1939-02-25 — Page 53

Saturday,

HONGKONG TELEGRAPH

February 25, 1939.

Chairman Refuses To Comment On Politics At Bank Meeting

Remarkable Year Reviewed

HONGKONG FEELS

WAR EFFECTS, BUT

+

IS CONFIDENT

Brilliant Achievement By Maritime Customs

In proposing the adoption of the report and accounts, Mr. T. 1. Pearce addressed and sald: Ladies and Gentlemen,

Reticence Wise Says Mr. Hughes

Seconding the motion, Mr. A, W. Hughes suid: It gives me - grout pleasure to second the proposal that e Report and Accounts as present- cd to

this

Meeling be adopted. While our Chairman's opening re- mark to the effect that there is little to say about

Balance

nce Sheet may be true in that the figure

Oxures now fore us follow fairly closely those of last year, I feel I

I am but expressing the views of

of Shareholders in raving that the net profit shown in the 1933 Ceneral

eneral Profit & Loss Account

the

How bo

is very gratifying to us. This is all

produced most of

the

CHINA RAILWAYS DOLDRUMS, &

IN

PROSPECTS

Difficulties

POOR

Created

By New Exchange

Doris

eounts having been in your bands for Date and thus becoming more per-! Shareholders, 4 did not tender to the /contllet. but we trel sure that the ing the situation with concern,

The report and statement of ac-

permission, take then as read.

Directors' mains

remuneration there available for

to allocate as follows:-

To pay Ann divi-

bu

gives

m

Lover

Difficult

upon

care

from

Jengthy

Such

delicate

of

of

IN ONE OF THE SHORTEST SPEECHES on the more so because of our know-Weighty lemons have restrained the the Yangtze to South China ports, record, Mr. T. E. Pearce, Chairman of the Board of ledge of the dificulties under which Chinese Government from putting the Thus exports from Shanghai dropped are greatly while the majority of the the Bank's werk has been courier agreement into effect, but we Directors, this morning addressed shareholders at the an- during the past year.

sorry that this has not been done. South China ports showed consider- nual meeting of the Hongkong and Shanghai Banking Strength shows itself only when Apart from other things it has meatably increased exports. The com- no foreign toan quotas have beenparison would be more striking were tested by adversity, and there

that are remitted Corporation, when he reviewed in general terms the last few present to-day who are unaware Japanese control.

from the

under it not for the closure of Canton and Moreover, we had some of the other Southern ports months have twelve months of finance, trade, and currency in the Far that the past the adverre factors operandi might have been appliei Tientsin figures are a

hapes that some similar

October. The madusafter the middle of

considerable East, though he refrained from commenting in detail, or that an Institution such as ours can to other difficult questions of inter-improvement over the previous year, in any controversial manner on the political or trade expect to encounter. If confirmation conditions, because he regarded them as being too delicate. of this is required, one has but totational concern. Thespite of this the mainly because of the great increase

payments due on Customna loans were of trade with Japan. reflect upon the fact that during maintained without delay or

henta

Canton and Hankow, In sple of 1938 the world was in a continual

Ition, throughout 1938. Bul carly infair raids and various restrictions, Below will be found the opinion been done In recent thanes by state of political and social unrest. January

the Chinese Government enjoyed a phantom prosperity for careless criticisms, rumours and the and that no less than nine mens eventually were driven to the decision some, nine months of 1938, but the full speech delivered by Mr. ubileation of unauthenticated news at of the twelve were marked by that since 30 per cent, of the Customs immediate outlook is glooms for the International crises: each one 651 Pearce, together with the items

revenue was out of thele hands Ceyhandful of foreigners sticking it out I believe that recently there has major importance und having rest of the business trans-been more controversy at home than marked effect up the call no longer bear the whole burden in those plares under unpleasant of firing is equivalent of some conditions. The re-opening of the i wise and desirable about ques Markets of :the world. That acted.

