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HÓNGKONG AND SHANGHAI
BANKING CORPORATION.
The eighty-third ordinary half-yearly general meeting of shareholders in the Hongkong and Shanghai Banking Corporation was held at the City Hall on February 16th. Mr. A. Haupt was in the chair and there were also present Hon. Mr. W. J. Gresson, Messrs. R. Shewan, N. A. Siebe, E. Goetz, G. H. Medhurst, G. Balloob, C. R. Lenzmann, D. M. Nissim, A. J. Raymond and H. E. Tomkins (directors), Mr. J. R. M. Smith (general manager) and Messrs. R. Humphreys, J. Orange, W. A. Cruickshank, A. G. Wood, A. G. Morris, J. J. Leiria, W. H.T. Davis, G. C. C. Master, G. de Champeaux J. M. Alves, H. Goedecker, D. D. Gazdar, F. B. Marshall, W. H. Potis, P. H. Potts, A. Find- lay Smith, A. C. Hynes, R. R. Hynd, J. C. Peter, D. Forbes, C. W. May. C. on der Heyd, J. Barton, W. B. Wickham, R. Layton, H. Parey Smith, Hon. Mr. E. A. Hewett, Dr. J. W. Noble, Captain Clarke, Messrs. Ho Fook, Cheung Pui-kai, Ho Kom- tong and others.
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THE HONGKONG WEEKLY PRESS AND the disastrous typhoon of the 18th September which brought in its train a deplorable loss of life and caused great damage to vessels and cargo in the harbour, and for a time seriously inconvenienced and disorganized our shipping upon which the welfare of Hongkong so largely depends, The course of exchange directly affects our trade and the price of money in financial centres affects com- mercial transactions generally, Locally, Chinese den'ers overestimating the probable demand, contracted heavily during the year for yarn on a low silver basis, to find an already dull market further depressed by lower prices in India and the rise in exchange in China with the result that many failed to meet their engagements and unsold stocks were largely | increased. New dealers are coming into the market and we may hope they will be more careful than their predecessors in discounting the future of markets and exchange. Shang. hai and the North are also carrying heavy stocks of yarn and piecegoods, but business there is principally done on a sterling basis and dealers have fortunately not committed themselves to any great extent to low exchange settlements. Cotton has also helped them by continuing a steady market, and goods on the spot cannot be replaced at the equivalent of local prices, Buyers appear to recognise this fact, and we Ara now ahle to record a greatly improved movement. Cir, o is already going more freely to Manchuria, and there is good reason
expect that the opening of the ice bound ports next. month will see & more active demand, consider able reducing stocks. Better trade in the North will no doubt be reflected here to some extent and with the assistance of moderately good rice crops, which we can at least hope for
The GENERAL MANAGER read the notice calling the meeting, and then
The CHAIRMAN, after reading the report already published, said:-Gentlemen, Your directors have again the pleasure to lay before you a half yearly report which I am sure you will consider satisfactory.
We are glad to be able to recommend a dividend of £1. 15/- and a bonus of £1 per share in addition. We also propose to add $750,000 to the Silver Reserve Fund and to carry forward the balance of $1,721.558.9. 1 hope you will approve of this distribution. Turning to the acconuts our figures show comparatively little charge. With the further rise in exchange it will be observed that the silver equivalents of our goal totals are again lower, but us these totals are taken into consideration in the working of the Lauk's commitments in gold and silver, the shrinkage in the silver equivalents does not affect, from a profit and loss point of view,
the value at which they stand in our books Apart from this there is very little change in either our gold or silver deposits. Our note circulation is higher, as usual with the approach of the Chinese New Year settlement, and Bills Payable also show an increase, to the extent of $36 lacs. On the other side of the balance sheet our cash and bullion in hand aud in t ansit are about $11 lacs Ingher. Indian Government Rupee Paper is only changed in its silver equivalents. Consols, Colonial and of her securities, are likewise effected by exchange; but also show 8 small reduction compared with last half year. Our holdings under this heading are liable to vary from time to time and it was considered advisable to realize some of the stocks in view of the condition of the home money markets to which [ <hal! refer later. With regard to the Sterling Reserve Fund, it remains unchanged. you are aware it was formed with the object of holding £1,000,000 in gold as a set off against our silver capital of $10,000,000 so that the bank might virtually have two capitals, one in silver and one in gold, and the Sterling Reserve with the investments held against it, were entered at the nominal exchange of 2/-on both sides of our balance sheet; the entries still appear in our accounts in that form. I may me tion the present market value
As
of the
securities representing the £1,000,000 is £1,056,000, Exchange Banking in China during the past six months has not been without its difficulties. Silver ranged in price from 29 18/16 to 33 1/8, and sfood at 32 5/16 on 31st December, as against 30 3/16 on 30th June. Its course was marked by extreme and rapidly recurring fluctuations making for unstability in exchange. A sharp and appreciable advance in the value of money in 1 ngland and the Continent took place in October, and was immediately followed by great stringency and high rates in India. Ibe Bank of England rate remained at 6 per cent for the exceptionally long period of three months; on the 17th January, 1967 it was reduced to 5 per cent, but this high level is still maintained and very dear mouor salso prevails in India has been the case, money easy and plentiful, but suffered severely from
In China f being
· business 1
to
we should find better times ahead than we are leaving behind us As regards Japan, grest activity has prevailed there since the close of the war, resulting in a large increase in the colume of the trade both in exports and
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(February 18, 190Ť half year. Before moving the adoption of the report and accounts I shall be pleased to answer any questions that may be naked.
