tunn took taken its start, and to Great the hands of the dominant mili- Barlow (Chief Manager), Mr. A.

ground for the origin of foreign privilege in those very armies, which are the C. Hynes (Afanager), and the fofing on this occasion, a smaller al- Africa and America amounted to ability of Germany to pay in marks in hand on becoming head of the tain's historical connection with larists to be used in supporting

ocation to the Silver Reserve 23.000.000, in addition to which the increasing amounts of the Government, gave

main obstacle to trade.. To what- was shipped from lowing shareholders-Hon.

han has been" customary, rather £2,250,000

Dawes annuities, it is still left to some hopes at the beginning of China. On the part of the officials chief bane of the country and the ever useful purposes, therefore, Henry Pollock, Hon. Mr. H. W. Bird, Commodore A. J. B. Surline han a reduction in the amount London to Holland on Java the future to determine, to what the years but these vanished when very little was done, in most places

It should count. The hopes with which extent it may be found possible, the first of the national confer to hold the extremists in check, it is eventually, decided to allot

Lances, gunvened in accordance and the agitation was left in the

the increased revenue, the matter, to transfer these amounts Cap: T. Arthur, Dr. Sanders, Mrr 1. G. Waall, Mrs, Hegarty, Messrs.e borne in mind, however, that the year opened at Home gave

became economic effects of the movement administrative control. 1 BOOB 1). J. Lewis, T. E. Pearce, Ho Kom a bonus is dependent upon pros- way to an exaggerated pessimism foreign creditors, without upsetting with his scheme, proved a corn-main to run its own course. The of prime importance is effective

So long as

our Bank as it was realised that, neither perity.

other obvious that the "Tuchun system" were felt most acutely at Shang-

One of the purposes put for position of tony, Ho Wing, J. F. Wright,

(to use a popular phrase) was hai and the South China ports. ward at the Conference is the ad- G. E. Towns, H. P. Thomsen, Leremises Account stands at the return to power of a "stable" the German trade balance, or the plate failure,

countries.

The events of the summer have justment of the unsecured Cheung-wan, R. A.. Dastar, F. W. digh figure, the polley should be Government, nor the reduction of economie

French trade is active, but the too strong to admit of national o write it down each year out the income tax from 476 to 4- Stapleton, C. F. Nicolay, A. H, de

National movement in ment. I have mentioned the Smith, A. S. D, Cousland, Ho Foos/o continue to advocate that pro- lion of the Dawes, Schemo, were rectification of the financial posi-reconstruction, except by force of proved the growing political power obligations of the Chinese Guvern- Silva, B. A. Hale, C. A. Middleton profits, and it is our intention in the £, nor the successful initia

in themselves sufficient to lift the tion political rather than an arms, and that, so long as the of the edure.

As regards the balance shed cloud of depression which lay on reunomic problem-is giving rise central government remained de-China. In spite of the lamentable alarming increase in the number the to increasing anxiety as to the pendent for its military backing record of the last few months, one of China's foreign loans which the industries-especially do not think there are many heavy industries of Great Bri- future. German busings has been on the Tuchung themselves. It cannot but feel that this movement are falling into default. There Michael, V. Goulbourne, P. S

The dominant mili-porters profess is genuine, should debts due by the Government to Cassidy, C. B. Brown, Stewa mportant changes to comment ontain. The signing of the Locarno hampered throughout the year by a could only rule as their controll- if the patriotism which its sapis, besides, a very long list of

he increase in the total assets part helped to restore business shortage of floating capital, that offed agent. Smith, Lo Man-hing, Lo Cheung-ip. H. G. Hegarty, E. A. Ram, Lee and abilities from $68414 mil confidence, however, and the year some of the Scandinavian country chiefs, Marshals Chang Tso-have in it the sects of what the foreign purveyors, of railway and Coon. D. V. Steavenson, W. C. vanilons in 1924 to $704 millions in cinsed with batter prospects than tries by the rapid apprcelation fin and Feng Yu-hsiang. had country urgently needs, namels, another material. It goes without their currencies, (with a corres- after the defeat of the Chibli organised public opinion among saying that China can only re- indicates that, inat one time seemed likely. der Steen, S. Steavenson, L. S. 1925

panding full in the internal price party, reverted almost at once to the educated classes, which would trieve her fast-vanishing credit, of dilleul times, our

present and regain the reputation for Greenhill, N. V. Croucher, J. W. C. spite

The year 1923, will always be level), and that of the "new" states a state of mutual hostility. The break the back of Bonnar, F. A. Joseph, S. M.-Churn. business continues to expand,