£400.000 each month to meet these Pearl and Yangtze Rivers to foreign At any Bank's strength was demonstrated a

Joan requirements, However, no chipping are naturally matters tons of foreign relations. rate it is abundantly clear that is during this period is evident from

publie delnult has yet taken place i very great importance to Canton and the shareholders, Majesty's Government are steadily the Statement now before us, and and it may Mill avolded, The Hankaw, bat Hongkong and Shang-

strengthening the nation, while at would be lacking in

#sener

of future of the Customs toans is bound hai are also vitally affected and mer- the same time they are freeing their appreciation If, on behalf of all up with the outcome of the present chants of all nationalities are watch- hands

ไก future events without Board of Directors, the Chief Mana-Chinese Government will do all they

face

The general disorganisation and and Staff our thanks for and can to set matters right as we believe dinlocation of trade and industry in embarrassing- entanglements. More- per the required period, I will, with your over, the Powers most interested in compratulations upon, the fine result that the maintenance of their credit China during the past year necessitat- through these leans is a matter about ed constant adjustment to keep in After making full provesion for all the Far East have made their stand they have achieved,, I of their great pleasure to do so. clear: that the position

which they lake considerable pride. line with the changing situation. known losses and Contingencies, nationals is governed by the strict! net profits for the year mount to ervance of international obliga

RETICENCE WISE

Tribute To Officials

May I for instance remind you that $15,200,621.32 to which must

suring the year the Japanese ac- In the difficult circumstances in udded $3.383.004.53 brought forward that such n the Washington Tria-

Hes and other International agree which the world at prezent finds it-to record that in spite of adverse

Meantime it is pleasant to be able cupied the ports of Tsingtao, Chetoo, Welhalwel, Amoy and Canton. from last year,

After defutting the interim divi- ments, the alteration of which by self, it is understandable that you, circumstances the Custons service They advanced up the Yangisze be- dend of £400,000 pail at is. 27ad, and unilateral action will not be con-Sir, have deviated from custom and has been able to weather the storms Yond Hankow to Yochow and for

re-aldered,

refrained

comment of the past year without any break-varying periods Weuchow, Fuochow, distribution)

Subjects as down in its centralised, adanisistention Ningpo. Swatow and other Southern $12.146,172.08 which it is proposed Reconciling Japanese Assurances Politics, Trade and Currency condi- under one nominal authority in the ports were closed for one reason or

tions in the Far East.. Naturally, we person

nother. As a matter of fact I be- the Inspector-General, Interested in all of these subjects whom we must congratulate on just lieve that I am correct in saying that From the Japanese side trere have also been very explicit assurances, Hank plays in the economies of the standing service in his arduous post. were the only treaty ports on the and, beeste of the leading part the having concluded ten years of bul-Shanghai, Tientsin and Chinwangtao that Janam will reapret to the fullest Far East, we listen each your with Notwithstanding the varying condi- China coast which were not subject $ 7,744.537.85 extent the rights and interests of the

to its Chairman's tons of war that have existed at one either to closure or naval operationa Powers in the accupied areas, while er attention

| reviews

at one time or another. That shows Frederic Un port after another, Sir leaving the dear wide open. Mrdubtedly, upon this occasion your Maze and his international staff of you what merchants and shippers

Tirola used these last words

fereticence is wise and I propose to Chinese, Japanese, British and some had to put up with. Yet this is by January 22, 1938 and imiter state, follow

other nationalities,

no means the whole story, beroure ments have been

been repeated by Im- your example, making but

short comment upon one aspect of throughout shown tectful judgment even when ports were open to shipp $12.145.172.08 portaut Jatunese, efficials on nume the China situation. All I would say under unusually dimcult conditions. In all kinds of restrictions were fre-

ous persions. It is, however, Im-

wever, is that the deepest sympathy of every More than ever is it of importance hinterland multitudinous forms of quently imposed. Morcover, in the -The figures of out- balance, shert, possible to reconcile such assura

nssurances Have ogain been converted at 1s, 2tad i with the trend of development person having the smallest daim to that the international nature of theirregular taxation became prival'ni, Tre is very little to say about! Bortant stake in the economic struc, the end innocent victims of 'and that its impartiality low-vis of transportation increased charges

North and Central China. Our imman feelings must go out to the Customs Service

while the dangers and difficultie in should be continued i | unfortunate

present strife.

