604
CHINA
Mr. J. W. H. Ferguson, Statistical Secretary of the Maritime Customs, in his report of the Foreign Trade of China for 1920, says, inter alia:—
General.-When the year opened it was felt that a prosperous period might well be expected, and it was hoped that the rise in prices which had proceeded almost unin- terruptedly since the early part of 1919, bringing riches in its wake, would continue unchecked for a further indefinite period of time. The course of trade in China during 1920 presents a curve somewhat similar to that for other parts of the world-a sharp rise at the commencement of the year, followed by a short period of hesitation and in- decision, and finally a steep and steady decline, with trade almost at a standstill at the close of the year,-proving how closely the economic structures of the several countries. in the world are affected by like causes. The fall in the price of silver, coupled with the heavy drop in exchange, were the decisive factors which brought about this result. The low exchange effectively stemmed the tide of foreign imports, which was running high owing to the favourable exchange ruling before the top of the curve was reached but did not materially assist exports, since a diminished demand from abroad and low prices in foreign markets, which found themselves overstocked with unsaleable Far Eastern products, rendered the exportation of China's staple commodities unremunera tive. Unfortunately, to these adverse circumstances, which hampered the unrestricted flow of trade, must be added the unsettled state of the country during 1920, which was opposed to peaceful development of commerce and industry. It is as surprising as it is satisfactory that, in the face of political strife and disturbances, famine, earthquake, fall in price of silver, and the world trade depression, the total value of the foreign trade of China in 1920, as well as the Customs revenue collection, should yet exceed the totals recorded for previous years.
Customs Revenue.-The total Maritime Customs revenue for 1920 was Hk. Tls 49,819,885, showing, as compared with the collection of 1919, an increase of Hk. Tls. 3,810,725, and, as compared with that of 1913--the last normal year before the war,- an increase of Hk. Tls. 5,850,032. Expressed in sterling at the average exchange rate for the year of 6s. 94d., the total collection for 1920 amounts to £16,918,002. Import duties show an increase of Hk. Tls. 5,564,689, largely, it may be assumed, owing to the introduction of the Revised Import Tariff, which came into force on the 1st August, 1919; but there was a loss of Hk. Tls. 1,959,487 under the heading of export duties. The heading tonnage dues, it is satisfactory to note, reached a total of Hk. Tĺs. 1,791,744, a gain of Hk. Tls. 347,853 as compared with 1919.
Foreign Trade.-The net value of the direct foreign trade of China for 1920 in merchandise (i..., treasure excluded) totalled Hk. Tls. 1,303,881,530, comprising exports to the value of Hk. Tls 541,631,300 and imports to the value of Hk. Tls. 762,250,230. There was accordingly an unfavourable balance of Hk. Tls 220,618,930, as compared with Hk. Tls. 16,188,270 for 1919. If the movement of bullion and coin is taken into account, the excess of imports over exports must be increased by Hk. Tls. 75,136,498, thus bringing it up to nearly 300 million taels.
Imports.-Net foreign imports amounted to Hk. Tls. 762,250,230, equivalent at 68. 91d.—the average rate of exchange for the year-to £258,847,474. The increase of Hk. Tls. 115,252,549 over 1919 may be assumed to be attributable partly to the abnormally large quantities ordered from abroad during the first quarter of the year, when the trade boom was still at its height and exchange was reaching its highest level, and partly to the inflated prices of the commodities themselves. While, there- fore, the volume of foreign goods imported shows satisfactory advances when judged from a Customs revenue-collecting point of view, it should be emphasised that this in- crease in quantity did not bring prosperity and profit to those engaged in the handling of the goods. Indeed, the import trade during 1920 has generally passed through an acute crisis, which, although rich in experience for those who, influenced by over- confidence in the stability of the high price of silver, allowed optimism to have the better of their judgment, resulted in a financial débâcle for many. Of the total amount, 762 million taels, as mentioned above, cotton goods represent 247 millions and metals and minerals 62 millions. Among other important articles imported there should be mentioned kerosene oil, 54 million taels; cigarettes, 22 millions; machinery, 22 millions; raw cotton, 18 millions; and artificial and vegetable indigo, 16 millions. The importation of electrical materials into China amounted to 2.3 million taels in 1913, 5 millions in 1919, and 6.3 millions in 1920.
Exports.-Chinese produce exported abroad during 1920 is valued at Hk. Tls. 541,631,300, equivalent at 6s. 93d.—the average rate of exchange for the year-to £183,928,962. The decrease of Hk. Tls. 89,178,111 as compared with the year 1919 was