SUPPLEMENT TO THE HONGKONG WEEKLY PRESS AND
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February 2
brought here for manufacture and re-export; ¦ conduct the trade in Canton - for neither exports, nor imports can fairly How will the Chinaman benefit by purchasin include goods which come to us for distribution in Canton instead of Hongkong! Will he get to other ports. We are now concerned with the goods cheaper? In either case the gold imports for the island. How will a gold value has to be paid, and therefore the silver standard affect the price of food and com- price will vary as muchin Canton to-morrow as it modities consumed on the island? As regards does in Hongkong to-day. (Applause.) On the those coming from a gold country and other hand there are excellent reasons why this which are now paid for in gold, the obvious trade should continue to be conducted here, the effect of the change will be to maintain principal one being that Hongkong is a natural steady prices; the cost of groceries in centre of distribution and Canton is not, and stead of continually increasing as it does now merchandise will always be stocked for pre- will remain stationary so far as exchange has ference in centres of distribution from which any bearing on it, and there will be accordingly the consuming districts can be rapidly and so much less clerical work in the adjustment of conveniently supplied. Turning now to goods prices. And as regards food and commodities coming here from Canton for other parts coming from silver countries, which in other of the world, we are told - that” the words means coming from Canton, prices in purchase of them will be conducted in Can Hongkong would not be affected one way or ton, and Hongkong will get the go-by; thất the other, for such goods would continue to merchants of Hongkong dealing in silk, be paid for in silver, and the only alteration tea, and matting will need to transfer that could arise would be the creation of an their offices to Canton. Why, I ask? Is any exchange business between this and Canton Canton produce bought in Hongkong to-day ? Any tendency towards artificial prices in Practically none. The whole of it is bought in Hongkong would be immediately neutralised Canton, and so it will continue whatever our by shipments from Cantou; the two places are currency is. Then we are told that with a gold so close and communication between them standard and consequent increase in the cost of so frequent and cheap that they may he labour, the transhipment of Cauton produce considered to be practically one market. will be affected elsewhere and Hongkong will And the Kame remarks apply to raw be so much the loser. It can hardily be con- sugar, hemp, and limestone brought here tended that the great ocean liners will forsake for manufacture into refined sugar, rope, us for Canton or Macao, for the very good and cement. Raw sugar from Java is already reason that no deeply laden vessel can get paid for in gold, hemp very shortly will be within miles of either place, and also there are so, and limestone would continue to be paid such matters as Customs objections to be for in silver. Similarly material for local ship- considered. Hongkong, as I said before, is the building industries will cost no more because it natural sea-port for Cantos, and no change in is already paid for in gold. Before proceeding currency arrangement can deprive us of that Now 85 to the to deal with that part of our trade which is con- advantage. (Applause.) nected with transit of goods on their way to and question of financing interport trade—which to be trade between two from China, let us first see what infirence a gold f understand
as Wuhu and standard will have upon the price of labour, Chinese ports direct, such because the one has a very great bearing upon Canton-much of which financing is done the other. We are now upon debatable ground, in Hongkong, and which we are told will in that it is impossible to foresee exactly what leave us if we adopt a gold standard. I confess the ultimate turn of events may be, but matters to being somewhat hazy on the point, having cannot be much worse than they are now because never yet had a clear example of what is meant, the Chinese are smart enough to take advantage and until these general assertions are boiled of the continual rise in prices to agitate on all down to some definite illustration one is apt to We are told that much of the sides for higher pay whether they are really get mazed. affected by exchange or not, the result being interport coast trade and the export trade of perpetual disagreement with employees and Chin's is financed in Hongkong, which financing consequent injury to business. Opponents of I clearly understand must to some extent reform say in effect that with a gold currency benefit Hongkong, but whether its withdrawal the labourer of Hongkong will receive higher would seriously prejudice our prosperity wages than the labourer of Canton, and that remains yet to be shown. and is this connec- therefore Hongkong will be handicapped in its tion it may be well to point out here a labour against Canton and neighbouring ports. serious disadvantage from which the Colony This I take to be their argument, though I suffers, viz., that a large proportion of have never heard it explicitly stated. Now, profits made in the Colony are by reason gentlemen, what is it that mainly determines of the uncertain value of securities invested the price of labour all the world over, and es- out of it-an illustration of which is afforded pecially so here in China? It is the cost of by the Hongkong and Shanghai Bank's gold food, raiment and shelter, and according as reserve—so that although it may be justly argued thes vary in price so as a general rule a gold standard would deprive the Colony of will the price of labour be affected. We have these profits on financing, on the other hand seen that a gold standard will not increase it may with equal justice be argued that the price of imported food and raiment, and a silver standard drives away_the_profits I think granting then that my deductions are correct after they are made. (Applause.) a gold standard will not increase the price of I may now fairly claim to have shown Hongkong labour. (Applause.) It is not the broadly that a gold standard is not neces- coin itself that the labourer looks at but thesarily the bogey so many imagine, and that purchasing power of that coin, and I contend sufficient grounds exist for justifying the