January 17, 1903.]
CHINA OVERLAND TRADE REPORT.
And now we have a company that proposes to pay the shareholders a larger sum in dividends than it can be said to hare actually earned. ↑ What is the explanation ?--Yours, etc.
J. R. MICHAEL
TAE (URRENCY QUESTION.
TO THE EDITOR OF THE DAILY PRESS."
baptism of firo, and it corta'nly reflects*the greatest credit on the officers au non-commis. sioned officers responsible for the training of the men themselves that t'ie regiment was out only able to hold its own with old veterans long trained to the use of arms but that the men sogeatly distinguished them- | selves when fighting in their own country and against their own countrymen. It bas become almost a fashion to sneed at the British officer, Arm-chair criticis a is not often of
Hongkong, 14th January. much value. At any rate, the officers of the SIR.-W.th referenc to the remarks made Chinese Regim at have succeedel where others at the meeting of the Committee of the Hong- have failed. One friends in a neighbouring | koug General Chamber of Commore on the Colony have abandoned their attempt to en-rency question. no member expressed any create a Chinese regiment. Anyone who views as to the great possibility of silver becoming had the opportunity I am now enjoying a mere commodity like tin, te, and certainly of seeing this smart reg'meat on parado, if Indo-Ch na, the Straits, the Philippines couldnt fail to be struck and surprise Mexico, and other American s'ates
go gold by what has been accomplished so well and cons quently demonetiss silver, as is highly in so brief a space of time. The history of probable, the white metal will become a drug in the regiment is short, but its record is one of the market and we shall have a dollar worth which any corps might be justly prond. Every-sixpence, or perhaps less, an t be the only country one who has seen the regiment must be indeed except Chiun trying to use silver is a standard of glad it is to continue as one of the units of His value. In such an event will the Colony be able Majesty's military forces, I am confident that, to pay its gold indebtedness (sterling lo ns, whenever callel upon, it will prova itself in the salaries of officials, contributions to the War future, as it has done in the past, tru to its Offics, etc.) and still flourish ? colours, and will add fresh uels ́o its fime.
The medals were then handel personally to each recipient by His Honour, who took the opportunity of sayi ́g a few words of cɔageatu. | lation and encouragemont to each. The proceedings terminated with a feu-d-joie in honour of the proclamation of His Maj sty King Edward VII es Emperor of India.
CORRESPONDENCE.
[We do not hold ourselves responsible for the opinions expressed by our correspondents.]
CHINA PROVIDENT LUAN AND MORTGAGE CO., LD.
TO THE EDITOR OF THE DAILY PRESS,
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Hongkong, 13th January. SIE-The report and accounts of the China Provident Loau and Mortgage Co, Ld., for the past year Lave been published in our loss! prints and offer a fair subject for criticism. We see that a sum of $81,022.02 is reproseuted as the net profit for the year, out of which $80,000, or practically the whole, is to be distri. buted as dividend. This is magnificent liberality, especially when, on looking a little into the accounts, we find that this shm is more than the Company earned during the year. It includes, as will be seen, in addition to $2,285.58 brought forward from the preceding year's account, a sum of 82,000 written off as unclaimed-dividends. This is the first time in the history of a local Company that hus been in existencs barely four years that such a large amount of unclaimed dividends has en proposed to be forfeited. I presume that the Company, of course is within its legal rights in dealing with those dividends in that mann r. but it cannot be contended that this drastic step will improve the estimation in which the Company is held by the public. But the fact servis to show how great is the auxiety to declare a big dividend..
How does this proposed appropriation of the Company's. funds compare with what has been dinned into our ears recently about the danger of milking our cows too day, and the wisdom of a policy of consolidation and concentration ? In every well-managed Company a proportion of at least 15 to 20 per cent. If the net profits is put aside for contingencies, for reserve or equalisation of dividend funds. Why is not the same course recommended in this fustance ? I am unable to fathom the reason, but the result will be, since the market price of shares is regulated as a rule by the amount of the dividend, the stock of this Company will con- mand at least temporarily, an undeservedly high value and investors will consequently burn the`r fingers,
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In the case of a concern with assets worth more than five times their book calus, an extra dollar was gradgod the shareholders so that the Dired ora may bas enabled: to write off about 58 per cent of the net profits for the year.
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Since Government officials received the last two exchange compensations their salaries hava incra sad in dollars about 100 par cont., which alone is a considerable increase to the expen- ditare of the Colony, and with a further drop of a shiling in exchangs this one i am will make a fur.hor considerable increase in the expenditure. In any other Colony but this the Government would be taking some intesest in the matter, hat I presume they are waiting uutil the last moment, and as in the eise of calling exports to batter the health of the Colony and later on in am nding the Building Ordin- ane, they are waiting till they are forced by a number of de.the, or in th'a casa excess oxpn diture over inc me, to move in the matter.
