November 10, 1897.]
cotton. The value of the latter exported to Japan rose from Rs. 1,864,310 in 1889-90 to - Rs. 37,603,320 in 1896-97, while that of cotton yarn fell from Rs. 9,790,140 in 1889-90 to Rs. 249,380 in 1896-97. The reason, na is well known, is that Japan now spins her own cotton yarn, and imports a large Froportion of the raw cotton for the purpose from India. Among other exports that of indigo has shown a notable increase, its value having risen from Rs. 592,030 to Rs. 2,275,630 in 1896-97. The efforts being made by Japan to promote trade with foreign countries must bear good fruit, and are beginning to show it already. If the Chinese Government took half the same trouble, their foreign trade, which exists rather in spite of them, would very soon exhibit indications of great and needed ex- pansion.
The frontier trade of India with Western China and with Thibat continues to be fluc- tuating and almost insignificant. In the import trade with Western China, as will be seen by the following figures, there are decided fluctuations, but the export trade shows a fairly steady if limited de- velopment:
YEAR
1892-93.
1893-91.
1894-95. -1895-96.
1896-97...
Rs.
IMPORTS EXPORTS
Rs. 505,320 935,740 1,372,160 1341,570 1,155,060 2.007,450
869,080 1.380,720 995,910 2,302,140
It is hoped that this trade may be aug. mented when the railroad from Mandalay to the Kunlon Ferry has been completed, as it will facilitate intercourse with Yunnan and the Northern Shan States. The whole value of the trade with Thibet for 1896-97 was Rs. 1,958,490 as compared with Rs. 1,549,850 in 1892-93, and is very disproportionate to the efforts made for its development. The trade consists in small imports of a certain number of pack animals, some salt, borax, raw wool, and musk, and the traders return through the passes with some food grain, sugar, cotton piece goods, a small quantity of woollens, tobacco, copper, and iroù. The only prospect of expansion seems to be in the import of raw wool, which is now used by the Cawnpore Woollen Mill. The Thibetans, it was hoped at one time, would develop a taste for Indian Tea, but it is probable that the greater cost of carriage still renders the price prohibitive, and the Chinese brick tea maintains its place in the Thibetan markets for the present.
THE NEUTRALITY OF SHANGHAI.
CHINA OVERLAND TRADE REPORT.
359
The disturbance in the import market caused by the recent violent fall in ex- change has put the honesty of some of the Chinese dealers, who have neglected to cover themselves, to a severe test. It was foreseen months ago, when the big drop set in, that there was trouble ahead, for the foreign importers understood the character of the men with whom they were dealing and the conditions of the trade sufficiently well to read aright the signs of the times. On the whole the trouble has been perhaps less than was anticipated and hardly seems to justify the attacks that have been made upon the reputed honesty of Chinese mer- chants as a class. This reputed honesty, however, is mainly a matter of prudence; the Chinese merchant is not honest for honesty's sake, but because dishonesty if dis covered means loss of face," and "face" is too valuable an asset to the merchant to be lightly sacrificed. The average Chinaman will go as far as he dare in getting the bet- ter of those with whom he deals, but will usually necept with equanimity such losses as custom imposes upon him and a repudia- tion of which would involve "loss of face." When he cannot do this he usually “dis- appears,' or attempts to do so. Messrs. NOEL, MURRAY & Co., in their piece goods trade report dated Shanghai, 28th Octo- ber, say:-"It must be admitted, how-
ever, that the dealers have had unprecedented combination of circum- "stances to contend against, which bids fair to knock some of the gilt off the "much vaunted integrity of the Celestial as a merchant. They are all right in fair 'wenther, and with a favourable breeze go along swimmingly, but now they have got "into a tight place their true character "shows up, and quite justifies the remark "made by a prominent importer of long
any express agreement securing neutrality, | CHINESE COMMERCIAL MORALITY. and even if such an agreement did exist there is always the possibility that under stress of circumstances the agreement might be broken. Even in the case of Japan the undertaking to regard Shang hai as altogether outside the sphere of her operations against China began to be irksome as the war progressed, for the arrangement gave China advantages in the supply of munitions of which she might have been deprived by a blockade or occupation. It was on the representation of England alone that Japan gave the under- taking not to touch Shanghai, and she gave it, not on any ground of principle, but be- cause she considered it to her interest that she should remain on good terms with Eng- land. The trade that would be injured by an attack on Shanghai would be principally British trade, and that very fact might in itself constitute an inducement to some Euro- pean powers, if they were at war with China, to direct an attack on that point, thus giving England an indirect blow while ostensibly aiming only at Chind. At the time of the Tonkin war considerable apprehension of a