Deposits are $27% millions, and Mok Kon-chi, G. M. Dalgety, C. J.

high tariffs.

icious circle of inter-party strugment the excitement, engendered been hers in the past, if she takes on April Gold Standard

gle, from which no escape seems by the unfortunate "Shanghai her debts in hand, and ceases; D. H. Cooper, K. S. Morrison, F. R. lions, higher than on December when Mr. Winston Churchill, the

Bank Premises stand Chancellor of the Exchequer, an The conditions which have exist-possible while each speeessful affair," and the instigation of Bo from the neglect of her foreign in exploiting its shevist agents, backed by Bolshevist | obligations, which has marked the Marsh, Fung Kong-yuen;. A. Silva 31st, 1921. Netts, J. M. Alves, II. B. L. Dow-at a slightly lower figure. Ex-nounced that it was the intentioned in South China since the middle party persists biggin, F. Austin, A. K. Henderson, penditure under this heading dor of the Government to allow the of June 1925 are well "known to power solely for its own advan-money, have shaped the movement last few years.

OTHER EASTERN PROSPECTS. E. H. Summers, R. M. Smith, E. A. ing the current year will be in embargo on gold exports to lapse you all, in this Colony we have tage, and in treating the provinces into a blind crusade against the spoils of way to be divided foreigner and foreign rights in

While China has always been our G. May, L. S. Dodwell, P. K. Kwok, considerable, and I anticipate at the end of 1925, and in been, and are, passing through, M

meantime

most important field of operations, period of stress and trial. Speak-among its supporters and to serve | China. It is reasonable, however, W. E.. Van Epps, F. G. Carroll, G.that, allowing "for the provision the

we have, of course, very extensive we have made from the profits of general licence Grímbie, W. A. Eustace, G. B.

Our Chinese port for their ever-increasing facts will in time prevail

partisans of the movement have and profitable. business, interests. H.preciable reduction at the end of is no mean feat for, Great friends and neighbours are rational troops.

Another year of military mis- now tangible proof that their legi-throughout the East; and, in con- 1926. 1 would. add that our in-Britain, in ace of the much more poesle, and, sooner or later, more

brighter pictures of the other vestments stand in our books at serious financial disorganisation, reasonable counsels must surely rule in the provinces has had the timate aspirations far bettering the rast to China. I am able to paint. The Chief Manager having end well below current market prices. which prevailed in many coun-prevail. I am convinced the vast inevitable effect of further dis- international status of their coun-places where the Bank is establish-

acmajority would welcome an early organzing the economic machinerytry have the sympathy of the notice convening the meeting trust, gentlemen, that the pro- tries after the late war, to

This especially foreign Powers, and that the latter. The Straits Settlements and The Chairman Sald:Goutte posed, distribution of profits will complish the return to gold in a termination to the present artificial of the cuntry.

shorter period than was found it is nothing else-attitude of applies to the railways and the are ready to take practical steps in Federated Malay States, after some men, The report and statement of receive your approval."

possible, after the Napoleonic hostility towards Hongkong.. Can-Salt Administration. In the case this direction, so far as conditions ears of depression, are enjoying con-admit. I cannot, then, but beat prosperity; the two chief in- dustries, rubber and tin, are both accounts having been in your hand: for some days, 1 shall, as usual, assets and liabilities with those Wars a hundred years ago. The ton is no more entirely independent of several of the former.

of 1924, it should be noted that uncertainty in financial circles as of Hongkong, than Hongkong is tinted misuse of the lines and the obvious that the rent obstacle lies in a very flourishing condition. take them as read.

