While China has always been our most important field of operations, we have, of course, very extensive and profitable business interests throughout the East; and, in con trast to China, I am able' to paint brighter pictures of the other places where the Bank is establish-_ Settlements and dustries, rubber and tin, are a very flourishing' condition. The price of rubber, after ruling! for a long time at the bare cost of production, has advanced rapidly, owing to the large consumptive demand and absorption of stocks. Producing-companies are in the happy position of being able to dispose of their output for some years ahead, on terms which show handsome profit, I imagine that most of them are taking advantage of the position to, at any rate, cover their working costs for the next. few years, and, 50 to speak, stand on velvet.
India has had a series of good monsoons, but her surplus products, instead of being exchanged for productive goods, continue to be expended "on gold, which, " being hoarded, does not' add to the purchasing power of the people. In this respect, therefore, the prosperity of India is more' superficial than' real. 'The substantial interests of the country must for a long time to come be sought in the orderly development of her enor-nous agricultural resources, and any artificial attempt to force' the pace industrially is to be deprecated. 'The textile industry in Bombay no doubt passing through. a severe crisis, Dut the steps taken to remove the' excise duty—however necessary on political" grounds—must be regarded as of doubtful wisdom from an economic point of view.
Japan appears to be gradually emerging from. the disastrous effects of the great earthquake of 1923, The balance of trade has been moving more in the country's favour of late, and. this is reflected in the improvement in Japanese exchange, which has appreciated from the low V/73/6 touched last. year, present level of 1/108 and seems safe to predict a sure, if gradual, return of Japanese currency to gold point, Further bor-towings abroad are probable in the near future, for the purpose! of the reconstruction pf the city' of Tokyo, and there is no doubt any offerings on the London market received a favourable reception.
Reports from the Philippines in-Jdieate that the Islands enjoyed prosperous yea 1925. The large sugar crop was sold at remunerative prices, while hemp, tobacco, copra and' other staples were profitably marketed. The prosperity arising from the suc-Jcessful export trade of the Country induced a corresponding ferease in The condit in the may be said to be good and the prospects for 1926 promising.
Before concluding, I desire your! approval of the action of the Directors in. voting a well-deserved bonus of 10 per cent. to the staff on their salaries. It is large-owing to their loyal support, Jand hard work, at the Head Office and all branches, that our Chief, Manager hax been able toe out his policy, which, during, a period of unprecedented difficulties, especially in the Far East, has enabled us to put before you such fine results for the year; 1925. To our Chief Manager we lowe our deepest thanks for ably maintaining the Bank's position in the financial and business world. I now beg to propose the adoption of the report and statement of accounts. After! the proposal has been seconded. Jand before placing the motion be fore the meeting, I shall be pleas. ed to answer to the best of my. ability any questions which share-Holders may have to ask.
Text read from the printed page and cleaned; old type leaves the occasional error.