1937-10-21 — Page 6

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THE HONGKONG TELEGRAPH, THURSDAY, OCTOBER 21, 1937.

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THURSDAY, OCтoven 21, 1837.

China's Expectations

The wont has been passed, and Republican Party leaders in the United States, with the advocates of American Isolationism, are in full cry.

by Led

Governor Alfred Landon, Republican can- didate for the Presidency in the last efection, they are tearing to pieces the carefully constructed policy of President Roosevelt who has pledged the United States to defend the sanctity of treaties and to use his influence end aggression. President Roosevelt is accused of assuming the responsibility of a one-man Government and abusing the The powers vested in his office.

to

NOTE:

This article was written three weeks ago, when the first signs of

the slump on the American Stock Exchanges made themselves apparent. However,

in view of yesterday's reports from Wall Street, the article is very timely and in- formative.

Plain Man's guide to a Stock Exchange

10-DAY is pay day on

the Stock Exchange.

fort- Once every night the Stock Exchange has a settlement when all the business carried out during the previous fort- night has to be squared up.

Genuine investors. pay for their purchases and speculators collect their profits or pay their losacs.

To-day's pay day will be one of the largest for some time, as the losses of speculators who have been caught out in the re- cent slump on Wall-street run into many millions.

levels.

He finds these announcements hard to-reconcile.

Panic

by-

STEWART GILLIES

Daily Express City Editor

He is then in a position to pose

as a pundit and advise people what they should do with their life savings.

He need know nothing about business, economics, foreign exchanges, accountancy or law. All he needs is a fow wealthy friends and the gift of salesman- ship.

Such a state of affairs is not tolerated in any other profession, and should not be allowed on the Stock Exchange. Even the in- telligent minority of brokers who do know something of what

Few, if any, can tell the dif- The sensible investor who took is happening in the world find it ference between a blast furnace advantage of these abnormal dificult enough to be right about to purchase auch investment matters, and agree and a coke oven, and not one in conditions

a hundred has ever been down a stocks was, therefore, paying with this view. coal mine, although they are now nothing for a share in the plant, In financial affairs, as in poli- recommending coal machinery and other assets of ties, there will always be ex- businesses, which in many cases aggerated hopes and fears. But

strongly shares to their clients.

The bulk of their news they were worth some millions of gather from each other. As pounds. with all gossip, the final story -beurs little relation to the

original.

IN London during the

with better training on the part of the salesmen there might be fewer booms, but there would almost certainly bo fewer

course of the past year

What is all this slump about? When the man in the street opens his morning paper nown-

The result is that if Wall- prices of many shares were slumps, in security prices. days, so often as not the head-

Exchange street falls London falls, and vice forced up to levels where pro- WE would pay more at- lines tell him Stock

spects and dividends were dis-

tention to the fore-- prices have slumped again, while versa.

Price movements under such counted many years ahead.

bodings and clations of stock- in the next column another head-, conditions are usually so ex- As a result of the recent set- brokers and the fluctuations .of line announces that company aggerated that they take little back, however, many shares are the Stock Exchange as genuine profits have risen to new record account of the realities of the to-day giving yields which are indications of the trend of trade

situntion. For example, in the undoubtedly attractive in view and international affairs, if summer of 1929 American secu- of the favourable trading out stockbrokers would make a real rities were pushed up by over-look"

effort to learn more about the exuberant apeculators to such an But booms and slumps seem major industries of the country. extent that the dividend return to me to be due in part to the If they would get out and in many cases was reduced to make-up of the Stock Exchange about more. around 1 per cent.

itself.

If entrance to the Stock Ex- In October, of that year Wall- In the first place the stock- change was made conditional on into war. *** ***

strect crash For days on end broker needs no qualifications knowledge of the subjects on "On the face of things, Prest-Finhibited by rather peculiar-prices-of-the-leading securities whatsoever for his job. If a which you propose to charge for dent Roosevelt is in a shock-people.

fell by 20 to 30 points, until even- young man is a failure in other your advice. tually it was possible to buy the walks of life and can find a cer- If there was established proof position as far as his for-

The London Stock Exchange shares of many first-class com- tain amount of capital, he can school for young stockbrokers, eign policy is concerned. In the has over 5,000 members herded panies at prices which represent always as a last resort go on the the curriculum of which would first place, he has made no posi together in an out-of-date build-ed less than the cash in the com- Stock Exchange on a half-com- include world finance, economics,

mission basis.

necountancy and company law, ing much smaller than the Albert Hall.

