384
THE HONGKONG WEEKLY PRESS AND THE ARRESTED PROSPERITY OF consider what position Hongkong occupies as a trading centre. To begin with, it is not a consuming district. The population is com-
HONGKONG.
COMMITTEE OF THE CHINA ASSOCIATION,
HONGKONG,
We find in the Annual Report issued by the London Committee of the China Association the following interesting memorandum drawn up by Mr. Cousland, the Secretary of the Hongkong Branch of the Association, giving his views upon the causes of that marked depression which has existed in this Colony for some time past. It was forwarded to the London Committee on April 4th, 1908. Mr. Consland writes :-
In
[May 10, 1909.
of cloths formerly manufactured from Bombay yarn, so that our trade is affected in more than one way.
But apart from this Japanese com- BY A. 8. D. COUSLAND, SECRETARY TO THE paratively small, and the percentage of the petition there is also an effort being made by imports used here is really insignificant. certain Hongkong houses to deal direct with This is The Colony has grown to its present size and Canton, Swatow, Amoy and Foochow. occupies the position it does because it was in addition to business done direct by firms found to be the most convenient and suitable already established in these ports. The tra- port for landing, storing, and distributing goods vellers from Manchester and Bradford, who have and even some other places further afield. intended for South China, Formosa, Manila. been coming to China in such numbers of recent years, caused some trouble in the north by fact, to some shippers in Europe and America. selling to Tientsin dealers direct certain goods Hongkong became synonymous with China, for which they had already received orders in and transhipment and distribution were made Shanghai, the Chinese in the latter port expect- from here to Singapore and the Straits ing to sell their purchases to Tientsin. In in the South, and all ports up to Vladivo-consequence double quantities were ordered stock in the North. Its splendid harbour, and the market suffered severely. Something In reviewing the trade of the Colony of Hong-
the freedom from all Customs restrictions, similar is evidently going to happen here, through kong from year to year, it is rather disappoint and the security afforded by naval and military the pushfulness of either travellers or sales- ing to find that for the past two or three years protection, these and other advantages com-
men. There is at least one recorded in- the general note has been one of depressioned to establish in Hongkong a merchant stance of a traveller booking orders through the This feeling, which originally was confined to
Canton branch of a European firm here, to the only a few classes of trade carried on in the
annoyance it is said of the Hongkong office. Colony, seems to have spread until at present
It is certainly a fact that some firms here send complaints are almost universal, and it is acknowledged by all that the state of affairs is
their salesmen up regularly to Canton for orders, to the certain loss of such business to the not what it should be.
Chinese firms in the colony. Others have acted in a similar way at the Coast ports.
Apart from the individual experiences of the merchants, there are other indications of lessened activity in trade within the Colony. Tlfe district in which most of the merchant trade is carried on, that including Bouham Strand, Winglok Street, and Jervois Street, showed at last census a decrease in population of about 16 per cent from the previous one. A few years ago it was well nigh impossible to obtain a shop or warehouse for immediate entry in those streets, each vacancy being keenly com- peted for. Now there are said to be ten houses vacant in Bouham Strand and Winglok Street, and no doubt a comparison of the rents ruling then and now would confirm the fact that there is a decreased demand for business premises.
Granted then that the depression is real, and that whilst it has continued for some time, there seems little immediate prospect of a change, it is natural to look for some reasoU reasons to account for it, with a view to finding out whether or not anything may be done in the way of remedy.
or
trade of great maguitude. But it would seem as if these were not so highly esteemed now
as
heretofore. It is said that business which would formerly have passed through Hong kong as a matter of course is now done direct with the consuming centres, and on investiga.
tion there seems to be some measure of truth in this assertion.
The Returns of Trade and Trade Report, 1906, Part I. Abstract of Statistics (Chinese Imperial Maritime Customs), give the value of the trade between Hongkong and China for The Colony's share in the trade of eight years. China, as a whole is a decreasing one, and al- though the actual value of the imports from Hongkong has increased 20 per cent. during that period, it has been stationary for four years, and that of itself is an unhealthy sign. But so far as China is concerned these statistics issued by the Customs are of little value when the object is to find out whether actual trade hero or not. Ocean is being carried on steamers do not as yet call at the Treaty ports, and as cargo for these places is still transhipped at Hongkong, the entries in the returns show it as imported from this Colony. It is only by looking into each class of business individually that we see what is really taking place.
on
Several local causes have been suggested. There is no doubt but that large sums were lost
The branches of trade which have already left during the Russo-Japanese war in attempts at Hongkong are many, and in most cases it is running the blockade and through speculation difficult to see how they could have been retained. in foodstuffs. There was also a period of wild
The Japanese have taken the Newchwang trade which used to be in Hongkong hands, speculation in yarn, which ended in the practical
and have also captured that carried extinction of almost all the old dealers. These
between Japan and Singapore and the and other speculations have certainly been
Dutch Indies, with a detrimental effect on responsible for a large wastage in capital. But at present there is no complaint from the the Sugar trade with Java. Rice now goes Chinese that money is dear. Capital seems to
direct to Peru from Siam instead of through be freely available for all legitimate trading. Hongkong. Kerosine Oil is imported to the although it may be scarcer for any speculative Treaty ports in bulk, instead of being distributed here. Flour, which used to he imported here ventures. It is therefore hardly correct to ascribe to the above causes any great diminution and distributed far north and south, is shpped in the volume of the trade carried on indirect to Shanghai. Chefoo. Tientsin. and Vladivostock; and Singapore now draws direct Hongkong.
ou Australia for the requirements of the Straits. There are other classes of business hardly so important which have also been diverted for good.
