May 7, 1896.]
favour is all that England asks, but France incessantly on the watch for opportunitiesis to surreptitiously put a spoke in our wheel and to snatch exclusive advantages for her self. Knowing this amiable disposition on the part of our neighbours it behoves British diplomatists to keep a close eye upon what they are doing.
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CHINA OVERLAND TRADE REPORT.
9
and find it to their interest to do so, but it is hardly possible for nations to do so, and the more enterprising of our foreign com- petitors probably know as much about trade conditions in the United Kingdom as British merchants themselves. The diffusion of knowledge on commercial subjects, espe cially on matters touching foreign competi- The latest aspiration seems to be to tion, must be useful from a national point of have a French Inspector-General of Cus-view, although there may be individuals toms. According to the Peking corre-who may deem it to their disadvantage that spondent of the C. N. Daily News, one of the others should be placed in possession of terms upon which the French tendered for information which has hitherto been the the last loan was that the control of the property of the few. Maritime Customs should be placed in French bands. This, it is said, spread con- 7sternation in the minds of the British mem- bers of the Customs Service. If any such arrangement were made there would be good reason for consternation on the part of British merchants, for impartiality in the administration of the Customs Service could no longer be looked for. The aim of the French is to injure British trade, and with the Customs under French control the Service would inevitably be so administered as to subserve that object. M. BOURGEOIS, in the Senate, to the question, "Is it true "that Sir ROBERT HART has been ap- pointed Postmaster-General, in addition to "his post of Inspector-General of Customs, 'by the Chinese Government?' answered that he had received no official notification of such appointment, but that the Senate might be assured that should China decide to appoint, in a larger measure, foreigners as agents for the organization of internal administration, the French Government would not fail to obtain for the French citizens a fair share. To the question, "Is "it true the loan which China has just con- "tracted has been granted to British firms ?" M. BOURGEOIS answered "that the French company, which had acted in concert with the Russian firms in this matter, "could not afford to graut to the Chinese Government the conditions which it demanded and which were accepted by "British and German firms." These ques- tions and answers in the French Senate lend confirmation to the statement of the Peking correspondent above referred to.
44
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FOREIGN COMPETITION AND GOVERNMENT INQUIRIES. In these days when we hear so much about foreign competition and the dangers threat- ening, British trade it is refreshing to read anything on the subject pitched in a more cheerful key.
A correspondent writes to the British Trade Journal expressing the view,
a practical experience of business in British manufactured products "in distant markets, that, firstly, the foreign competition is not nearly so serious as is generally assumed; secondly, that public Inquiries and Government measures do
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As to the other point advanced by the correspondent, namely, that foreign com- petition is not nearly so serious As is generally assumed, although the danger may be exaggerated there can be no doubt that to a large extent it is real and substantial. He says that "when anyone "with special knowledge examines the com- plaints of the advocates of British deca- dence, one disgusted to find vague com- "parisons of millions of tons of iron or of "steel' together with average prices such as do not appear on any invoices, the as- 'sumption evidently being that iron or "steel is a commodity of uniform standard "value and quality in all countries, much as copper or silver. No information is given to show whether the foreigner is not being purposely allowed to take the low-priced unprofitable business, especially "with countries where payments are un- "certain." But it is absurd to suppose that the trade of our competitors can be built up solely on unprofitable business, especially where payments are uncertain. Referring to the fact that large orders for steel rails for Japan and Chili have been taken by American and German works at 7s. to 7s. 6d. per ton less than English prices the cor- respondent says "the inference is not ne- cessarily that we cannot compete, but "rather that we are for various reasons in a position to let the other people take "orders at a loss. Americans and Cermans "often have to take less for heavy goods than would be paid at London or Liver- pool owing to high freights prevailing at their ports." But when we find that the number of blast furnaces at work in England is decreasing while those on the Continent are increasing it stands to reason that our iron and steel in-