If appropriations of

revenue have in the internal state of China. The price of rubber, after ruling com-the rate of exchange at which the

to the immediate effect of the re- fentirely dependent on Canton. 1 trust the day will soon when a successor of mine in the conversions have now been made turn tą gold on the monetary think experience will convince the proved the last straw, and at the which at present fails to provide for a long time at the bare cost dispersed. Canton Government that their end of the year three of the in the must erdinary guarantees of or of production, has advanced rapid- loans had der. justice and safety of personly, owing to the large consumptive chair will be able, in his opening approximately 2.1/4% higher position

han the previous year. As men- There were doubts, too, no doubt present policy is economically un-ternational railway

Depreciation and property. Realising this, may remarks, to refer to a past year of prosperous trade and pearefined in the report, we closed better founded, as to the effect on sound, and quite as detrimental to fallen into default.

our Vladivostock Office on Septem-industrial costs, but with the in-their own prosperity as to that of of rolling-stock, through reckless they find the courage to attack the demand and absorption of stocks. activity throughout China. It is a

ustrial improvement, which be this Colony. While, without ques-and ignorant usage, is also becom-root of the evil and attempt to rid reducing-companies are in the long time now since such a hammer 30th last. Our experience of

tion, many interests have suffered ing a very serious matter. China of the military despotism, happy position of being able to business conditions in Vladivos

re- gan in the Autumn, was

years ahead, on terms, which show revenue by provincial state of affairs could be recorded.ock has not been encouraging cognised that many of these and hardship has been inflicted on the case of the salt, the seizure which is locking all progress and dispose of their output for some. and I imagine the year recently during the seven years we wer doubts

a handsome profit, I imagine that had been exaggerated numbers of innocent people, as of

THE TARIFF CONFERENCE. most of them are taking advantage ended, will long be remembered as

was plain sailing result of the present state of Governors and forcible interfer steadily ruining the country. one of the most unsatisfactory and established there and, as the pros- Not that all

affairs, I do not think the Colony ence by local military authorities

of the position to, at any rate, pect of improvement apeared re- The necessary adjustment of

has sustained any permanent in-have reached a point where they

the Tarif Conference, longer merely reduce the 01 demerit that merchants in Chica mote, it was considered advisable British prices to gold prices, injury, and, given a turn of the tide, no

cover their working costs for the Peking at have experienced. Trade has to close that office.

plied in the return to the gold confidently anticipate a return to foreign bondholders security, but which assembled in

atand on velvet. hampered in every directions civil

standard, could not fail to be more or less prosperous conditions, seriously threaten the organiza- the end of last October, it is next few years, and, so to speak, India has, had a series of good wars, strikes and boycotts being

The delay of three years in the monsoons, but her surplus products, The order of the day, all as detri-l There has been an absence of painful process; but upon the would take this opportunity of tion so carefully built up with yet too early to say very much.

On the credit side there is pain-final ratification of the Washing instead of being exchanged for pre- of the country, as disturbing price of silver during the past fachieved with comparatively little assistance accorded the community fully little to set, but mention (ton treaties has resulted, in the ductive goods, continue to be Ex- mental to trade and the welfare spectacular movements in the whole it appears to have been recording my appreciation of the foreign assistance, since 1913.

Now that under the Government Trade Loan: The peaceful life of the industrious year. In fact, the range of 23784. disturbance to trade. population. In the circumstances between the maximum and mini-the embargo on the export of gold Scheme. I might mention that the should be made of the develop-Conference being held at a time. pended on gold, which, being the north-west favourable for international shasing power of the people. In your Directors think it is a matte mum prices, viz: 33.7/16d. and from Great Britain. has been re-an has contributed very con-ment work carried out by Feng and in conditions, particularly un- hoarded, does not add to the pur- 31.1/16d respectively, has been the moved, and sterling re-stub siderably to the funds raised in frontier districts, including the gotiation requiring calm and rea- this respect, therefore, the pro- ing power of the Bank has been so narrowest for many years, and one lished on its pre-war basis, with London for the purpose.

