To the Editor of the "Nonrn-Ciuna Daty News"
Sin—In Mr. Pennett's most recent effusion. for which you have graciously found space in your cor-Fespondence column, that gentleman writes:—
"This welting down of capital tn= @lcates "a shortage" of consumer purchasing power. Does. It not. woom supely purchasing power of reducing capital?"
Now suppose that, in one of those rare intervals between putting the bankers and the economists Tish', Mr. Ponnett, or one of our othe: sclentifs friends, formed a company.
commercialize the bottling of moonlight or the manufacture of silky purses out, of sows' ears, and, after' considerable expenditure on experimental work, found. prosperity still round the corner, would Mr. Bennett, as chairman' of the beant of directors, consider it inappropriate to recognise the unfortunate facts of the company's situation by writing down the capital already dissipated in unprofitable research, or would he expect the community at large, replenish the company's coffers with further "purchasing power?"
It is og a rule more profitable in the Yang run fo recognise unpleasant facts, and, when a company has lost art' of its capital, to recognize the situation by writing It down, than indulge in day-dreams salvation from falry'godmothers Ww. G.
Shanghai, Dee. 4, Mr. David P. Gill, manager of the ion tsin. branch of the American Oriental "Banking Corporation, leaving here on lone leave to' the United States via Europe in the Lloyd Triestino s. Conte Verde tomorrow. Mr. Gill will be accom: panied by Mrs. Gill and their daughter Mary. 'They intend to. spend some time in Italy, Austria and Gor-many before proceeding to America and will return In the Spring. Mr. P. L. Harvey will act as manager of tke "Bank In Tientsin' during' the absence of Mr. Gill Major C. P. Holcomb, resident of Shanghai for 20 years and US. Disfrlet "Attorney for five years, subsequent to which he practiced law, returned to port on Friday in the President Cleveland, after an absence of fourteen months. Mr. Holcomb has business affairs to" settle Shanghai and he intimated on ques tioning by a representative of the "North-China Herald," that might resume practice. Major Holcomb, at one time commander of the American Troop, S. V. C, and Commander of the Spanish War Veterans, Shanghai Post, still is on the Ist of reserve officers of the Corps. Among others meeting Major Holeomb, was Capt. W. 1. Eisler, Past Commander of the Shanghai Post.
Text read from the printed page and cleaned; old type leaves the occasional error.