Tuere could hardly be anything more interesting to old and present residents in China than a history of the Hongkong and Shanghai Banking Corpora-work of the half year.
"The report is notable for what it does not say as well 1s for what it does must be owned that, as usual, it is very reticent; much more Teticent than are the reports of many of its English competitors. It is pleasant the shareholders to read that the net profits for the half-year amount to nearly one-and-a-quarter millions of dollars; and to hear it confidently ramoured that the gross earnings were nearly twice that amount, or some two-and-a-half millions, say at the rate of 66 per cent. per annum on the paid-up capital. Even taking into consideration the fact that the recent rise in exchange came just when the bavk had laid in its funds for the new season's operations, such a profit is almost phenomenal, and shows what good Inck must have assisted the undoubted good management of the institution. It may be thought that we are exaggerating in putting the gross at twice the net profits: but it is generally believed—and for so general a belief there is usually a fairly solid fonndation—that the sum put aside as " provision for bad and doubtful accounts " is avery large one, probably considerably larger than will be required eventually and there are even rumours that the dividend and bonus of fifty shillings, which the directors propose to pay for the half year, might be easily made into sixty shillings. It is fair, at any rate, to assume that the directors would not give so high a return for the first half of the year, if they did not see their way clearly to as good a result for the latter half; and it is still more satisfactory to hear that things are going on as well or better in the current half-year.
"The accounts appended to the report show a general progress, a compared with the previous half year. The paid-up capital is raised by payments on account of new shares, from $7,500,000 to $8,168,000; the reserve fund, by premium on new shares, from $4,400,000 to $5,282,000; notes in circulation and deposits from $95,320,000 to $99,580,000. On the other hand, the cash shows the satisfactory advance from $13,766,000 to $18,914,000, while the investments, due apparently to the sale, at what must have been a handsome profit, of India Governments, have declined from $4,291,000 to $3,621,000. Bills discounted, loans and credits have risen from $55,615,000 to $63,880,000, bills receivable declining from $51,185,000 to $46,856,000.
One thing this report must suggest at once to every reader, whether shareholder or not; that such a splendid result could only have been brought about by the indefatigable zeal and conscientious energy of every servant of the bank. We suggested not long since that the shareholders should recognise this by giving their servants a substantial bonus; and the only reason why this is not proposed in the present report that we can imagine is, that the directors prefer to wait until the end of the year. Then, if it is not done at the coming meeting, it will be expected that they will recognise and reward the exertions of their staff, by the grant of a bonus proportionate to the results those exertions have done so much to achieve.
Text read from the printed page and cleaned; old type leaves the occasional error.