Loreign merchants of

enormously. Yet the movement of On occasions such as this the Bunk nationalities should be unimpaired.

both import and export cargo went shows an exvansion of about $30 mil- very anxious that treaties, agree has joined with others in providing I mentioned just now that ut one on. tions on each side. Exass pole issue state

nents and pronerly authenliented; succour for sections of the Com- timme

time we had hopes of the application statements should mean what they munity who through diguster are in of some modus oper has increased by about $10 millions

operandi stich as the This was largely due to the amaz- and is met on the other side by aboulay and be carried out with good dire need. I feel sure the Director: Customs Agreement to other difficult in resilience and tenacity of the a similar increase in our holding of faith.

policy in this respect has the full questions of International concern.Chinese farmers and traders, witch Hongkong

Certificates regard to the currency situation support of its shareholders.

I was thinking of the Salt Adminis enabled them, sometimes with of Indebtro eramont

Among our labi-to Chiou, you ni kusw how matters

Mr. Chairman, I now formally tration and the railways. When the Government help but often without, littes current accounts have increased stand; that, as in many other coun- second the adoption of Accounts as Salt Gabelle was organised, at the to fad ways and means of moving around $24 millions while fixed de-ries, the currency has more than one presented at this Meeting.

time of the flotation of the Leor goods in spite of the adverse condi- posits have decreased $11 millions, exchange value, the official rate and

ganisation Loan, there were great|tions with

which they were con- while among our Assets cash has in the open market rate, which varies

OTHER BUSINESS

hopes that this new Administration fronted. In fact the volume of creused $42 millions, Investments $30 a different parts of China owing to Proposed by Mr. J. P. Macgregor, | would act like the Customs Adminis- some important exports has been millions, while Loans have de-restrictions on the movements at seconded by Mt. J. H. Taggart, tration and, with the help of the muintaled at a level well up to creased $13 millors and Bills Re-į bank notes, Until March the ex-Messrs. J. K. Bousfield, K. S. Morri- foreign personnel, insulate the Salt average years. Significantly enough change was maintained satisfactorily son and T. E. Pearce were re-elected Revenues, and the loans secured there has been a great increase in the in Shanghai, but when the Federal directors.

thereon, from local disturbances and export of raw cotton to Japan, from Reserve Bank was formed in North Mr. J. Fleming, C.A., and Mr. H. R. even more serious eventualities. To 234,000 quintals in 1037 to 004.000 China and threatened to undermine Forsyth, C., were re-elected audi-a certain extent the Salt Administra-quintala Jast year. In West

China the National Currency, a system of tous, on the proposal of Mr. H. Owen-tion in past years succeeded in doing development proceeds apace and the good many years Iɩ has been exchange rationing was introduced. Hughes, seconded by Mr. Fung Kong-so, but the Chinese Government have efforts being made to improve We custom for your Chairman to re- This resulted in operators cbtaining un

from time to time effected changes agricultural methods and to promote view some length in his Speech to their exchange requirements where

The Hon. Mr. A. L. Shields has as a result of which the foreign the production of goods of importance shareholders the political, currency they could and a "black

been elected Chairman for 1939 and element has been unable to exert to the export trade will surely prove and trade conditions In the Far East. started, which

Mr. W. 11. Lock, Deputy Chairman. eventually

those neutral influences which we their value in the course of time. This year the poliileal situation in so! the

There were present at the meeting: would have wished. The Salt Re- market b] '11

for for Mr. T. E. Pearce (Chairman). The venues of China delicate and the currency and trade Shanghai, as distinct from the closely

Shanghai's Conditions remain of great situation so abnormal that while mak rationed pilleial market.

Hon. Mr. J. J. Paterson (Deputy Importance and ing some references to each of these

appointed if I confine my remarks in aw

dend of £3. per share (subject to de-

duction of income inx) Transfer to Bank Pre-

mises Account ..... Carry forward to New

Account

1,000,000.

