25 MARCH 1938, Page 70

COMPANY MEETING

THE EASTERN BANK

DIFFICULT CONDITIONS THE twenty-eighth annual general meeting of the Eastern Bank, Ltd., was held on March 18th at 2 Crosby Square, E.C. -

Mr. J. S. Haskell (the chairman) said that the past year had opened with great promise and in the confident expectation that the activity in commodities and international trade which had developed in the last quarter of, 1936 would continue to expand, but those hopes had been destined to end in speedy disillusionment. Apprehension was felt that the high prices reached by commodities would lead to a serious slump ; great nervousness had been created' by a report from the United States that the price of gold would be lowered, which, although contradicted afterwards, had destioyed confidence all over the world. Values had 'depreciated by about 40 per cent., and later the outbreak of hostilities between China and Japan caused a heavy shrinkage in export trade to the East., India' whose trade had been steadily improving, had recently had a setback, caused by the fall in the prices of cotton and other commodities, but throughout the unsettled period gilt-edged securities had been unaffected and money had remained cheap and abundant, showing_ the soundness of the economic position. Irak had had a prosperous' year. The result for the year was a profit of £127,172, against £131,865 the year before. The apparent fall was. more than accounted for by the new National Defence Contribution tax. They recommended a final dividend of 4s. a share, less tax, the same as last year. Taking into consideration the difficulties in business generally, they had come through the year with a result which he trusted shareholders would consider not unsatisfactory.

As for the immediate future, it was impossible to hazard an opinion ; apart from international politics there was the unhappy: situation in the United States of America. In the spring com- modity prices had been declared by the President to be too high and a slump had been brought about ; lately he had taken the view that. they were too low and must be raised-but how_ was that objective to be achieved ? Prices were regulated by supply and demand. Take the case of cotton ; the planting and raising of a crop unprecedented in quantity had had the effect of depressing prices, with disastrous consequences all over the world. One remedy which would no doubt appeal to other cotton-producing countries would be for America to follow Brazil's example in regard to coffee and burn half the crop. Copper and oil provided further examples of over-production. They could only hope that the differences between the President and business interests might be composed in the near future. If business were given a rest from State interference confidence would return and they might look for better conditions throughout the world.

The report was unanimously adopted.