188

put. In this way, we should be able to compete | with German gunpowder in the Asiatic market." A policy similar to this has introduced our plows and wagons into alexico, and our sewing machines and bicycles into Asia.

Since the arrival of the American squadron,

at least three brands of American beer have firmly established themselves here and one brand of whisky, Canned meals and fruits have also come to stay. Our bicycles are favourities; but as the opportunity of using them is restricted, the demand can never be great or worthy of serious competition. With in the last three mouths, the agent of an American sewing machine obtained an order for 1,200 machines from an English firm and at the same time au order for a cousi- derable number of bicycles, which bis com. pany makes with the same plant that they nse for the sewing machines. There will be an increasing demand for cheap sewing machines among the Chinese, and energetic_measures ought to be taken to control the market.

In my report on Americau butter and canned milk, published in Consular Reports No. 211 (April, 1898), I pointed out how difficult it was to get the consumers of this market to sample our goods, and said:

41

People here pay $1.30 Mexican (62 cents gold) a tin for English tinned asparagus, when the same firm (Lane, Crawford & Co.) sells the finest California tinued asparagus for 55 cents (26 cents gold), better goods in every way and one-third as cheap."

Since the publication of my report, this firm writes me as follows:

"American asparagus is selling steadily. *** As to quality, we should put the American tinned article on a par with the English and French, although it is, of course, cheaper than either. *** You are right in saying that Danish butter is the most popular here; it is the best commercially-that is, regarding both quality

and price-aud we have tried all sources of supply, including America and Australia."

THE HONGKONG WEEKLY PRESS AND

it be a purchase made locally or the acceptance of his order, his coolies are allowed to open every case, remove the wrappers, carefully in- spect each tin, eject all those bearing the slightest defacemeut, spot, or blemish to label, and replenish the short cases with acceptable tins. The rejected ones they decline to take, except at greatly reduced prices, and often refuse to take them at all, bat buy them later in the auction room at their own priens, where the dealers combine and determine the selling price. I do not know of such combinations existing anywhere else. This system of pick. ing over and selecting the fittest is generally allowed, and the sale of watches, clocks, um- brellas, shoes, and, in fact, of almost everything is not empt fro a this pernicions system, whithe merchants seem compelled to toler ate in their anxiety to do business; in fact, one rash enough to hold out for reform would have to at once put up the shutters.

The above is cited as an inseparable condition of commercial relations with Chinese, and will no doubt excite the curiosity of our trades people. We know that trades unions through out the United States are powerful and iuflu. ential, bu tthey listen to argument. Not so in China; in un country do these unions, or guilds, as they are called, exert a more autocratio sway. Each branch of trade or occupation is re presented by a guild, supported by contributions or taxes from its votaries. These guilds have no recognized bead or place of meeting. their fiat being circulated unostentatiously by word of mouth; each one passing on the decree without comment or criticism, until as if by magic all of its members are found adhering unquestion- ingly to its dictum. As showing what close concerns they are, it may be mentioned that in cases where their influence has proved subver- sive of order and good government, the colonial goverument, with its staff of police and detec- chiefs or to find their body in council. As tives, bas never been able to point to their

before mentioned, a refusal tá comply with the customary conditions of trade would call forth their action, the result of which would be a

complete taboo of the obstructionist.

It must be borne in mind, however, if one

accepts their methods of doing business and grauts long credits, that, generally speaking, the Chinese merchaut is reliable and trust- worthy, large transactions being often success- fully financed with nothing stronger as a bond than his word or a book "record of the facts, written and retained by the principal.

These facts about the Chinese should be borne in mind by American merchants who contemplate doing business, not only in China, but in the Philippines, as in the latter place the Chinese are not only doing important business, but are coutrolling factors.

As a

The trade with the Chinese is a peculiar one, requiring much patience, tact and perseverance. Generally speaking, the class of goods most in demand is of a cheap, flashy nature, commonly known as Birmingham wares, and those of a kindred class, "made in Germany.” in imita. tion. The Germans are the sole importers of the latter, and their small commissions and methods of doing business enable them to com- pete keenly with the former. The method of carrying on business is peculiar to the East. Credit of from three to four months is usually given, but it is worthy of note that its observ. ance is ofteusst respected in the breach. consequence of keen competition, the agreed term is often disregarded, the Chinaman taking delivery and paying for his goods in instalments to suit his convenience. In spite of this. fresh sales are successively made with him on same terms, until this style of trading has now become generally established. A trade mark, or "chop," after it has secured popularity is of far more importance than the quality of the article itself, A marketable article bearing anything but a favoured chop will often prove unsalable, almost at any price, and the Chinese not unfrequently use this as a pretext for depressing the market and refusing to take delivery of orders, when the slightest shade or shadow of a difference. either in size, colour, or design of a chop can be detected. All running accounts between natives are supposed to be settled by Chinese New Year, and any failures in this respect affect the credit of the defaulter. The Chinese are most energetic collectors of all sums due them by Europeans before the above date, while outstanding con- tracts on their part, or deliveries not taken, are indifferently allowed to stand over, with pro- mises for early settlement. German houses grant these facilities, and others are obliged to accept the terms of the Chinese in order to retain their patronage and perhaps secure a The “difficulties" referred to are principally share of new business during the incoming the heavy tariff duties, which make it impossible year. A Chinaman is most stolid and indiffer- to sell a certain class of goods in Manila at ent, and reveals little or no facial emotion over present. As an example might be mentioned either a profit or a loss. He seldom admits a the return from Manila of 1,400 dozen bottles profit from anything purchased of a seller, and of aerated waters, in consequence of the duty in cases where his prospective profit was to being prohibitive. However, it is expected that have been 40 per cent, and he only realized half these difficulties will soon adjust themselves. of it, he will lament, and if pressed declare that At date of writing, there is a demand for sail he had actually sustained a loss of 20 per cent.ing vessels for American ports. There are In the sale of tinned milk to Chinese (whether | eight sailing vessels in port at this moment,

