For eleven months of the year, Hongkong enjoyed something in the nature of a trade boom, and the total trade of the Colony was valued at 1,130 million dollars, 46 million dollars in excess of the figures of 1937, and a record for the Colony. But the position changed dramatically in the last month of the year. Canton fell, trade with that port is now at a standstill, and since the beginning of the current year business has been extremely dull The war has had other effects on Hongkong. The population of the Colony has increased so much that housing has become an acute problem, while destitute refugees from China contribute another problem for the Hongkong Government. As I noted last year, however, the increase of the population has made for internal prosperity. and retail shops, public utility companies, and local shipping companies have had another good year.
I have kept you long enough, and I must bring these remarks to an end. I hope that you will agree that considering the difficulty of the times we have been passing through, the Bank did well in 1938. Indeed, we shall be fortunate if we do as well in 1939, But there are too many uncertainties for any prudent man to commit himself to prophecies. Once more I must express our thanks to Mr. Crichton and his staff. They have had an exacting year, and they have come through the ordeal with great success. The chief burden rests on Mr. Crichton. Exchange Banking is a difficult technical busi-ress, and we have all learned to rely on his judgment and skill. Mr. Paton and Mr. Cruden have given him valuable assistance, and all our Managers and staff at home and abroad have laid us under an obligation. You will note that the familiar name of Mr. Sheldrake, our late Chief Accountant, has disappeared from the balance sheet. After 47 years able and devoted service he retired in December last. He was our last link with the Old Chartered Mercantile Bank of India, London
Text read from the printed page and cleaned; old type leaves the occasional error.