February 2, 1898.1 adopt the gold standard the assistance of experts will have to be invoked to arrange the scheme by which affect is to be given to the recommendation, but the colony itself must be considered the best judge of the standard that will most effectually meet its requirements. On the abstract question of the relative advant- ages of gold and silver; experts might be called on each side by the score with the sole result of making confusion worse confounded, for the two schools have no common starting point and are as radically divided on first principles as the allopathists and homeopathists.
The strongest point in the case for the adoption of a gold standard in Singapore seems to be that the bulk of the colony's business is with gold using countries. In 1896 the imports to and exports from silver using countries amounted to seventy-two million dollars, while the trade with gold countries amounted to 195 million dollars. And of the exports to silver using countries a large proportion is composed of goods originating in gold countries, for which exchange has to be settled at some point, and it was urged with considerable force that it would make no difference to that. portion of the trade whether exchange was settled at one point or another. The same consideration presents itself with regard to the trade of Hongkong, Practically the whole of the foreign trade of China, with which the trade of this colony is bound up, is now conducted on a sterling basis, ex- change being fixed when contracts for the sale of imports are entered into,. while dealings in exports are also governed by the course of exchange. If the Straits ultimately decide to go or. a gold basis, therefore, the result of the experiment will be watched with much interest in this colony. Whether the currency of a country be gold, silver, or dowrie shells the price of commodities must in the long run be de -termined by the immutable law of supply and demand, but the more stable the currency the sounder the basis it affords for trade. Silver, by reason of its demonetisa- tion by one country after another, has to a great extent lost its character of stability, and the time seems to have arrived when the expediency of this colony adopting gold as its standard might be taken into serious consideration."
1
The following extract from the speech made by Mr.T. E. EARLE at Singa- pore is interesting. The speaker, we should mention, was arguing in support of the amendment and combatting the view that the fall in silver had worked hard ship to the residents of the Straits. "In "the case of rice," he said, "the "sub-Committee ignore the effect of the "Indian Famine on prices, and attribute everything to exchange. Very well, let us adopt their view, exchange and only exchange can affect prices; but I will briefly put a few figures before the meeting "and ask the sub-Committee to explain
them.. Now mark these facts :---
Rice in 1894 touched $115
and in 1897
$170
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"
an advance of, say, 55 per cent.. Exchange was 2/3 and 1/91 in 1894 and 1897 respectively; this shews a drop of 25 per cent. Here. you have an advance of 55 per cent. "of which only 25 per cent. is Exchange; "30 per cent. remains unaccounted for, and "I will suggest an explanation.
Wheat in October, 1894 was 17/6. 1897. 32/10 an advance of 85 per cent, in a gold article “in a gold country, as against 55 per cent.,
"
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53
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not
In
71
per-
con-
CHINA OVERLAND TRADE REPORT. "in rice, of which 25 per cent, was in ex-| Robinson Road will be occupied by Chinese change. Draw your own conclusions, but and that the detached houses in that locality I challenge the sub-Committee to explain will either be replaced by terraces similarly "these two opposite movements: an advance occupied or will be taken up as they stand "in gold prices coincident with a decline in by wealthy Chinese. We have a European "at work have received consideration inhibits the erection of Chinese houses with- exchange, and to show that the influences District Reservation Ordinance which pro- "their report." argument, standing alone, and it
This seems rather a strong in a certain defined area, including the dis- was trict above mentioned, but it does not pro- the speakers on the other side.
specially replied to by any of hibit the Chinese occupation of European. reality, however, it amounts to little taste for European houses and are establish- houses. And the Chinese are developing a more than a curiosity of market move-ing their families in the colony in rapidly ments, the probable explanation being that increasing numbers. The Europeans are wheat was in proportionately smaller supply consequently being crowded out of the dis- than rice during the last mentioned year. trict into which the well-to-do Chinese are However that may be, gold is certainly not pressing, namely, that lying between Robin losing its purchasing power as regards com- modities in general, whereas silver appears the still lower levels, They must therefore son Road and the Caine Road, not to speak of to be doing so, even in China, one of spread out eastward and westward; but the last of the great silver using countries. sons in search of houses at the present time. On this point the enquiry recently instituted find it almost impossible to satisfy their re by the China Branch of the Royal Asiatic quirements in any direction; and there does Society as to the purchasing power of not seem much probability of the building silver and cash ought to prove instructive operations now in progress or and it is to be hoped the result of the templation being able to do much more enquiry may be made public at as early a date as possible.
