ཛྫཱ་
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SHANGHAI
A159
improved trading results of the year were no doubt the outcome of a variety of causes, but credit was due chiefly to the stabilised financial structure both at Shanghai and throughout China brought about by the currency reforms introduced in November 1955 and to the bountiful crops of farm products harvested during the year under review. As a result of the currency reforms, the Shanghai money market displayed an easy tone for the greater part of the year in striking contrast to the state of extreme stringency which formerly prevailed. Loans for financing business enterprises could be obtained at a comparatively low rate of interest on acceptable security. With the support of banks, many industrial plants which had closed dowu owing to financial difficulties resumed opérations, and business generally showed signs of revival activity. Commodity prices recovered gradually, the wholesale price index for Shanghai rising steadily from 103.3 in December 1935 to 118.8 in the corresponding month of 1936. Through Government control, foreign exchange was kept on a stable basis throughout the year. There can be no doubt that this fact has been instrumental in improving the statistical position of the trade of this port. The excellent crops of the year not only increased the volume of exports, but gave the farming community a new lease of life with their spending power substantially raised. Improved economic conditions in the vast area served by Shanghai were quickly reflected in increased business with this great commercial centre. During the last quarter of the year activities in certain lines of trade assumed such proportions as were not experienced for many years past. Land values at Shanghai, however, failed to recover during the year. Confidence in real estate as a sound investment was not yet restored, with the result that business. remained in a lethargic state, the reported transactions for the year being roughly 20 per cent below the volume of 1935. Building activities also showed no signs of revival. As far as tonnage figures are concerned, there has been a decline in botli foreign and interport shipping during 1936 when compared with 1935, while inland shipping display- ed a slight improvement. Vessels entering from, and clearing for, abroad totalled 3,424 in namber and 16,207,205 in tonnage as against 3,678 vessels representing 16,836,787 tons in the preceding year. The number of vessels entering from, and clearing for, domestic ports under General Regulations increased from 12,823 in 1935 to 13,057 during the year under review, but their tonnage showed a reduction from 17,190,016 to 15,603,054 tons. Vessels entering and clearing under Inland Waters Steam Navigation Regula- tions numbered 29,190 and aggregated 5,840,949 tons as compared with 30,848 vessels and 5,638,016 tons in the previous year. These statistics do not include 69,099 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 continued to lead the Shanghai shipping list with 11.2 million tons, followed by Japanese flag vessels with 6.3 million tons, Chinese-flag vessels with 5.6 million tons, American-flag vessels with 2.7 million tons, and Norwegian-flag vessels with 1.5 million tons. Excepting the Japanese flag vessels, they all fell behind their respective record for the previous year. In the domestic trade under General Regulations, British-flag vessels retained their leading position with 6 million tons, followed, in the same order as in 1935, by 5.4 million tons under the Chinese flag, 2.3 million tons under the Japanese, and 0.9 million tons under the Norwegiani In spite of the decrease in tonnage the shipping trade of Shanghai, on the whole, experienced a better year than in 1935. During the first half-year business generally remained on a low level; but conditions improved remark ably as the year progressed, and during the last quarter there was a beavy demand for tonnage practically on all routes, with the result that freight rates ont certain cargoes registered an advance. During the year a total of 3.839,782 cubic yards (barge measure), of mud were dredged in the Whanpoo and Soochow Creek by the Whampoo Conservancy Board. On the Yangtsze Bar 5,108,586 cubic yards (solid in place measure) were removed by the new drag suction dredger Chienshe, the crest of the bar having been lowered by about 3 feet. At the end of the year arrangements were practically completed for the construction of a second dredger to be used for the same purpose. Construction work on the new Chiukong Wharf above Woosung proceeded apace, and the first section, consisting of two 590-foot wharves, with storage space amounting to roughly 15,000 tons, facilities for Customs examination, spacious waiting- room, etc., is expected to be completed by August 1937. The future possibilities of developing this wharf are immense, a frontage of several thousand feet being available down river, while the area inwards, practically free from any important buildings, will be available for private storage, light industries, and railway sidings., An important addition was made to the industrial plants of this port by the opening in January of the Tien Lee Synthetic Nitrogen Products Company, which, with a capital of $1,000,000 has the most up to-date equipment for the manufacture of nitric acid, liquid aminonia,
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