Angost 19, 1907.1
COMPANIES.
HONGKONG AND SHANGHAI BANK.
The half-yearly meeting of shareholders in the Hongkong and Shanghai Banking Corpors tion was held on August 17th in the City Hall. Mr. G. H. Medhurst (Chairman) prs. sided, and there were also present Hon. Mr. H. Keswick (Deputy Chairman), Mesars A. Fachs, A. Haupt, C. R. Lensmann, A. J. Raymond, E. shellim, B. Shewan, H. A. W. Blade, H. E. Tomkins (directors), J. R. M. Smith (chief manager), J. C. Peters (chief accountant), . W. May, G. de Champeaux, R. Mitchell, J. Wheeley, R. K. Hyod, E. F. Mackay, H. N. Mody, Cheung Koon Bin, G. Piercy, Ho Kom Tong, A. F. Smith, W. Duobar, Ho Fook, Lo Cheung Shui, G. . C. Master, Ellis Kadoorie, Lau Pun Chin, E. 8. Kadoorie, 8. H. Michael, J. Barton, Wong I eung Lim, A. Forbes, W. H. Wickham, F. Smyth, Ť. Maitland, and E. G. Barrett.
The Manager having read the notice conven- ing the meeting,
The CHAIRMAN read the report for the half year and afterwards said-Gentlemen, I feel confident that the report which I bave just read will meet with a favourable reception from you, and that the proposed distribution of profits will likewise receive your approval. Looking at the balance sheet and comparing the present figures with those shown on 31st December last, you will find on the whole a substantial increase. I will refer briefly to the principal changes. Our note circulation has gone up to $181 laos, being an increase of $20 lace, and is $81 lac in excess of our authorised issue. This excess we are required to cover by the deposit with the Hong. kong Government of dollar for dollar, and you will observe that the condition has been more than complied with for the amount, as shown in the other side of the account, so deposited is ten millions of dollars. Bth silver and gold current accounts have increased; the large increase of $184 lacs in the gold accounts being due, in a great measure, to proceeds of loans recently fosted in London for foreign governments remaining with our office there at the time the accounts were made up. Fixed deposits in silver and gold, also bills payable show com. paratively little change. On the other side of the account you will see that our cash and tullion in band and in transit, taken together, are $39 lace higher. Bills, discounted loanS and credits are less by $32 laos, but bills re- ceivable show the large increase of nearly twenty five millions of dollars which points to a very considerable expansion of our ex- change business. There is no market change in the other items calling for comparison. Those present are only too well aware that trade locally and indeed throughout China during the period under review has continued to suffer from the depression referred to by my predecessor in this chair, and this reflected in the fall in prices of many local stocks and shares. Fortunately in other places where we established a more active and prosperous con- dition of affairs has been experienced and we are therefore able to come before you not only with satisfactory results but also with the gratifying proof of an increased turnover. Our branches extend, as you know, to many countries and while the wide-spread field of our operations is not without responsibility and anxiety at times, it also has advantages and on the whole makes for steadiness in the expansion and progress of our business and for
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the equalization of our profits. In India especially prosperity goes on, I may say, unchecked; the increase in the quanity of her crops and their enhanced value creat a large demand in that country for silver not only as currency to move the crops but also as bullion for manufacture of personal ornaments; its effect is seen in the advance in the price of silver. Whether a high silver level is bone- ficial or otherwise to the foreign trade of China is an open question: perhaps the more general opinion is that, in the present conditions of the country, a cheap currency, which means a comparatively low exchange, is on the whole best calculated to encourage local enterprises and develop trade, but each side will have its advocates until China is in a position to adopt a gold standard. To the ordinary business
CHINA ÖVERLAND TRADE REPORT.
men out here that day seems at present a long way off; no progress is yet a; par- ent towards taking the first practical step of reducing the various provincial silver tЯels, dollars and subsidiary coins into one uniform standard coinage throughout the Empire. Although I cannot point to any actual improve ment in the import trade in the South of China I am glad to say the export season has opened well; the silk crop promises to be a full one and if the coming rice crop is harvested under as favourable conditions as it is now being | plant d, the success of these two important factors combined cannot fail to materially add to the purchasing power of the people and result in better times for importers all round. Our friends in Shanghai and the North have also been noerned in bringing about a reduction of the large stocks of piece goods and yarn which they have had to carry for so long; in this they were greatly helped by the riss in cotton which prevented new goods being im poried at less cost than these held and even led to the unusual spectacle of reshipments of cotton goods to America. The situation has been further assis'ed by the opening of Custom houses at Dalny and on the Russian and Korean borders. This move may be regarded as likely to restore to Newchwang its position as the chief distributing centre for Man
buria. Clearances have been fairly satisfactory lately and as only small supplies are now com ing forward the statistical position of the import trade has much improved. The Shanghai silk crop is also an excellent one and may be expected to have the same salutary effect on imports in the Northern that we hope for in the Southern provinces. Altogether with so many factors in our favour there does seem reason to think that our long suspense is drawing to a close, aal tl at the improvement in business which we have so often anticipated is slowly but surely appearing at last. (Applause.) I may mention that calls on the new issue of shares have come in freely. When we meet six months hence I have no doubt the increase of ospital will appear complete ile the balance sheet, and though it will naturally be some time until the benefit is felt in our business, I think you may rest assured that you will receive a satisfactory return on your money. (Applause.)
