1909.
DARACHINA OVERLAND TRADE REPORT.3)
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the north is steadily prospering | persons to their families at home, the silver / when valued nding the extra cost entailed by the | equivalents of which regularly increasing it did=ten | în exchange ruling between them. will be less burdensome, if a gold standard be much higher London as a commercial centre imports all sorts established. In the same way the means of It is true that of commodities from all parts of the world, the cost of living will be much facilitated if all round, but to place Some of these are re-exported to the continent the cost of necessaries of life are paid obtaining twenty-five. of Europe. The same objection might be for in the same monetary gold stan- | need to be trebled in the raised, "Could not the Continent order these dard. The fixity of exchange will cheapen That is to say, a house let in 1878 goods direct from the exporting countries? money and investments from outside will tend | month should now fetch $150 "The reason for not doing so must be that tradal to develop Kowloon, which promises in the is not the case save in a few instanc advantages (too numerous to be detailed here) future to dwarf Hongkong. What I therefore if it were the rule instead of being that exist in London as a central market of the think we require is a gold standard similar to tion, the net profit would be smaller. world, more than compensate for the apparent that of India. It may be argued that if you cost of upkeep and repairs has greatly extra cost which re-export from London entails. institute a gold standard it may at times be a Property is, on the whole, I consider, a less These and other considerations go to prove profitable undertaking for persons in China to profitable investment here than it was for that once a place is established as a centre of make silver dollars and flood this Colony with merly-certainly in pre-Sanitary Board days, trade, it leaves an indelible impression upon them. But as I have already pointed out It does, however, afford some prospect of profit the commercial mind, not easy to remove by India undertook this responsibility and we by appreciation in value and is so far profer- trivial causes. The same argument applies to have not heard of wholesale forgeries. We able to the next form of investment named. I the objections raised by some that industries in shall be much better off than India, where the allude to loans on mortgage. This is a very~~- Hongkong will suffer by the introduction of a rupee to-day is worth exactly 84d., but it is favourite form of investment both here and in gold standard owing to the possiblity of dearer marked at Is. 4d.—a difference of 74d. That other countries as it is supposed to offer the cost of labour, Now we know that Japan since is a risk every gold standard country accepts and maximum security, to yield a good rate of in- her adoption of the gold standard has enor- it is a risk we should have to undertake, as forest, and give the minimum trouble in col - mously increased her industries in spite of the our banks do now in issning banknotes.. It is lection. There is, I find, upwards of forty increased cost of labour; because the advant also argued that if we were to make our dollar a millions of dollars thus invested in this Colony. age derived from the reform in her monetary 28. dollar and to-day the market is is. 7d., which Most of the loans are advanced for terms of system by far outweighed the excess in cost means that every 10 gold standard dollars would from two to five years, though many run on in- of labour, as will be seen from her trade buy 13 Merican dollars, it would seriously affect definitely after the completion of a term. Let reports. By parity of reasoning I do not see our industries, for the coolie and artisan will pack us assume that the mean is three years, why we should not expect advantages from up their traps and depart for the borders of and, taking the exchange when the loans the reform of our money system which will put Canton. But I do not think there need be any were fixed roughly at 21, this sum turned in the shade all seeming hindrances. Hongkong fear of such an exodus, for so long as the silver into sterling would amount to £4,000,000. At suffers from lack of cheap money for the cultiva dollar is a commodity where you can purchase the end of last year the rate of exchange had tion of new industries, for the simple reason $18 Mexican with $10 gold in any quantity the fallen to 1/7 and the sterling value of these forty that home people are deterred from sending out employers will easily give the option of selection millions of dollars stood at £3,166,666. 138. 4d., a money here on account of the decreasing value of to the employees. The Chinese are shrewd difference of £833,333, 6s. 8d., or $10,526,315.78.- silver. With cheap money Hongkong is bound people and will soon realise this and for their But, it may urged, did not the mortgagees to expand its trade and develop its industrial guidance they have numerous native money enjoy a handsome return on their investment capabilities. The change from silver to changers and bankers in the Colony. It simply meantime? Did not this more than balance. gold, as any change in the social world resolves itself into a question of facilities of ex- the loss of principal? No, gentlemen, it did designed to be an improvement, is apt to be change, and the difficulties are but initial ones, not. The interest on $40,000,000 at 7 per cent. fraught with initial difficulties which should which will adjust themselves. I beg there- per
for three years would gross not alarm the man of sound commonsense fore to strongly support the resolution. (Loud | 88,400,000, and, if this be allowed for, there The change is bound to work itself slowly applause.)