S. MOUTRIE & Co., Ltd. critics warn that a mistake on

York Building

Chater Road

ENY.K.

San Francisco via Japan Ports & Honolulu,

(Starts from Kobo).

Chichibu Maru

Taiyo Maru

Tatsuta Maru

Seattle & Vancouvor (Starts from Koba)..

Hikawa Maru

New York via Panama.

†Nagara Maru

Tues., 9th Nov. Mon., 15th Nov.

Tues, 30th Nov.

.Sat., 23rd Oct.

Sat. 30th Oct.

South America (West Coast) via Japan, Honolulu,

Hilo, Los Angeles, Mexico & Panama,

Takaoka Maru (Starts from Kobe) Sat., 20th Nov. London, Manaliles, Antwerp & Rotterdam.

Terukuni Maru

Hakusan Marù

Liverpool via Port Said, Beyrouth, Istanbul, Piraeus,

and Marsellles. :

+Lisbon Maru

Fri, 6th Nov, ...Sat, 20th Nov.

Sun, 14th Nov.

..Sat., 23rd Oct. Wed., Brd Nov, .Sat., 27th Nov,

Sydney & Molbourno via Manila & Ports.

Kitano Mara

*M.V. Neptuna"

Kamo Maru

Bombay via Singapore, Penang & Colombo.

Toyooka Maru

Ginyo Maru

+Nagato Maru

+Mayebashi Maru

.. Wed., 27th Oct.

Wed., 10th Nov. Calcutta via Singapore, Penang & Rangoon,

Tacs, 26th Oct. Thurs, 4th Nov.

Fri., 22nd Oct. .Sat., 23rd Oct. Shf., 6th Nov.

Kobo & Yokohama. (Omitting Shanghai)

Kamo Maru

Haruna Maru

Kator! Maru

+

Cargo Only.

•

Joint Passongor Agents for Buras Philip Line Generaf Pasionger Agents in the Orient for the CUNARD WHITE STAR LINE.

Tel. 30291.

"TELEGRAPHS"

EVERYWHERE. COUNT THE

his part may lead the country

tive commitments. He is send- ing a representative to the Brus- sels conference, but that does not even mean that the United States Administration will back faction the powers decide upon there-if any action is taken. Mediation is his intentioned,

a

I don't blame him,

STOCK

EXCHANGES are peculiar places

•

}

side world is mainly

Communication with the out- by tele- phone. Stockbrokers seldom, if ever, go near the company in whose fortunes they are interest-

panies' till.

L.S.D. OF THE B.B.C.

DESPONSIBLE officials of the B.B.C. are seriously concerned about the state of the Corporation's exchequer; they see a financial crisis ahead."

£1.

British Radio's

Handicap

A

The Government rend the ́Ulls- › water Committee's report, "OK,J" the 70 per cent., but decided that the portion should provide for sound and Vision services. The Treasury smiled. The general public should be Interested in what happens to the money 12 spends on radio licences, By the end of this year it is is in estimated, nine million radio sets

It in time a little was introduced.

Day

There is no suggestion that the United States, or any other Japanese cause against Russia power, will take drastic steps to and China. It is fairly obvious,

Many people were surprised last curb Japanese, aggression, or from the first mengre messages, | April when the price of the radio was not increased. They that the "quarantine" which that Japanese influence at the licence

believed that the Chancellor of the President Roosevelt suggested as Outer Mongolian capital is in the Exchequer, faced with the lask of financial embarrassment. It

raising national revenue, would turn that part of the money derived from will be in use in Great Britain, and a means of ending violations of ascendancy, and will continue so his eyes to that 10s and be persuaded the issue of licences that the Trea- the man in the street will treaties and defending obliga- But as Japanese prestige grows that it might well become 15s. ar a Bury lays hands on.