than keep pace with the demand, even assuming the progress of the colony to continue only at a normal rate. But with an increase in the number of manufacturing industries in the place, the growth of trade,
place also an increase in the population both- interior of China by rail, there must take and our prospective connection with the
Dative and foreign, greater possibly,than any that has taken place in the past. How long the establishment of railway communi- cation may be delayed it is impossible to say, and it would be imprudent for specula- tors to build extravagant schemes upon its prospect, but it is an event which it is the duty of the Government to foresee and provide for in regulating the growth and development of the city and its suburbs. In the recent discussion on the location of the Post Office it was suggested that in the course of ten years all the European firms would have their offices on the Praya Reclamation east of Pedder's Wharf. But by that time the number of firms may be too large to be accommodated within that circumscribed area. However that may be there must inevitably be a large increase in the European population, for which house accommodation must be provided, and the Chinese demand for houses in the European residential district is an important factor to be reckoned with in the solution of the problem.
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THE EUROPEAN PROPERTY MAR-
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KET IN HONGKONG.
•
Investment and Agency Co., held on Friday At the meeting of the Hongkong Land last, reference was made by Mr. C. S. SHARP to the prospects of property in Hongkong. "Personally," said Mr. SHARP, "I think property in Hongkong has a bright future before it. The tendency seems to be ever onwards, and judging by the signs around us the demand for houses, the marked activity, more es pecially of late, in developing and building going on on every hand, we appear to have arrived at the commencement of an era of renewed progress and prosperity." Old residents will no doubt be inclined to weigh these remarks in the light of past experi- ence. Since the establishment of the colony "booms" and depressions in the property market have succeeded each other with almost unfailing regularity; there has seldom been any long period of stability, The population increases until the demand for house accommodation exceeds the sup- ́ply; when that point is reached great activity in building sets in and continues until the supply exceeds the demand; then houses stand empty, rents in the less favoured localities fall sometimes to merely nominal figures, and building is discontinued until the demand again
THE BELILIOS REFORMATORY. overtakes the supply. Such has been What His Excellency the GoVERNOR the experience of the past and doubt-declared would be his last public act before less it will be the experience to some leaving Hongkong was performed on Satur extent of the future, though it may be hoped day morning, and was in its way a notable that profiting by past lessons builders will event. Sir WILLIAM ROBINSON laid the be somewhat more cautious and the fluctua foundation stone of a new Reformatory at tions be consequently less violent. As Mr. Causeway Bay, which he announced was to SHARP says, the tendency of the colony is be called the Belilios Reformatory after the ever onwards, but the advance is not made donor of the building, the Hon. E. R. by a continuous and uninterrupted series of BELILIOS, C.M.G. The juvenile offenders leaps and bounds. Directing our attention, in this colony have hitherto, if not consi- however, more particularly to European dered hardened enough to be sent to residences, there is at present taking place Victoria Gaol, been handed over to the a change in the conditions of the colony Fathers of the Italian Mission, who have which leads us to believe that there is not conducted an institution of this character at. much danger of building being overdone in West Point, and they have received a small that direction for a long period to come. grant from Government for the purpose, The fact is that Europeans are being The boys there have been trained up to crowded out of what were formerly their bootmaking and some other useful trades, favourite residential areas. The movement but the space was limited and we believe commenced a good many years ago, but has some escapes have lately been effected from latterly become greatly accelerated, and it the building by young reprobates. At any seems probable that within a few years all rate the requirements appear to have out- the terrace houses between Caine Road and grown the accommodation, and it seemed