CHINA
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an escort. The silk erop in Szechwan was particularly good and prices were high early in the year, but the war stopped demand and many dealers were ruined. Chinese-milled flour, an Chinese-made cotton piece-goods and matches entered more into competition with imported goods, and a development in this direction is to be looked for. In Wusih the silk crop was disappointing, and cocoons fetched abnormal prices. The cotton crop was excellent, and low prices assisted the local mills.
Turning to the more southern ports, it appears that rice was plentiful and cheap. The European war, by sending up prices, caused consumers of Western manufactures to give up, wherever possible, the use of such goods-an opening that the Japanese were not slow to take advantage of. Japanese kerosene from Formosa made its appearance for the first time.
Mr. R. J White, of the Canton Customs, gives some interesting particulars of the rise in the prices of imports and the fall in the prices of exports since the commence- ment of hostilities in Europe. Among imports, paper rose from 40 to 60 per cent. aniline dyes, fron 6) to 100 per cent.; sugar, 50 per cent. ; matches (in consequence of the shortage in German materials, chlorate of potash, and phosphorus), over 60 per cent.; sundries, from 10 to 15 per cent. Among exports, silk fell over $200 per picul; waste silk, about 25 per cent.; bristles, about 20 per cent.; hides, 15 per cent. There was no demand for human hair, and very little for matting and cassia. As regards the fall in the value of silk, a brisk demand from America towards the end of the year brought about a certain recovery.
The floods caused by the West River, which rose 38 feet in 48 hours and in the course of five days rose from 18 to 72 feet, resulted in immense damage and distress, and the necessity for all business with Hongkong being on a cash basis prevented both mërch ints and dealers, in spite of a good demand in the interior for certain imports, from effecting any large transactions. The closing of certain of the European markets, accustomed to take large quantities of Chinese produce, naturally sent down prices and checked exports.
A report from Tengyueh makes out a strong case for the construction of a railway from Bhamo to serve the trans- frontier trade, which has increased of late to a surprising extent.
Revenue-The total collection during 1914 was Hk. Tls. 38,917,525, which was Hk. Tls. 5,0 2,328 less than in 1913; but as 1913 had shown a sudden rise of 4 millions of taels over 1912, the amount of the loss was, in view of the exceptional circumstances prevailing during the latter half of the year, less serious than might have been expected. Moreover, the reduction on the collection of opium duty and likin amounted to Hk. Tls. 3,108,630 leaving only Hk. Tls. 1,943,648 as the loss on general trade.
Foreign Trade The value of the direct foreign trade was Hk. Tls. 902,399,922, a falling off of Hk. Tls. 71,078,181 as compared with the value of 1913, but exceeding that of all previous years. Net foreign
Net foreign imports decreased by Hk. Tls. 13,053,509 only, but exports showed a decline of Hk. Tls. 58,024,672. There are no statistics from Kiaochow available, owing to the closing of the Custom House. During the first half of the year, and especially during the June quarter, the volume of trade there was so satisfac- tory that it is justifiable to estimate the values as at least one-half of those for 1913, which were HK. Tls. 15,430,067 for net foreign imports and Hk. Tls 12,960,096 for exports. Half these figures would wipe out most of the decrease in imports as compared with 1913, and would reduce the loss on exports by over Hk. Tls. 6,000,000.
Imports-The net quantity of opium imported, that is, released from bond for consumption after payment of duty and likin, was 7,478 piculs, as against 18,138 piculs in 1913. The latter quantity was valued at Hk. Tls. 41,023,012, and the reduction in consumption to less than a half did not result in much saving, as the value of the smaller amount was estimated at Hk. Tls. 37,344,653, prices having risen considerably towards the end of 1913 and having remained steady throughout 1914. How imperative is the craving for the drug on the part of those who have acquired the habit and can afford to indulge it is shown by the enormous prices now paid, and it is interesting to note, as a comparison, that in 1906 an importation of 54,225 piculs was valued at Hk. Tls. 32,285,377, which shows that the limitation of supplies has raised the price of the drug more than eightfold.
The value of cotton goods imported fell from Hk. Tls. 182,419,023 to Hk. Tls. 178,259,015, that is, taking the average rates of exchange for 1913 and 1914, from £27,552.873 to £24,324,932. The year was a bad one for this trade and commenced with prices that were below the cost of replacement, but a fairly high exchange made im- porters hopeful of improvement in conditions. Unfortunately, stocks were heavy both