Sanitary and other restrictions affecting the Chinese living in the Colony, aud those placed on Hongkong consequent upon the existence of plague, have also been mentioned in this counec- tion. The former. which if they attained their object would lessen the bad effects of the latter, can, however, have really little effect on actual trade. They may affect the city as a residential quarter, they might even have a depressing effect on local industries, although this hardly seems to have been the case, but when it comes to actual merchant business it seems improbable that regulations as at present existing, or any others on similar lines, could stifle the commerce carried on by the Chinese. Any restrictions imposed for the sake of the general health of the community can be as nothing com pared to the many advantages the Chinese merchants enjoy here under British rule.
quarantine
which ressels from Hongkong are subjected may, at times, be detrimental to certain classes of trade, but it is only for part of the year, and business has been very much better at times when plague was more evident than it has been of recent years.
Local causes do not, however, explain a lack of demand from consuming centres, and it is of this that the Chinese Yarn, Piece Goods, and Flour Merchants bitterly complain.
The
to
One reason has thus been suggested toaccount for the present depression, and in order to see how far it may be a true one, it is necessary to
With regard to those trades which still remain with us, some enquiry is necessary as to what extent they are likely to follow the above, or in how far the depression now existing way be caused by their having already done so to a smaller or greater extent.
Take the case of Yarn. Hitherto all Yarn intended for South China has been purchased hy Hongkong dealers and re-sold to Haiphong, Canton, Swatow, and other ports. But the Japanese have started selling direct to these places, and as their steamers are able to go direct the these ports, Hongkong also loses the tran- shipping business. It is also reported that the Hougkong Mill is going past the dealers in Hongkong, and selling direct in the coast ports, and there are instances of sales by European importers to the Agents of Canton and Hai- phong firms without the usual intervention of a Hongkong yarn merchant.
As regards Picce Goods, the dealers in Houg. kong are complaining that much of their former business has been taken away by direct The Japanese are said to be importations, most prominent in this direction. their com petition being keenest in Swatow and Amoy. Their goods, principally of a low class, besides cutting into the trade of similar British and
Indian productions, are also taking the place
|
|
|
|
In the case of Flour, as inentioned previously, this Colony used to be the distributing centre for a large district, and when the trade of the most out-lying ports left Hongkong it was naturally hoped that Canton, Swatow, and other places near at hand, would certainly be left undisturbed.
Large quantities, however, have within the last year been sold direct to Canton dealers, and several lots to those of Swatow. One big Swatow dealer in flour has now a representative here who buys direct from European houses. It is also reported that the Japanese have done a fair business direct.
În metals the tendency is not nearly so well marked. Certain Canton men have however visited Hongkong and placed orders direct with Europeans, such business being formerly transacted through Chinese merchants here.
As regards sundries, such as singlets, socks, etc., it is now almost essential for European houses which wish to do a good business in these goods, to deal direct with Canton dealers. Representatives of the various firms in this tradle visit that city regularly for the purpose of getting orders, which are becoming larger and more varied as time goes on.
The above are some of the principal branches of merchant business carried on between Hong. kong and China; it may be that others would show a similar tendency.
With regard to Manila, which place Hong- kong formerly supplied with goods of all classes, a falling off is particularly noticeable. This may be due to some extent to the fact that the American mail steamers run a service now call-
ing at that port, giving direct shipment. It may also be due to American goods taking the place of British and Continental, but many such goods formerly bought through the Chinese in Hong- kong are now shipped direct from Europe.
Formosa is another market which has been, to a great extent, lost to us, the Japanese finding a good outlet there for many of their products.
practically
Thus is would seen probable that the depres- sion existing is in some measure due to direct purchases by the consuming districts. That Hongkong population has grown in districts outside those occupied by merchants is most likely due to the development of manufactures, this is a most hopeful sign in the and present position of the Colony. The thin end of the wedge has, however, been inserted into much of our merchant trade, and, even although Hongkong may prosper in other ways, there is no reason why steps should not be taken to retain at least what is left. We still have all the transhipping of the cargo, we have the storing of a fair pro- What has been lost is the portion of it. Chinese, and, sometimes, the European mer- chants' profit. We have also the prospect that the larger this direct business grows, the greater the chance that it will pay shipping companies to run steamers calling at these ports, with the loss to the Colony of the transhipping. The firms which have been pushing this direct busi- and have been principally Germans Japanese people with no interest in the future of the Colony. But their action forces others to follow suit, and whilst the merchants here may
ness