3.400.634.26

the same as last year, the balance sheet which in total ture of the Far East naturally makes

ecivable $45 millions.

Political Position Too Delicate For Comment

For

normal

anticipations, and

Twenty

have

different

As allot-Chain) Mr. J. K. Bousfield. Mr. security which may be of consider itself to the new canditions, which: are a potential Shanghai has perforce Ind to resign heading trusi you will not be diss at the official rate became more A. H. Compton, Hon. Mr. S. 1. Dod-able value in the eventual rehabiil- | have outwardly changed very little the main to generallies and leaveway gradually. Thus the dollar was Morrison, Hon. Mr. A. K. S.tation of the country, if confidence during the year. In spite of its main

limited, the open market rate

fell well, Mr. W. H. Lock,

M1.

Grayburn

normally.

the

Yangisze River. being

(Continued on Page 4)

CONTINENTAL

at about 10d. in the middle of May. Mt. II. V. Wilkinson (Directors). Sir

L. Shields, exists in the administration. untouched or pass but Hghtly over A month later it was down to 8. Vandeleur

As regards the railways, the situs- artery, the matters about which you boned for and eventually the lowest point of Manager), and the following share-war prolonged. The Peking-Mukden la imports and experts, over the low (Chief tion naturally deteriorated as the severed, the past few months have stronger words or more detailed of7d. was reached early in August, holders:-Mr. A. S. Adamson, Mr. Railway is now alone of all

shown a distinct Improvement, both servations. I I am sure you realise Support was then forthcoming und J. M. Alves, Mr. 1. J. Armstrong. Dr. how foolish it would be for one in um after the tide turned and the Ii. Balean, Mr. P. S. Cassidy Mt. Gilly Railways running falriy my position to attempt to enlarge on rate recovered to around 8d. Since Chua Sent-choo, Mr. S. M. Churn, nablects which of the moment are then the rate has kept reasonably Mr.

There is no point in speculating NV. A. Croucher, Mi both controversial and of great poll-steady and there have

Mr. about the future of the other railways been, com-R. tical delfency. We are of course not paratively speaking, only slight fl-Imandston, Mr. A. Dastur,

Mr. D.

Ed-in which British bondholders are in the inner confidences of any Goy-tations caused by military or politi-II. R. Foreth, Mr. S. J.

J. Flemi

Fleming, Mr. Interested. They have all suffered ernment, and it is obvions that the enl developments or Ingal

11., revere damage and it is clear that so more I say the mare easy will it be At the end of the year not only had ties. Mr. H. Dawson-Grove, Mr. II. Is no sign of an end-the railways rumours. Fox, Mr. Fung Kong-un, Mr. H. Gil-feng as warfare continuce and there for misinterpretations to arise. dight from the currency ceased, but R. H. Hancock, Mr. It. S. Harrison, will generoty speaking be liable to

there had been a fair amount of re- Mr. Ho Wing, Mr. A. W. Hughes, M. constant attacks. patriation of funds.

J. Owen-Hughes. Dr. F. H. Kew, Mr. You can read between the lines J. E. Kotwall, Mr. A. N. Macfadyn, a very considerable amount of rolling The Chinese succeeded in removing how difficult and tense a time ex-Mr. J. F. Macgregor, Mr. M. Nemuzce, stock and destroyed large secllars of change bankers had throughout the Mir. J. A. Flummer. Sir H. E. Pollock, the track and many bridges before flest nine months of the year. Even Mr. J. II. Potts, Mir. P. C. Potts, Mr. they retired westwards. As a con- now there is an ever-present fear C. A. L. Rickett, Mr. C. C. Roberts, sequence, the Japanese have had to of what I may call "external in- Mr. S. H. Ross, Mr. F. W. Stapleton, bring much rolling stock over from fluences." The Tlentsla and North Mr. D. V. Steavenson, Mr. J. H. Tog-Jupan and undertake a great deal of China exchange market has parti-gart, Mr, J. A. Torraul, Mr. G. G. N. reconstruction work at heavy cost. cularly suffered from these "ex-Tinson, Mr. S. T. Williamson and Mrs. There has been a lot of talk about the ternal Influences" and the outlook F. D. Winter. thera remains under this cloud.

