August 18, 1897.j
CHINA OVERLAND TRADE REPORT.
ping. Following the same absurd principle the officials might have been expected to include amongst harbour receipts the taxes paid by the Dock Company and the various shipbuilding, engineering, and shipchandlery establishments. Instead of that, how ever, they go to the opposite extreme and wish to exclude from harbour receipts the income derived from a portion of the craft using the harbour. Under such circum- stances it is useless for business men to waste their time on the Commission, for no practical result can be arrived at while ordinary business principles and common scuse are thrown to the winds. For our own part we cannot see any advantage in holding an inquiry at all. As the colony is dependent upon shipping for its trade we would do everything possible to attract ship ping and would allow it to enter the harbour free. Shipping people themselves, however, have expressed their willingness to continue to pay light dues at the rate of one centa ton, and as that amount, with other harbour receipts, is more than sufficient to cover all lighthouse and harbour expenditure, what is the use of discussing the matter further Perhaps we ought to admire the solicitude of the officials to increase the revenue, but it must be recognised that incidentally their own interests are to some extent affected. The public will shortly hear of a demand for an increase in the rate of official salaries. But the demand cannot be met unless the revenue is sufficient to cover ft. A tax on shipping would meet that require ment. We do not intend to suggest that this consideration has been present to the minds of the remaining members of the commission, namely, Sir JOHN CARRINGTON, Chief Justice, Hon. T. SERCOMBE SMITH, Colonial Treasurer, and Hoa Ho KAI. The interests of the last named must be iden- tical with what he conceives to be those of the public, and the other two members would naturally endeavour to the best of their ability to preserve a judicial frame of mind, but it is perhaps inevitable that they should look at the matter through official spectacles, while in the Hon. Ho KAI's mind the in- terests of landed property will probably loom rather largely and may prevent his taking that comprehensive view of the subject that is desirable. Under the cir- cumstances it would seem that after the retirement of the members representing shipping and commerce the Commission might as well be dissolved.
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In view of the
£43 on the Loudon market, so that the in exchange, which have brought disaster Hongkong shareholder receives a better to some other financial institutions, may rate of interest on his investment, and from by the Hongkong and Shanghai Bank that point of view certainly has no reason be regarded without apprehension, though to complain. The capital of the Bank being not without regret when regard is had to the in silver, however, it is worth consideration diminished sterling value of the silver assets. whether it would not be better to declare However, to make up for the shrinkage in the dividend in that currency and eliminate the sterling value of the capital the value of from the report the paragraph referring to the sterling securities very much exceeds the the difference in exchange, which now reads mount at which they stand in the books. rather absurdly; e.g., The difference in The portion of the Bank's capital used in exchange between 4. G.; the rate at its Indian business has also undergone a which the dividend is declared, and large appreciation by the course of exchange "18. 111d., the rate of the day, amounts in that country, and he same thing is hap- "to $566,081.83." The grim irony of that pening in Japan, so that, as Mr. MICHAEL- paragraph is calculated to make the unfor- SEN remarked, "from many points of view tunates whose interests are linked with the recent heavy depreciation in the price silver cast an eye on the capital account of silver cannot be looked upon as an un- mixed evil to the Hongkong and Shanghai and see how that would look when 'done
"Bank." At the same time the Bank would into sterling. Ten years ago the capital was seven millions and a half and the no doubt be only too glad to forego its pro- reserve fund four millions and a half, mak-fit by the fall in exchange. aul to restore ing a total of twelve millions, which at the Merry Mexican to its pristine glory the rate of exchange on the 30th June, had it the power to do so. 1887, gave a sterling value of over uncertainty attending the course of exchange £1,900,000, whereas the present capital of it is a wise policy on the part of the ten millions and reserve fund of six Bank to go on steadily increasing its reserve millions' and a half, together sixteen fund, and the shareholders may well be millions and a half, gave a sterling satisfied, seeing that this policy is compatible value on the 30th June last of only with the payment of the substantial dividend actual sterling of £1 5s. per share. As to the manner in £1,637,000 odd, the loss on paper,
notwithstanding the which the dividend is paid, we understand increase of the capital and reserve fund, be-that any shareholder who desires to receive ing over quarter of a million. On the it in sterling can have it paid to his other side of the account we have sterling account in London upon giving notice on or assets set down at considerably under their before the 31st December or 30th June present silver value, but after all allowance each year, so that shareholders on the Hong- is made on that account the Bank has been kong register have really no grievance on The accounts have to be closed a heavy loser by the fall in silver, if we are that score. to take gold is the standard. Seeing, on a fixed date and the rate of exchange on that date is the rate at which the dividend however, that the dividend amounts to ten per cent. per annum on the original sterling is paid in dollars. Between that date and value of the shares the shareholders may the date of payment there may be some fluctuation in exchange, which may be in not be altogether dissatisfied.
