The ordinary half-yearly meeting of shareholders in the Hongkong and Shanghai Banking Corporation was held in the City Hall on Saturday, the 13th inst., for the purpose of receiving the report of te Court of Directors together with x statement of accounts to 30th June, 1898, -'The Hon. J. J. Bell-Irving presided, and there wore also present Messrs. R. M. Gray, D Gubbay, A. Haupt, A. J, Raymon McConachie, P. Sachse, R. Shewan, N Siebs (Directors), 'Thos. Jackson' (Chi Manager), and a large number of Shareholders.
The Chief Manager read the notice convening the meeting.
The Chairman then read the report of the Court of Directors.
The Chairman said—Gentlemen, the Directors have the pleasure of laying before you on the present occasion a record report enabling them to pay the usual dividend of £1 5s. per share, plice one ion of dollars to reserve fund, write $250,000 off property account, and carry forward $367,000 odd to new profit. and loss account. These figures are the outcome of an unusually prosperous half-year when almost no losses were incurred and when everything went well with us at the hend office and at all the branches. Money was in strong demand, and exchange ban! ing afforded unusual opportunities for making money, of which this bank took full advantage." (Applause) We have left our London investments unchanged with the exception of a sale of £70,000 Indian 24 per cent sterling loan, which we intend replacing when a favourable opportunity - arises. During the half-year we participated in the issue of a Chinese loan for £16,000,009 on joint -account with our German friends. (Applause.) Our share of the profit on the transaction represents a very considerable sum—(applause)—and is unappropriated, well as the profit on the previous loan referred to on former occasions. (Applause.) It is the intention of the directors to deal with both sums at the end of the present year. The idea the directors have in view is to raise the reserve to ten mil ions of dollars, and to have it all invested in first-class securities standing at an exchange of 2/-, say £1,000,000, said securities to be written down well under their market value as is the case with the securities we at present hold, and in accordance with the precedent set us by home Banks. We should then be independent of silver, whatever the future might have in store for it. We would virtually have two capitals, une, our. ordinary capital, say $10,000,000, in silver, the other our reserve of ten millions of dollars at 2/-, say £1,000,000, in gold. This inay appear like counting the chickens before they are hatched. Not so we have already funds in hand to effect the desired object. (Applause.) There-is another item, tiz., our pr perty account, which in times of prosperity ought to have particular attention paid to it. In addition to the usual percentage we have been and writing off from half-year f-year we have thought it wise to 000. Property is the one unproductive account in our books, and the nearer it approaches to zeru the better will we be pleased. haje that at the end of count will receive further attention at our hands. In accordance with an Ordinance of the Hongkong Government No. 21 of 1882, the to issue notes fo the extent of its paid-up capital say ten million of dollars, against which we keep first-class securities with the Bank of Englind in the name of the Crown Agents for the Colonies for fully one-third of our authorised issue, and by Ordinance we are compelled also to keep at east one-third in bullion at the various places of issue. Up to recently, with occasional exceptions, this limit has hitherto been sufficient for the ordinary requirements of the public in Hongkong and the Straits Settlements, but from January of this year the limit of ten millions proved insufficient, and very reluctantly we had to exceed our limits from to May. To get the circulation within prescribed limits by the 30th June caused very serious inconvenience to trade in this colony and its surrounding centres. On the gravity of the matter being pliced before the Government of this colony, with the sanction of the Secretary of Star" for the Colonies an Ordinance was passed on the 28th July, 1898, amending Ordinance 21 of 1882 as follows:—* Bills and notes of the Company payable to bearer on demand may be issued and be in actual circulation to. an amount in excess of the emp provided that there shall be. previous a of the Company actually paid up, i Kept at. the head ofice of the Company, i Hongkong to the satisfaction of the Colonial Secretary and Colonial Treasurer an amount of coin and bullion to the whale culati Our thanks are due to the value of such excess issue actually in cir-Secretary of State for the Coloi to His Excellency the Administrator' of this colony for so promptly. acceding our request for an clastic note culation, instead of a fixed limit, which has recently caused such serious inconvenience and loss to all concerned. 1 may remark that the proposal to keep an amount of coin or bullion equal to the whole value of our excess issue emanated from us. We were so anxious to have the matter settled at once that we put forward our propustl on such liberal lines that we were convinced it would be accede ed to. The state of affairs in the Philippines where the bank has considerable interests, has been a source of anxiety to us of late. Tam glad to say that we do not anticipate any loss whatever there. Ihope that peace will soon he restored and that business may speedily flourish in those most fertile islands. To refer fora moment to the items in the balance sheet, I wish to point out that current accounts in silver have increased by $3,909,973.15 during the half-year while fixed deposits in silver have de creased by $1,178,237.17. Current accounts in gold have increased by £4,749,759 8s. $d. owing to the large amount of Chinese Government money we held on the 30th April when: our London half-year closes. Our cash in hand and bills discounted, loans, and credits, also slow an increase from the same cause; in the latter instance we had employed in liquid advances considerable portion of the funds tempo-tarily in our possession. Tu the former case the funds not so employed were held in cash.
Fixed deposits in gold show a lit decrease of $1,457,000.44, while bills receivable show an $6,445,185.65, the Jatter a very satis- tile eruptions, and may always safely be factory item, showing the larger volume spplied by any ordinary attendant. of exchange business transacted. The recent industrial development in Shanghai having caused money to be in good demand there, other banks raised their rates for fixed deposits from four to five per cent and we desmad it necessary to act similarly. A more serious matter was the raising of the rate for fixed deposits in London from 3$.to 4 per cent. At the time it looked as if there was going to. be a continuance of dear money in London' and on. the Continent. were afraid of deposits. leaving. us and our profitable outward business being checked. If we find that we are getting too much money at 4 per cent we can easily revert to 34 per cent for new money later on. In conclusion, gentlemen, I have to remark that the prosperous and sound position in which this bank now stands reflects the greatest credit upon the farsighted and conscientious management of our Chief Manager, Mr. Jackson, who has received valuable cooperation from the staff generally. (Applause.) Before moving the adoption of the report and accounts shall be happy to answer any questions.
No questions were asked, andthe Chai man proposed the adoption of the report Mr. Whealler said—I have much pleasure in seconding the proposal. The best report ever presented to the proprietors does not need many words to ensure its adoption by them. Good as the report is, however, the information that the Chairman has just given us is even better. The report shows that the bank is now ina position of great strength, and the proposal to keep the reserve fund of 10 million dollars, or say one million sterling, invested in sterling securities, is the one thing desirable to "make that strength more absolute. With our capital of 10 mill-silver and our reserve fund of lions in gold we shall not only be independent of silver, but I think the bank's credit in Europe must be urgely strengthened, It is very pleasant -to that in addition to the handsome profits which you have put before us there is still the considerable profit on two, Chinese loans which it is proposed to deal with at the end of this year, so that hopes are raised that ere long it may be possible while still adding to the strength of the bank's position to add to the usual divid-owd an occasional bonus. Applause.)
Curried.
Mr, Leigh—I have much pleasure in proposing the confirmation of the appoint ment of Messrs. A. McConachio and P. Sachse as Directors.
Mr, Hutchison seconded.
Carried.
The Chairman—Gentlemen, I have to thank you for your attendance. This concludes the business: of the meeting. Dividend warrants willie sent out on Monday.—Hongkong Daily Press.
Text read from the printed page and cleaned; old type leaves the occasional error.