would still be a net loss to the mortgagees of and gradually until in time it produces the Mr. B. C. WILCOX said—I have much pleasure $2,126,315.78. In other words, more than a fifth- desired effect. Hongkong might suffer in- Mr. Chairman, in supporting the resolution of their capital had disappeared. (Applause.) conveniences at the beginning, but by identify proposed by my friend Mr. Osborne. The The holders of bonds and debentures are in even ing herself with the world she is sure to draw remarks to which we have already listened worse case than the mortgagees, for they have capital whereby the many facilities of a first- cover most of the ground, but without unduly probably held their securities longer and have class commercial port will be cultivated and trespassing on the time of the meeting I should been receiving a lower rate of interest. Many her wealth increased accordingly. The wealth like to lay a few facts before it which, if not persons may smugly object that they are not of Hongkong as a non-producing port consists exactly new, may not yet have yielded their full affected in this way because they hold neither of the savings of single or corporate indi- significance. We are met to-day to consider mortgages nor debentures; their investments viduals, invested in landed property, joint what may, I think without exaggeration, be are confined to shares in joint-stock concerns, stock companies bank deposits, or floating in termed a crisis in the history of this Colony, and that many of these have improved în value. commercial undertakings representing goods or and I trust that in such consideration we shall But such investors may perhaps not be aware, credits. As the value of such wealth can only neither be swayed by fears of the unknown nor or they may not remember, that most of the be determined in terms of gold or silver, and as biased by mere opinions as to our impotence in local companies have invested a large proportion Hongkong is a British possession, the wealth of the matter. I, at any rate, am not willing to of their reserve funds in mortgages and de- Hongkong must be valued in money related to the hearken to counsels of despair. Nothing bentures. Ten of the principal local joint- nother country-apart from the consideration but good can result from a discussion of stock companies have loaned out on mortgage that as a commercial place, its wealth should be an evil about which all are agreed but few are no less a sum than $11,178,993 and have another estimated by the world's commercial standard. competent to suggest a remedy. The question million invested in bonds and debentures. Therefore the wealth of Hongkong, as affected before us is simply: Having for more than These figures are taken from their latest by the decline in silver, is dwindling in value sixty years been financially wedded to China, published reports. It will be seen therefore day by day and the prosperity of the place will it be for our advantage to obtain a divorce? that the joint-stock concerns have a very cannot advance at the same ratio As it I think it would be, for the following among appreciable share in the general loss. Apart would do if possessing a stable currency. In other reasons, but on so complex a question from this fact, moreover, it is by no means concluding, the questions which confronts as the currency I do not desire to dogmatise. certain that the holders of their sōrip have us are these: Is it advisable or not to make a I would now simply point out some of the ways any special cause for self-congratulation. I fixity in exchange? If so, how ? I think it is in which the Colony is injured by the ceaseless have not had time to go into figures myself, advisable, because we are paying the salaries fluctuation and more or less steady decline of but the North-China Herald of the 7th ult. of our government officials, the military con- its present standard. It has been clearly shown published a list of stocks compiled by Messra. tribution, and other liabilities in gold. Every how adversely trade in all its branches has been J. P. Bisset & Co., of Shanghai, showing the drop in exchange means we must provide more affected; how its profits have long been grow difference in value at the end of 1902 compared. silver to psy these. Hongkong is now ing small by degrees and beautifully less. The with that shown at the end of 1901, and accord
TL. 7,948,788. practically beginning to charge in gold; that is, present commercial depression must, I fear, ing to this list the net loss the retail traders. hotels, doctors, architects, continue for some time in any case, but I do That amount of course includes Shanghai as wharf companies, etc., and others will follow, not imagine it to be beyond the wit of man or well as Hongkong stocks, and a portion of the Practically, we shall charge for everything in the power of the Imperial Government to devise loss was due to over-speculation, but leaving ́gold, and silver will be only a metal to be a cure that will at least put a period to the this out of consideration, I do not think that,
handled. Fixity of our exchange will mean the never ceasing fall in the value of our securities with the exception of Banks and Unions, we confidence of the whole world in us and in and the continual sweating of the Colony's Hongkong have any reason to chuckle our commercial transactions, and we shall be able savings. With your permission, gentlemen, preciation of stocks, Steady to obtain money from elsewhere for investment I propose to briefly illustrate what I mean by like Hongkong Lands, Docks, in our Colony, which will mean its development this remark. The savings of the colonists are Godowns, Steamboats, Watsons, in the creation of more industries. Investors invested, as you are aware, in various ways, but thow either depreciation or will feel assured that if they send £5,000 one chiefly in real property, mortagages, bonds and provement in their quoted value.
fixed day they will receive £5,000 back another day. debentures, shares in joint-stock companies, and I come now lastly, From the thirty-three open ports of Chins deposits with the banks. Now with regard the banks. This is a very importan people who have money to invest or save
to the first-named of these, the amount in- investment, being open to all;
the will send their money here knowing! vested in which may be roundly estimated great. I note from that it will not depreciate. How many people at $82,000,000. No doubt this has been Hong kong and Shanghai in this Colony who have been saving for years a very paying investment in the past; institution_hae $46,111,848
e of late seen half their savings swept away. | but, although rents have so far as the deposit. I do not know through these wretched depreciating silver dollar rate is concerned increased enor- this sum belongs to Hongk dollara P Monthly allowances made by some 'mously, I question, whether real property; a fairly large amoun
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