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SHANGHAI
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A163
separate local demand and output from the wider demand and output of the country as a whole. Commercial activities at this port have their background in the condi tions obtaining in the vast area served by it, and vicissitudes in other parts of the country are generally reflected, to a greater or less exent, in the volume of business transacted at this great commercial centre. For instance, the long spell of drought in North China, floods in the Yellow River and Yangtze regions, and the political situa- tion in the North were among the factors responsible for the unsatisfactory trading results of Shaghai. On the other hand, the greater political stability throughout the country, the financial and currency readjustment in Szechwan, and the progress in the development of the north-western provinces must have had a wholesome effect on the trade of the port. Apart from Shanghai, China's foreign trade showed a decrease of 5 per cent. only in imports while a gain was recorded under exports of 9 per cent. The unfavourable comparison between Shanghai's trade record and that of the rest of China tends to suggest that this port suffered particularly in certain respects during the year, and such is no doubt the case. Firstly, the ill effects of the huge exodus of silver in 1934 was felt more acutely at Shanghai, the leading financial centre of the country, and in the area under its influence than in other parts of China. For most of the year the local money market was in a state of extreme stringency owing to the shortage of the circulating medium. Industries and commerce in the districts served by Shanghai experienced great difficulties owing to restriction of credit, and the temporary suspension or closing-down of factories and commercial offices wäs frequently reported. Furthermore, until the nationalisation of silver in November, constant fluctuations in the price of silver caused inimical reactions in the exchange value of the Chinese monetary unit, the instability of exchange not only reducing the volume of business but giving rise to general uneasiness and uncertainty. Commodity prices continued to decline. the wholesale price index for Shanghai (taking 1926 as the base) dropping to 90.5 in July, as against 97.1 for the corresponding period in 1934. Real estate values at Shanghai remained at a low level, invested capital becoming frozen and causing the failure of a number of Chinese and foreign concerns. Secondly, in certain lines of trade, there was a growing tendency for dealers at various outports to cover their needs for foreign goods direct from abroad instead of placing their orders with the Shanghai importing houses, as had been customary in former years. Goods were forwarded to the ports of destination without being first landed at Shanghai, and thus this port lost some of the entrepot trade to which formerly it had been accustomed. This change of procedure on the part of importers at other ports, which had as its object the saving of buying commissions and local dues, as well as other incidental expenses that would have to be paid if they obtained their goods through the importing agents at Shanghai, must have materially affected the import statistics of this port. As far as tonnage figures indicate, the foreign shipping trade was about on a par with that in 1934, interport shipping showed a decrease, and inland shipping displayed an appreciable improvement.
improvement. Vessels entering from, and clearing for, abroad totalled 3,678 in number and 16,836,787 in tonnage as against 3,726 vessels representing 16,854,481 tons in the previous year. The number of vessels entering from, and clearing for, domestic ports under General Regulations was reduced from 14,071 in 1934 to 12,823 during the year under review and their tonnage from 18,644,193 to 17,190,016 tons. Vessels entering and clearing under Inland Waters Steam Naviga- tion Regulations numbered 30,848 and aggregated 5,638,016 tons as compared with 27,858 vessels and 4,381,162 tons in the preceding year. These statistics are exclusive of the 77,420 junks entered and cleared. The combined figures for entrances and clearances of the domestic and foreign traffic under General Regulations show that British-flag vessels led the Shanghai shipping list with 12.5 million tons, followed by Chinese-flag vessels with 6.3 million tons, Japanese-flag vessels with 5.8 million tons, American-flag vessels with 3.2 million tons, and Norwegian-flag vessels with 1.6 million tons. In the domestie trade under General Regulations, British-flag vessels, with 6.6 million tons, captured the leading position held by Chinese-flag vessels in 1934. The latter took second place with 6.2 million tons, whereas the Japanese and Norwegian flags maintained their third and fourth places with 2 million and 1 million tons respectively. The Whangpoo Conservancy Board carried on its operations on an enlarged scale.during the year. The total dredging in the Whangpoo
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