From the accounts of the Shani company you will see that the interest foamed was nearly sufficient to pay half the expenses of management in Shangh There is an apparent ess on exchange of Ch$44019.07 which is de-Dited to profit and loss account. This arises from the fact that the Shan hal company is indebted to the Java company and. the Chinese dollar equivalent of the guilder amount has to be adjusted each year. This i in reality purely a book entry as the two companies are to all intents and Purposes identical, During the year your cided that in lew of the regarding the future trend value of the Chinese dollar the pri dent thing to do was to dispose of our Jocal investments and to convert any surplus that wae not required for the payment of the interim dividends into United States currency. A similar procedure was adopted with any plus funds that accumulated in. Jo ind you will see from the balance sheet that on December 31, 1939 the company had the sum "of US. dollars 3772.71 at the bank. The Sp first class condition and everything is running smoothly which leaves very little for me to comment on.
Text read from the printed page and cleaned; old type leaves the occasional error.