There were no questions, and the Chairman proposed the adoption of the
report and accounts as presented.
Mr. HUMPHREY&——Mr. Chairman and Gentlemen-It is gratifying to us all to receive again a dividend of £1.15 per share and a bonus of £1, after strengthening the bank's position by the addition of $750,000 to the reserve fund. You bave referred, Mr. Chairman, to the difficulties exchange banke have had to contend with during the past kix months; we can therefore congratulate ourselves the more that our directors, managers, and staff have been able to produce anoh a good report (applause). Our thanks are due to them for their good work, and I am sure we all approve of the bonus voted by the Board to the staff (applause). It will be welcome news to shareholders to learn that the management has decided to increase the capital from ten million to fifteen million dollars, and will be equally welcome to the bank's clients to know that the bank upou which their welfare so much depends will be in a better position than ever to give them proper and reasonable facilities for trading. Before ounoluding I should like to say that we are all very pleased 10 see our Chief Manager, Mr. J. R. M. Smith, back again (applause). Some years ago it was my father's pleasing duty to welcome Mr. Jackson, now Sir Thos. Jackson, Bart., on his return to the Colony. He said on that occasion that Mr. Jackson always brought suoshine with him. Well, gentlemen, the sunshivs came right enough, and I think we may rea- souably hope that, Mr. Smith's return will likewise be coincident with better trade condi- Lious and continued prosperity to the Hong- Foug and Shanghai Bank (applause). friends in the North will be pleased to hear that Mr. Hunter is returning amongst them, and I am equally sure we are all sorry to lose him.
Our
I bare much pleasure in seconding the adoption
of the report and accounts.
the
importa, India, where we also have important branches, has produced abundant crops com. manding record prices, especially so in the case The motion was carried unanimously.
Mr. of jute, and, in consequeure, that country has
CRUICKSHANK proposed that been a very large huyer of silver for currency election of Mr. G. Balloch as a director be purposes in addition to the nanal requirements | confi med, and that Messrs. A. Haupt, R of the native bazuar. Gentlemen:
1 #« A
Shewan and A. J. Raymond be re-elected." sound and satisfactory expansion of our basi- ness at all points, which speaks for the continued effoiency of our managers aud ·taff
generally, and I am sure you will approv. of our haring again voted them a bonus of 15 per cent on their salaries (applˇuse). Our esteemed Chief Manager, Mr. J. R. M. Smith, returned from a well deserved holiday a few weeks ago and Mr. H. E. R. Hunter, whose managemen! at the Head Office during Mr. Smith's ab«ne« Las given every satisfaction to your Board, will resume charge of our Shangbai Branch at au early date (applause). As stated report, your directors have carefully considered- the desirability of increasing the bank's capital, and are unanimously of opinion that the time to do so has now arrived. Siuce the epi- tal was last increased in 1890 our business los
in the
MC DE CHAMPHAUX seconded, and the
motion was agreed to.
Mr. ORANGE proposed the re-election of Mess. W. H. Potts and A. G. Wood as
agddors.
M. WICKHAM seo ɔnded, and it was oɛrried. The CHAIRMAN-That is all the business, geull men. Thank you for your attendance. Diri nd warrants will be ready on Monday.
Mr. F. . Marshall—Mr. Obairman, before we x-parate I would like to propose a vote of thanks to the directors for the attention they have given to our affairs during the pist twelve mouths, and, Sir, I think I am voicing the feelings of other shareholders when I say so long as the Board consists of representative business mea of the Colony such as I see sitting around your table we can rest assured our interess will be fully protected and the Bank will continue to maintain the position it now sujuys in the world of finance here in the Far East and elsewhere. (App ause).
The meeting then ended.
kept pace with the expansion of Eastern trade, and we are satisfied that remunerative employ ment will be found for i. creas-ri resources. Whatever political changes may be in store for China there can be little doubt that the ultimate outcome will be a wider field for the operation of foreign capital and a considerable increase in over. sea trade. We propose to increase the ospital from THE SOY CHEE COTTON SPINNING $10,000,000 to $15,000,000 and the necessary steps have been taken to get our Ordinance amended to allow of the proposed increase. In due course a special circular will be sent to shareholders and an extraordinary meeting will be called, when the resolutions necessary to ob- tain your sanction to the scheme will be put
before you.
Our large but necessary reserve funds have been built up with the consent of shareholders, freely given. This fact has been borne in mind when recommending that the price of the new shares be fixed at £30 per share price which confers on shareholdera a
substantial bonus and at the same time allows for an appreciable addition to oir reserYES.
These proposals will, we trust, meet with your approval, and I hope the increased resources will bring increasing influence and prosperity to the bank. In conclusion I am glad to say that a good start has been made for the new
COMPANY, LIMITED.
The General Manager has submitted a state- ment of accounts to 31st December, 1906. The working of the mill has been very satisfactory review has been sold at prices leaving an ex- and the production during the year nuder tremely good margin of profit. The balance of credit of profit and loss account, including sa amount of Tls. 35,986.63 brougat forward on ・ which it is proposed by the directors to desi 1st January, 19 6, amounts to Tlu. 282,021.4!,
with as follows :--
Tl.
To pay a dividend of Tls. 50.00 per
"share on 2,000 shares, absorbing 109,000,00
To
write off for depreciation or
machinery » per seut on original oost prio
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职曲
434,071.32
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