There is necessarily very great interest felt in the Philippine Islands, as the large English firms doing business there have offices here ; ani the bulk of the transshipment cargo from all European countries, save Spain, goes through Hongkong. In the year 1897. 113 ships entered this port from the Philippius Islands (tonnage, 138,000 tons), carrying 106,431 tons. comparison, 151 ships entered the same year from (ireat Britaiu (tonnage, 351,178) carrying 179,087 tons of cargo and 429,609 tons in tran- sit. The ships clearing at this port for the Philippines were 109 (tonnage, 111.487), carry. ing 42,5 tons of cargo and 16,691 tons of bunker coal. During the same period, 109 chips cleared for the United States (tounage, 224,945) with 173,020 tons of export orgo. Lamke & Rogge, brokers, in their freight circular dated October 15, say :

Philippine business has been transacted, notwithstanding all the difficulties that were stated to have arisen, and a number of boats has been taken up on time charter terms at fairly good rates.'

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}

[February 18, 1899,

and cargo for New York is accumulating rapidly.

Regarding our principal imports from America-kerosene oil and four-there is a steady demand. During the two weeks ended September 27, Shewan, Tomes & Co. report the arrival from the Pacific coast of seven steamers, carrying 527, 132 sacks of flour at a selling price varying from $1.40 to $2.35 Mexican per sack.

For the half year ended September 30, 1898. the exports from this coleny to the United States, as invoiced in this consulate, amounted to $4,843,016 Mexican. In comparison, the exports to Manila between the dates August 18th and September 30th, as re- corded in this consulate, amounted to the magnificent total of $1,222,963, To arrive at a true conception of the vast volume of imports, that poured into Manila during the forty-two days oited, it would be necessary to multiply this by two, to cover the value of the transit cargoes that were not invoiced in this office.

In the barbour master's report for the year 1897, the total tonnage entering and clearing from this port amounted to 15,938,174 tons. There were 38,713 arrivals, of a tonnage of 7,968,606 tous. Of this number, 4,618 were steamers, 356 sailing vessels, and 28,989 junks. The following imports of the colony are of interest to the United States:

Flour

...tons 85,904

Cotton yarn and cottou Hemp

Kerosene :

In bulk...

lu cases

Lead Sugar 'T'imber

do

30,581

do

43,360

...do

47,782

...cases 1,689,688

...Long

5,496

...do

211,777 64,862

...do All of these items show an increase over the year 1896. During the year 1897, 48 Ameri- can vessels entered this port with cargoes and 66 in ballast, while 102 American vessels cleared' with cargoes and 10 in ballast.

It can readily be understood how difficult it is to cover the entire subject of imports and exports of this colony, when the fact that this is a free port, without a custom-house, is taken into consideration. The prosperity of the colony is rather reflected in the local and newspapers, and the "market letters " "share reports

published by local firms. It is an interesting fact that, on account of its geographical position, the colony of tongkong benefits commercially by political upheavals of any nature that occur on the entire Asiatic coast. If a rebellion breaks out in southern China, both the rebels and the

F1

Government come to Hongkong for their munitions of war, and, although the ool- onial government has for the past year forbidden the export of arms, thousands of Mauser rifles have found their way into the rebellious districts. The numerous rebel- hons in the Philippine Islands that have occurred in previous years, have made big demands upon this market for the sinews of wor. Our fleet, it is estimated, left in Hong- kong over $2,000,000 gold during the war,

The price of silver has not varied greatly during the past two years, its extremes ranging

between 46 and 48 cents.

To endeavour to cover the entire commercial question in Hongkong would entail a report оп southern China, the Philippine Islands, Formosa, and all adjacent territory, and involve interests so vast and varied that the impossibi- | lity of compying is apparent,

The Nagasaki Press of the 4th February says H.I.R.M. oruiser Pamiat Azova, which ar- rived here on Thursday from Port Arthur, was specially detailed to convey to this port H.E. Rear-Admiral Reounoff, who has been appointed to the Admiralty at St. Petersburg. His Ex- cellency for the past two years has been second in command of the Russian Sugadron in these waters, and he will be succceded by Rear-Admiral Veselago, who is expected here from Europe on the 6th inst. by the R.V.F. steamer Moskva. Rear-Admiral Reounoff, who proceeds to Europe by the M.M. steamer Tonkin, due here on the 5th inst., has, we learn, received the Order of St. Anue of the First Class for his distinguished services in the Far East. The Pamiał Azova will await the arrival of the Moskva at this port, and will then leave for Port Arthur with the new Admiral.

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