that if a penny-piece in Hongkong will enquiry which this resolution asks for; that as purchase the same quantity of rice a regards imports from gold countries consumed 10-cent piece in Canton the Hongkong coolie in the Colony its introduction would merely will accept in payment for his labour 3 affect a general stability of prices; that it penny-pieces where the Canton coolie accepts would not increase the price of foodstuffs 3 cents. (Applause.) Furthermore, I believe imported from silver countries; that concerning the Hongkong coolie, whatever our currency car transit trade it is immaterial what our be, will continue to accept the coins of the currency arrangements are, for prices connected mainland just as he does now copper cash and with this trade are determined between seller the silver pieces of Kwangtung, Fobkien, and and buyer without regard to Hongkong's posi- Hupeh, so if that be true it is a further tion as a go-between (spplause); that it argument that a gold standard will not affect will not increase the prios of local labour; the price of labour. Concerning that part of and that as regards the financing of in- is no evidence mat our trade whoh comprises goods on their way terport trade there to and from China-and which is by far the present to show how it would affect the most important section, viz., the import and Colony. There are three other objections storage of goods pending their distribution which I have heard; one of them that the through surrounding districtz-and the tran-Chinese like the gambling element of present shipment of goods from Canton into steamers uncertainty and if deprived of this would not which cannot go to Canton for them, first | trade as they do now. I fell convinced, just and take imports destined for consumption however, that such a criticism. in
work foria: in China. We are told they will no | that- most Chinson would
lause). Another longer be purchased in Hongkong, and that the certain and steady profit. Hongkong merchant-the indent agent, the objection is that wo✨
nd it banks, and everyone concerned will have to good the loss on the British dollar,
the local currency, that such reform would be impossible without jeopardising the trade of the Colony, and to use a backneyed expression, that it would be impracticable to divorce our currency from that of our great neighbour China. Many residents, however, hold views st variance with those of the majority of the committee and indeed I have been given to understand that most of the committee them selves possess an open mind upon the subject, and will be glad to hear members' views on this very important question. The position briefly is this: The committee of the Chamber for various reasons appear to be opposed to any change, but those reasons have so far been offered only in terms of generality; they have never been enunciated with precision; they have never been defined in detail. n the other hand there are a number of men with large interests at stake who in the hope of saving the remnants of their capital are most anxious for reform, whilst between these contending parties are probably the largest number of all, those who have made up their minds neither one way nor the other, awaiting further light upon the subject But one and all admit (no one can help admitting) that a great loss has taken place in the shrinkage of capital and investments, and that the doilar to-day is worth only one half of what it was ten years ago. Those who agitate for reform hold that an unstable car- rency restricts and hampers trade, and that a depreciated dollar means increased expenditure, shrunken capital and reduced savings. Un the other hand there are those who contend that a depreciated dollar stimulates exporte. that salaries rise in sympathy with increased expenditure, that larger dividends compensate for reduced capital, and in fact that everything is adjusted in course of time. Each man natur- ally regards the matter from his own particular standpoint, his personal interests mould his views and to some extent taint his judgment, and therefore, in discussing this complicated question it must be borne in mind that individual opinions are largely based upon self interest. and consequently more expressions of opinion, vague assertions, and general statements, unsup- ported by reasonable argument, even though coming from the highest authority, should not be accepted as conclusive evidence on either side, (Applause). But there is one common ground on which all conflicting interests can join hands, viz., sound, wholesome trade; and whatever makes for this must. I think, be the right direction in which to seek for guidance. Sound, wholesome trade-and by that I mean trade which brings reasonable and certain profit to all concerned in it- concentrates in particular places of the world not by virtue of any currency arrangements but by reason of well defined fundamental causes, chief amongst which is perhaps the bounty of nature, and amongst others may be specially mentioned geographical and poli- tical considerations. By the bounty of nature I mean natural wealth derived from the soil, which, however, does not concern Hongkong, because our soil both above and below is absolutely barren; by geographical considera- tions I mean real and lasting advantages auch as Hongkong does possess in its magnificent harbour, its unique position as one of the natural centres of Far Eastern trade, and its proximity to Cauton, making it the sea port of that great centre of industry; and by political considerations I mean the security which is afforded to Hongkong by reason of its being a first-class fortress which nothing but ruin of the British Empire can affect. Hongkong stands to day, and will continue to stand, the natural sea port for Canton and the centre of distribution for neighbouring districts north, south; and west (applause); nothing can lessen its geographical advantages, and nothing, short of national disaster, can impair its unimpeachable security under the aegis of the British Crown. (Applause.) Such are the foundations on which our trade depends. Let us now consider what comprises that trade ho far each section of it is affected by First take exports, represented by nots of the soil, which as we have seen do not exist for the reason that ong of itself produces nothing. Next imports, and in speaking of imports I to goods consumed on the island itself by its 300,000 inhabitants; also the raw produce
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