With regard to our balance sheet, principal ones being our notes in circulation in excess of our authorized issue by 15 million dollars, whith is offset by a similar reduction in our holding of Government Certificates of Indebtedness.
Current accounts are lower by some 33 million dollars, but on the other hand, Bills Payable are higher by about 18 million dollars. On the other side of the book cash is lower by 19 million dollars and securities by 29 million dollars, against which bills receivable have increased by about 35 million dollars, In 1938 your chairman warned shareholders that conditions in the Far East were more serious than they had ever been in the history of the Bank. Last year your chairman noted how precarious and changeable the outlook must inevitably be whilst China and Japan remained antagonistic. Now we find ourselves in the third year of this Sino-Japanese conflict which has been taking place on Ouf very doorsteps and the end of which is not yet in sight. On top of this our own country is involved in a war which may prove to be the most serious in its long history. Considering this state of affairs as well as our proposal to reduce the final dividend, shareholders would have justification for expecting a gloomy report from their Board of Directors. But as a matter of fact the strength of our balance sheet is only too apparent. It is the political outlook that is depressing.
Text read from the printed page and cleaned; old type leaves the occasional error.