China's Financial Position "Well In Hand” War-time conditions govern thei

Our balance sheet and statement of account show that spite of all dimculties we have managed to hold our own, and the measured

optimism of Inst year's Chair

and

has proved to be justified. But all of us who have a solid stake in business and trade out here aro aware how precarious changeable the financial and econo- mic outlook must inevitably be so long as the two great neighbouring Eastern countries remain antagonis- tic. The present conflet has alco led to an unsatisfactory situation hi regard to the maintenance of the "Open Door" and British rights and interesis in China.

Burma Road and the 'Burma Rai}- way. The completion of the former is undoubtedly a magnificent fent Ita practical Importance should ant be over-emphasised. The

management, it has been kept well in though

hand.

STURDY

and

- STRONG

CA125,4)WITZ

co.

4. Queen's Rd. Tes. 12

Spelling Bee

we have watched with anxiety the railway is still in the preliminary anances of the Chinese Government, developments taking place in regard stages and what its future will be, it How many of these words aro

is too early to foreteli.

Good Export Figures

The Customs Returna of Trade for

correct and what is wrong with

the others?

bountyful

There are some who blame our but the latter have been nastated by to the Chinese Maritime Customa Home Government for not taking a good crops in the Western provinces Administration,

Although the so- stronger line of action both here as and by the fact that remittances of called Anglo-Japanese Customs agree- well as in Europe, I do not, how-money from Chinese residents abroad ment of last May has not yet been ever, propose to criticise British have been remarkably well maintain-endorsed by the Chinese Government, 1039 are not easily comparable with policy. In times of international, ed. Perhaps I can sum up the cur-we are seiisfied that fi did in fact those of previous years, but the crisis freedom of speech and free-rency and financial situation in Chinh serve a valuable purpose in aiding the export figures do indicate how mic- dam of the press have their draw-by saying that, partly through good Administration to pass safely through cessful the Chineze Government were backs, and much haểm has in my fortune, but more through skilful period dangerous to its Integrity, in gradually diverting exports from page 13.

gregarious Guwdelerize

freize bowey-knife grieveour

English Oxford. Dleifonary #peliš

ings of theak words will be found on

"You can't help liking them!"

"Let me offer you idea perfection: the kind of cigarette

used to smoke in London,”

"du Maurier! You extravagant man! Aren't they supposed to be a great luxury ??

"Oh, luxury isn't always extrava- gance. For their quality they were never expensive."'

"If they are all I've heard about them, they must be good."

"Well, what's the verdict? Did you ever taste

anything to equal that for coalusess and smoothness and flavour?"

"They are marvellous ! Apparently even the best tobacco can be improved by filtering."

20 cents for 10

95 cents for 50

du MAURIER

EXCLUSIVE FILTER TIP

MADE IN

LONDON

CIGARETTES

THE

Agente! Tabuqueria Filipina, 16, Queen's Rd. Central, Dengkong. 18, Hankow Rd, Kowloon. BY THE MANUFACTUMIAN DE DU MAURIER KGAANITUS, 137, PICCADILLY, LONDON, W, I

MUZD

Owing to the fact that the building in which our premises are situat- ed will be shortly pull-

ed down and rebuilt,

we have pleasure in

announcing a

Bargain Event!

CLEARANCE

SALE

in which our entire stocks of

latest goods will be sacrificed at incredibly low prices.

THE DAINTIEST, MOST EXQUISITE

This

Silk

Lingerie,

Fine Household

Linens

and

Ladies' & Gents'

Handkerchiefs

Opportunity

will not occur again

Call early for

the best choice

HONGKONG & SHANGHAI

LACE COMPANY

50 QUEEN'S ROAD CENTRAL (1ST FLOOR.):