There being no questions, the CHAIRMAN proposed the adoption of the repost and state- ment of accounts,
Mr. MACKAY-Mr. Chairman and Gentlemen, in rising to recond the Chairman's proposition. I feel I can add nothing to the very full and instructive review of the situation to which we have just listened, but, I think, I will be only voicing the feelings of those present when I say that a report of such a satisfactory nature could scarcely have been expected, taking into consideration the depressed state of trade generally throughout the Far East, and the increasing competition which has to be faced practically over the entire field of the Bank's operations The advent of new Banking In- stitutions must spell smaller margins to the Banker and consequently improved rates to the merchant, from whose point of view they are, of course, to be welcomed, but as a shareholder of this Bank 1 on only congratulate the manage- ment on their excellent showing under such conditions. It proves the soundness and stability of the Bank's business, and points to only one coulusion, that if such excellent results can be produced during a period of depression we may look with confidence to so much better results when the more prosperous times arrive, which in common with your Chairman I believe to be not so far distant. I have much pleasure in seconding the Chairman's proposition that the Report and Accounts, as presented, be adopted.
On the motion of Mr. WHELLEY, seconded by Mr. MITCHELL, the appointment of the Hon. Mr. H. Keswick, Messrs. A. Fuchs, E. Shellim and H. A. W. Blade, sa directors was confirmed, The CHAIRMAN-That is all the business, gentlemen; thank you for your attendance.
During July the rainfall was 7.385, the heaviest recorded on one day being 2.340 inches on July 24th. The mean for the past 20 years for July is 13.32 inches. The amount of sunshine was 210.5 hours slightly over the mean, which is 200.1.
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HONGKONG, CANTON AND MACAO STEAMBOAT CO., LD.
The ordinary half yearly meeting of share- holders in the Hongkong, Osaton and Macso Steamboat Co., L1 was held at the offices of the Company. Hotel Mansions, on August 13th, Mr. A. Haupt presided, and there were also present Messrs. F. A. Goms, W. Helm, E. R. Leazmano, C. H. R., C. Thiel, R. Shewan, A. Fuchs, directors), Captain W. E. Clarke (secretary), Massrs. J. J. Leiris, J. Arnold, J. F. Ellis, H. M. da Silv, E. Georg, W. Dowley, G. de hampeaux, P. Tester, and Chan Sul-ki.
The Secretary having read the notice oslling the meeting,
The CHAIRMAN sid-Gentlemen,-The re- port and account shaving been in your hands for some days, we will, with your permission, take them an read. During the period under review the depression in trade generally has caused a falling off in our freight business, which influences adversely the Chinese pissengers traffis. The loss in exchange of Chinese subsidiary oinage has been very heavy, amounting to $31,042.22. The working of the West River Servics continues to give very poor and unsatisfactory results. Pɔor rice crops sad the unsettled state of the people in this part of the country must account in large measure for the present bad trade. Competition on all the lines operated by the Company continues to be very sivere, while our disbursements for cost of coal and general ap-keep have increased. Our share of the heavy cost of repairs to the steamer Heungshan osusd by stranding during the typhoon of the 18th September 190, together with the necessary repairs to complete her overhaul, and increased cabin accommodation to fit her for the Canton line at a cost of 8:4,525.36, a nouated in all to $39,153,71. Your Directors are of the opinion that part of these heavy expenses form a jast olaim on the underwriting account, and, therefore, have debited the Insurano, fund with $50,000. transferring that amount to Profit and Loss Account. Including the above sum of $1 4,525.36 there has been expended on the various vessels of the flist for anaus! docking sad repairs and the cost consequent upon the Powan and Nanning stranding, a total sum of $59,334.89. On the 13th June the steamer Sainam struck a rook when proceeding through the Shin Hing Gorge, causing serious damage, and in consequence, had to babched She has since been refosted and repaired, resuming her raa on the lith ultimo from Canton to Wuchow. The oɔst of these repairs will come into the second half year's working. Turning to the accounts you will note that the value of the 3/8ths share in the steamer Powan transferred to the Chius Navigation Co. has been deducted from the book value of steamers. Loan on Mortgage has been reduced by $140,000, and Share Investment Account by $53,785.00 by ssle of certain holdings at a fair profit, which has enabled your Directors to pay off the temporary loan from the Hongkong and Shanghai Bank. The interest on this loan amounting to $5,30) has been debited to Invest- ment Interest Account. The Investment Fluctuation Accouut has been adjusted to meet the market value of the shares held by the Company. I do not think that there is anything else that calls for particular notice, but should any shareholder require any further information I shall have much pleasure in answering any questions.
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No questions were asked, and the CHAIRMAN proposed the adoption of the report and accounts as presented.
Mr. LEIRIA seconded, and the motion was carried unanimously.
Mr. ELLIS moved the confirmation -of th nomination of Mosars. R. Shewan, A. Ficha C. H. Ross and W. Helms to Häl vacaneles on the directorate.
Mr. DA SILVA seconded, and the motion was agreed to.
Mr. GEORG proposed, Mr. O¤ax Suf-KI secouded, and it was agreed that Messrs. K. Shewan and W. Helms, retiring members, be re-elected to the Board of Directors.
Messrs. A. O’D. Gourdia and W. H. Potta were reappointed auditors, on the motion of Mr. DowLING, 86conded by Mr. LUNEMANN,
No comments yet.
Private notes are available after approval.