£4,500,000 for permits to listen-in. tions of all sorts in the future | in that area, so the danger of a

When you push a 10s note over a If the B.B.C, were to receive 90 That did not happen. But there is

post office counter and get in return per cent, ut each licence fee a In- will be put forward as a remedy collision with Russian interests good reason for believing that the radio licence, a shilling of your come would be increased by £700,000 licence fee may soon be increased to money goes to the Post Office to pay over the figure bolding under the in the present case. It is

increases.

help, not the national Exchequer, for collection expenses and one or prezent arrangement. but the B.B.C. An increase of only two minor services; Is 8d. pity, but for all the fine phrases

The alternative, a order to place. It is certain that Russia will halt-n-crown, it all of it went to the straight to the national Exchequer; the B.B.C. fannces on a more satis-

gdes spoken on China's behalf, extol-do everything possible to keep Corporation, would swell its income 2a. Od, goes to Broadcasting House, factory basis, is to charge more for

by £1,000,000 a year.

the radio llence. But there is no ing the virtue of her cause and out of trouble in Mongolia and Television has proved the radio Treasury official could justify the '16 apparent veh

It is doubtfu whether oven

thi should condemning her.

while opponent','Siberia, and her severance of bogey. When Parliament reassembles per cent, deduction from each licence happen

roughly £000,000 it is probable that the B.B.C, will fee which his department curries out. annually is being diverted from its there is small prospect of the treaty bonds with Mongolia, ask the Government to provide a One may say. there is never any more proper purpose. “

quick delalon by the Television Brussels conference doing-any-guaranteeing assistance against | Advisory Committee as to how tie morality in taxation.. If that is In the next few months tie matier thing more than expressing dis any attack by a third power,, is London television station shall con-

To the plain man who does not approyal of the whole affair, and highly significant, if true. The tinue to be financed.

work in Whlichail it appears rather Service from the Alexandra pf Japan's irresponsibility. Russing retreat is not altogether Palace, since it begin in November unfair to take part of the fee pald

fast, has swallowed £200,000. Two for a speciße service and to apply President Roosevelt's critics are dignified. But Russin's caution hours of television dally for six days to entirely different ends.

is due to her fear of attack on a week lias cost that sum. a little previous.

· But if China is to be dis another frontier, and until con- appointed by the result of the ditions are more certain clse- Brussels conference, she may where she will be slow to move find reason to congratulate her to resist Japan's expanding in- self on the turn of events in the fluence. With Italian and Ger- direction of Urga,

There, reman support at Brussels, Japan ports yesterday indicated, things would feel her position more are moving with rapidity. The secure, but she is carrying her predicted Japanese move in campaign into a place of deadly, Outer Mongolia appears to be diplomatic quagmires when she gaining momentum, with Prince tampers with Mongolian auto- Teh definitely supporting the nomy and Russian sovereignty.

Costhi Baby

The B.D.C.'s

Nine Million Sets

is likely to develop into a tug-o'-war; between the Treasury end the public, with the Treasury 10 per cent. used ns the. rope. toggravated by one or two other facts.

Alarm nt Broadcasting Rouse is

For instance, soon the number of vels in uso An this country will reach saturation point, reckoned os 10.000.000. Whether or not this was what the Radio manufacturers do not re- troubles began to Ullswater Committee thought, one gard this with much misgiving, for uppear in the latter half of last year. cannot say, As everyone knows they are banking on a "fashion" in By December, £124,000 had been this Committee last year surveyed radio-on people changing their set spent on television. The Corporn-the whole of the D.1.C.'s activities annually as nowadays they tend to tion regarded that figure with mis-and landing, in preparation for the change their cars.

B.B.C.. no guide to future costs; It included (of 1927) expiring on December 31, saturation point will mean that the giving nut stated openly that it was new (1937) charter, the previous one

1930.

Corporation cannot look forward good deal of money spent on pre- paratory work and festka, charges The Committee recommended that every year to a steady increase in which, generally, should not have to for the next ten years 76 per cent. lleenen revenue. Income at January be incurred again. But 1830 saw of total lleence fees should go to the 1927 was £800.000: by last year it than had risen to £2,510,000; ·Com- only two months television service. B.B.C. for purposes other

The B.B.C., in both their spoken telovielon, and that the remainder paratively soon it will reach a point ward, are very minus the Post Offler corts) should from which, conceivably, it will fait and their written discreet. But It is obvious where be available for broadensting if it slightly.

(Continued on Page 5.) they consider ʼn remedy lles for thete were needed.

A

Dal, in the case of the

M