References to the Boycott Movement: Faith in Colony's Future: World Trade Conditions Reviewed The ordinary yearly meeting. of shareholders in the Hongkong and Shanghai Banking corporation was held at the City Hall, Hongkong, on February 27. The chair was taken by Mr. G. M. Young The Chief Manager having read the notice convening the meeting, the chairman aaid:—Gentlemen, The report and statement of accounts having been in your hands for some days, I shall, as usual, take them as read.
T trust the day will soon com-when a successor of mine in the chair will be able, in his opening remarks, to refer to a past year of prosperous trade and peaceful uetivity throughout China. It is a Tong time now since such a happy state of affairs could be recorded, and T imagine the year recently ended, will long be remembered as tone of the most unsatisfactory and difficult that' merchants in China have experienced. Trade has been hampered in every direction; civil wars, strikes and boycotts being. the order of the day, all as detrimental to trade and the welfare of the country, as disturbing to the peaceful life of the industrious population. In the circumstances, your Directors think it is a matter for congratulation, that the earning power of the Bank has been so little affected, and they are in a position to lay before you a balance sheet, which they foci assured you will consider eminently satisfactory.
The result of the year's working neluding: $3,390,508.04 brought forward from 1924, shows a net pro-fil of $15,846,978.01 as compared with the net profit of '$16,883,882.01 for 1924. The in" terim dividend paid in August last of £480,000, at exchange 2/3.7/8, absorbed $4,192,735.43, After deducting that "amount and $360,000 remuneration to Directors, there remains a balance of $11,664, 242.68, which, as you "have seen from the accounts, it is prow posed to appropriate as follows:—"Pay a final dividend of £8 per share and a bonus of £2 per share, (subject to deduction of income tax), amounting together to £800,- 000—"this being payable at the rate! of 2/48/8, will absorb $6,766,519.82 Transfer to Silver Reserve Fund, $600,000; Write off Bank Premises A/e, $1,000,000; and carry forward to the current year the balance of $8,807,722.76, We' have not come through the year without losses, but, as full provision has been "made for all had and doubtful debts, and contingencies, and in view of our Range reserves, your Directors feel fully justified in recommending this occasion, "smaller allocation to the Silver Reserve than has been customary, rather than a reduction in the amount of the usual bonus. It should be borne in mind, however, that a bonus is dependent upon prosperity. So long as our Bank Premises Account stands ab a high figure, the policy should be to write it down each year out of profits, and it is our intention to continue to advocate that procedure.
As regards the balance—sheet, 1 do not think there are many im: portant changes to comment on. The increase in the total assets ini liabilities from $6843 millions 1924 to $704 millions in 1925 indicates that, in spite of difficult times, our business continues to expand.
Deposits are $274 millions, and cash and bullion in hand $5 mil-ions, higher than on December 31, 1021," Bank Premises stand a'a slightly lower figure. Expenditure under this heading dur-inge the current yenr will be in considerable, and I anticipate that, allowing for the provision we hi made from the profits of 1925, this Account will show an appreciable reduction at the end of 1926, Would add that our " investments!
our books at well below ent market prices. I trust, gentlemen, that the bron vd tribution of profits" wil receive your approval.
In comparing the £ equivalent of assets and liabilities with—those of 1924, it should be noted that the rate of exchange at which the conversions have now been made are, proximately 2.1/4 per cent. high-than the previous year. mentioned in the report, we closed our Vladivostok Office on Septem~ ber 30 last, Our experience of hnusiness conditions in Viadivostok_ haz not been encouraging during the seven years we were established there and, as the prospect of provement appeared remote, it was considered advisable to close that office, The Silver Outlook There has been an absence of spectacular movements in the price of silver during the past year. In fact, the range of 2.9/8d. between, imum and minimum prices, 88.7/16d. and 21.1/16d. respectively, has been the narrowest for many years, and one of the smallest on record, In the cireumstanees, there are no outstanding features of interest to which I can refer in connexion with the silver market, Contrary to the expect tions of a year ago, beyond mode-vote purchases of the metal for: Germany, totalling sbout fine Oz, 5,000,000, there was no Continental, demand for coinage purposes, and present no signs of support com ing from that quarter are apparent, On the other hand, towards the end of the year the Spanish Government sold by tender about 1,000,000 ounces of silver, resulting from the melting down of old coins. This in itself is not a very important teeter, but in view of the Inrge " stock of silver held by the Spanish Treasury, there is a possibility of sales from. th: quarter being on a scale sufficient to influence the price. It seems hardly likely, however, that large quantities of the metal' will be disposed of at present, and, in any, Jease, sales would ' probably be gradual to avoid unduly disturbing the market.
The total production of silver throughout the world last year is estimated at 258 million standard ounces, 62 million standard ounces being shipped from Europe, Australia and America, to China, and, 109 million standard ounces to India, Included in the latter figure, however, are_standard ounces six, million re-shipped from India to China, bringing the latter country's imports of silver in 1925 to an estimated total of standard ounces: 68 million, as compared with approximately 613 million standard ounces in the previous year.
It is estimated that gold to the amount of £40} million was imported into India in 192, as compared with £264 million' in 1924, Prosperity in. the Straits Settle ments and Java has led to a moderate but steady demand for gold in the form of both sovereigns and bars, and, so far a> we can estimate, importations by those from London, South Africa and America amounted to 4£3,000,000, in addition to which $2,250,000 was shipped from London to Holland on Java account. 'The hopes with which the year opened at Home gave way to an exaggerated pessimism, as it was realized that, neither the return to power of a "stable" Government, nor the reduction of the income' tax from 4/6 to 4/- in the, nor the successful initiation of the Dawes Scheme, were in themselves sufficient to lift the cloud of depression which lay on the industries—especially the heavy industries—of Great Bri ain, The signing of the Locarno Pact helped to restore busine.s, confidence, however, and the year closed with better prospects than one time seemed likely.
The Gold Standard The year 192: memorable for the return to the Gold Standard on "April 28, when Mr, Winston. Charehill, the Chancellor, of, the, Exchequer, nounced that it was the intention
Text read from the printed page and cleaned; old type leaves the occasional error.