I have heard several mm say that the falling dollar has increased the export trads the last few years and added greatly to Hongkong's prosperity, but if those men taken the average rate of exchange for the three or four years before 1902, I think they will find it averaged Is. lid. to 2s., or what one might call a fixed exchange; aud the year 1902 cannot be called a vary prosperous year for Hongkong, aud lately on has heard of the increased cost of ries, etc., and general staguation in trade: Eris occurs on the first big drop of silver for five years!
The Chairman talked of getting rid of surplus millions, and as regards calling a general meting, said that no one will come forward with a schome to show how the chinga to gold can be made; but I take it this is not the pont. The first thing to decids is : " Is it a lvis- able to try for some stability in exchange and placa the country on a gold ba-is," and then, if the members are in favour of doing so, to call for experts' assistans to show how it can be done and the surplus millions got rid of?
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Mr. Shewan said wages have risen, which is true, and infors that they have risen equally with the fall in exchange, which I don't thiuk is correct, as that wou'd mean a rise of 25 to 30 per ceut. in the last three or | four years, taking the rate at somewhere near 2s.. which it was for
some time.
As for the statement mad that wagos will rise as the sterling value of the dollar falls and that conditions will adjust themselves until that limit, which cannot be very far off n w. in reached, I doubt if any firm will give its employees a rise of 100 per cout if the dollar drops to a shilling (ie, that it will, if exchange drops to a shilling in the next year or two, pay an employee who w a rexiting $400 a month a year or two ago $80); end, as for the limit being reached, it is said that there are mines which can be worked at a profit at a shilling an ounce, and it is also well known that there are many mines worked for gold and other minerals turning out quantities of silver which can be sold at 64. an ounce without making any very perceptible differa..ca on the profits made by those miles.
Mr. Shexan said that the banks would hare to open branches în Canton and the trade and industries of Hongkong would in consequence suffer a severe blow-but why? I quite agres }'with him that the banks would have to open in Canton chiefly for the purpose of getting rid of
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any silver they received; but I quite fail to see why the triads of this place should suffer because export merchants were Easing their silk purchas 'a (817) and had to work out their rates between silver-using Canton and gold using Hougkong an Lonīdu instead of basing their rates between silver dongkong and gold London only: oven now they have to allow some s'ight difference betwe n longkong and Canton, so it would not require any great effort to allow, too, for the farther difference in exchange in the bauk rates at Canton and Hongkong, The banks would no doub`, being in such close proximity to Chian, be freely operating in silver, and I daresay would quote daily, in Hongkong: their buying and seling, rates for silver, in Hongkong earrency.
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A turning po at his 'already, in my opi iou, bosa reached, and the Hongkong public gener- ally will in another three or four years, when silver has been de monetised all over the world and the dollar is worth anything under half a rupee, say 8.1., regret that they did not at this tim make an effort for a gold oarrency. Yours, etc.,
CHINA-BORNEO CO., LD,
X.
A meeting of the above Company was held en the 14th it st, in the offices, 4, Queen's Buildings. Hen. C. S. Sharp presided, and there were also pres at Sir (). Pâni Chator, Messrs, E. Osborne, A. G. Wood, J. A. Jupp, W. H. Wickbam, A. Baptist, G. C. U. Master, and Leung Shin
Lun.
The CHAIRMAN moved the resolution (which had been pissel at a previous meeting of shareholders) for the reconstitution of the Company.
Mr JuPP scended, and the motion was agreed to.
This was all the business,
CHINA PROVIDENT LOAN AND MORTGAGE CO., LD.
The following is tho re ort of the| China Provident Loan and Mortgage Co., Dd., for pres-utation to the hareholders at the sixth ordinary general meeting to be held at the office of the general mana ers, to-day, the 17th Jannery, at 11a.m. :—
Annexed we have the pleasure to lay before shareholders a statement of accounts made up to 31st December. 1992. The gross earnings for the past year amount to $107,158.33, and after deducting all expenses, remuneration to general managars, consulting committes's and auditors' fees, there remains a balance of $81,02.02 · which it is recommended be appropriated as follows, viz :---
To place to reserve fund
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$1,000,00 To pay a dividend of 8 p ́r cent. 80,000,00 To carry forward to the cradi· of next
year's account
22.03 The paid up capital has now reached the l'mit of $1,000,000.00 fixed by the special reso- lutions of 22nd January and 11th February, 1902.
CONSULTING COMMITTEE.
Mr. J. H. Lewis was elected to the committee on his return to the Colony in the place of Mr. H. P. White resigned. In accordance with the Articles of Association, Messrs. J. 8. Van Buren, Chow Ring Kee, Chao Fung Shang- and J. H. Lewis retire, and offer themselves for re-el ction.
AUDITORS.
The accounts have been audited by Messrs. A. O'D. Gourdin and W. H. Potts, who are recommended for re-election.
SHEWAN, TOMES.
General Mange Hongkong, 8th January, 1903,
The accounts are as follows :
Charges .... Consulting committee's foo Auditors' feo... Depreciation for 19 Agen
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