ICONOMIC conditions in China and the effect of political changes upon them were reviewed by the chairman, Mr. Stanley' Dodwell, at the annual general meeting of the Hongkong and Shanghai Banking Corporation, held in the new head offices of the bank in Hongkong on Saturday.
The difficulties confronting the Nanking government, the chain of circumstances leading up to the currency reforms of November, and the dangers ahead were touched upon in his speech, which struck a note of restrained optimism for the future.
Upon the Sino-Japanese disputes in North China the chairman commented briefly, noting the ad ditional uncertainty they caused. The chances of China's returning to the silver standard, as predicted by Senator Pittman were held to be small.
All I can say is that it will need a very different silver policy in the United States before this is likely to com about", remarked Mr, Dodwell.
The chairman appreciated th progress made by the Chinese Government in keeping the Communists on the run and pushing ahead with economic reconstruction in road building, public health, and agriculture, Reform ofthe civil service administration and the judiciary, however, was described as "almost more desirable".
Atier the Usual formalities hea been "gone through, the -chalrman After making full. provision for tosses" end. contingencies, the els for the year amount to $12 3.41.75. to. which must be added 204,701.90" brought ""in from the Previous year, After deducting the interim divic end pald. at. 2/2% and Directors" Femuneration, there vematne avatie able. for alatelbution §11,60,800.09 which It ts proposed to dear with as To, pay a final Dividend of "23 per share (ubicet 10 dleduetion of income Fax). §7,272,.200.00 1 ter to. Bane Premises carry forward' 10 slowly in most countries there is stilt considerable lack of equilibrium which cannot be righted while economic nationalism and unstabilized euro reueles remain the order of the day. The unsatisfactory state of interna: Hunal affairs due to the Abrssinian war Is unfortunately only too ikely to have unfavourable repercussions an trade sooner or later.
China's Monetary Problems will turn without further delay to the subject which has I feel sure een uppermost in your minds, as It hag in ours, during the past year. 1 mean of course the monetary problems of China and Hongkong. The igeulties which we have had face in Ho only too welt Your directors deeply" regretted having to reduce the inter lan dividend and it may be 2s well to explain that they did s0 to meet in part a substantial loss sustained by the disgraceful failure of an import= ant firm In Bombay. 1 may say that our Joss was but a small fraction of what other banks suffered, but in view of the rising price of silver during the first half of the year: which was doing so mtich damage to China, your board decided that was only common prudence to keep the bank tu a thoroughly sound posi tion and distribute the greater por-lon of the loss among the' Share. holders,
Text read from the printed page and cleaned; old type leaves the occasional error.