680
CHINA
in
One very interesting point in this table is the proof it gives of the undeveloped state of the national resources. China grows cotton of excellent quality, but incluiled in the cotton goods (in 1 13) is cotton yarn to the value of Tls. 71,060,089. The next article to notice is coal, of which the Chinese import more and more, although they have an inexhaustible supply in their own deposits. There should be no need to import flour or rice, and a large proportion of the timber imported, three-fourths of it being softwood, could be grown in the country if deforestation were checked. It will be seen that the increase in the quantities of metals imported gives no indication of progress mining development. Another point worth noticing is that cotton yarn, cigarettes, matches, candles, and soap are now being largely manufactured in China, without in the least affecting the importation. For the Chinese market the first essential is cheap- ness, and the Japanese have an advantage over their Western competitors in already producing for home consumption articles of a type and quality suited to the pockets and needs of their neighbours. Among such goods may be mentioned knitted garments, such as singlets and pantaloons, both of summer and winter weights, brown for men and pink for women being preferred to white. Stockings and socks are in increasing demand, but must be low in price, while cotton umbrellas are taken in large numbers. Other articles that command a ready sale are looking glasses, spectacles, lamps, bottles, thread, buttons, tooth-brushes handbags and purses, india rubber balls as toys, ankle- bindings of either cotton or silk, enamelled ironware, hair clippers, clocks and watches, crockery, etc. Where water carriage is available transportation in inexpensive, but away from the waterways it becomes costly and very slow, except along the few railway routes. Consequently no marked increase in imports is to be looked for, as was remarked above in the case of exports, except in conjunction with railway dev lopment. In Manchuria a new article for export was found in talc, of which large quantities are produced near Haicheng and which is said to be of good quality ; during the year 3,600 tons were sent away from Dairen. Cement, also, to the amount of 60,000 tons, was shipped to Java, and further shipments were to be made. At the instance of the Japanese and Chosen (Korean) Railways, a reduction of freight of 30 per cent. on 11 kinds of through cargo carried by the Antung Moukden line, including cotton piece- goods and yarn, was inaugurated by the South Manchuria Railway on the 1st May. similar reduction, in favour of steamer-borne cargo, was extended to the same goods when carried by the Dairen-Moukden and Newchwang-Moukden lines. Leading Japanese exporters of cotton goods to Manchuria have organised a Japanese Cotton Exporters' Association, the declared object of the Association being to enhance the reputation of Japanese cotton goods in Manchurian markets by stopping the export of goods of inferior quality and to maintain standard prices. These factors, combined with the Agreement of the 29th May, 1913, under which dutiable goods imported into Manchuria from or through Chosen, and exported from Manchuria to or through Chosen, by rail via Antung are allowed a rebate of one-third of the tariff duty, have had a marked influence in encouraging the trade in Japanese cotton goods at the expense of British and American manufactures. Dairen and Newchwang have both felt the competition of the railway, but there seems no doubt that the reductions in duty and freight are greatly stimulating trade.
A
At Tientsin the year opened with apparently bright prospects, and it was noticed that British and American piece goods were making headway against Japanese com- petition, probably assisted by a high and steady exchange. Under the heading of cotton yarn the Indian variety showed a larger pro rata increase than the Japanese ; but after the middle of the year this state of affairs was completely reversed. Shirtings, sheetings, and drills from England and America all fell off, while Japanese drills and T-cloths came forward in large quantities. Japan matches and machinery also showed large increases. The export trade was fairly satisfactory but was impeded for a time by the unrest in Mongolia and by the devastations of White Wolf. Production was good, but the war closed certain markets and at first exports fell off seriously. After the reduction of Tsingtau trade revived so surprisingly that it was fortunate the river remained open longer than usual, by which the congestion of cargo was relieved. At Chefoo, also, a prosperous year was anticipated, but, except for a brisk business in Japanese cottons and matches, the trade became very stagnant.
The Yangtze was unusually low during the summer, and this meant a great advan- tage to farmers along the banks, as an enormous acreage generally submerged was available for cultivation. Generally speaking, the crops along the valley were good, and, so far as climatic conditions were concerned, the year should have been one of brisk trade. But in Szechwan the roads were made unsafe by roaming bands of robbers, preventing the free transit of goods and compelling senders of silver to provide