A combination of adverse cir- roadbed for the projected pro-sonable discusalon. The Conferberity of India is more superficial · smallest on record. a free market for gold in Londen, little affected, and "they are in of the

Ninghsia. Actual railway con- in making some headway. The rests of the country must for a pocition to lay before you a balance the circumstances, there are no the London money market is subcunstances last year rendured the longation of the Suiyuan line to ence nevertheless has succeeded

outstanding features of interest to ject to the influence of gold move-import trade of North China estruction has been limited to work Powers gave early proof of their tong time to come bo sought in the sheet, which they feel apered pra All consider eminently salisfactory. which I can refer in connection 1ments, a factor--and a very im-ecedingly difficult and disappoint-in the Langhai Railway na cer-readiness to deal with the teritorderly development of her enog

The result of the year's working with the silver markel. Contrary portant one-that has been ab. ing. The light recovery in the fain extensions of the Manchurianestion on a

nous agricultural resources, and any There movement of goods during the late including $3,390,508.04 brought for to the expectations of a year ago, sent for over ten years,

beyond moderate purchases of the now comes into force the auto-Spring was detrimentally affected system, but the building of roads basis, the Chinese claim to be reartificial attempt to force the pace for motor trafile has advanted teased from the conventional flat industrially is to be deprecated. ward from 1924, shows a not pret for Germany, totalling about matic check to an excessive influx by the unfortunate Nanking Road considerably in various parts of rate tariff, and to be free to de- The textile industry in Boming is At of $15,846,978.01 as

The Customs Ad-termine their own rates of duty; no doubt passing through a savore pared with net proat of tine Oz., 5.000,000, there was no for efflux of gold, viz: the lowering incident last May. A distinct re the country.

the

The in-Continental doránd for coinage or raising of the Bank of England yival of trade was apparent der ministration has, as in the past, being received with sympathy and $16,383,882.01 for 1924.

move the excise duty-however terim dividend paid in August 1st purposes, and at present no signs rate, as the case may be. We are ing the months of September and remained happily immune from even as the groundwork of dis-crisis, but the steps taken to re-

of civil disturbance; cussion. It can only be hoped

necessary on political grounds af £180,000, at exchange 2/1.7.8, of support coming from that quar- therefore, likely to experience a October, but the outbreak of civil the effects

On the other more uncertain discount market war.in the North caused a fresh except

that the Chinese representatives must be regarded as of doubtful absorbed $4,132,735,13. After ter are apparent.

To add to their diffi-large diminution of

revenue will respond to the liberal spirit wisdom from an economic point of and hand, towards the end of the year in London, than we have been set-back. deducting that "amount $50,000 remuneration to Directors, the about 1000 punt sold by accustomed to during the past few culton piece-good faire during the summer months from shown ny the Treaty Powers, by wiado

tender about 1,000,000 ounces of years,

to the check to trade caused by the London money have

enabing the negotiations to pro-

Japan appears to be gradually there remains 4 balance of

comes under the face steadily-increasing competitical strikes and boycotts.

ceed on fair and reasonable lines, emerging from the disastrous $11,664,242.58, which, as you have sliver, resulting from the telling market. now

with equal regard to the rights effects of the great earthquake seen from the accounts, it is pre-down of old coins. This in itself direct influence of the w-rid-tion from Japan. While the silk

money, whereas trade had

the antiand Interests of both parties, and of 1923. I must now turn to

The balance of trade posed to appropriate as follows:-1 is not a very important factor, but, value "Pay a final dividend of £3 perin view of the large stock of silver during the time the uniburgo other expert business was on the

in whole dull, although it was not foreign movement which has bes by making a genuine effort to lay has been moving more

an improved! (Continual overlauf share and a bonus of £2 per share, held by the Spanish Treasury, there on the export of gold (subject to deduction of income is a possibility of sales from that forec, London was to a great ex-s much llected as the import 'so momentous a fenture of 1925, the foundation of

in Krant

to the Bank of

Layton, H. R. B. Hancock, A. Mur-1 1925. this Account will show an ap- England for the export of old personally, I have little doubt as little alse than a means of sup-to hope that a sober view of the)

cock, A. Denison, J. Fleming, S. Hills and G. Marray,

CHAIRMAN'S SPEECH.

for Congratulation, that the earn

Pan-

In comparing the £ equivalent

THE SILVER OUTLOOK.

B

of

has been

was

as to the outcome.

a satisfactory year,

Yu-hsiang in

to the extent of

THE ANTI-FOREIGN MOVEMENT.-

The

the

frosh and broad

than real.

The substantial in-

in · ·the