·blockade of Shanghai by France was enter- tained, and France never gave any indication that she would not have considered such a measure well within her rights had she chosen to enter upon it. In the event of England going to war with China a British occupation of Shanghai would seem to be almost a necessity for the protection of the large interests we possess there, and if such an occupation could be considered as covered by the belligerent rights of England other nations might argue that, whether their mate- rial interests in the place were large or small, their belligerent rights were the same. would be from every point of view an advantage if the neutrality of Shanghai could be regarded as absolutely secure, but the fact that the Chinese maintain forts at Woosung indicates that they conceive they may be attacked there, and in addition they have their most important arsenal in the neighbourhood, which it would be folly to maintain there if it would have to be shut up as soon as war broke out, just at the time when the establishment would be most essential to China. If the place is to be neutral not only must it be free from attack, but it must also cease to be used as a base of supplies. In the China-Japan war only the first of
It
these conditions was fulfilled and it was the one-sided rature of the arrangement that made it irksome to Japan, which country would not be likely to enter into a similar arrangement in any future compli cations unless terms were also imposed upon China.. The precedent quoted by our contemporary cannot therefore be looked upon as of binding force. In fact Shanghai, in the event of war between China and any other Power, would be exposed to grave risk. Very strong efforts would naturally be made to secure its neutrality, but the saccess of those efforts is entirely proble-
Iu an article on the proposed extension to the Settlement the N. C. Daily News urges that Shanghai, though mominally called a British Settlement, has long ceased to have any national distinction and that all the Foreign representatives should unite in their efforts to secure extensiou, for all will share equally in the benefits. In the course of its argument our contemporary says:-"Itsmatical.
[the Settlement's] value as a place of neutrality has already been shown in a striking manner. During the late war with Japan it was distinctly understood by both belligerents that Shanghai was neutral ground and that nothing must be under- "taken in its vicinity that would threaten
5
"
its safety or peace. In the event of any future difficulty between any European nation and China the precedent already established would doubtless have full sway and Shanghai would remain absolutely neutral territory." We are not sure that it would be well to regard that proposition as even tolerably certain, in the absence of
THE INTERPORT SHOOTING MACH.
SHANGHAI'S SCORE.
[SPECIAL TELEGRAM TO THE DAILY PRESS "
Shanghai, 8th November. In the Interport Shooting Match Shanghai fired to-day. The score was 860.
scored 934.
Singapore fired on the 29th October and
Hongkong fires on Thursday next.
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61
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៩
>>
standing, that the class of men we deal "with is deteriorating. This has undoubtedly come about by the spirit of gambling that "has been introduced into the trade, assisted by the laxity displayed by importers as re- gards getting proper security for the due "fulfilment of contracts. Men of no credit or standing have been allowed to cut "into the business of old established
13
houses and goods have been indented for "in an indiscriminate manner, trusting to "the demand arrising for them by the time
#
they arrived, instead of having an outlet "assured, to a certain extent, before they were ordered. It is reported that several "of the smaller fry have disappeared already, and some of the better known "dealers are declining to take up their
goods, or eveu attempt to do so." If the foreign merchant chooses to trust men of no credit or standing, men who have no "face" to lose, it is idle to rail at the honesty of Chinese merchants as a class because the men of no credit or standing fail to take up losing contracts. As against the above quoted remarks of Messrs. NOEL, MURRAY & Co. we may set the following declaration by Mr. Vice-Consul Scorr in the last report on the working of the Mixed Court at Shanghai:-
:-"It must be acknowledged "that the Chinese trader in his commercial "relations endeavours to meet his engage-
"
"L
"
ments fairly and honestly, for as the result
of long experience handed down through years of business, they recognise the necessity of maintaining their commercial "honour."
At Shanghai on the 29th October a junk crashed into the Alacrity, carrying away a jibcom and doing other minor damage.