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dustry is not in such a flourishing condi- tion as could be desired. The remarks about higher freights prevailing at Con- tinental ports seems to show that the cor- respondent himself stands in need of in- formation such as may be collected by the Government inquiries now in progress. A nation enjoying such a great pre-eminence in the carrying trade of the world ought prima facie to be in a position to lay down its goods in foreign markets on better terms than nations not so favourably circum- stanced, but unfortunately the contrary' is the case in many instances and British goods carried in British bottoms have to pay higher freights than foreign goods
carried with them in the same hold. If
to advertise the foreigner and hamper trade than to benefit either the "British merchant or manufacturer." With regard to the second proposition, it is almost inevitable that such inquiries as are referred to may to some extent advertise Governmental inquiries can show why this is foreign goods, but the advantages must
so and can at the same time suggest a greatly outweigh any disadvantages remedy a great boon will be conferred on that may ensuc
British trade. Meanwhile the optimism of ou that score. the same way the Merchandise Marks the correspondent of the British Trade Act has done not a little to advertise Journal, while pleasant at first view, turns goods "made in Germany and, where to dust and ashes as soon as it is subjected the goods are intrinsically good, to bring to the test of investigation. them into repute, but no one would now seriously propose the repeal of that Act, because experience has shown that the balance of advantages is in its favour. Iudi- vidual firms may keep their trade secrets
The survey of the road for the Nanking Chinkiang railway is completed, and is marked out. The line will have branches running to Soochow and Hangchow-Mercury.
1
BIMETALLISM AND SILVER INFLATION.
375
A stock argument of some bimetallists has hitherto been that while gold has appreciated in value and so disturbed the level of prices in all gold currency countries the purchas ing power of silver in the East has remained unaltered. That position has now become untenable. A diminution in the purchasing power of the dollar is going on of which all whose income is measured in silver and especially those who calculate on cheap silver as an element in promoting the suc- cess of industrial enterprises will do well to take note. It was inevitable that such diminution should take place some time; the only question was how soon it would com- mence and at what rate it would progress. That it has already set in there can be no. doubt; its rate of progression still remains to be seen. In Japan the cost of living during the last year or two is said to have advanced from twenty-five to thirty per cent., but in that country the problem is complicated by the introduction of other elements than silver values, such as the war and its results, the scarcity of labour, and the feverish com- mercial activity that prevails. Japan is at present enjoying what are commonly termed good times (notwithstanding a temporary depression in the silk market), and in good times wages and prices usually rise, what- ever the currency of the country may be. The decline in the value of silver may however, be accepted as one of the principal factors in the movement.
In India it was shown a good many years ago that the rupee did not go so far as it did formerly.
to
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In China, however, it was generally assumed until quite recently that the merry Mexican was as potent as ever in relation to all products of the country and that it was only in relation to imported goods that its value was less. This bubble has been pricked by the scarcity of cash which has made itself felt all over the em- pire. There has been no appreciable change in the purchasing power of the copper cash,t but there has been a considerable change in* the rate of exchange between cash and dollars, so that the latter, which used to command a premium when measured by the former, are now at a discount. As to the prices of commodities in general, a reference
the Chinese Customs returns shows that both in imports and exports values have risen out of proportion to quantities, which proves that, whatever vari ation there may be in regard to particular articles, on striking an average it requires of good many more dollars to purchase an equivalent quantity of goods than it did formerly. The effect is only beginning to make itself felt in retail matters, but that it has cornmenced is shown, in a small way, by the statement made by the Chairman of the Shanghai Horse Bazaar Co. at the recent annual meeting that owing to the increased cost of fodder. and the rise in mafoos' wages it would be necessary to increase the Company's charges for livery. For some time to come we think this tendency to an increase in silver prices may be reckoned on. It has taken the masses of China rather a long time to find out that silver is not worth quite what it used to be, though the mercantile classes at the Treaty Ports have been working on the know- ledge for years past and have been as close watchers of the course of ex- change as any foreign banker, and have made large profits. But in these days of rapid communication and close commercial connections, when prices tend to a uniform level all over the world, it could not be