favour of or against the shareholder, but the difference, although rather marked this year, is not as a rule likely to be anything worth consideration.
(16th August.)
As was to be anticipated, the Chairman of the Hongkong and Shanghai Bank at the meeting on Saturday had a good deal to say about the position of the Bank with regard to silver, and what he said must have been eminently agreeable to the share- holders.
f course there is no blinking the fact that the silver difficulty is a serious matter and is likely to remain so until exchange has reached something like a stable rate and things have adjusted them selves thereto. It was generally thought some little time ago that the rate would BEFORE AND AFTER THE BANK probably continue at about 2s., and people
MEETING.
(14th August.)
one can tell.
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MISKULE IN KWANGTUNG AND THE EXTENSION OF HONG-
KONG'S BOUNDARIES.
Whatever truth there may be in the accusations recently made by the Censors against His Excellency TAN CHUNG-LIN, the Viceroy of the Two Kwang, there is small doubt about the anarchic condition of a great portion of the provinces he is alleged to be One Censor states that the misgoverning. were becoming accustomed to think of ten Viceroy has lapsed into senility, and is the dollars as the equivalent of a sovereign, casy prey of intriguing and corrupt per- when another "slump" set in, and where sons. The second son of the Viceroy is in- Acluded in the denunciatory memorial of the Business men attending the meeting of the it is going to end no Hongkong and Shanghai Bank.to-day will skilful banker will of course make profits Censor, and the charges are reported to be naturally be curious to hear what the Chair-whichever way exchange goes, but as Mr. undergoing investigation by His Excel- man may have to say on the great silver ques- MICHAELSEN remarked on Saturday, the lency HSU CHEN-YI, Governor of Kwang- There is, we imagine, plenty of tion. It is perhaps hardly to be expected that lower exchange goes the more onerous the tung. Mr. MICHAELSEN will be able to throw task will be of maintaining a sterling divid-ground for investigation, for things have for some time past been going from bad to any fresh light on a problem that battles end of £1 5s. per share. He added, how-
worse in Kwangtung. Clan fights on a the ablest financiers of the world, but there ever, that without being over sanguine the
vast scale are constantly occurring in differ- are one on two points inmediately affecting Board wished to express their confidence in
Mr. MICHA ELSEN ent districts, and in many cases the slaugh- the Bank and its shareholders that may being able to do so.
ter is so great as to amount to civil war on Perhaps receive attention. A correspon- | mentioned, too, that at no time are the ster- dent on the appearance of the report drew ling liabilities allowed to exceed the sterling a small scale. Simultaneously with these attention to the loss shareholders on the assets, in fact very much the reverse, so outbreaks banditti roam the province, and Hongkong register would sustain in their that while the fall in silver is a matter of terrorise and plunder whole villages and dividends by reason of the fall in exchange regret to the Bank it is not, and will not towns.
be allowed to be, a source of loss to the since the date at which the rate was fixed. Taking yesterday's rate share-profit and loss account. In fact the Bank
East will holders in the
receive night be described as a dual institution, a only £1 3s. 74d. as against the £1.5s. gold bank and a silver bank working con- receivable by the London shareholders. jointly, and too much praise cannot be given On the other hand it should not be forgotten to the management for the skill and that the local quotation for the shares is the foresight that have effected such equ
quivalent of only £33 15s. 64d., as against admirable organisation that fluctuations
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A serious insurrection has broken out in the Chinchow distiret, and it is stated that the rebels now number ten thousand. Corruption is rife in every branch of the administration, trade is hampered by the multiplication of lekin barriers and the invention of new imposts.
It is unfortunate for the interests of this
Colony and of British trade generally that
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