682
CHINA
in the hands of importers and dealers, and both parties were anxious to deplete their holdings. Although the demand in the interior was good, the restriction of credit by the Chinese banks placed great difficulties in the way of the dealers, who were, more- over, unwilling to place orders for fresh goods until they had disposed of their stock. The consequence was a complete deadlock. With the approach of the Chinese New Year, however, the demand became so imperative that the Chinese banks began to grant more extended facilities, and a very brisk business set in that lasted until May. Then a lull commenced, prices at home being still about 10 per cent. above the values on the Chinese market on account of the dearness of cotton. The Chinese dealers would not offer higher prices for future importations while there was still plenty of stock available for their immediate requirements, and importers were unwilling to part with their goods at current prices and hoped that a favour- able turn in exchange would assist them out of their difficulties. Then came the war, which depressed exchange and, rather fortunately for the holders of stocks, kept back supplies, the remainder of the year being characterised by a hand- to-mouth trade. There was considerable development in the local cotton industry, almost all the mills having largely added to the number of their spindles, and there can be no doubt that both yarn and cotton piece goods will, in the future, feel more and more- the competition of Chinese manufactures. Avery significant feature of the cotton trade during the year was the large advance made in certain classes of Japanese goods at the expense of similar makes from America and Great Britain. In grey sheetings, for instance, while Japanese rose from 3,397,362 to 4,499.433 pieces, American fell from 1,668,716 to 870,200 pieces; Japanese drills rose from 1,677,111 to 2,190,155 pieces, while American fell from 525,291 to 145,719 pieces and English from 85,708 to 45,671 pieces. Japanese yarn has now reached 1,331,739 piculs, which was 194,515 piculs more than Indian yarn.
Woollen goods fell off about 32 per cent., and it is quite evident that the Chinese have not yet decided to discard their own comfortable and suitable style of dress and to follow "foreign fashions. Metals remained about the same as in 1913. Among sundries, the effect of the European war was shown in a reduced importation of various articles from the Continent. Aniline dyes fell from Hk. Tls. 5,401,820 to Hk. Tls. 3,250,305; artificial indigo, from 319,575 to 250,127 piculs, a difference in value of a million taels; window glass, which mostly conies from Belgium, more than doubled in price, and the importation fell from 311,950 to 253,168 boxes. Only about half the quantity of needles, as compared with 1913, arrived. American kerosene oil made a further advance, froin 112,459,925 to 160,428,389 gallons, and the new Japanese product.. which is cheaper but inferior, rose from 34,265 to 514,470 gallons. Russian and Sumatra oil remained about the same. All classes of sugar felt the effects of the war and were imported in smaller quantities on account of the increased demand in foreign markets,. caused by the shortage in beet Sugar, which sent up prices. Brown sugar fell from 2,277,593 to 1,786,671 piculs; white Sugar, from 1,933,067 to 1,628,211 piculs; refined, from 2,627,907 to 2,487,654 piculs; and sugar candy, from 273,161 to 177,948 piculs.
Exports-One of the first exports to feel the effect of the war, and the one that was most severely affected, was silk. During the first half of the year exports of silk ha been fairly satisfactory, though not particularly brisk on account of the unwillingness of Chinese dealers to dispose of their stock at the prices offering. With the opening of the new season the prices of cocoons in the districts serving Shanghai became abnormally high, and it was rumoured that the crop would be short. With the breaking out of war all exports ceased, and most of the filatures had to stop work from want of capital. Foreign merchants were in some cases unable to take up their contracts, as it was impossible to finance shipments, the banks being unwilling to grant facilities under conditions that made it doubtful whether cargoes would arrive and whether consignees would be in a position to meet drafts. The same conditions prevailed in Canton,. where prices fell from $700 or $800 to $200 in August, but recovered later. The Bank of China and the Bank of Communications assisted traders by making large advances. From October onwards there commenced a demand from America, as well as inquiries from London and the Continent, which caused some improvement; but at the close of the year the market was still very dull. These adverse conditions caused a considerable curtailment in the volume of the trade, and the values of silk and silk products. exported fell from Hk. Tls. 104,852,141 in 1913 to Hk. Tls. 79,561,667-a loss to China's trade of nearly 3 millions of pounds sterling.
The tea trade was practically finished before the war commenced and was not affected as were other exports. Black tea improved by 9,492,000 pounds, but there was